10 Best PayPal Alternatives for e-Commerce Stores

10 Best PayPal Alternatives for e-Commerce Stores

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Without a doubt, PayPal is THE payment processor that one must use. It is one of the biggest payment processors in the world, and it is also the most popular. The company has one of the most secured systems on the planet, and it is offered in hundreds of countries, hundreds of currencies, and hundreds of industries.

But then, it does not come without shortcomings. There are those who do legitimate business only to get their accounts flagged and locked. And if this happens, they have to go through a nightmare of proving their identity and the legitimacy of their business.

Some have bad but not the worse and experiences, while others just do not like the fees or how it works. PayPal has a great service—that I have to say. I have been using it for more than a decade and never had any issues about it.

But I want to help people who do not like PayPal. I also use other payment gateways such as 2Checkout, and I process my financial transactions with other providers like Skrill.

Today, I will share with you 10 of the best alternatives to PayPal that you can use in your e-commerce or dropshipping store. These are payment gateways that allow you to charge credit cards, or have your customers pay you from their own account balances.

What are these 10? Take a look below:

  1. Shopify Payments
  2. Google Pay
  3. Apple Pay
  4. Skrill
  5. Square
  6. Neteller
  7. 2CheckOut
  8. Braintree
  9. Amazon Pay
  10. Stripe

We will explore these 10 best PayPal alternatives for e-commerce stores, and I am confident that you would be able to choose one, or several, that best suits your business and your financial preferences.

Let us get started!

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shopify 5

1. Shopify Payments

Shopify payments is easily the best option if you built your e-commerce store on Shopify. As an online seller on the platform, nothing beats this option because it was made to integrate with Shopify stores. The set-up is easy, and you do not have to keep multiple accounts.

Once you have a Shopify account for building a dropshipping or e-commerce store, the Shopify Payments gateway is ready to use.

On another hand, you do not need a Shopify store to use this service. Shopify has a point of sale system that you can download on your phone, and you can start charging customers from there. This, however, works best for brick-and-mortar stores. You can also use the POS system if your store is on social media, like Facebook.

Advantages of Using Shopify Payments

  • The system is easy to set-up
  • The POS system works anytime, even for offline transactions
  • Highly secured payment gateway, rated as Level 1 PCI DSS compliant

Disadvantages of Using Shopify Payments

  • The Shopify card reader only works on iPhones
  • The payment gateway can only work Shopify stores in some countries; no POS and it cannot be integrated to other platforms
  • There is no fixed fee for transactions; they change according to your plan

What is a Shopify card reader? It is a small device that can read credit cards in a physical environment. Instead of you going to banks and applying for that machine where the card is swiped, you order a card reader from Shopify and pay for it.

Once you have a card reader, you use that to “swipe” your customer’s credit card. The payment will go to your Shopify Payments balance, which you can withdraw later on.

Shopify Schedule of Fees

Online credit card rates2.9% + 30¢2.6% + 30¢2.4% + 30¢
In-person credit card rates2.7% + 0¢2.5% + 0¢2.4% + 0¢
Fee for using other payment processor)2.0%1.0%0.5%

Withdrawal Information

You can withdraw money from Shopify Payments with a bank account. The pay period can take between 2 and 4 business days, depending on your country. You can go to your dashboard to schedule your payouts, but you cannot send the funds to your bank account at will like you could on PayPal.

Important note: you must complete the registration and set-up your withdrawal details within 21 days after signing up on Shopify Payments If you fail to do this, all sales will be refunded to your customer.

google pay 1

2. Google Pay

Google Pay is a giant in the payment processing community. Considering that it owns Android, it is but natural that Google can market its payment processing system to the billions of people who are on the Android operating system.

Those who are making purchases in the Google universe need not create another account to pay, provided that the merchant accepts Google Pay. You have a huge advantage if you use this payment processor because it is a known brand.

Do you know what this means? It means that anybody on the Android platform is your potential customer. You can use the Google Pay system on apps, on your store, and even on a physical brick-and-mortar-business.

Advantages of Using Google Pay

  • Google Pay has a payment that is NFC-based. What this means is that if you have its physical card reader, this card reader can talk to the customer’s phone. The customer no longer has to whip out his card. Instead, the card reader is going to charge the customer’s Google Pay app.
  • You can create a loyalty program and reward repeat buyers through the loyalty program management system.
  • You can process in-app purchases and even online payments

Disadvantages of Using Google Pay

  • The system is a tad difficult to implement
  • Before you can make it work, you need the services of a computer programmer to set up your API
  • It takes days to set it up

Google Pay Schedule of Fees

This is the awesome thing about Google Pay. Merchants like us do not get charged a fee for accepting payments.

Withdrawal Methods

To withdraw your earnings, just open the Google Pay app or on your computer. Click the “Cash Out” button, and then decide how much you want to withdraw. You can keep up to $25,000 on your Google Pay balance.

You can withdraw your Google Pay balance to your linked bank account or debit card. The withdrawal is free, and can take anywhere between minutes to five business days.

If you use Google Pay, you can set up gift cards, special offers, boarding passes, and even special offers. You can also use Google Pay to charge for subscriptions and recurring payments. Now, take note that Google Pay is NOT Google PLAY.

The Play Store is where you can sell digital goods, but the PAY app and system is how you charge money. If you sell on the Play Store, you will pay a fee of 30%.

apple pay 1

3. Apple Pay

Like Google, Apple has its own payment processing arm. With Apple pay, you can accept payments from your store or from the apps you sell on iTunes.

It is a digital wallet that allows customers to pay and also send money to their friends and families. Apple Pay can also be used to make payments in person. And the best part? It can work on contactless terminals even if the merchant from a physical store has no Apple Pay card reader.

To be able to set-up Apple pay, you need to apply. First, you need to sign-up and then create a merchant ID. Next, you have to create what is called a Payment Processing Certificate, and then enable the Apple Pay Xcode in your dropshipping store.

This sounds a tad technical, but it is not, especially so if you are using a platform like Shopify where you can easily integrate these payment options with a few clicks.

Advantages of Using Apple Pay

  • Compatible with most banks
  • Highly secure financial environment
  • Has fraud prevention systems
  • Uses NFC for contactless payments
  • No transaction fees

Disadvantages of Using Apple Pay

  • Can only be used for now in US, Canada, and Australia
  • Can have some software bugs from time to time so you cannot charge payments

Apple Pay Schedule of Fees

As mentioned earlier, Apple Pay does not charge merchants any fees for receiving money from the system. Like Google, Apple will only charge you money if you are selling your products on iTunes.

Withdrawal Methods

You can withdraw your earnings from Apple Pay to your Apple Cash Card, which you need to apply for, to your debit card, or to your bank account.

To transfer, you just have to log in to the app or your computer, then click or tap on “Transfer”. Select how you want to proceed and the process will be completed in minutes. For bank transfers, the withdrawal can take up to three business days.

skirll 1

4. Skrill

Skrill is famously known for processing payments for casinos. What others do not realize is that it is not exclusively servicing online casinos. It just happened that way because it was one of the earliest payment processing systems whose management had no qualms with the casino industry.

Skrill works pretty much like PayPal. As a merchant, you have to sign up for an account, and then you can start charging your customers. Before they can pay you, they must have a Skrill account. If not, the system would ask them to create one in a few minutes, and then they can add their card as a funding source.

The fees for Skrill are smaller compared to its peers, and you can rest assured that it is a legitimate company. It has been around since 2001, and it has processed billions of transactions for its clients.

To set it up on your store, you must first create a business account. Next, you have to create your merchant code. The last step is to go to your online store provider or platform, and then select Skrill as a payment method.

The online store platform would ask you for the merchant code, and then the two would integrate. If your store is not built on Shopify, Jumpseller, or Magento, you have to contact Skrill for a guide on how to integrate it with your store.

Advantages of Using Skrill

  • Easy to use and integrate
  • Safe and secure payment gateway
  • Free to receive money
  • Supports crypto-currencies
  • Supports 20 currencies
  • You can get a Skrill card so you can withdraw your earnings

Disadvantages of Using Skrill

  • Not a well-known brand in US; popular in European markets
  • Customers who got a refund would have to pay fees if they send their money back to their account

Skrill Schedule of Fees

Bank TransferGBP 4.62 or EUR 5.50
SwiftGBP 4.62 or EUR 5.50

It is free to receive money with Skrill if you are merchant, but you would be charged fees if you withdraw.

Withdrawal Methods

As you can see from above, you can withdraw by transferring your funds to your local bank account, your Visa, or using another wallet called Swift.

The alternative to this is that you can apply for a Skrill Mastercard if your country is eligible. Once approved, you can use your card as a debit card, and withdraw funds from ATMs that accept Mastercard.

square 1

5. Square

Founded back in 2009, Square grew fast because it immediately went mobile. A year after its founding, it already had an app that customers can use to pay merchants online. The company went public six years later, and has now grown into one of the biggest payment systems in the world.

Worldwide, Square has more than 2 million active merchants that accept it for payments. The payment system is primarily designed for mobile devices, but yes it works on desktop, too. As a merchant, you can use this system to send invoices, charge credit cards, a POS, or through its card reader.

Advantages of Using Square

  • Easy to set-up and integrate on online store platforms
  • You can avail of business loans from the company
  • It has a card reader that you can buy so you can charge from physical stores
  • There are no monthly fees for offline transactions

Disadvantages of Using Square

  • Expensive online transaction fees
  • Many transactions do not complete and are rejected
  • The card reader is not reliable

One good thing to mention about Square is that it has dashboard where you can control everything.

Here are some of the things you can do with it:

  • View statistical reports
  • Get a view of your gross income and what products are the top sellers
  • Has a payroll system that allows to send money
  • You can create employee accounts on Square
  • Use it as a timekeeping system
  • Automate your tax filings

Square Schedule of Fees

Card Processing Fee2.65%
Online Sales and Invoice2.9% + 30 cents
Manual Orders3.4% + 15 cents

Withdrawal Methods

You can withdraw your funds from Square to your linked bank account. You can also order a Square card, which is a debit card, and use it to withdraw funds from an ATM. If you have a VISA or Mastercard debit card, you can also withdraw to that and it would take 24 hours to process. The withdrawal fee is 1.5% per transfer.

If you use Square, you can charge people for your online store products in person. But before you can do this, you have to order the Square POS.

neteller 1

6. Neteller

Like Skrill, Neteller is a popular payment processor choice of gamblers. Despite that, it is also a leading payment gateway for online shops. Neteller and Skrill are now sister companies. They did not merge, but they are bought by the same company.

Founded in 1999, Neteller is a Canadian company that was later transferred its headquarters to the Isle of Man. Apart from a payment processor, it is also a leading platform for trading forex and crypto-currencies.

Advantages of Using Neteller

  • Merchants can order a debit card called Net+card; you can withdraw your earnings from an ATM with this card
  • Low fees to receive money
  • Highly secured financial systems
  • Fast timelines for withdrawals

Disadvantages of Using Neteller

  • Charges an admin fee if your account is not active
  • Customers who deposit money into their account must pay a fee
  • High withdrawal fees

Neteller Schedule of Fees

Neteller does not charge fees if you accept money. However, it charges 1.5% if you send money or if you deposit money into your account.

Withdrawal Methods

  • Below are the accepted methods to withdraw your money and their fees:
  • Bank Transfer – $10
  • Member Wire – $12.75
  • Transfer to Merchant sites – 0%
  • Transfer to other people with no Neteller account – 1.45% + $0.50

There are more than 48 ways for your customers to fund their Neteller account, which gives you leverage because your customers have more funding options to be able to pay you through Neteller. Also, you can accept bitcoin.

If you have the Neteller card, the fee for withdrawal from an ATM is 1.75%. If you would withdraw from a foreign country, you would be charged a foreign exchange fee of 3.99%.

2checkout 1

7. 2Checkout

This company is a silent giant. It has a worldwide coverage and pretty much processes payments in a lot of financial institutions, but customers do not see the 2Checkout brand.

2Checkout does only offer a one payment processing type, but a whole gamut of it. The company works with huge enterprises, and also offers its services to small and medium businesses.

As one of the biggest payment processors online, 2Checkout offers recurring billing, subscriptions, and other forms of billing structures within its system. It can work like Amazon Pay and Google Pay.

Advantages of Using 2Checkout

  • Easy to integrate with other platforms
  • Has a lot of payment structures to offer like recurring billing
  • One of the most payment processors in the world

Disadvantages of Using 2Checkout

  • Charges high fees
  • It is difficult to set-up; you need business documents before you can use it

2Checkout Schedule of Fees

Online sales3.5% + $0.35 per transaction
Subscription4.5% + $0.45 per sale
Digital Goods6.0% + $0.60 per product

Digital downloads refer to eBooks and other downloadable digital products.

Withdrawal Methods

2Checkout offers four ways for you to withdraw. These are EFT ACH, Payoneer, PayPal, and Wire Transfer. The frequency of payout depends on your monetization model. For subscriptions and charging for products, the payout is weekly. For a monetization platform like ads, you get paid monthly.

With 2Checkout, you can enjoy several services. Below are the most common types of services you can get.

  • Digital commerce – create your own shopping cart and checkout system instead of using the default one on 2Checkout
  • Global payments – a payment system where your customer inputs the credit card number upon checkout from your store
  • Tax Management – the system can help you identify your tax duties per state. This service also works if you are in the European Union.
  • Reporting – view your reports and payment performance on one dashboard, including the fees you pay and the taxes due to the government
  • Subscription – bill your customers monthly or annually upon checkout.

2Checkout does not charge any monthly fee. You will only pay these fees if you made a successful sale.

braintree 1

8. Braintree

Braintree used to be an independent company but PayPal bought it out. It is not just a simple payment processor, as it does have several marketing features and elements that can help you increase your conversion rate. Braintree does this by smoothing out the checkout process, making it easier for your customer.

Even if Braintree is owned by PayPal, they have different systems and different rules. Braintree is a product targeting merchants, while PayPal is one that is pretty much designed for the masses. PayPal has stronger focus on per-to-peer payments while Braintree was designed for e-commerce.

Advantages of Using Braintree

  • Works on multiple e-commerce platforms
  • Provides a complete product for payment solutions
  • You can use Braintree to take payments from customers who use other payment processors

Disadvantages of Using Braintree

  • There were reports of accounts being put on hold without letting the merchants know
  • Some clients are unhappy because getting paid is troublesome

Braintree Schedule of Fees

The company charges a fixed fee of 2.9% + $0.30. It is the same with what PayPal charges. If you receive payment and issue a refund, Braintree would only return the 2.9% to you, but it keeps the $0.30.

Withdrawal Methods

You can withdraw your Braintree earnings via bank transfer, PayPal, or the Braintree Amex card. The bank transfer takes two to five business days, while PayPal is instant. With the American Express card, the withdrawal automatically happens within two to five business days after the payment of your customer has cleared.

Here is a list of the different services you can avail from Braintree:

  • Fraud tools to prevent chargebacks
  • Reporting dashboard
  • Payment gateways
  • Secured transactions through the company’s encryption system
  • Phone and email support
  • One-time charge for your products or recurring billing for subscriptions
  • Can integrate with multiple e-commerce platforms

If you use Braintree, your customers do not have to sign-up for an account. They can use Apple Pay and Google Pay to pay you, or they can just input their credit card information. Your customers can also pay you via their PayPal accounts if that is what they prefer.

amazon 2

9. Amazon Pay

In case you didn’t know, sellers on Amazon cannot charge their customers with PayPal. This is because Amazon has its own payment processing system. The payment system works on both mobile and desktop. One cool thing about Amazon Pay is that the users can pay for items online using their voice. All they need is to tell Alexa to do it.

Advantages of Using Amazon Pay

  • Amazon Pay users can pay you via mobile, desktop, and through Alexa with voice command
  • The checkout was designed for e-commerce; seamless customer checkout experience
  • Offers several ways for you to charge money according to your business model

Disadvantages of Using Amazon Pay

  • You will pay $20 if a customer files a chargeback fraud
  • You will pay fees if you receive payment for other currencies

Amazon Pay Schedule of Fees

Like PayPal, the payment or receiving fee per transaction is 2.9% + $0.30. If the payment came from another country, Amazon charges a cross-border fee of 3.9%.

Withdrawal Methods

You can withdraw your Amazon Pay balance to your bank account. It could take between five and seven business days to complete.

Amazon is a great option because it can easily integrate with several e-commerce platforms. Examples of these are Magento, Shopify, PrestaShop, BigCommerce, LemonStand, and many more.

With Amazon Pay, your customers can pay you even if they do not have an Amazon Pay account. All they need to do is to complete the checkout by supplying their credit card information. Amazon Pay accepts AMEX, VISA, Mastercard, and Discover cards.

With Amazon pay, you can also charge recurring payments, which is good if your monetization model is through subscription.

Here are some of the types of payments you can charge with this system:

  • One-time – the most common payment type where a customer buys the product from your store
  • Deferred – the payment is late, and it was designed to be that way. Deferred payments are the kind of payments used for promotions like Buy Now Pay Later.
  • Split – with Amazon Pay, you can offer a split payment so your customers do not have to pay a big sum right away
  • Subscription – charge your customers a recurring fee for your subscription-based services like a membership programs

Amazon did a good job on this one. It is by far one of the most effective and competitive payment processors for online merchants.

stripe 1

10. Stripe

Like Braintree, Stripe started out as an individual company, but was later on bought by PayPal. Still, it operates independently from its mother company.

Almost all e-commerce platforms have Stripe as one of the payment options, so integration is not an issue. With Stripe, you can charge online payments from your customers or use a terminal to take payments offline.

Advantages of Using Stripe

  • Enjoy low transaction fees
  • No monthly contracts and no monthly fees for using the system
  • You can customize some features to fit your brand
  • Fast payment processing

Disadvantages of Using Stripe

  • Like Braintree, there are complaints of accounts being frozen
  • Can only be withdrawn via bank transfer

Stripe Schedule of Fees

The fee to use and receive Stripe is 2.9% + $0.30. However, you do not have to pay $30 per month unlike its parent company, PayPal.

Withdrawal Methods

You can only withdraw your money to your linked bank account. The withdrawal can take between five to seven business days.

Here are the things that Stripe has to offer:

  • Charge international cards
  • Card authorization (if you are a hotel or booking company)
  • Charge subscription or recurring billing
  • Highly-secured payment environment
  • Customers can pay you via Apple Pay
  • Accept credit card payments even if your customers have no Stripe account

Here are some more features of Stripe:

  • Accepts more than 135 currencies
  • Accepts local payment methods
  • You can enjoy 24/7 support
  • You can add users with different permissions to help you in your business
  • Real-time reporting dashboard

Stripe does not charge fee for all these services. You only get charged if you received money. Indeed, Stripe is a great platform that works best for online payments. It does not charge monthly fee, and you can use its service for free. Pay only when you also get paid.

PayPal Alternatives Summary

There goes our top 10 best PayPal alternatives for e-commerce stores. Even if Braintree and Stripe are owned by PayPal, they work independently and are only supervised by their parent company.

PayPal is leaning towards peer-to-peer money transfers and for freelancers, while the two companies it bought are designed for merchants.

PayPal is not the only payment processor so if you do not like it, choose from the ten that I recommend here. Choose a couple of them that can provide what you need for payments. Pay attention to your monetization platform, the fees, and the withdrawal details.


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