In today’s article, we will be talking about the 15 PayPal alternatives for international payments. If you don’t want to read the detailed analysis, you can head straight to the 5 PayPal Alternatives For International Payments.
In today’s interconnected global economy, businesses of all sizes and industries rely on smooth and efficient international payment solutions to conduct cross-border transactions. While PayPal Holdings, Inc. (NASDAQ:PYPL) has long been a dominant player in the market, offering a convenient and widely recognized platform, businesses must explore alternatives that cater to their needs.
According to BBC Research, the global cross-border payment market is projected to reach $238.8 billion by 2027, with a compound annual growth rate (CAGR) of 5.3% from 2022-2027. With such significant growth, businesses must stay abreast of the latest developments in global payment solutions.
Additionally, businesses that use PayPal Holdings, Inc. (NASDAQ:PYPL) or other traditional payment methods may be subject to high transaction fees, which can affect their profits. Companies can save money and improve their bottom line by exploring alternative options.
Critical Considerations for Choosing a Secure and Reliable Payment Method for Global Businesses
As a global business, finding a reliable payment method is crucial to ensuring your transactions are seamless and secure. According to the data collected by Trading Platforms, the digital payments sector is projected to experience significant growth of 15% year-over-year, reaching an estimated total transaction value of approximately $9.5 trillion by 2023.
With so many International payment options available, choosing the right one for your business needs can be overwhelming. However, taking the time to research and compare different payment methods can save you both time and money in the long run.
When choosing a payment method, consider transaction fees, processing time, and currency conversion rates. It’s also essential to select a payment method accepted in the countries where you do business. For example, if you do business in China, it’s vital to offer payment methods such as Alipay and WeChat Pay, which are the preferred payment options for Chinese consumers.
Another crucial factor to consider is security. According to Verizon’s 2019 Payment Security Report, only 36% of global organizations were fully compliant with the Payment Card Industry Data Security Standard. With the increasing threat of cybercrime, choosing a payment method that offers robust security features such as encryption and fraud detection is crucial.
Additionally, it’s essential to ensure that your payment processor has a good reputation and a track record of protecting its clients’ financial information. The global payments industry experienced a remarkable rebound in 2021, surpassing pre-pandemic expectations and showcasing strong growth. According to McKinsey’s recent report, the industry’s revenue is projected to exceed $3 trillion by 2026.
The Future of International Payment Solutions: Digital Currencies, Mobile Payments, Fraud Prevention, and AI Innovations
Digital currencies and blockchain technology are revolutionizing the future of international payment solutions. The global market for blockchain technology is projected to reach a staggering value of $57,641.3 million by the year 2025, reflecting a remarkable compound annual growth rate (CAGR) of 69.4% during the period from 2019 to 2025, with the finance sector being the largest adopter of this technology. These innovations provide faster and more secure cross-border transactions, making them highly appealing to businesses and consumers.
On the other hand, mobile payment solutions will become even more prevalent as consumers increasingly rely on their smartphones to purchase and transfer money. This trend will continue as mobile devices become more advanced and ubiquitous. According to Business of Apps, mobile payments transaction volume reached $1.7 billion in 2021, a 27% annual increase.
Moreover, in the international payment solutions industry, there will be a growing focus on transparency, compliance, and fraud prevention. According to Digital 360, U.S.-based e-commerce merchants saw a 24.2% increase in monthly fraud attempts, reaching 344 in 2020 compared to 277 in 2019. However, the prevention rate declined to 34.3% in 2020, with 118 cases successfully stopped, compared to a 56.3% prevention rate in 2019, where 156 fraud attempts were prevented.
Artificial intelligence and machine learning will also play an increasingly important role in international payment solutions, helping companies to detect and prevent fraud, automate processes, and improve customer service. A study by Juniper Research estimated that AI-powered chatbots and virtual assistants in banking would save businesses over $8 billion per year by 2022.
Innovation in payment methods and technologies will continue to drive the industry forward, with new solutions emerging to meet the evolving needs of businesses and consumers worldwide. From biometric authentication to virtual currencies, there will be no shortage of exciting developments.
Our Methodology
Our methodology for identifying PayPal alternatives for international payments involved conducting thorough research using sources such as Tipalti, Software Testing Help, Oberlo, and Indeed. We selected 15 alternatives based on a structured scoring system. Each alternative received points based on the number of times it appeared in the research sources. By employing this approach, we created a definitive compilation of the top PayPal alternatives for global payments and ranked them in ascending order. The pricing structures for all the PayPal alternatives also come from the same sources.
Here’s the list of top Paypal alternatives for international payments:
15. ProPay
Insider Monkey Score: 2
ProPay is a versatile payment processing solution suitable for various business types, including small businesses and enterprise operations. Pricing for ProPay is available upon request, so interested companies should contact the sales department directly. The pricing structure includes setup fees ranging from $39.95 to $69.95 and an annual fee between $39.95 and $69.95. Additionally, transaction fees are applicable, ranging from 2.4% to 3.55%.
14. Wise
Insider Monkey Score: 2
Wise stands out as a solid alternative to PayPal for international transfers, offering competitive rates and a range of features. It guarantees the “real” exchange rate, eliminating hidden fees and resulting in significant cost savings compared to PayPal. Users benefit from the Borderless multi-currency account, which supports over 40 currencies, provides a debit card, and facilitates various financial tasks such as payroll and batch payments.
Wise for Business is designed explicitly for invoicing customers’ preferred currencies, ensuring convenience and flexibility. The service operates efficiently by keeping funds within its network, leading to faster transfers. Opening an account is free, and the fee for sending money starts at 0.41%.
13. WePay
Insider Monkey Score: 2
WePay, established in 2008 and owned by JPMorgan Chase & Co. (NYSE:JPM), is a payment aggregator primarily suited for bank transfers and crowdfunding. With a long history and a vast network, JP Morgan Chase & Co. (NYSE:JPM) is known for its expertise in providing comprehensive financial solutions to individuals, corporations, and institutions worldwide.
JPMorgan Chase & Co. (NYSE:JPM) bought WePay for up to $400 million. While WePay is not ideal for use as a merchant account due to its low weekly limit, it provides online payment services to US, UK, and Canadian residents. Regarding pricing, WePay offers a primary plan option for credit card processing, charging 2.95% plus 25 cents per transaction.
12. 2Checkout
Insider Monkey Score: 2
2CheckOut is a solid alternative to PayPal Holdings, Inc. (NASDAQ:PYPL), specifically designed for international transactions. It offers extensive support, including eight payment types, 87 currency options, and availability in over 180 countries. With such comprehensive coverage, accepting payments from customers worldwide becomes hassle-free.
In addition to competitive fees in the U.S., 2CheckOut provides lower fees for international transfers. Security is a top priority, with the platform implementing over 300 fraud checks per transaction. It offers three pricing plans to accommodate different needs, starting with transaction charges of 2.9 percent plus $0.30.
11. Quickbooks Payments
Insider Monkey Score: 2
QuickBooks Payments by Intuit Inc. (NASDAQ:INTU) offers fast payment processing, unlike PayPal’s variable processing times. It integrates seamlessly with QuickBooks invoicing software, making it ideal for businesses that rely on Intuit Inc. (NASDAQ;INTU)’s payroll, invoicing, and accounting products. There are no monthly or setup fees. Intuit Inc. (NASDAQ:INTU)’s Quickbooks Payments transaction fees include 1% for bank transfers, 2.4% for swiped cards, 2.9% for invoiced cards, and 3.4% for keyed-in transactions, along with an additional 25 cents per payment.
10. Amazon Pay
Insider Monkey Score: 3
Amazon Pay, provided by Amazon.com, Inc. (NASDAQ:AMZN), is a popular alternative for businesses with an existing customer base. It offers seamless cross-device payment integration and benefits from the trust associated with the Amazon.com, Inc. (NASDAQ:AMZN) brand. Fees for Amazon.com, Inc. (NASDAQ:AMZN)’s Amazon Pay are similar to PayPal, making it appealing to many companies. Charitable organizations receive lower fees. In the U.S., the transaction fee is 2.9% + 30 cents; for cross-border transactions, it’s 3.9% + 39 cents. There’s a 30-cent authorization fee per transaction and a $20 chargeback fee.
9. Shopify Payments
Insider Monkey Score: 3
Shopify Inc. (NYSE:SHOP), a Canadian e-commerce company established in 2006, launched Shopify Payments in 2013. Shopify Inc. (NYSE:SHOP)’s Shopify Payment is an integrated credit card payment system that is accessible to businesses in 16 countries: Canada, the US, the UK, Ireland, Sweden, Spain, Netherlands, Italy, Germany, Denmark, Austria, Australia, New Zealand, Singapore, Japan, and Hong Kong. Shopify Inc. (NYSE:SHOP)’s Shopify Payments offers flexible pricing plans, starting from $29 per month with a transaction fee of 2.9% plus 30 cents up to $299 per month with a transaction fee of 2.4% plus 30 cents.
8. Authorize.Net
Insider Monkey Score: 3
Established in 1996, Authorize.net is a trusted and long-standing online payment processing company. With an A+ BBB rating, it excels in customer service. It is ideal for merchants seeking chargeback protection and focuses solely on credit card payments. Customers can choose from three packages, including the All-in-One Option designed for self-employed individuals without a merchant account. This package entails a monthly fee of $25 and a transaction fee of 2.9% + 30 cents.
7. Braintree
Insider Monkey Score: 3
Braintree, an online global payment platform, offers versatile payment options and specializes in e-commerce and subscription-based businesses. Established in 2007 and owned by PayPal, it mainly benefits enterprises handling international payments.
In the US, Europe, Australia, New Zealand, Canada, Hong Kong, Singapore, and Malaysia, Braintree provides features such as a merchant account gateway, data encryption, third-party integration, and recurring billing. There is no maximum limit, and the fee structure consists of 2.9% + $0.3 per transaction for US currencies, with an additional 1% fee for non-US currencies. Additionally, customers are charged a flat $15 for each chargeback.
6. Dwolla
Insider Monkey Score: 3
Dwolla, an online payment gateway founded in 2008, specializes in cross-border online bank transfers and payment processing. Its services are available to businesses in the United States, enabling them to process payments from 180 countries and 35 currencies. Dwolla offers three packages: Pay-As-You-Go, with no annual fees and a transaction charge of 5% (minimum 5 cents, maximum $5 per transaction); Scale, designed for subscription-based companies at the cost of $2,000 per month; and Enterprise, priced at $10,000 per month, providing custom features and flat pricing.
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Disclosure. None: The 15 PayPal Alternatives For International Payments is originally published on Insider Monkey.