“Online payment will continue to play an ever-growing and significant role in the development of e-commerce.” – Lucy Peng, co-founder of Alibaba
The backbone of e-commerce, like in any endeavor, is its customers, but the backbone of this substance is online payment, the reason why a seller and buyer can transact without ever meeting in person. As e-commerce continues to grow, finding the right payment solution is critical for both businesses and consumers. PayPal, one of the pioneer companies for online payments, remains a popular choice. However, there are a growing number of alternatives offering lower fees, better international support, and more advanced features. In this article, we’ll explore the best alternatives to PayPal for 2024, comparing their features, fees, and use cases to help you find the ideal solution for your needs.
Why Look for Alternatives to PayPal?
PayPal has been a go-to payment service for over two decades, but it’s not without its limitations. Whether you’re looking for lower transaction fees, better currency conversion rates, or expanded international payment options, there are numerous reasons to consider other platforms. Common concerns with PayPal include:
- High fees, especially for international transactions
- Limited customer support
- Restrictions in certain countries
The good news is that several platforms provide better solutions for specific needs. Let’s dive into some of the best alternatives to PayPal in 2024.
Top Alternatives to PayPal for Online Payments
1. Wise (formerly TransferWise)
Wise supports over 50 currencies and charges lower fees than PayPal. It is easily a better choice for freelancers and small businesses dealing with international clients. With its real exchange rate (mid-market rate), it ensures its users get a higher amount when changing currencies.
Key Features:
- Low-cost international transfers
- Real-time exchange rate
- Multi-currency accounts
With all these features, Wise users readily compare it to PayPal, and Wise comes out on top.
2. Visa Card
This is a multinational card payment service that allows payments to be made worldwide through Visa-branded debit cards, credit cards, and prepaid cards. Although Visa does not issue this card directly to customers, it gives financial institutions Visa-branded products that are used to offer credits and debits so their customers can benefit from them.
Visa cards are a secure payment system for online transactions and feature technologies that protect against unauthorized use, which is why merchants worldwide adopt this technology. Visa cards have helped financial institutions worldwide to solve the problem of the unbanked population. An example is the Philippines in which 44% of the bankable population is unbanked.
Financial institution customers in the Philippines who love iGaming can use their Visa card to make deposits in their preferred online casinos, which will encourage the unbanked players to be banked. This is a big plus because a marketing manager, Ara Bernier, has curated a list of secured and verified iGaming sites that accept credit card Philippines which will allow players to deposit in their preferred online casinos without any cause for alarm.
Best Alternatives to PayPal for Virtual Terminals
When it comes to online payments via virtual terminals, there are better alternatives to Paypal. If you’re a business that needs this, apps like Stripe and Square offer more comprehensive solutions to your needs.
1. Stripe
Known for its developer-friendly tools and ability to integrate seamlessly with websites and apps, Stripe is an excellent option for businesses that require custom payment solutions and advanced reporting features. You can read discussions on Reddit to see how users compare Stripe to PayPal.
Key Features:
- Supports over 135 currencies
- Extensive integration capabilities
- Virtual terminal for online payments
- Personalized payment solutions
Of its numerous features, Stripe’s API is the most praised. It allows companies to create personalized payment solutions suited to their business model. Patrick McKenzie, the founder of Kalzumeus Software’s words must be taken at face value when he spoke about Stripe in a guest post, noting, “Stripe’s API is the most incredible API I’ve ever worked with.” For businesses seeking customized payment flows and global scalability, Stripe remains unmatched.
2. Square
Square is an up-and-coming, well-rounded payment processor with a virtual terminal and point-of-sale solutions. With a basic account, it can serve up to 4 million Americans for free. It’s especially popular with small businesses, offering features like invoicing, payment links, and hardware integration for in-person sales. If we can come up with something that makes it easy to do transactions and payments between people, we’re really building a better system of trust. These are the words of the CEO of Tesla and SpaceX, Elon Musk.
Key Features:
- Free point-of-sale (POS) hardware
- No monthly fees for basic accounts
- Accepts a wide range of payment methods, including mobile wallets
Comparing PayPal Alternatives for Money Pools
PayPal Money Pools was a popular feature for users who needed a payment solution to pool money for group activities or events. Since PayPal discontinued this service, alternatives like Venmo and Splitwise have filled the gap.
1. Venmo
Venmo allows users to send and request money quickly, making it ideal for pooling funds among friends or family. Its social features add a fun twist to splitting costs for group activities, and it is even now used as a verb to request payment from friends.
Key Features:
- No fees for bank transfers
- Social sharing for payments
- Split bill feature for group payments
2. Split Wise
Splitwise focuses specifically on managing shared expenses, making it perfect for roommates, travelers, or friends who need a clear way to track and settle group expenses.
Key Features:
- Automatic debt tracking
- Easy payment integration with PayPal and Venmo
- Expense categorization and analytics
While PayPal remains a strong contender in the payment solutions space, there are plenty of alternatives offering more tailored features, lower fees, and better international support. Whether you’re a business looking for a virtual terminal, a freelancer in need of lower international fees, or simply pooling money for group expenses, options like Wise, Skrill, Stripe, and Visa cards offer competitive features that may better suit your needs in 2024.
The right payment solution will ultimately depend on your specific requirements. Be sure to explore multiple options, compare fees, and review user feedback on social media platforms like Quora and Reddit.
