17 paypal alternatives for easier e-commerce.

July 28, 201072 Comments

Paypal is one of the biggest and most widely adopted forms of online payment on the web today. With the weight of Ebay behind it, PayPal has truly went from strength to strength, and is a well recognised web brand. That said, it hasn’t avoided negative press, with reports of accounts being frozen, and Paypal slow to respond to support queries, many people have been forced to review and compare other options.  Whilst many of these don’t yet have the user base of PayPal, they may serve to help you out when searching for alternatives.

Google Checkout

URL: http://checkout.google.com/

Google Checkout is Google’s attempt at a replacement for PayPal, and is still very much an inferior product, with only a small subset of the features offered by others. As for the actual transaction costs, they have completely mimicked the tiered cost structure of PayPal, as low as 1.4% + £0.20 per transaction, but as high as 3.4% + £0.20 depending on your monthly sales volume. further details can be found on pricing here.

In a similar vein to PayPal, Checkout is a middle man solution – storing credit and debit cards in its system, and then using those to transfer funds to a fro a bank account.  With the ability to embed “buy now” buttons if shopping cart functionality isn’t needed.

The adoption of Google checkout hasn’t been all that they have hoped, but that could all change pretty soon. If TechCrunch’s prediction on Google Games is correct, we could see a much more mainstream take up of Google Checkout. At time of writing they were running house ads that looked like this isn’t far of the mark.  Technical support for Google Checkout would need to improve somewhat if they are going to get the traction they need however; an outage of the service back in April saw many developers and e-commerce merchants disgruntled, with no apparent response from the Google team. Checkout is available to customers in both the U.S and Europe.

Money Bookers

URL: http://www.moneybookers.com/

Money Bookers is a UK based company,  and is Authorised and regulated by the Financial Services Authority of the United Kingdom (FSA). They offer a number of benefits including sending money securely worldwide to anyone with an email address – even if the recipient does not have a Moneybookers account yet, and accept business from lots of different currencies.  January 2010 they were reporting a user base of 10.8 million accounts – although this doesn’t indicate how many active.

Following the online wallet model, they hold all payments in limbo prior to transferring through to the final recipient, giving you some amount of protection. Escrow services are available for auction services. All previous transactions can be found in the history section of your account which can be accessed at any time and the data can be easily exported to an excel file if you want to maintain a digital backup. In the setup of an account there are a lot of verification procedures, which can take time, and they are certainly not as easy to use for someone in the US compared to someone in Europe. That level of protection will however help to give users piece of mind.

Their fees are on a flat per transaction basis, where uploading fees to a moneybookers account is free, but withdrawing funds from your account costs you. Further details for different countries can be found here.  As with Google Checkout and Paypal, they do offer a payment API – however there didn’t seem to be any quick “copy and paste to buy now” type scenario, which will put off some of the less technical users who are looking for a quick e-commerce solution. That said, requesting money is a simple matter of logging in and sending a money bookers email.


URL: http://www.paymate.com

Availability: Australia, USA, New Zealand

Paymate provides secure, reliable and innovative Internet-based payment services to buyers in 57 countries around the world and sellers in Australia, New Zealand and the USA. You can use Paymate to receive online payments via credit card, and like PayPal – you don’t need to have a merchant facility with a bank.

Although this is a service which exists inside particular locales, it is still a worth competitor to PayPal, and has performed particularly well on Ebay Australia – where Ebay were forced to accept it as an alternative payment provider for fears of anti-trust litigation.

Details on the fees charged can be found here – with the fee for buyers in the UK at the time of writing being 3% + 0.25p  per transaction regardless of the size of transaction. However there does seem to be charges for chargebacks and a credit check charge for new customers opening an account.


URL: https://www.obopay.com/

Obopay is one of the first mobile payment systems to make it to the web, enabling customers to transfer money to one another right from the mobile phone.  Technically this is achieved using a combination of the technologies offered on mobile devices – traditional SMS, WAP,  HTML / Web apps and bespoke iPhone applications – allowing them to cover all bases regardless of  the handset capabilities.

With more and more of the web moving mobile, its no surprise to see startups taking advantage of this, and wedging a foothold in this space. For example in May that announce that they were going to allow banks a branded payment solution to take advantage of the growing mobile trend – saving them the hassle of the implementation, and allowing OboPay to get on the pig’s back so to speak.

Amazon Payments

URL: https://payments.amazon.com/sdui/sdui/personal/money

Amazon have a number of interesting products under their ‘Payments’ banner. They have a system  for sending money which is free to use for sending money between Amazon users, and they have a number of more ‘E-commerce’ related products. If you are looking to just send and receive money in the U.S. they have a pretty attractive offering.  If however, you are needing a transaction option, you are going to have to pay for the privilege.

All of Amazon Payments uses their databases stored internally to aid with the checkout process, essentially giving sellers less hassle with the checkout process, also giving access to Amazon’s patented ‘One Click order’ services. In a similar vein to PayPal, they also offer cut and paste HTML code for their Simple Pay product, which can get you up and running quite quickly if you only have a handful of digital products to sell. Processing is performed on Amazon servers, prior to the customer being returned to finish the checkout process, which isn’t that big a deal considering its an out of the box payment solution.

As for costings, this is worked out on a per transaction basis, with fees starting at 2.9% + $0.30 per transaction for volumes under $3000. See more details on the pricing for business accounts here.

At time of writing, Amazon Payments UK hadn’t been rolled out, and the service exists for the U.S. only.

Notable Mentions – Digital Software Carts

These other links and systems may be suitable for a variety of scenarios, including digital shopping carts, card processing and digital wallet solutions. Some of them mirror the free software features found in PayPal, some of them are just bare bones solutions, but hopefully they will be useful for you to review.


URL: http://www.e-junkie.com/

Provides shopping cart software which integrates with PayPal and other card processing gateways. If you are selling digital goods, thoroughly recommended folks.



In a similar vein to E-junkie, Kagi offers a digital goods delivery, and integrated shopping cart experience solution for those looking to get up and running without the hassle of setting up a full e-commerce store.

Digital River

URL: http://www.digitalriver.com

Digital River’s Element 5 product is also used across the web for digital software delivery, and its shopping cart is well respected.

Bit Coin

URL: http://www.bitcoin.org/

Bitcoin is a peer-to-peer network based digital currency. Peer-to-peer (P2P) means that there is no central authority to issue new money or keep track of transactions. Instead, these tasks are managed collectively by the nodes of the network. Advantages:

  • Transfer money easily through the Internet, without having to trust middlemen.
  • Third parties can’t prevent or control your transactions.
  • Bitcoin transactions are practically free, whereas credit cards and online payment systems typically cost 1-5% per transaction plus various other merchant fees up to hundreds of dollars.
  • Be safe from the instability caused by fractional reserve banking and bad policies of central banks. The limited inflation of the Bitcoin system’s money supply is distributed evenly (by CPU power) throughout the network, not monopolized by the banks.

Other PayPal Alternatives

Some of these additional alternatives may also be applicable to your particular situation.

  1. Neteller– Prepaid card solution, giving you a mastercard that you can use instead of a credit card.
  2. CCNow
  3. PayPay
  4. DirecPay – PayPal Alternative in India
  5. AlertPay
  6. Liberty Reserve
  7. Strictpay
  8. Perfectmoney
  9. TrialPay – Ad funded Payment Platform used for social games on sites such as Facebook, and for software companies who can offer trials.

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Comments (72)

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  1. WHATdaFuk says:

    All these sites might work and save a few bucks on fee’s but will E Bay let you use them and how secure are they? Im sure most are based outside the USA with little or no protection…

    Like the rest of you I HATE PAYPAL and would love to find another payment option but E Bay will not let you take other payment options.. Its a monoply you cant fight

  2. John says:

    Any suggestions for a system that will allow our small church to begin accepting electronic pledges or donations online?

  3. This is one of the most informative post I have ever seen. I think people should stop using paypal right now. I have seen so much critics about paypal in the web.

  4. stickerboy says:

    1) Globally Accepted Debit Card – OKPAY offers an international payment processing payments solution directly to MasterCard® debit card.

    2) True Internet Banking
    Make international wire transfers to\from any country.
    Instantly convert the world’s major currencies.
    Accept corporate and bank cheques for cashing.

    3) Access to All Payment Options
    * Accept direct bank transfers and corporate cheques
    * Accept over 10 different e-currencies
    * Accept payments made through various Money Transfer systems
    * Accept credit card payments (coming soon)

    4) Easy to use, competent and courteous staff!

    See for yourself: https://www.okpay.com

  5. Paxum says:

    How about Paxum?

    Paxum is an ewallet payment service. You can send and receive money online through our low-fee P2P payment system. Withdraw your funds through Wire, Check, ACH (in US), an already existing Credit or Debit Card, or use the prepaid Paxum Mastercard that you can receive as soon as your account is verified!

    It’s safe, secure and easy to get set up to receive and send Paxum payments, and with such easy access to your money, and very competitive low fees, along with top class customer support, you’ll see why using Paxum really means you’ll Pay With Ease.

    Check us out for yourself – http://www.paxum.com – you won’t be disappointed! :)

  6. ZC says:

    Personally I quite like http://www.350.com and their interpretation of PayPal e-commerce. The editors are all built into the page editor, so you don’t have to deal with making PayPal buttons and inserting them into the site yourself. As well as that, the PayPal buttons you make can be tied to the gallery feature so it’s very easy to get a great looking e-shop up and running quickly.

    You can also add alternative e-commerce buttons if you wanted to.

  7. stefano says:

    Thanks for agreat post..
    I will look into the alternatives bcs I think Paypal is getting to big nowadays..


  8. SwissMICSI says:

    Thank you for this article.
    I’d like to add one new player on the payment solution industry for e-commerce: SwissMICSI.


  9. Meeshee says:

    Last week my paypal account was ‘permanently limited’ for no apparent reason. Paypal has since closed my account for no apparent reason. They have frozen funds for 180 days.

    I need a reliable solution for my business for accepting payments and making payments. Of all the resources listed in this blog entry, what does the author recommend?


  10. Richard says:

    Hi Paul

    Can you advsie the best way of getting access to finincial statements for these companies


  11. SafePurchase says:

    Seriously…. Where is Paysafecard on this list?
    I use it for months now, and NEVER had any trouble with it. This is the best online payment option ever!

  12. Suhas says:

    Nice post… paypal is getting really crappy in india…

    BTW, “users piece of mind.” shouldv’e been “users peace of mind.”

  13. fcukpaypal says:

    I cannot believe paypal is charging to refund transactions, this is the sickest corporation I came across (after Monsanto). I’ve never seen any payment processing charge for a refund, complete corporate greed. Just makes me sick. Please boycott them as much as you can….

  14. Dan says:

    Is there any on line web which offer services of on line payment only minus the merchants transaction requirement? I don’t have a website and a current business and for the moment don’t intend to get any either.I just want to purchase and pay on line.Any such web in the market? All the web I have searched and inquired require you to enlist both as a buyer and seller! Where do I find one such web for this service? Or there is none? When you have the answer can you please email me? Thank you.

  15. Tim says:

    Sorry, there is no real alternative to Paypal yet, even though it is high time for it.

    Forget Money bookers, I did register with them, have been pressed to put some credit on that account, could never get my credit card provider to credit them, always rejected, whereas other on-line payments through my credit card provider went always well.

    I gave Money bookers an email address that I gave NOBODY else. Soon I got spam from casinos and what else.

    If some credit card providers reject payments to Money bookers, there must be some truth with scam allegations…

  16. Richard says:

    I am a fan of Google checkout and have implemented that on many ecommerce websites developed by us. It was customer experience that they would like to use the google checkout as one of the best paypal alternatives.

  17. Clara says:

    Looking for trust worthy paypal alternative. I would like a company that offers a subscription button that I can offer on my website for the services. Google sounds good but no monthly subscription.

    Please help..

  18. It is so great to find this post.
    I hate paypal. Paypal is son of bitch, locked my account, and held my money for 6 months.

  19. Don't draper says:

    If you just don’t like exposing your email for paypal payments. Why not try http://www.payvin.com

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