When people think of digital payment methods, they often immediately think of PayPal. While PayPal did help change the industry with its amalgamation with eBay from 2003, modern technology continues to adapt. But some of its functions are paling in comparison to the needs of its in-person and digital clientele. Competitors have been growing in size and look set to prove their worth. So, what are some of the best digital payment alternatives to PayPal?
PayPal may have stumbled in international payments, but TransferWise steps in to pick up the slack. The company position itself as being perfect for taking and sending money internationally, especially for businesses. Saving money compared to PayPal for international transfers is their primary selling point and one that proves important for the future of international commerce.
Money can be managed in a range of currencies (40 of them) and TransferWise can even raise invoices in specific currencies relevant to the payee. The money itself never actually crosses any borders, which is how they can charge such low fees. For instance, a dollar to euro transfer will cost $1 and 0.6% of the amount of the transaction.
Skrill is an e-wallet that charges low fees and allows you to do everything a standard bank might, with the security of the account an emphasis. It is used for those interested in cryptocurrency. As cryptocurrency is growing in importance in people’s lives – or at least on the periphery of them – having a service that is focused on it could be useful.
Skrill also boasts its credentials for those playing games online. For instance, Harrison Score of WDW says that ‘Skrill is a very popular payment method with online gamblers. It has long been accepted at bingo sites and is therefore highly trusted by players.” Indeed, the rise of games such as bingo online means that players are expecting banking options that reflect the small monetary amounts that they could be depositing and withdrawing. Skrill could be perfect for this.
Square is a viable PayPal alternative focusing on those who sell in person. They aim to position themselves as a POS service as well as one that can be used online. The benefit is that they accept a whole range of payment methods, such as bank cards, cheques, gift cards. The online functionality, Square Checkout, amalgamates with online stores.
Perhaps most benefitting is the ability to swipe cash cards without needing an internet connection. Many businesses, especially those who trade from smaller stores, or at market stalls, are hampered by a poor internet connection or even the inability to take payments that aren’t cash. Square doesn’t need such a connection so people out of the way of reliable internet can benefit.
eBay and PayPal became separate entities in 2015, and in 2020 eBay announced that seller’s fees would be paid directly into accounts, skipping over the PayPal intermediary. This indicates that PayPal may already be on the way out. The range of alternatives also shows that when it does expend its usefulness, there are plenty of other options available to take over.