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PayPal Alternatives for Established Businesses

PayPal Alternatives. Person using phone to pay

When PayPal came onto the scene in December 1998, it changed the way businesses conducted online transactions. As a no-cost virtual payment processor, PayPal made shopping simpler and safer for business owners and consumers alike. With it, people could shop without sharing sensitive information, and sellers could accept universal payments. Buyers and vendors use PayPal because it’s:

• Fast. Because PayPal retains your information, you won’t have to fill out a
payment form for every transaction.

• Easy. It’s possible to send money from a bank account or PayPal balance with no additional fees.

• Secure. PayPal doesn’t reveal users’ sensitive account details to the merchant and they strive to protect that information.

While PayPal is a viable service for start-ups and smaller businesses, it isn’t perfect, especially for more established businesses. Here are just a few difficulties you might encounter as your business grows:

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  • It can be difficult to reach a Customer Service agent
  • Digital goods are not covered by its Seller Protection program
  • PayPal fees can be significantly higher than those of other providers
  • It can take several days to transfer money to your bank account
  • Numerous users reported having their accounts frozen without warning or reason, some even shut down entirely

PayPal: Is It Good or Bad

According to a recent survey, PayPal has over 390 million users worldwide. Its transparent fee structure and simplicity have made it a preferred solution among business owners. PayPal comes with other perks, such as:

Good or Bad?

• Easy and free account setup, navigation, and management
• Transaction tracking
• Strong encryption of personal information
• A user-friendly layout
• Loyalty discounts for customers

Other Things to Consider With PayPal

Just as running an online store has unique pros and cons, so do specific payment alternatives. Though PayPal offers certain benefits to business owners, it may not be the best fit for everyone, including you. For instance:

• Using PayPal may be accompanied by additional banking fees
• eCommerce account holders must pay fees when receiving funds
• Accounts are often frozen when PayPal’s algorithms believe they’ve detected even the slightest anomaly
• Spoofed emails are common, which increases the risk of being caught in a scam

Which payment gateway is best? The answer to that question really depends entirely on the type and size of your business. Plus, it’s best to consider how many transactions are processed each month and the company’s customer personas. Your customers’ safety and privacy are the primary focus, and to protect them, you’ll need the right payment solution.

Xpress-pay

It’s a hard truth that when businesses accept credit card payments, owners may lose up to 30% of their profits.

How can that be?

Surprised look on mans face

Well, the typical transaction fee assessed on credit card payments is around 3% of the total paid. If a customer pays a $100 bill with their card, the business will incur a $3 processing fee.

Now, let’s say that business operates on a 10% margin: $10 profit per $100 in revenue. If that business could keep that $3, it’d increase their profit from $10 to $13. That’s an amazing 30% increase in profit!

Accepting credit cards with Xpress-pay allows you to do this by eliminating these transaction costs, allowing you to keep more money in your pocket. Xpress-pay offers benefits such as:

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Xpress-pay integration is certainly an area where working with trusted advisors may produce ideas and strategies that enhance you business and its profitability. Your accountant or computer expert may have other ideas on how to integrate third-party software with Quickbooks.

• No-cost processing. With the Silver Plan, you’ll avoid the per-transaction and monthly fees typically associated with mobile and online payment acceptance
• A customized experience. Every business is different, and owners interact wit)( customers in unique ways. Use Xpress-pay’s tools to reach your customers with a professional presentation anytime, anywhere, and on any device

As your digital payment partner, Xpress-pay will change the way you do business because they’re vested in your success. Get in touch with them today to find out how they can meet your company’s needs

Google Pay

Google on tablet

Established in 2021, Google Pay offers numerous benefits for buyers and sellers. It’s easy to save your debit and credit card information for easy and quick payments anytime, anywhere. Debit card usage and bank transfers are free, while credit cards are charged 2.9%.

Not only can business owners simplify the payment process for customers, but they can also use Google Pay as a marketing tool by sending product recommendations and mobile offers to targeted audiences. Google is one of the world’s most trusted and well-known companies, and that’s why so many count on them for online payment processing.

Payoneer

Since 2005, Payoneer has made online payments easy. Customers can send payments fee-free, while e-checks are charged 1 % and credit cards are charged 3%. Users can also obtain debit cards, which allow them to withdraw funds from ATMs and banks all over the world.

With Payoneer, efficiency is the top priority. Most transactions are completed in two hours or less, which makes this a great choice for small- to medium-size businesses.

Shopify Payments

Shopify Payments allows sellers to accept major debit and credit cards without going through a third-party service. From its humble beginnings in 2013, it has become the preferred ecommerce platform of over a million business owners.

Shopify’s basic plan costs just $29 per month, with a 2.9% + $0.30 charge for credit cards. As a bonus, Shopify Payments can be converted to point of sale (POS), so business owners can use its features in brick-and-mortar stores.

It’s versatile enough for consumers and shop owners alike, and it can be used with eBay, Amazon, and social media profiles. With each order, transaction details are synced, so business owners can access all their data in one place.

Authorize.net

Since 1996, this Visa subsidiary has been a common choice among small business owners. Not only does Authorize.net provide superior customer service, but it also offers competitive pricing. Plans start at just $25 per month, with 2.9% + .30 per transaction.

Along with its reliability and security, as well as its compatibility with Apple Checkout and other providers, sellers like the services Authorize.net offers. From point-of-sale checkout and recurring billing to API and invoicing, the provider does to meet ecommerce store owners’ needs.

ProPay

Girl happy using computer

This company facilitates credit card payments and processing for enterprise-level and small businesses, offering global commission payment and disbursement options. ProPay also offers SMS-based and one-click solutions for Saas (software as a service) providers, platforms, and marketplaces.

Dwolla

Dwolla offers an inexpensive, quick, and secure way to receive and make payments online through a checking account. With no charge for transactions below $10 and only$0.25 for amounts above that, Dwolla is one of the most cost-efficient options on this list.

The pros:

• Low transaction fees
• The ability for senders to pay the transaction fee
• Easy use
• Instant transfers

The cons:

• Both buyer and seller need Dwolla accounts
• It’s only available to business owners in the US

If you’re in the United States, Dwolla is one of the fastest and most cost-effective ways to transfer funds – that is, if you can convince customers to sign up.

Braintree

Braintree is technically a PayPal service. Geared toward online merchants, it offers flat transaction fees and great options that improve customer satisfaction. Braintree can be integrated into ecommerce sites for a quick and effective checkout option.

Braintree’s pricing is reasonable and straightforward. Customer service is great, and there are plenty of useful features for sellers. You’ll need a merchant account to use it, as well as a bit of programming skill. If you’re willing to put in the work though, Braintree is a great replacement for PayPal.

Payza

Formerly called AlertPay, Payza makes it easy to send and receive money, make online purchases, and send invoices. This service is great for individuals and business owners, and its shopping cart can be integrated with ecommerce websites.

Foreign money

The benefits:

• Accepts most global currencies
• Easy integration
• Great security
• Reasonable fees (varies by country)

The disadvantages:

• Many Payza users encounter verification and processing issues
• Poor customer support

While Payza is a viable option with good functionality, it has a few flaws that put it out of consideration for all but the most patient business owners.

Choose a PayPal Alternative That Helps Your Growing Business Thrive

With advances in technology and ecommerce capabilities, today’s in-store and online sellers have plenty of choices where virtual payments are concerned. Whatever option you select, the primary objective is to give customers the best user experience (UX) possible. The payment provider you choose will affect UX with its:

  • Fees. There are significant discrepancies in service fees. When choosing a provider, consider monthly transaction numbers, your target market’s location, and the types of payments you accept, as all these factors affect costs
  • Security. Online sales demand has increased security. Here, buyers share information that, if in the wrong hands, can lead to identity theft and other problems. Be sure the provider you are using is reputable and takes steps to secure customers’ sensitive information
  • Customer service. As a business owner, you already know that transactional problems can halt growth in its tracks. You’ll need a payment provider that can offer the support needed to resolve issues quickly, efficiently, and reliably. Think of your audience during the selection process and choose a provider accordingly

From online transactions to workforce management, every decision a business owner makes is customer-centric. Choose a payment provider that makes it easy to help customers, and everyone will share in the benefits.

About the Author

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From a very young age, Thomas has spent his time putting all he's learned about business, psychology, and leadership into effect and make an impact on the world. Now, he's helping SMBs and forward-thinking business owners understand the new digital business landscape, and how to leverage it to grow their operations faster using automation.


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