Top 10 Best Alternatives of Paypal for Sending or Receiving Money

Since all financial transactions have gone digital, checkbooks and ATM cards have become obsolete. Online payments are dominated by PayPal but it isn’t the only service in town. Although PayPal is widely recognized and trusted, it is not the ideal payment system. The major issues that hold back PayPal are high fees, less availability and payments being put on hold. There are several other reliable alternatives to PayPal and here we will evaluate the best 10 among them.

1. Google Wallet

Google Wallet is a fast and secure payment service that lets people send and receive money using a mobile or desktop device at free of cost. You can send money to anyone using their mobile number or email id. Unlike PayPal or other payment apps, it does not require the receiver to have the Google Wallet app. The sender funds the money from Google wallet balance, credit/ debit cards or bank account. While adding money to your wallet balance from your credit card, you will be charged a 2.9% fee. Unfortunately, Google Wallet is currently available only in the United States.

2. Payoneer

Payoneer is a reliable online payment service for international transactions. It is more popular among freelancers because it is easy to get paid by clients around the world. This service is availed in more than 200 countries and it supports 150 different currencies. Payoneer works on a Payoneer Mastercard that you can get for free with a 25% yearly maintenance. The Payoneer Mastercard can be used anywhere where Matsercard is accepted. Transaction between two Payoneer users is completely free. But it charges 3% if you want to receive the money in your credit/ debit cards, and 2 % for withdrawing money via ATM.

3. Amazon Payments

One among Paypal’s toughest competitors, Amazon Pay gives its users the option to make payments with their Amazon account in other e-commerce sites. Hence, millions of Amazon users can now buy from your online market by paying using Amazon pay. Consumers can pay in just one click as their payment details are already available in their Amazon account. It charges 2.9%+$0.3 for domestic transactions and 3.9%+$0.3c for international transactions. WebPay, a product of AmazonPay lets normal users to send and receive money. WebPay is free but it is currently available only in the US. The brand name makes Amazon pay more trustworthy.

4. Dwolla

Dwolla is another simple alternative for Paypal by which a user can send or receive money via the mobile app or website. It is currently available in USA alone. Dwolla lets you send money to phone numbers, email addresses, Twitter followers and even LinkedIn connections. Transactions less than 10$ are free while any transfer above 10$ will be charged a negligible 0.25% fee. Dwolla’s MassPay feature facilitates thousands of payments at a time directly to bank accounts. But it does not have the facility to link credit or debit cards to your Dwolla account. Dwolla was notable for bitcoin transactions until October 2013.

5. 2Checkout

2Checkout payment system is solely focused on merchants and shop owners. It does not allow money transfer between two users but enables business retailers to accept payment from buyers and customers worldwide. Currently, it accepts eight different payment methods including credit/ debit cards, Paypal and Mastercard. Also, it supports 87 currencies, 15 languages and 100+ shopping carts including Shopify, 3D cart and Zencart. If you are from US, 2Checkout charges 2.9%+$0.3 per transaction else 5.5%+$0.45 per transaction.

6. Venmo

Venmo, a supplementary of Paypal is an online digital wallet that lets you transfer funds to your contacts. Once you have signed up with Venmo by providing personal and bank account information, you can transfer money to anyone provided you know their mobile number, email id or Venmo username. If the sender runs out of Venmo balance, money will be automatically withdrawn from your bank account or credit/debit card. Payment made via bank account or debit card is free but if you pay using credit card, there is 3% transaction fee.

Venmo was designed for making transactions between friends and other people who you know personally. It also has a social media component so that users can connect and interact with friends. A user’s transaction details (except the payment amount) are shared on his newsfeed and his network.

7. Skrill

Skrill, formerly known as MoneyBookers is similar to Paypal in working. You can link your bank account and credit/ debit cards with your Skrill account to send and receive money. Skrill charges 1.9% fee for transactions between Skrill wallets which is less than PayPal. The best thing about Skrill is that is available all over the globe across 200 countries and supports 40 different currencies.

For international money transfer where the sending and receiving accounts use different currencies, Skrill charges 3.99% fee for currency conversion. Hence, you will have to pay a total of 6% fee on the total amount to be transferred. This gets even worse if your currency is not supported by Skrill. There will be money conversion in both receiving and withdrawing the money to the bank. Your bank may also charge some fees, and overall the transaction fee would go up to 12-15%.

8. WePay

WePay is intended to provide a customized and secure payment solution for e-commerce websites, online business and marketplaces. It delivers payment, support and risk products and services. Once WePay API’s are implemented in your website, the customers can pay without leaving your site. There are three levels of customer support- silver, gold and platinum. Silver is the base level of support during standard business hours via email. Gold level supports customers via phone calls and emails. Platinum offers 24/7 all-week support via all medium and a technical account representative. WePay charges 2.9%+$0.3 for credit card payment and 1%+$0.3 for payment via bank.


 9. Stripe

Stripe is an online payment service for internet based businesses. It accepts payments made via credit/ debit cards like- Visa, AMercian express, JCB, Mastercard, Android Pay, ApplePay and Bitcoin. Stripe is easy and flexible to use and can be setup using plugins. It supports 135+ currencies and operates in around 25 countries. For every transaction, Stripe charges a flat 2.9%+$0.3 as transaction fee.

10. Square

The working of Square is different. Once you sign up with Square, you will be sent a magstripe card reader that is compatible with Android and Apple devices. The card reader can detect several credit and debit cards like Visa, Mastercard, American Express etc. It is free of cost but is available only for US and Canada residents. You can create online business sites where consumers can purchase things. Square charges 2.75% as payment fee of the total money to be transferred.


Just because everyone uses Paypal, you don’t have to assume it to be the best. There are several other payment services that are equally reliable and competent as PayPal and we have listed only the top 10 in random order. The main features to be considered before using an online payment system are- transaction fee, security and ease of use.

Disha Verma is a Mass Media student from International School of Business & Media (ISBM). She lives in Maharastra, India and loves to write articles about Internet & Social Media. When she is not writing, you can find her hanging out with friends in the coffee shop downstreet or reading novels in the society park.