As a business owner, you’ve encountered several freelancers who will highly recommend using PayPal as your primary monetary transaction platform. The biggest and one of financial technology’s pioneering companies has hundreds of millions of active accounts and gives you the full breakdown of fees you use.
However, on some occasions, PayPal isn’t one of the best choices especially if you’re wary about certain boundary fees that change depending on the country or other reasons.
You might be asking “are there any alternatives better than PayPal?” We’ve got a list of excellent alternatives many outsourcers, virtual assistants, and freelancers use nowadays that can work if you’re tired of PayPal’s terms.
Here are 4 Best Paypal Alternatives When You’re Tired of Using It
1) Google Pay
Tech giant Google contends with PayPal and Apple Pay when it comes to online transactions with its fintech platform. Any business owner can use Google Pay to send and receive money from their bank accounts. In fact, you can even put your freelancer payments on your credit card.
However, despite the top-tier features of Google Pay, it has its shortcomings. Let’s learn more about them below.
In-Store Payments: You can use your phone as a credit or debit card in paying for actual goods in a store that uses Google Pay.
Added Account Security: You can change your card numbers into valid virtual ones that safeguard your true bank account numbers.
Online Payment: You can pay merchants online for services by acquiring their Gmail addresses or virtual bank account numbers similar to PayPal.
Limited Territories: Google Pay does not charge any transaction fees for sending money to friends and family. However, you can only send money to US and UK Gmail users. Therefore, it isn’t an excellent option for paying freelancers in other countries. If your freelancer registers as a merchant, you can still pay them, but they have to pay regular fees to use the service.
Less Detailed Figures: PayPal gives you an accountant’s full detail of all your transactions and the average amount you spend and receive per month. Google Pay lacks detail in these areas.
2) Apple Pay
This platform is exclusive only to Apple devices and iOS users. One of the first payment platforms to rival PayPal’s immensity, Apple Pay is a secure and full-featured payment platform. Despite its great security and improving features per update, it has its shortcomings too.
Anti-Theft Security: When your phone gets lost or stolen, no one can access information about your payment. As per every iOS device security measure, you can remotely brick your device when it gets lost. This purges all data and even renders your device unusable.
A Great Deal of Bank Support: Financial tech platforms only work when many banks welcome its use. Apple Pay has plenty of partner banks worldwide from Europe to Asia. If your freelancer uses iOS, then you can transact safely and securely.
No Boundary Fees: PayPal is notorious for its huge transaction fee at approximately 4% plus a boundary fee. With Apple Pay, you pay nothing when you use a bank account or debit card. Additionally, you only pay 3% of your transfer amount if you pay using a credit card.
iOS Users Only: If you don’t own an Apple account or device, you can’t maximize its features. Only iOS users can use Apple Pay. You cannot access or download it on Android or Windows operating systems.
Some Countries Still Left Out: Anyone who plans to hire a freelancer in the Philippines, Indonesia, Central Asia, and even South America will find bank support for Apple Pay limited. It’s better to find an alternative instead.
Highly-revered for its exceptional flat-rate pricing better than PayPal and its convenience for many e-commerce businesses, ProPay is also a good alternative when it comes to paying freelancers. However, it still possesses some kinks that you’ll need to cope with.
Versatile and Flat Payment Rates: ProPay specialises your rates highly dependent on your company affiliation. Therefore, if you’re a small business, you can access ProPay’s full suite of features without any trouble. You can even predict costs thanks to its almost-flat payment rates.
Available in 180 Countries and Hundreds of Currencies: Included are virtual assistant and freelancer hotspots such as the Philippines, Indonesia, India, and other Asian and central Asian countries.
All-in-One Solution: If you’re processing both the payments for your freelancers and clients, you can do everything in just one place. While PayPal offers the same features, ProPay offers additional features that help you process payments fast and conveniently.
Setup and Annual Fee: ProPay isn’t a free account just like PayPal. You have to choose a package starting at US$40 per year in addition to flat transaction fees.
Maximum Monthly Volumes: If you plan to use it to pay your freelancers on a monthly basis and you have a huge team, you might be limited by the maximum monthly volume of $3,000 per month and transaction payment maximum of $500.
A freelancer-oriented payment platform, Payoneer is an excellent alternative to PayPal when it comes to paying your outsourcing agents. Its interface is as simple as PayPal and gives you the option to use a prepaid credit card to secure your original bank accounts and credit cards. However, it has its own set of shortcomings too.
Can Be Used in 200 Countries: That’s about 5% more than what ProPay can provide you and is quite close to PayPal’s number of countries. Truly convenient if you have an international team of freelancers working in different countries.
Local Bank Withdrawal: Your freelancers won’t need to wait 1-5 banking days to receive their money. It’ll only take 2-3 days once they withdraw their money from the platform.
Lowest Transaction Fee: PayPal’s 4% transaction fee is rivaled by Payoneer’s 1% fee for all processed payments. This is a huge advantage for any business owner.
Limited Currencies: You and freelancers can only receive payments in USD, EUR, GP, JPY, and CNY. Therefore, there may be small to major reductions depending on the conversion value of each currency to you or your freelancer’s local currencies.
Office Hours Live Chat Support: If you’ve got an impending problem that requires immediate attention such as fraud or hacking, you cannot ask for help from Payoneer until they open their live helpdesk during office hours. It’s not 24/7.
Choosing the Right Payment Platform Matters in Outsourcing
We live in a world where you can use the Internet to manage and send money to anybody living anywhere in the world. PayPal was the pioneer, but it’s not a one-all-be-all solution. These alternatives are not perfect, but they can deliver the same level of reliability that the pioneering online payment solution can provide.