We’ve included 12 expert perspectives (in-depth reviews) on the top PayPal alternatives for SMBs (international payments) in this post to assist you make an informed selection right now. PayPal, the successor to Confinity, Inc, was created in December 1998 and is an online payment system that allows you to send and receive money from anywhere in the globe.
For clients who prefer PayPal, we still use it at Solution Suggest. None of the available online payment solutions can meet all of your needs. As a result, you must select payment options that are most appropriate for your company and clients.
Why Do You Need PayPal Alternatives?
Well, there are so many reasons. Check out some below.
- If you want seller protection for digital products or services, you need a good PayPal alternative.
- PayPal alternatives take lower fees for chargebacks.
- If you want a faster turnaround to withdraw money, go for PayPal alternatives. If you are a new seller, PayPal will hold your money for up to 21 days in case the buyer doesn’t confirm receipt. Also, it may take 3-5 days to transfer money into your bank account from the PayPal account.
- PayPal has been known for freezing accounts for up to 6 months without prior notice. Due to this, Odeh Ahwal of EcomDimes started using Paysera and Skrill for his business payments.
- “Data portability is not good which means you will face some issues when you want to migrate your transaction on another payment system”, says Farhan of AAlogics.
- “PayPal charges you a 3.5% to 4.0% conversion fee depending on the currency which is crazy!” reported Anh Trinh of NetBookNews.
- PayPal no longer has phone service and you have to wait for hours to get responses through their online chat system. Customer service is horrific.
Here are the best PayPal alternatives for International Payments & SMBs:
1. 2Checkout
It is one of the best PayPal alternatives for international payments.
It’s a relatively new and tiny company, and I know the names of all of my staff.
Because my business is technically an online business, I pay them all remotely. As the CEO of an internet company, my top priority is to minimise expenses while maintaining the quality of my workforce, which is why I began hiring people from other nations who are prepared to accept a far lower wage than those in the United Stat
The currency rate and conversion fees were my least favourite aspects of PayPal. They’ve decided to charge you a conversion fee ranging from 3.5 percent to 4.0 percent, depending on the currency, which is insane! I switched to 2Checkout because I didn’t want to lose money with PayPal. Not only does 2Checkout have a considerably lower conversion cost of only 2%, but it’s also very friendly with international payments, which is why I enjoy it and use it now.
2Checkout Pros:
- Fast and reliable support team
- Offers multiple methods for payment
- Integrates well with other online software
2Checkout Cons:
- Support team sometimes takes action without notifying you
- It’s not user-friendly
- Poor mobile support
You can determine that 2Checkout isn’t perfect by looking at the advantages and negatives. However, it outperforms PayPal in some areas while falling short in others.
So, if you’re debating whether or not to switch from PayPal to 2Checkout, think about what both systems have to offer. In the end, I chose 2Checkout because it works well with my employment of workers from foreign countries, as well as its conversion rate and fees.
2. Transferwise
Transferwise is a good alternative to PayPal for international for SMBs to send or receive international payments.
I moved since PayPal’s customer service is terrible, and I can’t get in touch with anyone anymore. There is no longer any phone service at the company. I don’t have time to sit in front of a computer screen for a half-hour to “talk” about a minor problem.
I’m currently dealing with an issue that has been unsolved for almost a week, which is outrageous. PayPal is a jerk who wastes my time.
For overseas payments, I use Transferwise. The business provides pricing transparency, cheap fees, and good customer service. I once had a situation where I was out of the country and needed to transfer money to a hotel. While I was on the road, Transferwise came up with a clever way for opening an account. For my part, I enjoy working with firms that value customer service and are willing to think beyond the box.
I looked into a few PayPal alternatives for international payments for my small business and recently switched to Transferwise due to faster transfers, the ability to bill my clients in their local currency, and more accurate/less inflated conversion rates.
It also included account numbers/routing numbers for banks in the United States, the United Kingdom, Europe, Australia, and New Zealand, allowing for seamless transfers across those countries.
Transferwise also provides significantly lower fees than PayPal, which was a major consideration for me. PayPal charges 2.9 percent plus $0.30 for transactions in the United States and 4.4 percent plus a fee depends on the currency received — this can add up rapidly. TransferWise, on the other hand, charges a substantially lower fee, as low as 0.37 percent in some cases.
For example, a $1,000 payment to Europe with TransferWise will cost you only $5.20, whereas a payment to Europe with PayPal will cost you approximately $30 in fees. TransferWise makes bank transfers significantly easier and faster because the money you send never actually crosses borders.
3. Veem
The top alternative to PayPal for international payments is Veem.
We chose Veem primarily because of the minimal transaction costs for both senders and receivers. In reality, there are no costs if you send money from a U.S. checking account. The receiver is charged a small fee that is proportional to the value of the transaction. It can also link payment alternatives with popular platforms like QuickBooks, Xero, Oracle, Magento, and Zapier.
It has an excellent invoice generating tool that allows users to create invoice templates, track payments, interface with accounting software, and organise invoices and documents all in one place. Veem is a simple and user-friendly global payment network for small businesses looking for a less expensive alternative to PayPal.
4. Google Pay Send
Google Pay Send is one of the top PayPal alternatives.
In the past, we’ve had troubles with PayPal. Specifically, regardless of the proof provided by the vendor, PayPal usually always sides with the buyer. Because of this, as well as the lack of support in some countries, we looked for another option, and for the time being, we’re using Google Pay Send. It works well enough as a PayPal substitute.
Google Pay Send is simple to set up and integrate, and the security is superior to PayPal in my opinion. For both us and the customer, the prices for Google Pay Send are significantly lower. When it comes to integrating, I’d say it’s not as feature-rich as PayPal, and fewer people are familiar with it. So far, we’ve had no problems with overseas payments. When someone buys with Google Pay Send, there are no fees, and the exchange rate is comparable to other providers.
5. Paysera and Skrill
Paysera and Skrill are the top alternatives to PayPal for international transactions.
I used to believe that PayPal was the only way to accept online payments when I first got into dropshipping. That is, until I had to deal with the agony of having my account locked for 180 days with almost $9,000 in it! Fortunately, Skrill and Paysera bank have been excellent PayPal substitutes and a terrific option for receiving my international payments online!
It was a piece of cake to set up an account with Paysera! I was also able to order their foreign credit card from them. Skrill is the UK’s equivalent of PayPal, and its parent company is Paysafe Group. Its fees are very reasonable and fulfilling, and it might be a terrific alternative to PayPal. Using the correct tools and payment processors, no matter what you do online, can provide you a competitive advantage and make your business run more smoothly!
6. Remitly
Remitly is a cheaper and faster alternative to PayPal.
I am the founder of a digital marketing agency with clients all around the world.
PayPal’s inter-currency and service fees are quite expensive, making it impractical to utilise for larger transactions. This is why I use “Remitly,” a less expensive and speedier alternative to PayPal. I’ll describe my experience with PayPal and Remity charges for a $100 payment transfer from the United States to India:
- Remitly charges: $3.99
- PayPal Charges: $10.59
Due to PayPal’s high fees, I had to move to a better choice, Remitly. Remitly’s transfer time is quick, and money is directly placed into the bank account, whereas PayPal takes more than 2-3 working days. Users can also use Remitly’s Unified Payment Interface (UPI) to make payments more easily. It also has 140,000 sites where you may pick up cash.
Remitly’s limitation is that it is only available in a few key nations, like the United States, Canada, the Eurozone, Australia, and the United Kingdom, and can only send money to over 49 countries. Also, if you have a modest payment, costs will be fixed, making it pricey. However, given the benefits of Remitly, it is unquestionably a superior choice to PayPal.
7. Stripe
If you need a PayPal alternative then Stripe is the best option.
Because it has a lot of features that make it valuable in the market. Let’s look at some of the aspects of Strip that make it superior to Paypal:
- Stripe offers micropayment support with the same flat rate as your standard fee per transaction. PayPal’s micropayment rates are 5% +.05¢ per transaction.
- Stripe has a chargeback fee of $15, while PayPal’s chargeback fee is $20.
- Stripe has several ways to get in touch when you have questions including a help center, social media, and chat support channels (with support reps or developers), plus phone and email support.
- Stripe is more customizable than PayPal which helps you when integrating it into your online business.
- Stripe values Data Portability, so they’ll help you move your credit card data in a PCI compliant way. PayPal won’t give you this data if you try to switch processors, which can be a headache.
That’s all there is to it! Based on their specific benefits and drawbacks, you can now decide whether Stripe or PayPal is a better choice for your business to accept payments or donations online. Stripe charges 2.9 percent plus $0.3 for each transaction, similar to PayPal. PayPal, on the other hand, charges an extra 1% for international cards, but Stripe does not.
So, when it comes to international payments, Stripe beats PayPal hands down. Micropayments (less than ten dollars) PayPal works in a different way. It levies a fee of 5% + $0.05. If you accept $10 payments, for example, PayPal will charge you 10*5/100 + $0.05 = $0.55, but Stripe will charge you 2.9*100/10 + 0.3 = $0.59.
As a result, when it comes to micropayments, PayPal appears to be the more profitable option. When it comes to international payments, Stripe appears to be a better option. For payments of less than $10, PayPal might be a viable option.
8. Payoneer
Payoneer is the best PayPal alternative providing a better foreign exchange rate.
I receive and send international payments since I run an online business. For a number of years, I used PayPal for that, but then I switched to Payoneer. PayPal is fantastic; they offer the greatest user experience and assistance on both the website and the app, but they are not without flaws. There are several PayPal alternatives, but I choose Payoneer since they offer a better foreign currency rate and are suitable for Amazon Affiliates and Sellers based outside the United States.
Payments from Amazon US can be quickly deposited into my bank account. Another disadvantage is that PayPal charges a commission of roughly 6%, which is a significant amount whereas Payoneer rarely charges anything for processing payments.
Pros of Payoneer:
- Better conversion rate
- Easy to use
- Automatic withdrawal
- No cut on receiving payments
Cons of Payoneer:
- Not widely accepted when compared with PayPal
Payoneer charges a flat fee of $3 each transfer, and receiving funds is free. Foreign exchange charges are also charged at a rate of 1% on average. Another advantage of Payoneer is that they offer a debit card option. If you apply for it and are approved, monies received through Payoneer can be transferred straight to your card rather than your account. This eliminates the need for you to transfer funds to your bank account.
9. Skrill & Xoom
We have to use PayPal and its alternatives like Skrill, Xoom, and ACH because none of these support all countries.
Our use of platforms other than PayPal was simply because they don’t support:
- Nigeria and recently Turkey but Skrill does
- Uganda but Xoom ACH to a Ugandan Equity Bank account does
- Nepal but Xoom ACH to a Nepalese Bank account does
We have to utilise several accounts and PayPal alternatives since it’s such a headache, and the situation is always complex because countries’ policies change all the time. For example, Xoom may cease to exist and demand that payments be made as remittances rather than as payment for a service! This jeopardises our payments to Nepal and Uganda.
PayPal is fantastic since it allows you to pay for services, but it is only available in certain countries, such as India. We don’t mind the transaction fees at LD Talent because they’re much better than the worst choice, Upwork, which takes 20%. PayPal charges 2.9 percent, Xoom charges $3.99 to $6.99 each transaction so that we can only transfer huge amounts, and Skrill does not charge us but does charge the following fees:
- Withdrawal to Bank account– flat fee of EUR 5.50
- Withdrawal to VISA – 7.5%
- Withdrawal to mobile wallet – 1.45% (min. EUR 0.50)
- ATM withdrawal with Skrill Prepaid Mastercard®* – 1.75%
We tried Payoneer many times but it never worked for us, but we can do ACH to a Payoneer global payments bank account though it’s rare for international folks to have this.
Conclusion
You’ve read the experts’ thoughts on the best PayPal alternatives available. You now have a better understanding of which online payment solution is suitable for you and your company. I hope you found the roundup article useful in making an informed selection.
