Trying to find the right online payment service for businesses can be daunting. PayPal is the obvious name that comes to the forefront of conversation in this field, but that does not automatically make it the best option to get paid.
Luckily for those seeking viable alternatives, the online market for payment processing has become a far more competitive space over the last five years. There are now several payment processing substitutes that offer competitive rates and exciting features that may be a better fit for you or your business.
It is important to take an in-depth look at what your business needs in a payment gateway. Perhaps you need bespoke integration solutions, or maybe cheaper international payment processing? It is best to gather all the facts before coming to a conclusion. No matter what you are looking for in a payment processing option, looking at the fees should be a top priority in deciding which payment company you partner with.
This article is a journey of discovery focussing on the other fish in the payment processor pond and gives you the run down on how these other market players could be the right fit for you.
1. Google Wallet
Lets be honest, Google are never far from any tech discussion. It is no surprise that this entrepreneurial giant has entered into the payment space.
Google Wallet follows other Google products in its uncomplicated nature and austerity of design and functionality. Their payment gateway is also a free method to accept payments without charging any fees. This sort of gratuity in payment processing is automatically going to get tongues wagging.
So apart from being free, why else would you choose Google Wallet?
- It doesn’t require any complicated information or downloads on behalf of the paying party. The payment process can often be a burden that causes customers to turn away at the final hurdle. With Google Wallet all that is required is a number or an email address.
- But if they choose to, customers can also pay through web or mobile application as well.
- There is inherent trust in the Google brand making it a reliable option for consumers.
- The transfer is processed automatically, creating a seamless transition without the need for any further administration by either party.
Escrow.com is one of the world's leading online financial arrangement website. This site is perfect for those larger and more expensive transactions of goods — whether it be a domain, car, or yacht.
Being the pioneers of the escrow concept, Escrow.com have already processed over $3B in secure payments - not to mention that they just won the 2017 BBB Torch Awards for Ethics — so you know that your transactions are going to be kept very safe.
You can access their fee calculator here.
3. Payline Data
This nifty company has a strong focus on innovation – whilst still managing to provide the basics of payment checkout with aplomb. Their integration is second to none and most importantly the service comes at a minimal hit to your back pocket too.
Here is what Payline offers as a practical alternative:
- Payline offer well-supported and high-performing APIs to secure payments with a large variety of apps, websites and services.
- It has a monthly fee of $15 that also offers a POS (Point of Sale) provision.
- The fees remain constant at 0.35% plus 10c for every transaction.
- Payline allows for seamless mobile payments.
Yes it is true Braintree is a subsidiary of PayPal, but in my eyes it can still be considered as a PayPal alternative. Some may turn away because of its close association but it is a payment gateway with growing success that can be isolated if you choose to look beyond the PayPal enterprise.
If PayPal turns you off, what can Braintree offer that can make it step out of the shadows?
- Braintree offers a competitive pricing rate of 2.9% plus 30c per transaction without any monthly fees.
- Because of the benefits of PayPal behind them, Braintree offers a comprehensive support network for their customers to guide them through the payment process efficiently.
- They cover over 130 currencies and 44 countries making them truly international.
- They also have a high level of third party integration making them a highly compatible payment gateway.
Stripe is arguably PayPal’s largest contender in terms of market share and volume. Stripe prides itself on quick, uncomplicated, stress-free payment solutions.
So why is Stripe such a big player as a payment gateway?
- It has a far-reaching integration, seamlessly functioning alongside hundreds of apps and third-party services making it incredibly easy to use.
- Payments are processed with speed, a crucial aspect of modern business. The money can be in your account within 48 hours.
- Stripe has a global presence meaning international payments are not a burden and bear no additional cost.
- Stripe allows bespoke integration and development.
- No monthly fee, just a flat rate of 2.9% per transaction and an additional 30c for every completed payment.
- Stripe has the capacity to accept a wide variety of payment methods.
6. Shopify Payments
Shopify Payments is a popular payment gateway for online stores utilizing the overall Shopify service. This payment gateway takes pride in operating a specialized service for e-Commerce stores.
So if you were setting up online payments why would you choose Shopify Payments?
- Like many other of our payment alternatives Shopify Payments has great integration with apps and third party systems.
- They focus on the customer. Conversion from browsing to paying customer is critical. This platform ensures customers convert as smoothly as possible.
- There are a range of plans including Basic, Pro and Unlimited, ranging from 2.4%-2.9% transaction fee plus 30c for every completed transaction.
- They have also made a point of integrating with financial apps and services to make the complicated task of tracking financial performance and book keeping simpler.
- They do offer free international payments to a range of major countries without extra costs.
Global companies have been on the rise for the last two decades and 2017 is shaping up to be no exception. Online businesses that have a strong international presence look for a payment gateway that caters to the international market. Transferwise have created their niche in the international payment processing market.
How do Transferwise cater for international transactions?
- They accept payment from anywhere on the globe. As long as the payment is legitimate, it does not matter where it originates.
- Fees are slashed in comparison to financial institutions for the same tasks, and in this respect they blow PayPal out of the water.
- They have an easy to use interface that can transcend often-problematic language barriers.
- Exchange rates are calculated with up to the minute precision.
- For international transactions you can expect money in your account within 72 hours.
Payoneer take pride in being able to provide the fastest payment system. They are a great option for companies that have high volume and need to keep an eagle eye on their day-to-day operating performance.
Payoneer does offer more than just speed:
- They specialize in offering a virtual account, which gives them a competitive edge on the international market. It is easy to process payments internationally and then seamlessly draw funds to local accounts.
- Payments are easy to receive but also easy to make, creating an effective two-way payment gateway. This is great for companies that also make a high volume of online payments.
- They have flexibility in payment processing that attractive to the international business community.
- Receiving payments from international accounts are often free and the same goes for international currencies. Dealing in the US dollar only incurs a 1% fee.
- Processing Credit card payments draws a slightly higher 3% fee.
9. Amazon Payments
Amazon is continually diversifying the way they conduct their online business and Amazon Payments is a fine example of this diversification. They are repeatedly honing their integration to create a widely successful payment system
Why would businesses choose to use Amazon Payments?
- Amazon has such a high volume of customers worldwide and utilizing them as a payment gateway can save time and money.
- They already have so much customer payment information readily available.
- Amazon has a trusted brand across many products and services, like Google, making them a reliable payment processing option.
- Payments can be processed with one click.
- International fees sit at 3.9% plus 30c per transaction, compared to US fees of 2.9% plus 30c per transaction.
Rentigo offers a unique option for processing payments in the property market. Rentigo has created a niche for landlords and tenants to process their payments with ease.
So why would landlords choose Rentigo over Paypal?
- Rentigo makes use of mobile application software to its advantage.
- Payments are processed immediately
- They offer web and mobile payments and only charge a processing fee, no matter how many units/buildings you possess.
- Rent can be collected in an operating system especially suited to landlords to help with the smoothness in collating financial information and taxation records.
- They have some fabulous tools for viewing your rental report and ways to help landlords maximise their revenue.
Authorize.net have experience behind them, existing since before the turn of the century. Because they have been around for so long they have built their success on trust and providing added security for processing customer payments.
What else other than experience can Autherize.net offer as a payment gateway?
- They utilize development APIs that readily permit integration with third party services and applications.
- They accept a wide variety of payment methods.
- As well they have a large international presence and can smoothly process international payments.
- It costs $49 to set up as well as a monthly fee of $25.
- Domestic fees set at 2.9% plus 30c per transaction.
This article will help broaden your knowledge of payment gateways and provide viable alternatives to PayPal. Businesses are continually looking to balance what is the right fit for their company against the cost of processing and transaction fees.
What payment processing system do you use and which would you recommend? Feel free to enter the discussion and give us your feedback.