Top PayPal Alternatives for your Ecommerce Business

Top PayPal Alternatives Ecommerce Businesses Should Consider in 2024

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In the dynamic landscape of ecommerce, businesses are constantly on the lookout for ways to streamline operations, maximize profits, and deliver an exceptional customer experience. Payment processing stands at the core of these endeavors, and while PayPal has been a go-to choice for many, an increasing number of ecommerce businesses are seeking PayPal alternatives ecommerce solutions that offer lower transaction fees, better global payment support, and ecommerce-friendly features. It’s time to explore the world beyond PayPal and discover a plethora of payment processors that could be the perfect fit for your online business.

Key Takeaways

  • Alternatives to PayPal can offer ecommerce businesses lower transaction fees, broader global payment support, and specialized features tailored to ecommerce needs, potentially enhancing business growth and customer experience.
  • A range of PayPal alternatives are available in 2024 with distinct advantages for ecommerce, including Stripe, Shopify Payments, Amazon Pay, Square, and Braintree, each with unique features and competitive pricing structures.
  • When choosing a PayPal alternative, ecommerce businesses should consider critical factors such as pricing and fees, integration capabilities with existing systems, and the level of customer support and reliability offered by the service provider.

Why Ecommerce Businesses Need PayPal Alternatives

Global payment support for ecommerce businesses

Ecommerce businesses have a multitude of reasons to consider alternatives to PayPal. While PayPal may have been a pioneer in the online payments landscape, it might not always be the most cost-effective or adaptable solution for every business.

Exploring alternatives can potentially help businesses to reduce transaction fees, broaden their global payment support, and utilize specialized ecommerce-friendly features that better cater to their specific needs.

Lower Transaction Fees

Transaction fees are a crucial consideration for ecommerce businesses. With every online payment, a portion goes towards transaction fees – and these can quickly add up, especially for businesses processing a large volume of transactions. While PayPal is renowned for its convenience, its transaction fee of 2.99% plus 49 cents per card transaction may not be the most cost-effective option for some businesses.

Square and Stripe, on the other hand, offer more competitive per-transaction rates. For businesses operating on a subscription-based model, the recurring billing feature offered by these platforms can be particularly beneficial for managing recurring payments. For instance, Helcim, another alternative to PayPal, charges a fee as low as 0.40% plus 8 cents for in-person credit card transactions, which is lower than PayPal’s standard per-transaction fee.

Global Payment Support

Broadening the customer base beyond geographical boundaries is often a goal for ecommerce businesses. Yet, the payment platform used can limit the capability to accept payments from customers worldwide. Global payment support, therefore, becomes a significant factor when choosing a payment processor. This feature facilitates businesses in accepting payments from a wider international customer base, thus enhancing their market reach.

Stripe and 2Checkout are recognized as viable alternatives for managing international transactions, including mobile payments. They offer a mobile-friendly experience with branding customization, extensive fraud protection, and easy integration with over 100 online shopping carts, making them ideal choices for businesses seeking to cater to a global audience. However, it’s worth noting that not all payment processors offer global support – for instance, Authorize.Net is restricted to businesses operating in specific regions.

Ecommerce-Friendly Features

Apart from lower transaction fees and global payment support, some PayPal alternatives provide features purposely designed to boost the efficiency of ecommerce operations. These features can significantly enhance the overall customer experience and contribute to business growth.

For example, QuickBooks Payments facilitates real-time invoice data entry and provides alerts for invoice views and payments, as well as automated payment reminders when integrated with QuickBooks. Meanwhile, an alternative like Stripe offers a range of tools for business owners to facilitate vendor reconciliation, generate comprehensive reports, and effectively monitor and address fraud alerts to ensure the security of transactions and their bank account.

Top PayPal Alternatives for Ecommerce in 2024

Top PayPal alternatives for ecommerce in 2024

Given the abundance of online payment platforms, picking the suitable one might be a challenging task. However, a few names stand out due to their unique features and benefits tailored to online businesses. The leading PayPal alternatives for ecommerce in 2024 are:

  • Stripe
  • Shopify Payments
  • Amazon Pay
  • Square
  • Braintree

Each offers unique advantages, making them worth considering.


Stripe has carved a niche for itself in the online payment landscape with its transparent fee structure, developer-friendly customizable checkout process, and the capability for businesses to accept payments from various sources. Its on-site checkout process can minimize customer friction and potentially enhance conversion rates.

In addition to its core payment processing capabilities, Stripe provides a range of features tailored for ecommerce. These include:

  • Intelligent MID and MCC assignment
  • Direct integrations to card networks
  • Smart payments retries
  • Card account updater
  • Support for subscriptions
  • In-store payments
  • Multi-sided marketplaces

Stripe’s robust offerings and versatility make it a compelling choice for businesses seeking a comprehensive and customizable payment solution.

Shopify Payments

Shopify Payments is an integrated payment solution specifically designed for Shopify stores. It provides a streamlined solution for processing online payments, including:

  • Negating the necessity for external payment providers or merchant accounts
  • Seamlessly handling the intricacies of online transactions for Shopify stores
  • Facilitating sales in various currencies
  • Providing comprehensive order and payment tracking, ensuring swift and secure transactions.

The benefits of Shopify Payments include:

  • Robust features
  • Competitive pricing compared to PayPal, with fees ranging from 0.5% to 2%
  • Convenient activation from the Payments page in the Shopify settings, providing seamless integration with the platform.

Amazon Pay

Amazon Pay, a part of the Amazon services ecosystem, is another compelling alternative to PayPal, Apple Pay, and Google Pay for ecommerce businesses. Leveraging Amazon’s well-established brand recognition, Amazon Pay offers a familiar and trusted payment option for customers. It provides a seamless checkout experience by allowing customers to utilize their existing Amazon credentials for purchases, eliminating the need to create new accounts or complete lengthy forms.

Amazon Pay supports various credit card payment options for customers, offers Amazon’s fraud protection, and provides seamless integration with existing CRM. However, be aware of certain limitations, such as the absence of custom packages or volume discounts and a reserve policy that may delay payouts to new accounts.

Despite these drawbacks, Amazon Pay offers an attractive package of reliability and familiarity that can boost customer trust and conversion rates.


Square is another popular PayPal alternative that offers a diverse array of services. It provides solutions for both online and in-store payment acceptance, contactless payments, point of sale, and eCommerce. Its user-friendly platform and extensive features, such as invoices and modular additions, make it a practical alternative to PayPal for online businesses.

Square’s transaction fees vary depending on the plan:

  • Online transactions on the top plan: 2.6% + 30 cents
  • In-person transactions on the top plan: 2.6% + 10 cents
  • Online transactions on the Free and Plus plans: 2.9% + 30 cents
  • In-person transactions on the Free and Plus plans: 2.9% + 30 cents

Moreover, Square does not impose additional fees or require long-term contracts, making it a cost-effective choice for businesses of all sizes.


Braintree, although a part of the PayPal service ecosystem, offers distinct features that make it a viable alternative for ecommerce businesses. It provides a customizable payment gateway that supports various payment methods, including credit cards, digital wallets, and even PayPal itself. Braintree’s adaptable platform enables the acceptance of diverse payment methods like Venmo, in addition to integrating Hosted Fields in their Drop-in UI to ensure a smooth checkout process.

The platform also offers a wide range of customization options that may not be available with other services, such as Stripe. However, be aware that Braintree’s transaction fees consist of 2.59% + $0.49 for credit/debit cards and digital wallets, and 3.49% + $0.49 for Venmo payments within the United States.

Factors to Consider When Choosing a PayPal Alternative for Ecommerce

Despite the clear benefits of PayPal alternatives, switching should be a decision based on several critical factors. Factors to consider include:

  • Pricing and fees
  • Integration capabilities with existing systems
  • Level of customer support
  • Service’s reliability

By considering these factors, businesses can ensure they choose a payment processor that aligns with their specific needs and goals.

Pricing and Fees

The pricing and fees linked to a payment processor can considerably affect an ecommerce business’s bottom line. Therefore, it is imperative to compare the pricing structures and fees of different payment processors. Consider not only the transaction fees but also any hidden costs such as setup fees, monthly fee or annual fees, and fees for additional services.

Stripe, for instance, provides various pricing models and pay-as-you-go fees tailored to businesses, without the imposition of setup fees or monthly fees. On the other hand, Shopify Payments does not impose transaction fees for online stores, while Amazon Pay and Square have their unique fee structures.

Integration Capabilities

Considering the ability to integrate smoothly with your current ecommerce platform and business tools is another vital element. The selected payment processor should be able to work hand-in-hand with:

  • Your ecommerce platform
  • Your accounting software
  • Your inventory management system
  • Other business tools

This will create a cohesive ecosystem for your business.

Stripe, Shopify Payments, Amazon Pay, and Square are all examples of online payment systems that offer a comprehensive suite of tools for accepting online and in-person payments globally. They work with numerous ecommerce platforms to enhance the overall shopping experience. Shopify Payments automates invoicing and accounting systems by sending transaction information directly to your general ledger and accounts. Amazon Pay is compatible with several ecommerce platforms, while Square facilitates integration with popular e-commerce platforms.

Customer Support and Reliability

When selecting a payment processor, the aspects of customer support and reliability should not be ignored. Accessible and dependable customer support channels, such as phone, email, and live chat, can make a huge difference in resolving any potential issues that may arise during transactions or account management. Moreover, a proven track record of service stability ensures that the payment processing will run smoothly and that any disruptions will be addressed promptly and efficiently.

Outages or disruptions can significantly impact ecommerce operations, leading to decreased sales and diminished customer trust. Therefore, the frequency and resolution time of outages or disruptions are important considerations when assessing the reliability of a payment processor.

Case Studies: Successful Ecommerce Businesses Using PayPal Alternatives

Case studies of successful ecommerce businesses using PayPal alternatives

To further illustrate the benefits and effectiveness of PayPal alternatives, we will examine some case studies of successful ecommerce businesses that have harnessed these platforms across various industries and scenarios.

Example 1

Our first example explores how an ecommerce business benefited from switching to Stripe. Stripe’s transparent fee structure and developer-friendly customizable checkout process, along with its capability to accept payments from various sources, allowed this business to improve its global payment processing and reduce transaction fees.

Not only did Stripe provide robust payment processing capabilities, but it also offered additional features such as:

  • intelligent MID and MCC assignment
  • direct integrations to card networks
  • smart payments retries
  • card account updater
  • support for subscriptions
  • in-store payments
  • multi-sided marketplaces

These features contributed to an improved customer experience, enhanced operational efficiency, and potentially increased revenue for the business.

Example 2

Our second case study highlights the benefits of Shopify Payments for a growing online store. Shopify Payments’ seamless integration with the Shopify ecommerce platform streamlined the payment processing, order management, and analytics within a single system, ensuring secure payments for customers. This consolidation eliminated the need for external payment providers or merchant accounts, resulting in substantial time and cost savings.

Additionally, Shopify Payments’ competitive pricing structure, which ranged from 0.5% to 2% as opposed to PayPal’s fees of 5.4% + 45 cents for orders under $5000 per month, resulted in significant cost savings for the business. Moreover, the ability to enable customers to view and purchase products in their local currency streamlined the checkout process and offered a smooth online shopping experience.

Example 3

The third case study demonstrates the impact of using Amazon Pay as a familiar and secure payment option. This ecommerce business experienced increased trust and conversion rates by integrating Amazon Pay as a payment option. Amazon Pay’s familiar checkout experience, leveraging customers’ existing Amazon credentials, eliminated the need for new accounts or lengthy forms, resulting in a smoother transaction process.

In addition to the enhanced customer experience, Amazon Pay also offers a range of features, such as fraud protection and seamless integration with existing CRM, that can boost trust and conversion rates. However, it’s important to note that Amazon Pay has certain limitations, such as the absence of custom packages or volume discounts and a reserve policy that may delay payouts to new accounts.


In the evolving world of ecommerce, choosing the right payment processor can have a profound impact on a business’s success. While PayPal has long been a popular choice, numerous alternatives offer compelling advantages, from lower transaction fees and global payment support to ecommerce-friendly features. As demonstrated by the case studies, platforms like Stripe, Shopify Payments, Amazon Pay, Square, and Braintree have empowered businesses to streamline their operations, maximize profits, and deliver an outstanding customer experience. By considering factors such as pricing and fees, integration capabilities, customer support, and reliability, businesses can select a payment processor that aligns with their needs and paves the way for their ecommerce success story.

Frequently Asked Questions

Are there any good alternatives to PayPal?

PayPal, Venmo, Payoneer, Stripe, Square, Google Pay, and Apple Pay are all good alternatives to PayPal, each with its own set of features and benefits. Consider choosing the one that best fits your specific needs.

Who is PayPal’s biggest competitor?

PayPal’s biggest competitor is Stripe, followed by and Square Point of Sale.

What system is better than PayPal?

Venmo is a great alternative to PayPal, offering a social way to transact and providing a mobile payment service with over 60 million active users. It also allows payments through the app or in person via a QR code.

Why might an ecommerce business consider switching from PayPal to an alternative payment processor?

An ecommerce business might consider switching from PayPal to an alternative payment processor for potentially lower fees, broader global payment support, and specialized ecommerce-friendly features to better suit their specific needs. Conducting a thorough cost-benefit analysis and considering the specific needs of the business are crucial in making this decision.

What factors should be considered when choosing a PayPal alternative?

When choosing a PayPal alternative, consider factors such as pricing, integration capabilities, and customer support reliability to make an informed decision. These elements can significantly impact the overall experience for your business.

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Cam Morales

Cam is the Founder & CEO of, Bix and EcomUpstart - he built two 7 figure businesses since he started his entrepreneurship journey in 2016. He now helps others launch ecommerce stores and other online businesses.

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