Let’s imagine that you are launching an online store or service and it’s time to choose a billing system. The comfort of customers depends on your choice. So, we decided to help you a little. We all know that PayPal and Stripe are all-time leaders among payment processors.
But we would like to bring on alternative payment options that can compete with industry leaders and offer favourable conditions regarding fees and support. As it happened with the small Dutch processor, who beat PayPal and started cooperation with eBay.
10 Alternative Online Payment Methods for Your Business
It is an easy online service for regular payments with no application process or setup fees. Yet, GoCardless is a paid system, it charges only 1% per successful transaction with a max. of £2 on the standard plan. When choosing a Pro Plan, you will receive a monthly invoice for all fees. It includes a £200 monthly fee plus fixed transaction fees.
GoCardless works best with processing recurring payments for businesses around the globe. Furthermore, GoCardless can be integrated with over 150 membership, billing, and accounting platforms.
A young alternative to PayPal with a focus on low-cost international money transfers, which arose in 2003. Skrill is that it’s designed for both individuals and businesses. The system enables individuals to pay/receive money and make online payments from anywhere. While businesses get a simple, seamless payment experience for their customers.
Setting up an account in Skrill is free, and users only pay a fixed percentage per transaction. Users have access to the mobile app, where they can make payments and manage assets 24/7. Additionally, Skrill is a useful tool for POS businesses and online stores.
Dwolla is a payment gateway specializing in bank transfers or Automated Clearing House payments. The main advantage of the online system is its price. Compared to other services, Dwolla charges record-low fees of 0.5% per transaction. Dwolla offers the solution for peer-to-peer platforms since it enables sending and receiving funds in both directions “from user” and “to user.” The system allows the marketplace owners to perform mass, automated ACH transfers using their API.
Dwolla is a powerful tool that offers a positive user experience and smooth documentation. But the biggest Dwolla’s throwback is not supporting international payouts. Thus, all parties must be located in the US. Which makes Dwolla not suitable for business with international operations.
Braintree is a subsidiary of PayPal designed for electronic payments with credit cards. It is one of the most used processing companies in the world. Services such as Uber, Airbnb, and StubHub, handle card payments using Braintree.
Braintree offers separate solutions for different kinds of businesses:
- Direct for online payments for goods and services.
- Marketplace for managing complex commerce transactions.
- Auth for service providers who act on the merchants’ behalf.
- Contextual Commerce for business connections and networking.
Among other services, Braintree delivers analytic and administrative tools, along with reporting and fraud detection.
Square is a technology company developing solutions for receiving and processing electronic payments. The company’s main product is Square Register – a plastic card reader for the phone. It allows individuals and entrepreneurs in the US, Canada, Japan, and Australia to accept cards on their mobile devices. It is possible to manually enter card data and read it using Square Reader, which connects to the smartphone or tablet via the headphone input. The Square Register combines the functionality of a traditional cash register and a POS terminal.
Likewise, the application has functionality for warehouse accounting and creating price tags. The device has the ability to integrate with other applications such as Shopventory, Weebly, Bigcommerce, etc. Square charges 2.75% per swipe or 3.75% + 0.15¢ per manually typed transaction.
BitPay is an online payment system enabling businesses to accept Bitcoin payments from customers. Blockchain technology eliminates fraud issues, risks, and chargebacks related to using credit cards. With BitPay, business owners can settle the revenue in local currency, Bitcoin, or a mix of the two. The platform supports e-commerce plugins and hosted solutions, including Shopify, Magento, WordPress, etc. Also, it allows merchants to interact with all consumer wallets. BitPay has simple in-person payment solutions that make it easy to check out via mobile. ButPay charges only 1% per transaction.
Splash is a leading payment processor that focuses on an e-commerce merchants. Service provides all the solutions to keep the merchant on the business track. Splash processes payments with all major bank platforms at a low rate of 2.9% + $0.30 per transaction with no extra fees. Additionally, the platform enables one to make money transactions without storing customer-sensitive information on the server. Users can customize Splash according to their needs and integrate with other platforms.
The platform is a good fit for marketplace service providers since they can customize the system and payment process. Also, The API functionality allows developers to make all the adjustments on the go.
Payoneer is a payment system that provides financial services and online money transfers. The company is a registered MasterCard (Member Service Provider) provider worldwide and connects entrepreneurs through international money transfers, online payments, and upgradable debit cards. Payoneer users can receive funds at their local bank or electronic wallet.
The payment system adheres to democratic rates:
- For the Global Payment Service, Payoneer charges 1% per transaction
- Direct Payments From Customers, meanwhile, will cost up to 3% per transaction
Adyen is an international online payment system from Holland. It offers solutions like online transactions, PoS, and marketplace payments. The company allows businesses to accept payments internationally, thus eliminating banks. All transactions are processed through the Adyen infrastructure. More than half of the transactions in the Adyen network occur via mobile payment means. The payment system is known for its innovative working policies and approaches to customer support.
Adyen got its popularity when multinational e-commerce giant eBay announced its refusal of PayPal to benefit Adyen. eBay explained that the key reason for choosing Adyen was lower costs and more control of finances.
WorldPay is an American online payment service operating globally. WorldPay currently has a significant presence in more than 40 countries worldwide. The service offers a wide range of services, including integrating offline payments with online services. There is no subscription fee, the commission is from 2,75 to 3,5% per transaction.
WorldPay mainly cooperates with major partners. Yet, there are exceptions when the company opens its doors for small commercial companies.