PayPal is a world name in online payments, but there are many cases where an alternative to PayPal is a better choice for commercial or peer-to-peer payments. Some alternatives to PayPal offer lower processing fees or faster deposits. Other PayPal alternatives offer more advanced peer-to-peer payments, such as free instant transfers between bank accounts.
Top 5 PayPal Alternatives of 2020
Bitcoin is a decentralized digital currency that enables instant payments to anyone, anywhere in the world. Bitcoin uses peer-to-peer technology to operate with no central authority: transaction management and money issuance are carried out collectively by the network. Bitcoins have all the desirable properties of a money-like good. They are portable, durable, divisible, recognizable, fungible, scarce and difficult to counterfeit.
Payoneer is a financial services company that provides online money transfer, digital payment services and provides customers with working capital.
Account holders can send and receive funds into their bank account, Payoneer e-wallet, or onto a re-loadable prepaid MasterCard debit card that can be used online or at points of sale. The company specializes in facilitating cross-border B2B payments. It provides cross-border transactions in 200 countries and territories and more than 150 local currencies, with its cross border wire transfers, online payments, and refillable debit card services. In October 2019, the company launched a service aimed for small and medium sized businesses to send payments anywhere in the world quickly and cheaply.
Stripe is an American technology company based in San Francisco, California. Its software allows individuals and businesses to make and receive payments over the Internet.
In 2016, Stripe was valued at over $9 billion when it raised a $150 million round. In its next funding round in September 2018, Stripe received a $20 billion valuation while raising $245 million. In September 2019, Stripe raised $250 million in a new funding round to take its enterprise value to $35 billion.
TransferWise is a British online money transfer service founded in January 2011 by Estonians Kristo Käärmann and Taavet Hinrikus and is based in London.
The concept was to match transfers with other people and then have a small commission while using the inter-bank mid exchange rate, unlike traditional currency transfers where there are buy and sell rates and the broker takes the difference between the two. There are currently seven language versions: English, Polish, French, Spanish, Italian, Hungarian, Portuguese, Chinese, German and Russian.
Skrill is an e-commerce business that allows payments and money transfers to be made through the Internet, with a focus on low-cost international money transfers.
It is owned and operated by Skrill Limited, a UK-based company registered as a Money Service Business with Her Majesty’s Revenue and Customs, regulated by the Financial Conduct Authority and licensed to operate within the European Economic Area. Since 2015, Skrill belongs to the Paysafe Group, along with former competitor Neteller and prepaid payment method paysafecard.