PayPal is one of the most popular online payment systems. However, not all countries and individuals use PayPal. If you run into a situation where you cannot use PayPal to transfer money or make online payments, consider one of these alternatives to PayPal that offers similar features and great user experience.
1. Skrill
One of the best PayPal alternatives is Skrill. Its principle is similar: all you need is an email address and a phone number to send/receive money. Skrill is truly an international service with global coverage – it operates in more than 130 countries and supports 40 currencies. Skrill is widely popular and accepted on many sites, due to its two-factor authentication and VeriSign-operated 128-bit encryption security.
Receiving money is free, as is depositing funds via bank accounts (ACH, wire transfers) and Visa/MasterCard. Sending money is also free from one U.S. Skrill customer to another. However, any online payment from the U.S. to a non-U.S. customer will incur a 3.99% foreign exchange fee for the recipient. To get started, complete a simple registration and verify your payment mode.
There are two levels of a Skrill account: regular “Skriller” and “True Skriller.” At the latter level, the 5.5% bank withdrawal fees are waived. You can also apply for a prepaid Skrill Visa card. The biggest downside happens when your account becomes inactive. You will be charged $5 a month from your available funds. You must perform at least one transaction every 12 months to avoid this.
FYI: Skrill is the closest PayPal alternative in terms of U.S. domestic and international usage. Find out more about PayPal in our guide.
2. Wise
Wise (formerly known as TransferWise) currently operates in over 160 countries, helping you manage funds in 40 currencies. Similar to PayPal, you only need an email address to operate your Wise account, though a phone number is essential for two-factor authentication. In addition to a unique code for authentication, the site provides robust security through email notifications and dedicated anti-fraud security teams.
To pay someone, just look them up on the Internet using their name, @wisetag, or email. Choose the type of money they use, and you can make an easy online payment through your bank account or with credit cards. Wise does not take cards from the U.S. or AMEX cards, so it may not be a good PayPal alternative for Americans, but it does follow U.S. regulations.
Wise charges very low fees to send money to another country, with the fees charged to the recipient, not the sender. Wise has really good exchange rates, too. If you’re using Wise domestically in the U.S., sending money through ACH is free. But if you send it using a domestic wire transfer or SWIFT transfer, it costs $4.14 each time.
FYI: find out the main reasons Wise is able to keep the overall transaction costs low.
3. Payoneer
If you’re looking for a multi-currency online money transfer account that lets you transfer and accept any currency at the lowest fees, Payoneer is one of the best alternatives to PayPal. It’s a NASDAQ-listed company based in New York City. It operates in 190 countries while supporting withdrawal in over 70 currencies.
The platform is secured with two-step verification and is fully compliant, having been audited by FedNow. Payoneer lets you receive money in any currency, even if you don’t reside in that country, just as a local resident would. However, you can only withdraw funds in your own local currency.
If you receive an online payment in USD, EUR, or GBP from another Payoneer user’s balance, neither of you will incur any charges. However, U.S-based ACH transfers are subject to a 1% fee. Payments made with U.S. credit cards are the most expensive, at 3.99% plus $0.49 per transaction. The main drawback of Payoneer is the potential annual account fee of $29.95 for inactivity.
Good to know: Venmo vs. Zelle: which is the best digital wallet?
4. Venmo
If you are in the U.S. and don’t care about international payments, then Venmo could be for you. This service is good for mobile payments in particular and is excellent for splitting payments. If you’re at a restaurant with friends, you can use Venmo to equally divide the check among everyone, along with the tip.
The app uses bank-grade encryption with multifactor authentication and PIN for maximum security. However, you should keep an eye on fake Venmo accounts and avoid prepayment to strangers. The online transactions can be as small as possible (only $0.26), and you can create your own Venmo group among family and friends for smooth transfers. It also supports direct cryptocurrency payments.
One thing people don’t like about Venmo is that your digital payments are public unless you change the settings to enable privacy. Also, sending money to another Venmo user costs 1.9% plus 10 cents, and tap-to-pay charges are higher, at 2.29% plus 9 cents. Alternatives like PayPal, Skrill, and Wise won’t charge you anything when you pay using the money in your account.
5. Neteller
Neteller is very similar to PayPal. It’s a good choice for users in Europe and some Asian countries, but is currently discontinued in the U.S. However, you can continue to fund your Neteller account with USD as well as Bitcoins. You can also use Neteller to shop online. It uses military-grade encryption, higher redundancy, and regular backups to ensure maximum user safety.
If you’re in a country where Neteller is allowed, you can use it to send and receive money, as well as withdraw to a card. Its money transfer fees are quite low at just 1.45%, with a minimum charge of $0.50 per transaction. You can increase your limits by making a deposit to yourself.
Neteller typically charges very little for moving money. If you send money from your Neteller account, it won’t cost you or the person getting the money anything. But there’s a big downside. Taking money out of Neteller to put in your bank costs $10 each time. If you use Visa or Mastercard, they take 0.75% of the amount, and if you use Skrill, they take 3.49%.
6. Meta Pay (Formerly Facebook Payments)
Meta Pay by Facebook is not a true PayPal alternative but has its own benefits. After you add a debit or credit card issued by a U.S. bank, you can send money to your friends while you chat. The service is simple to use, as it only requires a Facebook, Facebook Messenger or Instagram account in the U.S.
You can use the service both on a desktop and mobile apps. Go to Account settings, and activate the Meta Pay options. The account is secured under your Facebook authentication. The best thing is that sending and receiving money via Meta Pay is free. However, there may be charges levied by your bank, credit card, or PayPal account to fund the balance.
The biggest disadvantage of Meta Pay is that the service is not trusted that widely because of Facebook privacy concerns. There is no clarity on transaction limits, although it remains somewhere between $5,000 and $10,000 on your Visa and MasterCard debit and credit cards.
Tip: Google Pay not working? Try one of these fixes.
7. Cash App
Cash App is quite popular in the U.S. It’s only available in one other country – the U.K. – but is handled by a different company. The U.K.-to-U.S. international transfers have now stopped, due to regulatory bottlenecks. However, if you’re a U.S. domestic user, you would still find it useful, and the app is rapidly growing in popularity, especially for selling items in Facebook Marketplace.
Cash App is different from Venmo, as it keeps your payments private – only you can see them. To open it on your phone, you need to use a PIN or your fingerprint, which makes it safer, in case someone takes your phone. Sending and receiving money is very easy after verifying your identity and linked banks.
If you need to send money right away, Cash App charges a small fee between 0.50% and 1.75%. But if you’re okay with waiting a day or two, sending money is free.
These seven PayPal alternatives are all good, though depending on where you live, not all of them are applicable. You can also try one of these NFC mobile payment apps (Google Pay, Samsung Pay, Apple Pay, etc.) for online payments.
Image credit: Pixabay. All screenshots by Sayak Boral.
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