PayPal consolidated its position as one of the most influential FinTech companies worldwide. Just like Coca Cola or Nike, it gained credibility and trust among users. But is the most advertised item always the best? Not necessarily. And the number of users that support PayPal alternatives prove this point. Why do they do it? Let’s dive into that issue!
Disadvantages of PayPal
Despite brand recognition and easy setup, PayPal has a list of disadvantages that shouldn’t be ignored by merchants. Fees structure might be to blame. Though PayPal claims to help the small sellers, it is not quite true. A starting fee of 2.9% plus $0.30 per transaction is a big burden for small merchants on eBay.
PayPal is also vulnerable to fraud. If you happened to be a victim of criminal activity, your account might be easily suspended and frozen due to the company’s strict policy.
Back in 2018, PayPal revealed that it shares user’s data with more than 600 external companies. From Facebook to Google, the PSP has published the list of third parties it shares data with. They claim it to be a part of a transparency drive.
Another disadvantage of PayPal is that the funds are usually refunded to the customer when the item has been shipped. Although PSP offers a protection policy that guarantees you will get a product in the condition it was described, this does not apply to digital items.
Once again, is the most advertised item always the best?
Top 10 PayPal alternatives in 2020
1. Square
Square in a San Francisco-based financial services company. Since 2009, Square offers different devices like readers, POS, and Square Stands. Square’s services include payroll solutions for small businesses, virtual & physical gift cards, and CashApp for money transfers from person to person.
| Fees | 2.9%+$0.30 |
| Security | PCI DSS certificate, fraud and chargeback prevention |
| Number of countries | US, Canada, Japan, Australia, and the United Kingdom |
| Number of currencies | All currencies from accepted countries + bitcoin |
| Integration types | API, CMS, SDKs |
| Customer Support | Phone support, knowledgebase, email |
| Mobile payments | Yes |
| Acceptance of high-risk businesses | Restricted |
| Chargeback fee | $10 – $25 |
| Recurring billing | Yes |
2. Braintree
Braintree is a Chicago-based payment service provider. Since 2007, Braintree caters to businesses’ payment needs. Customers may accept payments online or via their mobile phones. The PSP offers automatic PayPal integration with the shopping cart. Nevertheless, to integrate the payment gateway, customers require some development knowledge.
| Fees | 1.9%+$0.28 |
| Security | PCI DSS level 1 compliance. Data security and encryption |
| Number of countries | 44 |
| Number of currencies | 140+ currencies + bitcoin |
| Integration types | API, HPP, CMS |
| Customer Support | Phone and email support |
| Mobile payments | Yes |
| Acceptance of high-risk businesses | High |
| Chargeback fee | $26 |
| Recurring billing | Yes |
3. PayZa
PayZa is a London-based payment processor. Since 2012, PayZa specializes in online payment processing for eCommerce companies. Besides this, it offers by-region banking services like bank wires, credit & debit card payments, etc. Plus it develops e-wallet for different regions’ needs.
| Fees | 2.9 % + $0.28 |
| Security | FraudMatrix |
| Number of countries | 190 |
| Number of currencies | 25 |
| Integration types | HPP |
| Customer Support | Email support |
| Mobile payments | Yes |
| Acceptance of high-risk businesses | High |
| Chargeback fee | Variable |
| Recurring billing | Yes |
4. Apple Pay
Apple Pay, a payment service of the Cupertino-based company Apple, allows users to pay in person or via apps. The digital wallet holds customers’ cards all in one place and lets them pay in any place with the contactless POS terminals. Apple uses the NFC technology to perform the contactless payment. Apple Pay has a global presence.
| Fees | 2.9% + $0.30 |
| Security | PCI DSS compliance. Data security and encryption |
| Number of countries | 24 |
| Number of currencies | All the local currencies of supported countries |
| Integration types | NFC |
| Customer Support | 24/7 support. Live chat, phone, email support |
| Mobile payments | Yes |
| Acceptance of high-risk businesses | High |
| Chargeback fee | The fee of 10% |
| Recurring billing | Yes |
5. Ikajo International
Ikajo International is an Amsterdam-based payment service provider. Since 2003, it helps its clients to accept payments. Ikajo provides its services to different business types (from low to high-risk ones). Moreover, the company assists in dispute management and has up to 91% of cases solved in the merchant’s favor.
| Fees | 1.2% |
| Security | PCI DSS level 1 compliance. Chargeback and fraud prevention software. Data security and encryption |
| Number of countries | 150+ |
| Number of currencies | 200+ |
| Integration types | API, HPP, CMS, Virtual Terminal |
| Customer Support | Live chat, knowledgebase, email support |
| Mobile payments | Yes |
| Acceptance of high-risk businesses | High |
| Chargeback fee | $20 |
| Recurring billing | Yes. Free option |
6. PaySpacelv
PaySpacelv is a Riga-based payment service provider. Since 2004, it provides a secure and smooth card transaction processing to its customers. Clients can enjoy a smart routing option to ensure a lower decline rate. PaySpacelv uses its own chargeback & fraud prevention software that combines the best practices of AI and machine learning.
| Fees | 1.2% + $0.30 |
| Security | PCI DSS level 1 compliance. Chargeback and fraud prevention software. Data security and encryption |
| Number of countries | 130+ |
| Number of currencies | 200+ bitcoin |
| Integration types | API, HPP, CMS, Virtual Terminal |
| Customer Support | 24/7 support. Live chat, knowledgebase, email support |
| Mobile payments | Yes |
| Acceptance of high-risk businesses | High |
| Chargeback fee | The fee of 10% |
| Recurring billing | Yes |
7. Amazon Pay
Amazon Pay is a payment processing service of the Seattle-based company Amazon. Since 2007, this service enables Amazon account holders to pay on third-party websites using Amazon Pay. The company has also developed a Checkout by Amazon for a faster and easier checkout process for its customers.
| Fees | 2.9% + $0.30 |
| Security | PCI DSS compliance. Data security and encryption |
| Number of countries | 60+ |
| Number of currencies | All the local currencies of supported countries |
| Integration types | Integration with any shopping platform |
| Customer Support | Phone support, email, tickets, live chat |
| Mobile payments | Yes |
| Acceptance of high-risk businesses | Low |
| Chargeback fee | $20 + tax |
| Recurring billing | Yes |
8. BlueSnap
BlueSnap is a Waltham-based payment processor. Since 2001, it offers B2C and B2B payment solutions. The processor supports online, mobile, and invoice payments as well as marketplaces and subscriptions. Customers can enjoy a broad choice of analytics tools.
| Fees | From 1.40% + 0.28 to 3.30% + $0.28 |
| Security | PCI DSS level 1 compliance. Data security and encryption. |
| Number of countries | 180+ |
| Number of currencies | 13 |
| Integration types | API, Hosted Payment Page, CMS plugins, virtual terminal, invoice |
| Customer Support | Phone support, email, tickets, live chat |
| Mobile payments | Yes |
| Acceptance of high-risk businesses | Low |
| Chargeback fee | Variable |
| Recurring billing | Yes |
9. WePay
WePay is a Redwood City-based payment processing company. Since 2008, it offers payment solutions for small software companies, crowdfunding platforms, and marketplaces. The company has developed its own API to cater to small businesses’ needs.
| Fees | 2.9% + $0.30 |
| Security | PCI DSS compliance. Data security and encryption |
| Number of countries | US, UK, Canada |
| Number of currencies | USD |
| Integration types | API |
| Customer Support | Email support, tickets, live chat |
| Mobile payments | Yes |
| Acceptance of high-risk businesses | Restricted |
| Chargeback fee | $15-$25 |
| Recurring billing | Yes |
10. Stripe
Stripe is a San Francisco-based payment technology company. Since 2011, it allows to accept and send payments. The company is available for both individuals and businesses. Stripe provides its own API to enable payment processing on websites and apps. Business owners can also maintain invoicing and recurring payments.
| Fees | 2.9% + $0.30 |
| Security | PCI DSS level 1 compliance. Data security and encryption. Secure Dashboard access |
| Number of countries | 32 |
| Number of currencies | 135+ |
| Integration types | API, HPP, CMS |
| Customer Support | 24/7 support. Email support, live chat |
| Mobile payments | Yes |
| Acceptance of high-risk businesses | Restricted |
| Chargeback fee | $15 |
| Recurring billing | Yes |
Over to you
There are many other payment gateway providers suitable for various businesses. Each case is unique. And if you have questions about payment processing for your particular business, don’t hesitate to contact us for free expert consultation. We’re here to help find you the best-fitting payment processing solutions possible.
