Saturday, March 2, 2024

Top 5 PayPal Alternatives To Use in 2021


During the 2020 pandemic, many businesses that shifted to online operations relied on PayPal to process payments.

PayPal is a convenient, multi-service platform that caters to over 200 countries, facilitating digital customers in making their payments. Still, PayPal has its drawbacks:

PayPal has randomly frozen user accounts without warning.

Transferring money to your bank account usually takes five to seven days.
PayPal has steep transaction fees, and as of August 2, 2021, PayPal’s updated transaction fees went into effect. Instead of 2.9% + $0.3, PayPal is now charging 3.49% + $0.49 per transaction.

According to PayPal, it has increased the rates of its popular services — PayPal Checkout, PayPal Credit, and Pay with Venmo — to reflect the costs of upgrading and improving the platform’s security.However, if you’re a freelancer or operating a small business, the increased transaction fees can eat into your profit margins.The good news is that PayPal isn’t the only digital payment solutions provider in the market. There are PayPal alternatives that can provide even better services.

1. Wise (Formerly TransferWise)

Wise is one of the best PayPal alternatives when it comes to international transfers. It charges lower transaction fees and uses real-time foreign exchange rates. If you’re running a freelance business, your contractors in other countries receive more money than they would with PayPal.


  • It uses real-time foreign exchange rates and offers lower fees than PayPal.
  • Wise’s Multi-Currency Account provides a debit card and empowers you to manage money in more than 40 currencies.
  • It’s simple and easy to use.
  • Wise’s Business account allows you to invoice customers in their currency.
  • Wise transfers the money directly to your bank account with a quicker turnaround than PayPal’s.


  • It is available in 65 countries as compared to PayPal’s 200+.
  • Business transfers are restricted in some countries.

Best PayPal alternative for: Solopreneurs and service-based businesses with multiple international transactions

2. Payoneer

Available in over 150 countries, Payoneer is a comprehensive solution for freelancers and e-commerce businesses.


  • It offers free transfers between Payoneer accounts.
  • Payoneer charges lower transaction fees than PayPal for transferring money to a bank account (2%).
  • It’s simple to use.


  • Payoneer charges an inactivity fee if an account remains inactive for more than 12 months.
  • It has a higher credit card fee than other services (3% vs. 2.29% for PayPal).
  • The computation of transaction fees can be confusing. You can be charged conversion fees, bank fees, and other fees not included in Payoneer’s calculations.

Best PayPal alternative for: Small to medium businesses looking for an all-in-one solution

3. Stripe

Stripe differentiates itself from other PayPal alternatives by focusing on the infrastructure side of online finance. It provides integrations for many popular e-commerce platforms such as Shopify and WooCommerce.


  • Stripe accepts varied payment types — including AliPay, Apple Pay, and Google Pay.
  • It provides more integrations and customizations than PayPal.
  • Transaction fees are lower than PayPal.


  • Stripe is only available in 44 countries.
  • It requires technical know-how to set up.

Best PayPal alternative for: Online businesses


While, a subsidiary of Visa, is unknown compared to the other payment solutions, it boasts secure transactions and incredible customer support.


  • It features the best user support and customer service.
  • comes with an intuitive interface.
  • It integrates with other payment methods.
  • It charges lower transaction fees (2.9% + $0.3 per transaction or only $0.1 per transaction if you have a merchant bank account).


  • It charges a $25 monthly gateway fee (which might not be worth it if you have limited monthly transactions).
  • Unlike PayPal, it is a purely business payment solution — not fit for personal use.

Best PayPal alternative for: Small businesses looking for secure transactions and top-notch customer service

5. 2Checkout

2Checkout is another PayPal alternative that focuses on international transactions. It accepts over 45 payment methods and supports over 200 countries.


  • It supports 80+ currencies, 30+ languages, and over 200 countries.
  • It integrates with over 120 shopping carts.
  • 2Checkout has lower international transaction fees compared to PayPal.


  • 2Checkout’s fees inside US are comparable to PayPal’s.

Best PayPal alternative for: Businesses supporting international transactions

Final Thoughts

PayPal may be the most popular online payment processor available, but it isn’t the only one in the market.With PayPal raising its fees, try these PayPal alternatives to save on your business’ transaction fees.

Have you used any of these PayPal alternatives? How was your experience? Let us know in the comments.

Eastlink Cloud Pvt. Ltd.
Tripureshwor, Kathmandu, Nepal



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