Top 5 PayPal alternatives: compare fees, features & benefits

If you run an online business selling to international customers, you'll need a way to easily collect payments in multiple currencies and transfer funds across borders to pay suppliers or staff. Whilst PayPal may be one of your options, you may like to consider its alternatives to see which one suits your needs best. 

What is PayPal? 

PayPal is a widely recognised online payment system that enables businesses and individuals to transfer funds electronically. It was founded in the United States in 1998, and has grown to offer payment solutions in over 200 countries. Users can send and receive money, manage currencies, and make purchases securely online. PayPal also provides various financial services, including merchant services, payment gateways, and mobile wallet solutions. 

Whilst PayPal offers services to individuals and businesses, this article will focus on the PayPal alternatives for businesses. 

Top five alternatives for PayPal 

Here are the top alternatives to PayPal. 

• Airwallex is a global financial technology company that offers a range of financial services, including online payment acceptance and processing (checkouts), international payments, multi-currency accounts, and corporate cards. Founded in Australia, we strive to simplify cross-border transactions for businesses of all sizes.

• Stripe is a financial services and software-as-a-service company that facilitates online payment processing for businesses of all sizes. It provides an infrastructure for accepting payments ‌and managing revenue.

• Square is a financial services and mobile payment company that equips businesses with the means to accept payments, oversee sales, and optimise operations. It also offers portable card readers and POS systems.

• Wise (formerly TransferWise) is a financial technology company that provides international money transfer services to individuals and businesses. It offers multi-currency accounts to hold, convert funds, and make payments.

• Payoneer is a financial services company that offers online money transfer and digital payment services. It provides businesses with cross-border payment solutions, enabling them to send and receive payments in multiple currencies through their global payment platform.

Compare the top 5 alternatives to PayPal

The top PayPal alternatives: key features and fees

Airwallex, Stripe, Square, Wise, and Payoneer are all alternatives to PayPal, but each have their strengths. Our platform, Airwallex stands out from the rest with our end-to-end financial operations and global reach. It’s a strong option for businesses that are looking to scale their financial and payment operations domestically or internationally. 

Below, we summarise the key features and fees of each PayPal alternative. For full product and fee information, including other charges, please visit each provider’s official website. 

Airwallex

Airwallex is a global payment solution that lets you accept payments in more than 160 payment methods across 180 countries. No-code to fully-customisable integration options make it easy to get started quickly, and you can save your business a tonne of fees with like-for-like settlement into multi-currency accounts. In other words, you can settle payments in the same currency that your customers pay in, saving you on costly exchange rates. 

It’s easy to open an account with local bank details in Airwallex, without having to go to a bank or complete any complicated paperwork. The platform also offers FX and transfer solutions, with competitive interbank fees. Uniquely, our investment product, Yield, allows businesses to earn competitive rates on their idle AUD and USD funds. Other features like virtual cards, accounts payable, and expense management, make it ideal for growing businesses. 

Unlike Wise, Airwallex offers a more comprehensive all-in-one financial solution which makes growing globally easier. 

Airwallex fees: 

Subscription Fees: Airwallex’s ‘Explore’ bundle starts from $29 per month, which can be waived by holding a minimum of $10,000 or depositing $5,000 per month. 

Domestic transactions: Free

International transactions: Free to 120+ countries

Pros

• An all-in-one platform for business financial operations, combining accounts, payments, corporate cards, and more

• Low-cost international transfers 

• Extensive global reach to convert, send, and hold funds

Cons

• No physical branches – digital only platform and service

• New updates and optimisations being released regularly, which may not suit the user habits of all consumers

• Physical POS system coming soon

Stripe 

Stripe is a financial technology company that provides businesses with infrastructure for offline and online payments. It offers a suite of payment processing APIs, letting businesses accept, manage, and reconcile online transactions. For brick-and-mortar stores, they offer a POS system to accept in-person payments. Stripe's tools and services support various payment methods and currencies, providing global reach. However, Stripe does not offer a multi-currency account to hold international funds, or expense management tools to assist with a full suite of financial operations. 

Stripe fees: 

Subscription fees: No account fees

Domestic transactions: 1.7% + $0.30 per transaction

International transactions: 3.5% + $0.30 per transaction. An additional 2% is charged if currency conversion is required 

Pros

• Extensive analytics and reporting tools

• POS system for physical stores

• Minimal subscription fees may make Stripe an accessible option

Cons

• Primarily a payments product, with no multi-currency accounts or corporate cards

• Users may need another platform to manage other financial operations

• Costly for international transactions, especially where currency conversion is involved

Square 

Square is widely used by both physical and online businesses for its point-of-sale (POS) solutions and customisable payment links for online transactions. It's well-suited for physical businesses, offering a range of hardware tools, inventory management, and employee management features. However, the higher fees for online transactions and the inconsistency in customer support can make it a less favourable option for eCommerce and international businesses.

Square Fees: 

Subscription fees: Free account

Domestic transactions: Physical card transactions incur a 1.6% surcharge whereas online or no-card transactions cost 2.2% 

International transactions: 2.2% per transaction 

Pros

• Services in-person and online businesses 

• Social media management tools available as it integrates with Facebook and Instagram

• Easy set up with POS

Cons

• Higher fees for international transactions

• Separate software is required for multi-currency accounts and Square does not hold muli-currency funds 

• Limited customisation options in exchange for easy use

Wise 

Wise is a UK-based financial technology company focused on simplifying global money transfers. It offers businesses multi-currency accounts where customers can accept and hold payments in nine currencies and transfer funds to over 70 countries. They also offer virtual debit cards, batch international transfers, and accounting software integrations. Whilst Wise services individuals and micro businesses, it may not be most suitable for growing businesses that require a single unified platform for all financial operations. 

Wise Fees: 

Subscription fees: Free account. But to receive funds from 23 currencies, it costs $22. 

Domestic transactions: From 0.65% when sending money. To withdraw over the $350 limit per month, it costs 1.75% per transaction. Receiving domestic payments is free.

International transactions: International transaction fees start from 0.65% with additional fixed fees transferring via SWIFT network. Currency conversion fees are applied on top of these fees. 

Pros 

• Simple interface for individuals and businesses

• Offers virtual debit cards 

• Integrates with accounting software

Cons

• Relatively high fees per international transaction 

• Not cost-effective for larger number of transactions

• Does not offer advanced analytics or expense management tools

Payoneer 

Payoneer is a popular choice for freelancers and businesses due to its specialised focus on cross-border transactions. The platform offers an intuitive interface, supporting multiple payment methods such as bank transfers and debit/credit cards. Payoneer also provides a prepaid Mastercard at $29.95 annually, which can be used for online and in-store purchases. Whilst they offer payment processing services for marketplaces and platforms, fees are higher for international transfers, which may become costly. 

Payoneer fees: 

Subscription fees: Free account. Prepaid Mastercard costs $29.95 per year.

Domestic transactions: Free for transactions between Payoneer accounts. All other transactions cost 2% or 3% per transaction if paying via credit card

International transactions: 0.5% transfer fee

Pros

• Supports multi-currency accounts and currency conversion 

• Serves both individuals and businesses

• Free transactions between Payoneer accounts

Cons

• Transfer limits of $15,000USD per credit card transaction, which may be limiting for larger businesses 

• Primarily a payments product, with no multi-currency accounts or corporate cards

• Users may need another platform to manage other financial operations

Why choose Airwallex over PayPal?

What questions should I ask when choosing alternative providers to PayPal?

With so many payment platforms on the market, it can be tricky to find the one that’s best for your business.

PayPal may or may not be right for you. Some business owners look elsewhere because of higher transaction fees, especially on international transfers. 

To help you figure out which payment platform is worth your investment, we’ve compiled 10 questions you should ask any supplier before signing a contract.

1. What types of payments can you process?

2. What are the transaction fees and how do they vary by payment method/transaction type?

3. Can your platform handle multiple currencies? What are the currency conversion charges?

4. What is the process for chargebacks?

5. How do you manage fraud protection?

6. Do you offer POS solutions and how do they integrate with online payments?

7. Are there any long-term contracts or early termination fees?

8. Are there any setup or ongoing monthly fees?

9. What kind of customer support do you offer?

10.  How do I integrate your payment gateway into my website? Do you offer technical support?

Final thoughts on alternatives to PayPal

If you’re looking for cost-effective global money management, Airwallex is hard to beat.

Over 100,000 companies use our software to simplify global payments and financial operations. The most popular uses are to manage international customer payments, support treasury operations, and accelerate embedded finance products.

Our payment gateway can help businesses accept worldwide payments by integrating seamlessly with major eCommerce platforms like Shopify, WooCommerce, and Magento, and by supporting payments from 180+ countries.

While PayPal offers global payment services, these rates aren't as competitive as Airwallex where businesses can settle in multiple currencies ‘like-for-like,’ avoiding the unnecessary conversion fees they'd be forced to pay using PayPal.

And if you do want to convert currencies with Airwallex you’ll benefit from interbank rates + 0.5-1%, compared with PayPal’s 3.6% + 2% currency conversion fee. 

Despite PayPal being a popular choice due to its popularity for personal use, for businesses that are serious about cutting costs and saving on their bottom line, Airwallex is a clear winner. For businesses with growth ambitions at home or abroad, Airwallex has the edge. 

Sources

For more information on Airwallex, visit Airwallex Business Account and Airwallex pricing.

1. https://wise.com/au/pricing/business

2. https://wise.com/au/pricing/business/send-money

3. https://wise.com/au/pricing/business/receive

4. https://www.paypal.com/au/enterprise/payment-methods

5. https://www.paypal.com/au/business/paypal-business-fees

6. https://www.paypal.com/so/webapps/mpp/merchant-fees

7. https://www.payoneer.com/about/pricing/#pay-your-supplier

8. ​​https://squareup.com/au/en/pricing

9. https://squareup.com/au/en/payments

10. https://stripe.com/au/use-cases/saas

11. https://stripe.com/au/pricing

Disclaimer: The information in this article is based on our own online research. Airwallex was not able to manually test each tool or provider. The information is provided for educational purposes only and a reader should consider the specific requirements of their business when evaluating providers. This research is reviewed annually. If you would like to request an update, feel free to contact us at [[email protected]].

The Airwallex Yield Liquidity Fund (Yield) is issued by K2 Asset Management Limited (K2) (ABN 95 085 445 094, AFSL No 244393), a wholly owned subsidiary of K2 Asset Management Holdings Limited. This information doesn’t take into account your objectives, financial situation, or needs. Read the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for Yield, available at www.airwallex.com.au/terms from Airwallex Capital Pty Ltd (ABN 37 609 653 312, AFSL No. 549026). All investments carry risk.