5 Online Payment Software Alternatives to PayPal

5 Online Payment Software Alternatives to PayPal

5 online payment software alternatives that allow you to manage online and mobile payments.

If you conduct any kind of business online, you need to find a reliable, low-commission payment service to receive credit and debit card payments. Thanks to its partnership with eBay, PayPal has been king of the online payments market until now. With its high transaction fees, however, many online sellers are looking at alternative options that are more business-friendly. Here is a list of 5 online payment software alternatives to PayPal.

Google Wallet

Google Wallet, formerly known as Google Checkout, is an online payment service that allows users to pay for goods using their Google account details. Once shoppers have registered with Google Wallet they can use it online and in-store.

The service enables customers to pay for goods without leaving your website, and Google covers the payment processing, fraud protection and PCI compliance.

Google Wallet fees are at $0.30 plus 1.9-2.9% of the transaction value for online payments.

Amazon Payments

Amazon Payments provides direct competition to PayPal: as well as supporting merchants with one-time transactions, the payment service also handles subscription payments and donations. Customers can sign in through their Amazon account, and use the billing and address details already stored on the website. Like Google, Amazon provides protection against fraudulent charge-backs, and handles taxes and shipping fees. Commission for receiving payments through Amazin is $0.30 plus 1.9-2.9% of the transaction value.


Dwolla is an online payment system that’s designed to simplify the online transaction process. When a consumer buys and online product through Dwolla, the money moves straight from their bank account into the merchant’s.

The drawback to this system is that you can’t accept credit card payments – buyers have to have enough existing funds in their bank account to cover the transaction. On the positive side, however, Dwolla’s fees are much simpler than any other online payment processor’s: transactions under $10 are free, and transactions over $10 are $0.25. There are no set-up or registration costs, and you don’t need to worry about PCI compliance, as that only applies to companies who are handling sensitive financial data.


Square is an app and gadget that enables you to receive credit card payments through your iPhone and iPad. Once you create an account, Square will send you a free card reader. Simply set up the software, connect the reader to your device and, when someone wants to make a payment, swipe the buyer’s card through the reader.

Square charges 2.75% commission per card transaction, and merchants don’t incur any additional fees.


Braintree is a comprehensive system that provides a safe and effective way to receive credit card payments directly through your website. The service is designed specifically for online businesses, and provides a gateway system and merchant account services in one go. Braintree accepts one-off payments as well as subscriptions, and repeat customers can also choose to store their card details within the service.

The service’s fees vary depending on the number of transactions per month and the average value per transaction, and merchants can choose to pay monthly for optional extras, such as recurring billing and Amex processing.

The company speeds up the credit card gateway set up process, including the time to PCI compliance, and saves potentially tens of thousands of dollars on in-house set-up fees and software upgrades.

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