6 Best PayPal Alternatives (2017)

PayPal is the most popular online payment service with huge dominance and offers reliable features for both individuals and businesses. Millions of people use PayPal and almost every online stores accept payments via PayPal. However, PayPal still isn’t the perfect service and comes with its own flaws.

PayPal isn’t available in all the countries, it’s expensive; costing 4.5% fee per transaction, and some users may not be comfortable with its buyer protection policy. If you don’t like PayPal for any reason, then there are some handy alternatives available as well. Check out these 6 of the best alternatives to PayPal.

Best PayPal Alternatives

1. Skrill

Skrill is one of the best alternatives to PayPal thanks to its lower cost transactions and wide support for countries. Skrill only charges 1.9% of the total transaction amount if there is no currency conversion involved. However, if there is currency conversion involved, then Skrill will charge 3.99% more and offer currency rate based on the current currency conversion rate.

Though, unlike Paypal where you transfer funds directly; in Skrill, you have to first add money from your bank account to your Skrill wallet which then goes to recipient Skrill wallet and then to his/her bank account. And this uploading and withdrawing money take an additional transaction fee. (screenshot here)

Skrill supports almost all of the countries expect few of the countries like North Korea, Afghanistan, Cuba, Iraq, and Nigeria, etc. Uploading money to Skrill is easy as well and you can use your credit/debit card, bank transfer, Bitcoin and Neteller to upload money to Skrill. Bank transfers are free, but they take 3-5 days to process (currency conversion fee will be applied). Although credit/debit card, Neteller, and Bitcoin offer instant upload with a fee of 1.9%, 3.0%, and 1% respectively.

Withdrawing amount isn’t a problem as well, you can withdraw via bank transfer for free or use your debit/credit card for instant withdrawals and pay 1.9% fee. Although your bank may still charge a conversion fee or any other particular fee if it’s applied (consult your bank for this).

Fee: 1.9% per transaction in same currency, 3.99% if currency conversion is involved (uploading and transfer charges extra)

2. Payoneer

Payoneer is a rather different online payment solution, but it can be a great alternative to PayPal. PayPal basically sends you a debit card to your home for free and opens up an account for you in the USA. You can use this card to easily make payments anywhere you like and can receive payment in the US based account like any other US resident (accounts in other countries available as well). You can even withdraw your amount in the Payoneer account using any Master Card support ATM.

Sending money from one Payoneer account to another is completely free, both sending and receiving. However, funding the Payoneer card can be a little problematic. Usually, your Payoneer card will be funded by supported companies where you work or have money saved (includes PayPal as well). These companies have their own fee for sending money to Payoneer account, 2-3% max. If you don’t work for such a company, then you will have to depend on bank transfer that takes time and local bank charges will be applied (which can be huge based on your country).

As far as withdrawal fee is concerned, Payoneer charges 2% fee on all withdraws. Although your bank may charge a currency conversion fee (depends on your bank). I should also mention that Payoneer supports over 200 countries, so there is a good chance it supports your country.

Fee: Free Payoneer to Payoneer transactions, 2% fee on withdrawals

3. Payza

Payza is another good alternative to PayPal that has lower costs and easy to use service. Payza charges no fee to the sender of the amount, instead the receiver has to pay 2.90% plus a fixed $0.30 for receiving the funds. Of course, in the end, someone is paying, but the sender should not worry about the fee.

Although they do have a lesser currency conversion fee as compared to Skrill. Payza will charge 2.5% fee if currency conversion is involved in the transaction and offer conversion rates based on the current conversion rate at the time of the transaction. Adding funds to your Payza account is free if you are using Bitcoin and Credit Card transactions cost 3.50% of the total amount. Although there is a fixed $8 fee on bank transfers, so it is only reliable if you have a bigger amount.

Payza also has fixed rate for withdrawing the funds. You will pay $15 for bank transfer and $8 for Credit Card transfer if it’s below $5000. Overall, I believe Payza is only a good option if you want to make bigger amount transactions. They charge fixed amount on withdrawals and funds, so a bigger amount will compensate.

Fee: 2.90% + $0.30 per transaction, 2.5% fee for currency conversion

4. Google Wallet

Google Wallet may not be the best alternative to PayPal for international payments, but if you reside in USA or UK; then it’s definitely worth a go. Google Wallet lets you send payments to your friends in the USA or UK for free right to their phone number or email address. The receiver can withdraw the amount to their bank account or debit/credit card in just a few minutes.

Your bank may charge a fee for receiving the amount via debit/credit card, but there is no fee charged by Google Wallet. It also makes it very easy to request funds from your friends and easily keep track of them. All of this is conveniently done using the Google Wallet app for Android and iOS.

And of course, Google Wallet is run by Google, so you can trust it with your money. Google also offer fraud protection for any unauthorized payments and covers 100% of the amount.

Fee: Free sending and receiving, bank charges may apply

PayPal Alternatives For Businesses

Below are two PayPal alternatives that work for merchants who are trying to sell goods online, but can’t accept payment via PayPal or don’t want payments via PayPal:

5. 2CheckOut

2CheckOut is a global payment processing website that let merchants receive payments from around the world. It accepts payments from customers using 8 different payment methods, including PayPal. And you can receive the amount using your preferred payment method, including EFT, Wire transfer and even Payoneer.

The fee charged on transactions depend on from where the payment is being received. Usually it’s anywhere between 1.9% -3.9% +45¢ per transaction. For withdrawal, 2CheckOut charges no fee if you withdraw via Payoneer, but wire transfer cost fixed $15.

Fee: 1.9% – 3.9% + 45¢ per transaction, withdrawal cost $15 for wire transfer and free via Payoneer

6. Selz

Selz offers multiple ways to sell your goods and services online, but it in the process it also allows you accept payment via multiple methods and get it directly in your bank account. You can use Selz to create an online store or if you already have one, then get its “Buy now” button to start accepting payments.

It can receive payments via PayPal and all the other major credit/debit card providers. You can withdraw the payment to your bank account via wire transfer, or withdraw it to your PayPal account (which is not the intention here). If you are only using Selz for receiving payments and are not using other Selz service, then Selz will charge 2% fee on each transaction. Withdraw via wire transfer will cost $20.

Fee: 2% fee per transaction, $20 fee on wire transfer to your account

Wrapping Up

Skrill is definitely the best alternative to PayPal, but it can be a little problematic if there is currency conversion involved in uploading, sending and withdrawal process. Payoneer is also a reliable option if you are able to find a good method to fund it, like let someone local fund it. Do let us know in the comments why you are looking for a PayPal alternative and which one of these PayPal alternatives worked for you.

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