Everything You Need To Know About PayPal And The Need For PayPal Alternatives. Considered as the best payments processors, PayPal makes the money transfer completely effortless. Until a few years ago, there were only a few payment methods available other that banking method.
PayPal started in 1998. It was then that the whole idea of online transactions took a massive turnaround. However, it was only introduced to the public in 2002, after their tie-up with eBay.
PayPal has risen to fame and prominence on a global scale after pairing with eBay. It was not until 2014 that the latter announced a spin-off with PayPal soon.
The order was henceforth carried off in the mid of 2015. After that, PayPal is functioning unassisted with its headquarters in California, United States.
Why Do Users Favor PayPal?
Users always favor PayPal for the effortless mode of international transactions. They can receive and send payments all around the world from a single PayPal account. This means that the user does not need to share his/her bank details for transferring money.
The same rule applies to the customers/merchants while making payments. This makes PayPal far more trustworthy than any other mode of transaction.
However, like all good things are not meant to be perfect, PayPal has also thrived with its own set of drawbacks.
What are the drawbacks of PayPal?
No matter how good something is, it has its share of flaws. Likewise, PayPal has also disappointed many of its users. Hence, the drawbacks of PayPal are as follows:
Time of Transfer
After sending a request for transfer, the transactions get approved within an hour. However, it takes six to seven business days for the money to get transferred to the bank account.
No matter how safe the procedures are, there is always a chance of getting scammed. Like any other platform, people use PayPal for fulfilling their illegal motives.
For instance, you might get duped by the name of any reputed website while buying or selling stuff online. The risk is because of sheer negligence or carelessness.
Charges for Transfer
The transaction fee charged for transferring money to the bank account is unacceptable.
Based on the current status of your PayPal account, you might be set off with certain limitations. This usually happens in case of unauthorized transactions, or any non-compliance.
These often raise a question on the efficacy of the security terms as well as the amount that is to be transferred. Thus, a sweeping deduction in the hard-earned money is not acceptable.
Hence, the software developers have come up with several other options to choose from. The applications have been able to cope up with the limitations to some extent.
What Are The Ten Best PayPal Alternatives?
PayPal alternatives are not only easy but also quite promising in the act. Taking resort to PayPal alternatives saves a greater sum of money in your pocket. This is also the reason why many merchants are replacing PayPal with better options.
Hence, let us know about the various alternatives to PayPal which are quite popular to the mass.
Skrill has its headquarters in the United Kingdom, from where it operates. Innumerable merchants in Europe use it because of the excellent features it offers.
It is one of the best PayPal alternatives today because it is completely handy and easy to use. Unlike PayPal, Skrill incurs the smallest rate of $0.1 for any monetary transaction.
Hence, merchants all over the world are using Skrill to convert currencies at the cost of nothing. Besides, Skrill is also used for gambling online. Skrill provided risk-free and secured online payment options for the international shopping experience.
Established in 2009, Venmo has risen to be one of the most promising alternatives to PayPal. PayPal right away authorizes it, and it works as a private branch. Users often use Venmo for transactions between trusted contacts.
The individuals transferring money always have their bank accounts linked to it. It makes Venmo far more private than PayPal and is only used for mobile payments to someone you are dear to.
Venmo incurs a transaction fee of 3% every time you transfer money via credit cards. However, transferring money via a bank account is free of any charge. Also, you cannot pay your shopping bills via Venmo.
Payoneer has been quite popular among freelancers, ever since its establishment in 2005. This is because it has established direct tie-ups with several international freelancing websites. Innumerable clients and freelancers use it to send money and receive money overseas.
It also offers a pre-paid Master card meant for use by the account holder anywhere. It charges a wide range of transaction fees based on the types of transactions involved.
Also known as Google Pay Send, Google Wallet is a new addition to the list of online payment processors. Google Wallet is available in six different languages in various parts of the worlds.
It allows the transfer of money to the email address of the receiver right away from the bank account. This makes any transaction quite easy for the users.
Google Wallet also allows the users to buy or sell goods online in the most secure way possible. Besides, Google Wallet incurs a transaction fee of 2.9% whenever it accepts credit cards.
A huge number of people use Payza as a popular PayPal alternative. Many people in business and companies dealing with frequent transactions use it for payment processing.
Payza is also a popular payment processor for online shopping.Innumerable sellers in Europe are receiving payments via Payza, ever since its establishment.
Payza also has a free application available for download in the Android OS. This makes payza one of the best options for mobile payments
After the invention of 2Checkout in 2000, it has been very popular among the merchants. In 2017, 2Checkout had tied up with Avangate, which handles the financial proceedings.
2Chekout is quite popular among the merchants as “2CO”. Users can directly transfer money via a bank account without creating a 2CO account.
You can also use your credit card, master card, debit card, etc. to transfer money to a given bank account.
Transferwise is also a PayPal alternative. It is best for international payments. Contrary to other online payment processors, it is not workable for peer-to-peer transfer.
It allows you to send or receive payments in any corner of the world. Besides, it transfers money to the bank account within two to three business days only. They claim to give you the rates which you see on google.
Amazon has emerged as a one-stop platform for every kind of business. Thus, Amazon Payments is a new addition to the list of features it already offers.
All you need to do is open an account on Amazon, link your bank account or credit card to it, and you are all set to go.
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Amazon Payments getaway is not narrowed to transactions made only on Amazon. Anyone holding an Amazon account can use it to buy or sell services in and out of the platform.
Like PayPal, Amazon Payments also incur a transaction fee of 2.9% + $0.30 for every domestic transaction. While in the case of international proceedings, the fee has increased to 3.9% + $0.30.
Many merchants and people in business use Intuit or the Quickbooks Payments. Intuit allows ingress to TurboTax and is one of the best for mobile payments all across the world. It is also used for frequent transactions involving huge turnovers and lump-sum transfers.
Intuit implies a monthly transaction fee of $12.95 for a transfer of $1000 via credit cards. It also charges an extra charge of $0.30. Because of this, users often avoid using Intuit for smaller transactions.
Dwolla is one of the easiest alternatives to PayPal. It provides hassle-free transfer options via contacts available in your smart device. The users must follow the necessary steps verification procedures which are like PayPal. After completion, the account will get activated after two to three business days.
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Note that Dwolla operates only in the US and not around the world. Considering the transaction fee charged in Dwolla, it charges a flat $0.25 for the smallest transfer of $10.
Yes, PayPal might be working the best for you. However, it is always better to be ready with a potential backup to rely on when in trouble. Few of the alternatives mentioned above are more or less like PayPal.
Others have sorted their features either for business or private transactions. This makes it quite easy for the users to choose what they need!