Top 10 Best PayPal Alternatives for Freelancers, Business Owners for Receiving Payments in 2021

Best PayPal Alternatives for Freelancers and Business Owners

PayPal is the most used payment gateway in the world with over 361 million active users worldwide and this value just keeps on increasing as many discover PayPal.

PayPal gained that achievement not because they receive and send money no, but because of the quality service they offer. PayPal gives everyone the possibility to choose to create either a personal account or a business account depending on the purpose of the account creation.

Recently PayPal made a new way for its users to control their funds and expenditure online by issuing free Mastercard known as a PayPal key that is linked to each PayPal user account. This release by PayPal was incredible as we could compare it to the same free virtual MasterCard issued by Skrill.

In addition, it is very simple to create a PayPal account but if you want a US PayPal account, you will need a US bank account or credit/debit card and a US virtual phone number to verify that the account is fully in the US. 

The essence of people wanting to create a US PayPal account is because they want to get all what PayPal has to offer since PayPal is limited in many countries especially in African countries.

All of these made people to have second thoughts on PayPal and to start looking for alternatives for PayPal. 

If you are a freelancer maybe on fiverr and you are located in a country where you can't withdraw money from PayPal such as Nigeria, you will receive your payments yes but you won't be able to withdraw the money from the PayPal account. This can be really frustrating. Probably those entitled to US, European PayPal account might not have a problem but might still want a switch.

If you own a business and it has a PayPal business account entitled to it, you will receive your payments quite alright but for some reasons such as fees, you might want to switch from PayPal to another alternative that might be better than PayPal in terms of fees, feature availability and many more.

We see many website owners out there receiving online payments through PayPal but for some reasons, they want a switch from PayPal to other services such as Stripe, Skrill etc.

If you think PayPal is not ideal for your business or freelancing job, then you are in the right place because in this guide, I will share with you the best PayPal alternatives that you can use for your business or for your freelancing job no matter your location.

CHECK ALSO: How to Track Phone Number for Owner's Name and Location

What is PayPal and How Does it Works?

PayPal Holdings, Inc. is an American multinational financial technology company operating an online payments system in the majority of countries that support online money transfers, and serves as an electronic alternative to traditional paper methods such as checks and money orders.

PayPal is an online payment system that makes paying for things online and sending and receiving money safe and secure. When you link your bank account, credit card or debit card to your PayPal account, you can use PayPal to make purchases online with participating stores.

PayPal has a lot to offer such as free virtual cards to manage your funds better, affordable fees when sending and receiving money. PayPal developer even offer unlimited free virtual credit cards for all developers to use in sandbox environments.

CHECK ALSO: Best US/Canada Fake Address Generator for Online Verifications

Why Switch From PayPal to Other Similar Alternatives and Services?

The main reason people are switching from PayPal to other similar services is because of availability and limit PayPal has in many regions. This is mostly common in Africa where users can't withdraw fund from their accounts but they receive payments quite alright.

If you are a website owner, a business person or a freelancer and you receive money in your PayPal account from your goods and services you offer but you can't actually withdraw that money from your PayPal account to your credit/debit card or bank account, then you will probably want a switch to a PayPal alternative.

Another reason might be due to the fees equally. For many, each might have his/her reason for wanting a switch.

However, when switching, you should be aware of the fees and services that the alternative has to offer if they will suite you and your expectations. The alternatives we provided below are the best you can use if you are a business owner or a freelancer.

10 Best PayPal Alternatives for Freelancers, Business

When talking of the best alternative for PayPal, we need to weigh out the different features and services provided by different parties which is what we have done below. 

1. Stripe

best paypal alternatives for freelancers and business

Ideal for freelancers in receiving online payments, Stripe is one of the most known alternatives to PayPal as both of them have some similarities in the services they have to offer.

It is an online payment system that allows business owners, freelancers, and e-commerce owners to accept online and mobile payments. It’s a great service if you sell products or services online, or if you have recurring subscriptions.

In addition, no monthly fees are charged on your account, fees are being charges only per transaction just similar to PayPal.

However, they charge 2.9% and $0.3 per transaction. That is to say, if you receive a payment of $500, Stripe will take $14.5 + $0.3 as fees.

Pros of Stripe

  • Easy to set up 
  • Clean dashboard 
  • Low transaction fees 
  • Easy to connect to websites
  • Offers international transactions for a small transaction fee

Cons of Stripe

  • No friend and family option 
  • Very little customer support 

CHECK ALSO: How to Get Free Virtual Debit/Dollar Card in Nigeria

2. Skrill

best paypal alternatives for freelancers and business

Skrill is another global payment solution provider that lets you send and receive money in a matter of clicks. Although it’s useful in many cases, it’s not the favorite choice among freelancers because of their transaction fees.

However, Skrill is ideal for business owners that don't consider fees as a factor. 

Similar to PayPal, Skrill offers free virtual cards to their users to easily manage their accounts online.

Skrill allows you to send and receive money from individuals very easily using their email addresses. Many micro gig platforms also support Skrill as one of their supported payment gateways.

Using their app means using Skrill without transactional fees.

Some users have reported delayed payments and other issues while using Skrill. So make sure you ask a few friends before joining it.

Pros of Skrill

  • Send and receive payments using email address
  • Get a free virtual card
  • No transactional fees using mobile app

Cons of Skrill

  • Overdraft fees
  • Not ideal for freelancers

CHECK ALSO: How to Get Free In-App Purchases on Android Without Root

3. Venmo

best paypal alternatives for freelancers and business

Just like PayPal that has friendly or family peer-to-peer (p2p) payments, Venmo is a great alternative to PayPal thanks to its little fees.

Venmo wasn't designed purposely for freelancers or business owners but it was created as a method of payment between simple individuals that want to pay for services and goods.

However, unlike PayPal, Venmo doesn't offer invoicing or money protection which makes it les secure than PayPal.

Venmo is easy and free to use and the main reason that people prefer Venmo over PayPal is its ability to withdraw your money to your bank account without complications.

However, Venmo charges a 1% fees over instant transfers but I don't think that's a big deal.

Pros of Venmo

  • Easy to use 
  • Great if you’re on the go
  • No transaction or transfer fees 
  • Instant transfers available

Cons of Venmo

  • No business support 
  • There is no website available 
  • No option to send invoices

CHECK ALSO: How to Get Free US/Canadian Number for Verification

4. WePay

best paypal alternatives for freelancers and business

WePay is a payment processor that was launched as a rival to PayPal. This makes them a good alternative if you're looking for a fast and secure way to accept online payments.

Similarly to Stripe, WePay charges 2.9% and $0.3 for every credit card transaction. WePay is also compatible with Automated Clearing House (ACH) transactions. No monthly fees or account management costs are required to use WePay.

Pros of WePay

  • Easy to use 
  • Integrates with websites easily 
  • No monthly fees or contracts

Cons of WePay

  • The more you earn, the more you pay 
  • Doesn’t work with PayPal (so you’d have to offer it separately if giving customers options)

CHECK ALSO: How to Get Bitcoin Loan Instantly Without Colateral

5. Google Pay

As a service from Google, Google Pay is one of the best alternative you can find out there for PayPal. Google Pay is a popular service amongst consumers and customers who find it useless to carry their credit/debit cards anywhere around with them.

Invoices aren't necessary when using Google Pay since Google Pay is for customers. Consumers will pay using their credit cards and it will be automatically charged.

As a free to use service, consumers can send payments to anyone online or send the payments though and email address or phone number.

Pros of Google Pay

  • Offers tools and support to get started and earn more 
  • Integrates with websites easily 
  • Works with “one-tap” devices, smart devices, and more
  • Super secure for both customers and businesses
  • No extra fees

Cons of Google Pay

  • Only supported by certain phones, so not every customer will have it
  • Leaves a stronger digital trail, which some customers may not like 
  • Doesn’t integrate with PayPal 

CHECK ALSO: How to Create a Verified Cash App Account from Any Country

Join us on Telegram for more exclusive tutorials and updates

Follow us on Facebook for more exclusive tutorials updates.

6. FreshBooks

best paypal alternatives for freelancers and business

Ideal for freelancers and small businesses, FreshBooks is another great alternative to PayPal thanks to its cloud invoicing. And again thanks to its bookkeeping payment system, FreshBooks is the favorite payment alternative to PayPal for many . It is mainly for booking.

With FreshBooks, you can easily manage your invoices, expenses, create and follow up books and proposals and do many more things.

FreshBooks is ideal for virtual service based companies and businesses but however, it isn't ideal for product based businesses.

Pros of FreshBooks

  • Easy to use 
  • Fast and reliable customer service 
  • An app to accept payments and manage clients on the go 
  • Invoicing options
  • Integration options (including, but not limited to: Stripe, Gusto, GSuite, Asana, Trello, and Shopify) 

Cons of FreshBooks

  • Limit on the number of clients you can have on a recurring basis, which can hinder you if you’re a busy freelancer
  • Can be expensive 
  • Isn’t really an option for product-based businesses

CHECK ALSO: Top 5 Best Virtual Card Generator with Money

7. Square

best paypal alternatives for freelancers and business

Square is a very similar alternative to PayPal. It has all of the same features as PayPal, but it also has a lot of the same capabilities. It also has a retail point of sale system that can be used by brick and mortar businesses.

Upon signup, you get a free Point of Sale (POS) with Square and no monthly fees are required from you. Square has some similarities to PayPal, Stripe, and WePay as Square charges a 2.9% plus $0.30 per online sale. However, Square only charges 2.6% plus $0.10 per transaction for mobile and in-store sales.

Square use their POS system for inventory management, customer directories, reports, and you won't have to pay anything for it.

This is an ideal PayPal alternative for businesses that are product-based business off the ground, sell at market’s, or need something for in-person and online transactions. 

Pros of Square

  • Easy to use 
  • No monthly fees
  • POS system for brick and mortar businesses 
  • Lower transaction fees for mobile and in-store sales 
  • Great for on the go transactions

Cons of Square

  • Transaction fees can add up for high-volume sales 
  • Users have reported that the free POS system can break easily (however, replacements are free)

CHECK ALSO: Top 5 Best Virtual Credit/Debit Card Providers in the UK

8. QuickBooks Online

best paypal alternatives for freelancers and business

QuickBooks Online is one of the most popular payment system and ideal PayPal alternative for small business owners thanks to its bookkeeping system just as FreshBooks.

You definitely need to use QuickBooks Online if run a business that does payroll, inventory tracking, receipt organizing.

QuickBooks Online can send invoices for payments and estimates of services.

They have 3 different pricing plans: Simple Start tier which starts at $25 per month, Essentials tier at $40 per month, and finally the Plus tier starts at $150 per month.

Pros of QuickBooks Online

  • Cloud-based
  • Invoice capabilities
  • Ability to add payroll, bill pay, inventory management, and more
  • Great customer service 
  • Bookkeeping built-in 

Cons of QuickBooks Online

  • Charges a monthly fee plus transaction fees 
  • Can be too robust if you only need a payment processor

CHECK ALSO: 6 Best Instant Virtual Card Provider Apps (No Deposit Required)

9. Wave

best paypal alternatives for freelancers and business

This is another great PayPal alternative for service-based business owners looking for an easy way to receive payments for their services online. This makes it ideal for freelancers equally.

Wave accounting is a free to use accounting software program.

If you are own a small business that sell products, Wave is also a great option for you as they added a checkout cart section recently.

Wave charges a 2.9% plus $0.30 credit card transaction fee. And they also charge a 1% ACH fee (with a minimum fee of $1). This is someway similar to the other payment services listed above.

Pros of Wave 

  • Completely free to use every month (although paid plans are available if you need bookkeeping help)
  • User-friendly 
  • The ability to add payroll 
  • Invoicing capabilities 
  • Checkout cart for your website (for product-based businesses)
  • Ability to keep credit cards on file 

Cons of Wave

  • The mobile app isn’t completely user-friendly 
  • Not the best option for product-based businesses
  • Charges for ACH payments

CHECK ALSO: How to Get Netflix Premium for Free for Lifetime

10. Zelle

best paypal alternatives for freelancers and business

This is another similar payment alternative to PayPal with similar features to this rival and Venmo. It is a peer-to-peer payment processor.

Money transfer between bank accounts is possible with Zelle as they do not provide options to use credit cards.

Zelle is completely free to use and customers can use their debit cards attached to bank account to with Zelle. However, Zelle doesn't guarantee you and your business if you don't receive your payment.

Pros of Zelle 

  • Completely free to use month to month
  • No transaction fees
  • Instant access to funds

Cons of Zelle

  • Wasn’t created for businesses, so no protection 
  • Doesn’t accept credit cards 
  • There is only an app to use 
  • May have trouble connecting to your bank account (as reported by some users)

CHECK ALSO: Top 15 Best Virtual Credit/Debit Card Providers in the US

Other Honorable Mentions of PayPal Alternatives for Business and Freelancers

Final Thoughts on Best PayPal Alternatives for Freelancers and Business Owners

There are many reasons why you might want to switch from PayPal to its nearest best alternative. probably due to fees and availability of the services. However, if you are a freelancer, the above alternatives are the best you can have for PayPal. This is also the case for small and large business owners.

If I was to choose between all of these alternatives, then I will choose, Stripe, Venmo, WePay, FreshBooks due to their peer-to-peer payment system which makes them ideal as alternatives for PayPal.

Join us on Telegram for more exclusive tutorials and updates

Follow us on Facebook for more exclusive tutorials updates.