Published on Apr 25, 2025 4 min read

The 5 best alternatives to PayPal for businesses

The demand for online payments has surged dramatically over the past decades. In 2023, the total volume of international cross-border payments reached an estimated $190 trillion, with projections suggesting this figure could double by 2030. Traditionally, international payments are processed through banks; however, these institutions often impose hefty service charges, averaging 13.4% of the total transaction amount. According to the World Bank, the average fee for transfers sent from the US is $45.

Beyond traditional banks, PayPal stands out as a popular and convenient payment solution. Since its launch in the late 1990s, PayPal has transformed payment processes both in the US and globally. However, its transaction fees are often higher than other available payment options. Consequently, many people seek alternatives to PayPal. To assist you in choosing the best payment method, we've compiled a list of the top 5 PayPal alternatives.

Factors to Consider When Choosing the Best PayPal Alternatives

PayPal is a pioneer in online payment systems, facilitating electronic transactions for businesses and individuals in over 200 countries. It offers services such as payment gateways, financial services, merchant services, and mobile wallet solutions. However, if you're considering other payment options due to PayPal's high transfer fees, keep the following factors in mind to choose a suitable alternative:

1. Exchange Rate: The value difference between two currencies.
2. Midmarket Rate: The interbank rate offered by banks for currency exchanges.
3. Exchange Rate Markup: An additional fee charged over the midmarket rate when making payments. A higher markup rate means receiving less from your transaction.

The 5 Best Alternatives to PayPal for Businesses

When evaluating PayPal alternatives, consider features such as international transaction capabilities, currency integration, low fees, e-commerce platform support, and access to global marketplaces. Based on these criteria, here are the five best alternatives to PayPal:

Stripe

Stripe is a leading fintech company offering both online and offline payment solutions. Its APIs allow businesses to receive and manage online transactions effectively. Stripe supports various payment methods and currencies worldwide, though it does not offer multi-currency accounts.

Transaction Fees

1. Account Fees: None
2. For Domestic Transactions: 1.7% + $0.30 per transaction
3. For International Transactions: 3.5% + $0.30 per transaction, plus an additional 2% currency conversion fee

Wise

Wise, a UK-based fintech company, provides global fund transfer services. Users can open multi-currency accounts to hold funds in approximately nine currencies, facilitating transfers across 70 countries. Wise accounts also integrate with accounting software and offer virtual and physical debit cards. While suitable for personal use and small businesses, larger enterprises might require a more comprehensive financial platform.

Transaction Fees

1. Account Fee: None
2. For Domestic Transactions: 0.65% fee up to $350 monthly, then 1.75% per transaction
3. For International Transactions: Fixed 0.65% per transaction, plus currency conversion and markup fees

Payoneer

Payoneer is a popular choice for freelancers and small businesses, offering international transaction capabilities with a user-friendly interface. It supports bank transfers, debit, and credit card payments, and offers a Mastercard debit card for $29.95 annually. However, international transfer fees can be high.

Transaction Fees

1. Account Fee: None, but Mastercard debit card costs $29.95 annually
2. For Domestic Transactions: Free between Payoneer accounts; 2% to 3% per credit card transaction
3. For International Transactions: 0.5% per transaction

Skrill

Skrill, based in England, offers low-cost domestic and international money transfers in 40 currencies. Its user-friendly app allows account management and bank account withdrawals. Skrill users can transfer funds to other Skrill accounts and bank accounts, and apply for a Skrill Mastercard for online and offline use.

Transaction Fees

1. Account Fee: None
2. For Domestic Transactions: 2% fee for transfers within the same country
3. For International Transactions: No fee for bank transfers; up to 1% for debit card transfers; 2.99% for credit card transfers, plus a 4.99% markup and currency exchange rates

Square

Square caters to retailers, supporting in-person and online sales with POS, e-commerce payments, invoicing, and contactless payment solutions. Its intuitive dashboard consolidates business data, and it integrates well with Facebook and Instagram marketplaces, albeit without multi-currency account support.

Transaction Fees

1. Account Fee: None
2. For Domestic Transactions: 1.6% for physical card use; 2.2% for online transactions
3. For International Transactions: 2.2% per transaction

Conclusion

While PayPal has transformed online payments, increasing options in the e-commerce space offer competitive alternatives. Despite PayPal's higher fees, you can explore other payment solutions that provide similar services at lower costs. Consider the five PayPal alternatives discussed in this article to find the best fit for your needs.