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Best PayPal Alternatives for Online Payments

Marketing | 21 May 2011

Best PayPal Alternatives

Exchanging money online is becoming more common with small businesses and entrepreneurs developing a presence on the Internet. By far the most popular, PayPal seems to be the clear choice for most people looking for a payment option for goods and services. This is true for many reasons, but mainly because so many have been exposed to PayPal for online transactions in the past. Creating an account is simple to setup and the Paypal provides secure transactions as an alternative to paying with a credit card.

PayPal is not without problems and has been known to disable user’s accounts or prevent payment, often without an explanation. They have also implemented new conditions that make it more difficult for some individuals to use it. If you are anything like me, you want a provider you can be confident in and in the event of error, you can get on the phone.

Here are the best paypal alternatives you can count on

1. MoneyBookers

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MoneyBookers is an international-friendly, UK-based, payment service that is rising up as a viable PayPal alternative. The site offers flexible payment optons with no monthly or setup fees. Transaction fees range from 2% up to 8%, depending on how people pay. Payment is accepted from 30 countries. Setting up the verification of the account can take some time, but this level of security should increase users’ confidence.

2. Google Checkout

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Google Checkout is aimed more at merchants, but offers another alternative to PayPal. Currently, Google Checkout does’t offer all the features as other payment vendors, but they are becoming a force to be reckoned with. Their transaction fee rates are similar to PayPal’s, depending on monthly volume (averaging 2% + $0.20 per transaction). Checkout is only available to customers in the United States and Europe.

3. Amazon Payments


Amazon is another payment service more geared for merchants, but has added a more personal option called WebPay. Amazon offers various options for payment including one-click processing and other e-commerce related products. Their transaction fees are pretty much identical to PayPal starting from 2.9% + $0.30 per transaction. Currently, services are only available in the U.S.

4. 2Checkout

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This company was established in 1999 and offers a turnkey e-commerce solution for sellers. provides a no-hassle setup process for a merchant accounts – no background or credit check required! However, unlike the other services mentioned, there is a one time set fee of $49.00. They also have a hefty transaction fee – 5.5% + $0.45 per sale.

This is not an exclusive list, as there are many other online payment options available including and beanstream (personal favorite). Find one that fits best with your circumstances and your business. While PayPal is currently the most widely used and accepted, exploring PayPal alternatives gives you options for buying and selling online that might prove invaluable.

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