Best PayPal Alternatives in 2025

[Mutt]

In 2025, PayPal remains a dominant player in online payments, but its fees, limitations in certain countries, and occasional account freezes have driven businesses and individuals to seek alternatives. Below is a detailed breakdown of the best PayPal alternatives, including their features, fees, pros, cons, and ideal use cases. This analysis draws from current trends, user feedback, and available data up to August 2025, with a focus on comprehensive insights to help you choose the right payment solution.

1. Stripe​

Overview: Stripe is a developer-friendly payment processor tailored for online businesses, particularly those requiring customizable payment solutions. It’s widely used by eCommerce platforms, SaaS companies, and startups due to its robust API and global reach.

• Key Features:
  • Supports 135+ currencies and 30+ languages, making it ideal for global businesses.
  • Offers no-code solutions like prebuilt checkout pages and hosted invoicing, alongside advanced tools like Stripe Billing for subscriptions and Stripe Connect for marketplaces.
  • Integrates seamlessly with platforms like Shopify, WooCommerce, and BigCommerce.
  • Advanced fraud prevention with Stripe Radar and 3D Secure authentication.
  • Supports Apple Pay, Google Pay, and local payment methods like iDEAL and SEPA.
• Fees:
  • Standard: 2.9% + $0.30 per online card transaction.
  • In-person payments: 2.7% + $0.05 (via Stripe Terminal).
  • Custom pricing for high-volume businesses or enterprise clients.
  • No monthly fees or setup costs.
  • Additional fees for international payments (1% extra) or currency conversion (1%-2%).
• Pros:
  • Highly customizable with a powerful API for developers.
  • Transparent pricing with no hidden fees.
  • Strong security features, including PCI compliance and machine-learning fraud detection.
  • Scalable for businesses of all sizes, from startups to enterprises.
• Cons:
  • Requires technical expertise for advanced integrations, which may be a barrier for non-technical users.
  • Limited support for in-person transactions compared to Square.
  • Not available in some countries where PayPal operates.
• Ideal For: Online businesses, eCommerce stores, and developers needing tailored payment solutions. Best for those prioritizing flexibility and global scalability over simplicity.
• Use Case Example: A Shopify store owner can integrate Stripe for seamless checkout with Apple Pay and local payment methods, while a SaaS company can use Stripe Billing to manage recurring subscriptions.

2. Square​

Overview: Square is a versatile payment platform known for its simplicity and all-in-one solutions for both in-person and online transactions. It’s a favorite among small businesses, retailers, and restaurants.

• Key Features:
  • Free POS software for in-person sales, compatible with iOS and Android.
  • Affordable hardware like the Square Reader ($10-$59) for contactless and chip payments.
  • Online store builder and eCommerce integrations with platforms like Wix and Ecwid.
  • Invoicing, team management, and payroll features.
  • Supports QR codes, Apple Pay, Google Pay, and Afterpay for flexible payments.
• Fees:
  • In-person: 2.65% per swipe, dip, or tap.
  • Online/invoiced: 2.9% + $0.30 per transaction.
  • Keyed-in transactions: 3.5% + $0.15.
  • No monthly fees for basic plans; premium plans (e.g., Square Plus) start at $29/month for advanced features.
  • Hardware costs vary (e.g., Square Terminal at $299).
• Pros:
  • User-friendly interface with free POS and no long-term contracts.
  • Transparent, flat-rate pricing.
  • Comprehensive tools for in-person and online sales, including inventory management.
  • Fast fund transfers (same-day or instant with a fee).
• Cons:
  • Limited international support (available in the US, Canada, Australia, UK, and a few others).
  • Higher fees for keyed-in or online transactions compared to interchange-plus providers.
  • Account holds reported by some users for high-risk transactions.
• Ideal For: Small businesses, retailers, and restaurants needing an easy-to-use solution for both physical and online sales. Perfect for those with hybrid business models.
• Use Case Example: A coffee shop can use Square’s free POS and card reader for in-store sales, while also selling branded merchandise online through Square’s eCommerce tools.

3. Wise (formerly TransferWise)​

Overview: Wise specializes in low-cost international money transfers, making it a strong alternative for freelancers, businesses, and individuals handling cross-border payments. It’s not a full payment processor like PayPal but excels in currency exchange and transfers.

• Key Features:
  • Supports 40+ currencies with mid-market exchange rates (no markup).
  • Provides local bank account details in 10+ countries for fee-free incoming payments.
  • Multi-currency account for holding and converting funds.
  • Integrates with accounting software like Xero and QuickBooks.
  • Wise Business accounts offer batch payments and expense cards.
• Fees:
  • Transfer fees: ~0.4%-1% depending on currency and amount (e.g., $0.65 to transfer $100 USD to EUR).
  • No monthly fees for personal or business accounts.
  • Currency conversion: Small fee (e.g., 0.35%-2% based on currency pair).
  • Free to receive payments in supported currencies via local bank details.
• Pros:
  • Extremely low fees for international transfers compared to PayPal’s 4%-5% currency conversion fees.
  • Transparent pricing with real-time exchange rate visibility.
  • User-friendly mobile app and fast transfers (often same-day).
  • Ideal for freelancers working with international clients.
• Cons:
  • Not a full payment processor; lacks eCommerce checkout or POS features.
  • Limited to bank transfers and card payments; no support for digital wallets like PayPal.
  • Slower support response times compared to PayPal.
• Ideal For: Freelancers, small businesses, and individuals needing cost-effective international transfers or multi-currency accounts.
• Use Case Example: A freelance graphic designer in the US can receive payments from European clients in EUR to a Wise local account, avoiding high bank fees and converting to USD at near-market rates.

4. Shopify Payments​

Overview: Shopify Payments is the built-in payment gateway for Shopify stores, designed to streamline eCommerce transactions. It’s powered by Stripe but tailored specifically for Shopify users.

• Key Features:
  • Seamless integration with Shopify’s platform, including one-click checkout via Shop Pay.
  • Supports 100+ payment methods, including credit cards, Apple Pay, Google Pay, and local options like Klarna.
  • Fraud analysis tools and PCI compliance.
  • Multi-currency support for international sales.
  • Fast payouts (1-3 business days).
• Fees:
  • Varies by Shopify plan: 2.9% + $0.30 (Basic), 2.7% + $0.30 (Shopify), 2.4% + $0.30 (Advanced) per online transaction.
  • In-person: 2.7% (Basic), 2.5% (Shopify), 2.4% (Advanced).
  • Additional 0.5%-2% fee if using third-party processors (e.g., PayPal) on Shopify.
  • No setup or monthly fees beyond Shopify’s subscription ($39-$399/month).
• Pros:
  • Streamlined for Shopify users, reducing setup time.
  • Shop Pay boosts conversion rates with saved customer data.
  • Competitive rates for higher-tier Shopify plans.
  • Strong fraud protection and chargeback handling.
• Cons:
  • Only available for Shopify store owners.
  • Limited country availability (not supported in some regions where PayPal operates).
  • Extra fees for using non-Shopify payment gateways.
• Ideal For: Shopify store owners seeking an integrated payment solution with multi-currency support and high conversion rates.
• Use Case Example: An online clothing boutique on Shopify can use Shopify Payments to offer Shop Pay for faster checkouts, reducing cart abandonment and supporting international customers in their local currencies.

5. Payoneer​

Overview: Payoneer is a global payment platform focused on cross-border transactions, popular among freelancers, marketplaces, and eCommerce sellers. It’s a strong alternative for those needing international payment flexibility.

• Key Features:
  • Supports 120+ payment methods, including cards, bank transfers, and digital wallets.
  • Payoneer Checkout for eCommerce businesses, integrating with Shopify and WooCommerce.
  • Provides local receiving accounts in multiple countries (e.g., US, UK, EU) for low-cost transfers.
  • Multi-currency support and prepaid Mastercard for spending.
  • Integrates with marketplaces like Amazon, Upwork, and Fiverr.
• Fees:
  • Card payments: 1%-3% (varies by method).
  • Bank transfers: Free for some currencies; up to 2% for others.
  • Currency conversion: 0.5%-2%.
  • Annual account fee (~$29.95) for some plans; no monthly fees for basic accounts.
  • Withdrawal to bank: $1-$3 depending on currency.
• Pros:
  • Excellent for freelancers and businesses on global marketplaces.
  • Flexible payment methods and local account options.
  • Fast transfers (often within hours for marketplace payments).
  • Competitive fees for international transactions.
• Cons:
  • Complex fee structure can be confusing.
  • Limited POS or in-person payment options.
  • Customer support can be slow for non-enterprise users.
• Ideal For: Freelancers, marketplace sellers, and eCommerce businesses with international clients or suppliers.
• Use Case Example: An Amazon seller in India can use Payoneer to receive USD payments from US customers into a local receiving account, then withdraw to their bank with minimal fees.

6. Helcim​

Overview: Helcim offers transparent interchange-plus pricing, making it a cost-effective choice for growing businesses with higher transaction volumes. It’s less known than PayPal but gaining traction for its affordability and flexibility.

• Key Features:
  • Interchange-plus pricing (cost-plus model) for transparency.
  • Free POS software and mobile card readers ($99-$329 for hardware).
  • Supports online payments, invoicing, and recurring billing.
  • Volume discounts for businesses processing over $50,000/month.
  • 24/7 customer support and no long-term contracts.
• Fees:
  • In-person: Interchange + 0.4% + $0.08 (average ~2.2%).
  • Online/keyed-in: Interchange + 0.5% + $0.25 (average ~2.5%).
  • No monthly fees, setup costs, or cancellation fees.
  • ACH payments: 0.5% + $0.25 (capped at $6).
• Pros:
  • Transparent, cost-effective pricing, especially for high-volume businesses.
  • No monthly fees or hidden costs.
  • Comprehensive tools for online and in-person sales.
  • Strong customer support and user-friendly interface.
• Cons:
  • Application process may be stricter for new or high-risk businesses.
  • Less brand recognition than PayPal or Stripe.
  • Limited international currency support compared to Wise or Payoneer.
• Ideal For: Growing businesses, especially those with high transaction volumes, seeking affordable and transparent pricing.
• Use Case Example: A mid-sized retail store processing $100,000/month can use Helcim’s POS and online invoicing, benefiting from volume discounts and lower effective rates than PayPal’s flat fees.

Comparison Chart​

To help visualize the key differences, here’s a chart comparing the alternatives based on transaction fees and international support:

How to Choose the Right Alternative​

Selecting a PayPal alternative depends on your business model, transaction volume, and specific needs. Here’s a decision guide:

• eCommerce Focus: Choose Stripe for its flexibility and integrations or Shopify Payments if you’re on Shopify for seamless checkout and Shop Pay.
• In-Person and Online Hybrid: Square is ideal for its free POS and affordable hardware, perfect for retailers and service providers.
• International Payments: Wise excels for low-cost transfers and multi-currency accounts, while Payoneer suits freelancers and marketplace sellers.
• High-Volume Businesses: Helcim offers cost savings with interchange-plus pricing, ideal for scaling businesses.
• Freelancers: Wise or Payoneer for international clients; Stripe for invoicing and flexibility.
• Budget-Conscious: Helcim or Square for no monthly fees and transparent pricing.

Additional Considerations​

• Security: All listed alternatives are PCI-compliant and use encryption. Stripe and Shopify Payments offer advanced fraud tools, while Square and Helcim provide chargeback support.
• Customer Support: Helcim and Square are praised for responsive support; Wise and Payoneer may have slower response times for non-premium users.
• Global Availability: Stripe and Payoneer support the most countries, while Square and Shopify Payments are limited to fewer regions.
• Hidden Costs: Watch for currency conversion fees (PayPal’s can reach 4%) or third-party processor fees (Shopify). Wise and Helcim are the most transparent.