In this article, we conduct a Competitor analysis of PayPal and analyze the top PayPal competitors. PayPal is one of the most reputed and credible names in the online payment industry. It is a multiservice platform and it is this diversity that has helped in its growth over the years. It has a transparent fee structure that has created a trustworthy reputation amongst its users. PayPal charges a flat-rate transaction fee of 2.9% +.30 dollars for basic payments and 2.2% +.30 dollars for non-profit organizations. The platform does not charge start-up, cancellation or monthly fees at all.
PayPal Holdings Inc is a public company of American origin that was founded in the year 1998 by its founder Elon Musk and some of his friends. It serves a worldwide market with headquarters based at San Jose, California in the United States. In the year 2020, PayPal has spread its presence to two hundred and two markets and hold funds in twenty-five currencies in the global market. Its user base has also increased to three hundred and five million active users.
PayPal Holdings is associated with the financial services industry and serves as an electronic substitute for traditional transfers of paper money. It is an online financial giant that works as a payment processor for commercial users, auction sites and online vendors. Important features of PayPal include free POS app, accept credit cards, debit cards, Apple Pay and PayPal credit, accept multiple currencies, collect invoice payments, create invoices and receive funds.
PayPal occupies the first position in the market with a market share of 59.05%. It faces severe competition from several rival brands that are offering better services at affordable rates. Some of the major PayPal competitors in the world are mentioned below for your benefit.
Stripe is one of the most popular e-commerce platforms in the online payment industry and this is why is considered one of the top payment processors and PayPal competitors. It offers online payment processing solutions to small business entities as well as businesses with high-volume transactions. Stripe does not levy cancellation, monthly or start-up fees. The online card payment fee is 2.9% +.30 dollars and the fee for the e-check and ACH payments is .80%, capped at 5 dollars.
Stripe is a private company of American origin that was founded in the year 2010 by its founders John Collison and Patrick Collison. It serves various countries all over the world through headquarters base at San Francisco, California in the United States.
Stripe is a technology company that allows businesses and individuals to receive and make online payments and related services that include Connect, Subscriptions, Payments, Atlas, Relay, Sigma, Terminal, Issuing, and Radar.
The payment options include debit and credit payments, global online payments as well as wire payments. The best part of this system is that it takes away the need for a gateway because every aspect of collecting payment and sending them to the bank is handled by the company.
2. Amazon Pay
Amazon Pay was launched in the year 2007 and by the year 2020 has spread its presence to several important countries like United Kingdom, United States, India, France, etc. The commercial site acts as a subsidiary of its parent company Amazon and offers the user an option to make online payments with their Amazon accounts on other websites.
Amazon Pay deals in processing services via online payment. It levies a fee to make easy and quick transfers and its fee, as well as the payment structure, is quite similar to PayPal. The advanced security features is a blessing for individuals and organizations looking for a secure payment gateway.
Amazon Pay projects itself as a solution that has been designed to cater to the demands of both shoppers and merchants. The PayPal competitor has millions of buyers and sellers that can use its facilities for a better experience.
The user has to pay transaction fees if it is via debit and credit card but does not have to pay while receiving and sending money if it already has an account and is using Amazon Web Pay.
3. Google Pay
In January 2018, Google Wallet and Android Pay were integrated to create a single payment option Google Pay. It is a digital portal for online money transfers via tablets, Android devices, and Watches that facilitates payment acceptance in-store, in-app and website.
Users can create a customized business channel for seamless, simple and secure payments. Receiving and paying has become quick and easy as the user does not have to upload any balance on the mobile wallet. Just link it with your existing bank account and make an instant transfer.
Google Pay is a free app that does not charge any extras for the transfer. There is no need to share your private details during transfers and this acts as an added advantage in terms of security. The only drawback of the PayPal competitor is that it is limited to Android and iPhones.
One of the most popular PayPal competitors is Authorize.Net as it offers quality service, easy-to-use interface, security and reliability via Advanced Fraud Detection suite and reasonable rates on its platform.
Authorize.Net is often called a payment gateway as it accepts payments through credit cards and electronic mediums over the phone, through the internet and in person. Founded in the year 1996, it handles an estimated four lakh merchants and nearly one billion monetary transactions on an annual basis.
Authorize.Net is not free as it offers the all-in-one option as its fees. It allows the customers to manage all transaction from one platform where users can accept phone and mail order via its virtual terminal. It also supports a swiper and free mobile-app via its account and can sync with QuickBooks.
Payline is a private company of American origin that was founded in the year 2009 by its founder Jeff Shea. It serves only in the United States through headquarters base at Chicago, California. Currently, it acts as a subsidiary of its parent company Pineapple Payments, a payment-processing company.
Payline is associated with financial services and technology industry. It is a merchant processor that offers both offline and online services and has a diverse range of solutions that include in-store, online and mobile payments. Payline supports mobile payments and also offers facilities like API to integrate with third-party portals and solutions.
When compared with its nemesis PayPal the fee structure is flexible as well as cheaper. Payline does not use static pricing instead opts for interchange-plus pricing system. The online card payment fee of PayPal is 2.7% but with Payline it is even less.
6. Intuit QuickBooks GoPayment
If you are looking for a PayPal competitor look at Intuit QuickBooks GoPayment as it offers a full suite of tools that a business needs. The products related to this package are meant for medium and small business enterprises.
Intuit QuickBooks GoPayment is accounting software marketed and developed by its developer Intuit Inc and released in the year 2019. It offers cloud-based as well as on-premises accounting applications that manage and pay bills and accepts business payments.
It is meant to answer the demands created due to mobile POS options. Both the GoPayment card reader and GoPayment app can easily turn a smart device into an effectual POS system.
Intuit QuickBooks GoPayment is supported by operating systems of macOS and Microsoft Windows. It can gain access to TurboTax and like PayPal can send invoices and get paid anywhere with mobile payments. Important features also include connecting payments with payroll and timesheets, accepting ACH bank transfers and inclusion of a Pay Now button on the website.
WePay is considered a fast, simple, secure, and safe option because of its excellent and top-notch infrastructure. The PayPal competitor believes in transparent and honest dealings and has laid out its terms clearly and concisely for its users. Transfers are not free as it levies a processing fee of 2.9% plus 0.30 dollars for every card transaction and 1% plus 0.30 dollars for ACH payments.
WePay is an online service for monetary transfers that offer both customized and integrated card-processing solutions to software companies, small business entities, market places and crowdfunding sites via its APIs.
It is possible to receive a payment within a few minutes because of instant Onboarding and seamless processing. Users have absolute control over all the transactions as customized sign-up and email communication is compulsory.
TransferWise is a British origin company that was found in the year 2011 and serves through its headquarters base at London in the United Kingdom. It has a global presence in several countries like the United States, Europe, Asia-Pacific, Canada, and Latin America.
TransferWise offers multi-currency accounts and supports seven hundred and fifty currency routes that are spread all over the world. By the year 2018, its four million customer base included businesses, freelancers and consumers that resulted in nearly four billion US dollars of money transfer every month.
TransferWise guarantees transparent and seamless operations in a quick and fast manner. The PayPal competitor levies basic fees to transfer money in the international arena. Registration is compulsory and sometimes the company offers free first transaction to lure in new customers.
An important PayPal competitor is Payoneer that makes online shopping a worthwhile and remarkable experience. Its customer base includes professionals, freelancers and business owners who are on the look-out for a secured, fast and safe payment gateway. Available in more than two hundred countries Payoneer has gained huge acceptance for international transfers.
Payoneer specializes in a diversifying its operations via several sectors. The PayPal competitor offers free services like free signing along with fees on several types of transactions
Important services include digital transfer and online payments to account holders that can receive and send monetary funding into their bank accounts very easily. It also felicitates cross-border money transaction as part of business-to-business payment schemes in local one hundred and fifty currencies via debit card, online payments and wire transfers.
Dwolla was launched in the year 2010 and currently operates via headquarters base at Des Moines in the United States. The PayPal competitor deals in online and mobile payments via its e-commerce company so that receiving and sending funds is easy from both individuals and business entities.
Dwolla pays special onus on security by updating it at regular intervals so that all its sensitive data is protected. It allows the users to use its interface for automating payments as well as the instant transfer of funds and next-day transfer’s options at a small fee. It also allows the sender to pay the transaction fees if asked.
The company does not charge money to process funds below 10 dollars but every transaction above it costs 0.25 dollars. Compared to PayPal’s 2.9% + 0.30% it is very less and this is why a preferred option for PayPal competitors.
Square Inc is a public company of American origin that was founded in the year 2009 by its founders Tristan O Tierney, Jim McKelvey, and Jack Dorsey. It has spread its presence to countries like United States, United Kingdom, Australia, and Canada and serves its customers via headquarters based at San Francisco, California in the United States. Square is associated with financial services and deals in Point-of-sale or POS and mobile payment.
Square is a payment processor that offers domain and online store for free. The free app has an in-built payment processing system and can be used on iOS, smartphones and Android for mobile and in-store payments.
There is no monthly or downloading fee with the PayPal competitor. The company charges a flat-rate fee for every transaction and the user has to pay as per his usage. The in-store card processing fee is 2.75% and invoiced along with online payment fee is 2.9% plus 0.30 dollars
At the onset, PayPal was considered a revolutionary technology but with time other financial giants have come into the market with better interface, lower charges, and much better customer services. This is why it is important to find a better PayPal competitor that will prove an advantageous solution in these changing times.
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