Best PayPal alternatives in 2021 that will help you manage your online business efficiently

9 Best PayPal Alternatives for Small Businesses In 2021

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When PayPal came to the scene in 1998, It was the only company that offered an electronic payment system to the masses. However, many companies have since been developed to compete with PayPal in offering better merchant services in payment processing. After seeing many complaints from small business owners online, I decided to research the best PayPal alternatives that most sellers are using now.

There are many reasons you may be considering PayPal alternatives, but some of the most common reasons include; 

  • You are looking for a better point of sale service functionality; PayPal offers unlimited solution to POS compared to other companies.
  • You just started an online business that sells digital products or services; PayPal offers limited Seller Protection for digital goods and services and has been known to hurt entrepreneurs and small business owners from rogue customers.
  • You want a dedicated merchant account; PayPal does not separate merchant accounts and Aggregate all transactions into one single merchant account.  yet there are numerous PayPal alternatives that offer this functionality.
  • You need better and more features than what PayPal offers; while PayPal has been in the market for decades, their features are limited and basic in functionality. However, they are other PayPal alternatives that offer more features and advanced customization for online payments to businesses.

1. Payoneer

Payoneer ranks in this list for being the best PayPal alternative that allows sending and receiving free bank payments for B2B.

With Payoneer, you can send and receive free payments if your customer or vendor is a Payoneer member. 

Payoneer is a great option for sending and receiving payments online because of its free transaction between Payoneer members. 

Payoneer is also one of the best PayPal alternatives for international payments as you can get paid in multiple currencies, and has functionality for billing clients overseas.

Payoneer is particularly useful for freelancers work for international clients and who needs to frequently send invoices through a merchant payment service. 

However, if you want to accept payments directly from non-Payoneer customers, they will charge you 3% for credit transactions and 1% for e-check transactions.

It’s easy to create a Payoneer account, and there are no charges when opening one.

2. Skrill

Skrill is a Pay Safe company that works similarly to PayPal.  It’s a great option for US and European clients, which makes it a valuable merchant payment processor if you were targeting transactional exchange mainly from Europe and the US.

Just like PayPal, Skrill is heavily invested in offering security for its customers and it’s straightforward to use.   it’s easy to open an account and use the platform immediately, and like PayPal, Skrill is more suited for international transactions.

3. Stripe

Stripe is a popular PayPal alternative that works mostly for the Internet business.  the great thing about Stripe is that it integrates with other platforms include Wix, Weebly, and Shopify.  this makes stripe a great option for e-commerce businesses.

The shortcoming of stripe is its technical demand and you might not understand all that it off, if you have no coding background.  However, Stripe is used in more than 100 countries and therefore setting it up, might be worthwhile to you.

Stripe has an integrated pricing option for businesses which includes at 2.9%+ 30 cents for every successful card charge.

Stripe offers a custom pricing option that works best for your business and the pricing varies on how that plan is set up.  save a lot of money for your small business using these customised pricing plans.

4. Google Pay

Google Pay allows online shopping as well as paying for purchases in stores. Google Pay is one of the best PayPal alternatives for collecting payments from shoppers.

Google Pay is more of a virtual wallet and you can use to ask for, or provide payments, either online or on your phone.

Although it’s made purposely for shopping experiences, you can use it as a simple payment processing solution for your small business.

API integrations can help you add Google Pay to your website or POS. You could use it to provide your customers with options for making payments. However, you can only use Google Pay if you already have other payment solutions on your website or POS system.

5. Klarna

If you are looking for a solution that not only processes payments, but also offers payment plans for your customers, then Klarna is the best solution for you.

With Klarna, you can set up a simple online checkout- or you can set up unique payment options such as paying after 30 days, paying in 4 instalments, or financing payments.

While this payment solution is not directly a PayPal alternative, other PayPal alternatives pricing for Klarna depends on where your customers are shopping from, and the specific solution that your business provides.

You can integrate Klarna with apps, social media sites, paywall websites and forums, and ecommerce platforms.

6. Square

Best overall payment online payment system for both online and physical businesses.

Also listed as the best mobile credit card processor for small businesses.


  • Easy application and set up
  • Free Point-of-Sale Software
  • Instant Deposit
  • Chargeback Protection
  • Addon Services- Payroll, team management, appointments, invoices, loyalty, marketing

Square is best known for its ease of use and transparency in the fees and pricing methods used. Square makes transactions easy, which is critical for the success of every small business.

It comes with a free credit card processing app, which includes a full suite of POS features that allow for integrations and augmented addons.

Square is one of the best PayPal alternatives because it provides access to credit card processing for everyone, including small businesses and even individuals.

Square has a free app and you can even get a free card swiper for each account, without having long term binding contracts, only simple flat rates.

Square has different charges depending on the mode of accepting payments that you choose.  However, the charges are a flat rate and you will always know what to pay every month.

With Square, you don’t have to worry about different card types, as there is a standard charge for corporate, reward, credit, and debit cards. Whether your customers use Visa, Mastercard, American Express or Discover, you should expect a standard charge on Square.

The pricing is transparent and all the pricing information is provided in the company website.

In addition, you don’t have to worry about maintenance fees or PCI compliance fees as Square only charges processing costs for your transactions. You don’t also have to worry about meeting monthly minimums.

Here are some of the fees that you won’t have to pay for using Square;

  • Application and set up fee
  • Monthly/ statement fee
  • Payment gateway set up fees
  • Monthly payment gateway fees
  • Annual fees
  • Chargeback fees
  • Account closure fees
  • PCI compliance fees
  • Instant Deposit and Chargeback protection

It takes Square 1-2 business days to transfer all your transactions into your bank account. However, you can get instant deposits to your bank account at a cost of 1% of your total transfer.

7. Authorize.Net is a great PayPal that offers the best option for a bundled gateway and multicurrency support.

The company, which started strictly as a payment gateway has evolved over time to offer its own payment processing services. provides you a merchant account through a partner.

It’s a great payment processing alternative to PayPal for small businesses as it offers the widest compatibility. It has an API that enables you to integrate with multiple solutions, including in-app payments. They even offer basic mPOS and buy/ donate buttons.

  • Here are some benefits of using;
  • Offers support for multiple currencies
  • Billing is on month-to-month basis
  • High security measures through advanced fraud detection
  • eCheck processing

However, may not be suitable for low-volume businesses due to a high flat-rate prices for merchants. In addition, it may need you to use another payment processing service if you want to reduce your budget.

8. 2Checkout

2Checkout is a great PayPal alternative that is best for online merchants who need advanced processing features for international ecommerce.

While 2Checkout does not support credit card processing for brick-and-mortar businesses, advanced features such as recurrent billing and an online store builder makes it a great tool for use by many small businesses.

It’s pricier than other basic competitors, but comes in handy for online businesses that need advanced features for managing subscriptions. It’s also great for operating in countries that do not have many options for payment processing.

2Checkout is compatible with nearly all shopping carts in the world of online business and worth its high price.

9. Shopify Payments

Shopify Payments closes our list of the best PayPal alternatives. Shopify Payments offers easy integration with online stores and has a solid track record of supporting hundreds of millions of online businesses globally.

The great thing with Shopify Payments is that it has an inbuilt payment processor that allows you to receive payments directly from your store, without need for secondary payment providers.

Shopify Payments is easy to set up and the usability is robust, which makes it a favorite PayPal alternative for many online businesses.

What to Consider When Looking for the Best PayPal Alternatives

A lot comes into play when you are looking to find the best PayPal alternative for your small business.

These considerations include;

  • Ease of use
  • Compatibility and Integrations
  • Transaction fees
  • Monthly fees
  • Extra features; such as recurrent billing or processing big payments
  • Transparency in pricing
  • Invoicing features and mobile POS app availability

It’s important to note that PayPal has most of these features and benefits and your interest in a PayPal alternative may be influenced by checking the services that outperform PayPal in what you need.

While my opinion is not to be considered an expert opinion and should not be held as a Bonafede truth, opting for a PayPal alternative that protects you as a seller should be a good start.

PayPal has a reputation of harming small businesses through unexplained limitations and irreversible suspensions that have seen businesses lose hundreds of thousands of dollars. In addition, the irregular and untamed transaction fees on PayPal are way over the top, and finding a transparent option inspired me to do this research and find the best PayPal alternatives.