Are you tired of using PayPal for your freelance work or looking for a better alternative to smoothen your payment process? Look no further!
In this blog post, I’ll take you through the top 8 PayPal alternatives for freelancers in 2023. Get ready to explore new payment gateways, learn about their advantages and disadvantages, and find the perfect PayPal alternative.
Table of Contents
Short Summary
- Evaluate payment processing fees, accessibility and global reach, integration and ease of use when researching PayPal alternatives for freelancing.
- Consider various platforms such as Apple Pay, Google Pay, Amazon Pay & Stripe to maximize profits while streamlining business operations.
- Consider potential drawbacks before committing to a platform to ensure maximum earnings with minimal costs.
Evaluating PayPal Alternatives
When searching for the perfect PayPal alternative, it’s essential to consider these three critical factors:
- Payment processing fees
- Accessibility and Global Reach
- Integration and ease of use
Why? Because these factors directly impact your profit margins, the number of clients you can work with, and how smoothly you can manage your business.
Payment Processing Fees
One of the main reasons freelancers explore PayPal alternatives is to save on transaction fees. PayPal’s fees for cross-border payments can reach up to 4.4%, which can significantly impact your earnings. When comparing alternatives, analysing the transaction fees and conversion rates is vital to ensure you get the best deal.
Some platforms, like TransferWise, can be up to 19 times cheaper than PayPal. Remember, the more you save on fees, the more money you have to invest back into your business or enjoy yourself!
Accessibility and Global Reach
As a freelancer, chances are you want to work with clients from all around the world. That’s why it’s essential to choose a payment platform with wide accessibility and global reach. While PayPal boasts 430 million users and operates in 200 countries, it’s not the only option.
Zelle is an excellent choice for small payments between known contacts in the US, and TransferWise caters to major countries like the USA, India, China, the United Kingdom, and more.
Don’t limit your potential pool of clients by choosing a platform unavailable in specific countries or regions. And remember, you can easily benefit from using multiple payment providers to tailor the experience for your clients.
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Integration and Ease of Use
Last, consider a payment gateway’s integration methods, checkout features, and user-friendliness. The easier it is for you and your clients to use the platform, the better the overall experience.
Pro tip: Another important integration is to your bookkeeping platform. If the payment processor you choose integrates with your bookkeeping platform, you’ll save a lot of time.
Some PayPal alternatives, like Apple Pay, Google Pay, Amazon Pay, Stripe, TransferWise, Intuit, Payoneer, and Skrill, offer easy integration and a user-friendly experience.
Remember, a seamless payment experience can increase client satisfaction and potentially more business opportunities.
Editor’s choice
Wise is my choice of payment platform simply because it’s the cheapest and super easy to use.
Best for ease of use
Stripe is the easiest platform to use, and their API makes integration extremely easy for anyone.
Apple Pay
Apple Pay is excellent because it’s well-known. All you need is a platform to integrate Apple Pay with.
| Transaction fee | Withdrawal fee | Integrations | |
|---|---|---|---|
| Apple Pay | 3% | 1.5% | Apple pay integrates smoothly with a lot of other platforms. |
| Google Pay | 2.9% | 1.5% | Google Pay is very used and is integrating with a bunch of platforms. |
| Amazon Pay | 2.9% + $0.3 | 1.5% | Apple Pay integrates smoothly with a lot of other platforms. |
| Stripe | 2.9% + $0.3 | $0.25 | Stripe is the easiest platform to get started with most number of integrations. |
| Wise | 0.43% | 2% | Stripe is the easiest platform to get started with the most number of integrations. |
| Intuit | 2.9% + $0.25 | $3* | Intuit has some integrations, but far from as many as the alternatives. |
| Payoneer | 3% | 2% | Has API and some integrations, but none to bookkeeping systems. |
| Skrill | 2.99% | 1.75% | Skrill has a lot of integrations but not a lot of popular platforms. |
Apple Pay for Freelancers
If you own an iPhone or Apple Watch, you’ve probably heard of Apple Pay. This increasingly popular alternative offers fast and secure payment processing, making it an excellent option for freelancers.
However, third-party businesses may face difficulties integrating Apple Pay into their systems. Let’s dive into the benefits and drawbacks of this platform.
Benefits of Apple Pay
Apple Pay provides rapid and secure payment processing, easy setup, and the ability to store card information in the user’s Apple account. With fees of only 3% for credit card transactions and free debit card and bank payments, it’s a cost-effective option.
The familiarity and trust in the Apple brand can also potentially boost conversion rates, making it an attractive choice for freelancers.
Drawbacks of Apple Pay
Despite its advantages, Apple Pay isn’t perfect. Its market coverage is limited to certain countries, which may prove inconvenient for users who frequently travel or freelancers working with international clients.
Integrating Apple Pay with third-party businesses can also be challenging, and compatibility issues may arise. It’s essential to weigh the pros and cons before committing to Apple Pay as your primary payment method.
Google Pay for Freelancers
Another popular PayPal alternative is Google Pay. With fast payment solutions and the ability to store card information in the user’s Google account, it’s a convenient option for freelancers.
However, Google Pay’s market coverage is limited and may not be the best choice for everyone. Let’s explore the advantages and limitations of Google Pay.
Depending on the paid amount, Google Pay’s fee varies from 2.9% down to 1.9%. You can see an overview down below.
| Monthly Sales Through Google Checkout | Fees Per Transaction |
|---|---|
| Less than $3,000 | 2.9% + $0.30 |
| $3,000 – $9,999.99 | 2.5% + $0.30 |
| $10,000 – $99,999.99 | 2.2% + $0.30 |
| $100,000 or more | 1.9% + $0.30 |
Advantages of Google Pay
Google Pay offers swift payment options, the ability to save card information in the user’s Google account, and access to over 100 currencies. This makes it easier for freelancers like you to receive payments from clients across the globe.
Additionally, Google Pay provides instant transfers, ensuring users can receive payments almost immediately. With these benefits, Google Pay is an attractive option for freelancers looking for a PayPal alternative.
Limitations of Google Pay
While Google Pay has its advantages, knowing its limitations is crucial. Google Pay’s market coverage is not as extensive as PayPal’s, which may limit its usefulness for some freelancers.
Additionally, Google Pay lacks support for international payments and may present potential compatibility issues. Considering these factors is essential before deciding if Google Pay is the right choice for your freelance business.
Amazon Pay for Freelancers
Amazon Pay is another fast and secure alternative to PayPal, offering trusted brand awareness, fast checkout solutions, and seamless service on mobile devices.
But it’s not without its challenges. Let’s look at the benefits and challenges of using Amazon Pay as a PayPal alternative for freelancers.
Benefits of Amazon Pay
Amazon Pay provides a convenient and secure checkout process, allowing users to complete their purchases quickly. It’s available exclusively on Amazon, meaning your clients might already be familiar with the platform and trust its security measures.
Additionally, Amazon Pay charges a fee of 2.9% of the total payment amount, plus $0.30 per transaction in the US, which is competitive with other payment gateways.
With these benefits, Amazon Pay can be an attractive choice for freelancers looking for a reliable, user-friendly payment option.
Challenges with Amazon Pay
Despite its advantages, there are some challenges associated with using Amazon Pay. For one, its market coverage is limited, which can inconvenience your customers and yourself as a freelancer working with international clients.
Additionally, Amazon Pay requires basic programming knowledge to integrate with third-party businesses, which may disadvantage many freelancers. It’s essential to weigh the pros and cons before choosing Amazon Pay as your primary payment method.
Stripe for Freelancers
Stripe is a comprehensive payment gateway solution that facilitates payment processing. Business novices favour it for its user-friendly API, mobile payment capabilities, and cost-effective pricing plans.
Let’s delve into the features and considerations of using Stripe as a PayPal alternative for freelancers.
Features of Stripe
Stripe offers full payment processing, intuitive API, and mobile payments, making it an all-around great choice for freelancers looking for a PayPal alternative.
Its fees are competitive, with a 2.9% charge, a $0.30 USD flat fee per transaction, and an additional 1% conversion charge for international cards paying in a different currency.
But be aware the transaction fees vary between countries. In Denmark, where I’m from, Stripe fees start at 1.5% and a flat fee of $0.26 for standard European cards.
I can even use Stripe Link to push the transaction fee down to 1.2%. It’s super impressive.
Stripe’s compatibility with several online platforms and user-friendly interface make it an attractive choice for freelancers looking to streamline their payment process.
Considerations with Stripe
While Stripe offers many advantages, some factors should be considered before switching from PayPal. Stripe’s customer support response times may be slower than desired. However, they’re working on this, and I’ve seen significant improvements in their live chat in recent months.
Additionally, Stripe may require a basic understanding of programming to integrate with other services and platforms and may present compatibility issues.
Evaluating these factors is crucial before choosing Stripe as your primary payment method.
Wise (TransferWise) for Freelancers
Wise, previously called TransferWise, is a popular PayPal alternative for international transactions due to its competitive pricing, local account-based transactions, and wide range of currency coverage.
Let’s explore the advantages and disadvantages of using Wise for your freelance business.
Advantages of Wise
With low fees, competitive exchange rates, and the ability to accept multiple currencies, Wise is an attractive option for freelancers working with international clients.
Its comprehensive market coverage and support for over 40 currencies make it a versatile choice for freelancers looking to expand their global reach.
Additionally, Wise offers local account-based transactions, ensuring that you receive the most cost-effective solution for your international payments.
Disadvantages of Wise
Despite its advantages, there are some downsides to using Wise for your freelance payment needs. Wise offers limited customer support, which may be a concern if you encounter transaction issues.
Additionally, compatibility issues may arise when using Wise with other payment platforms or services. While these drawbacks may not impact every freelancer, it’s essential to consider them before committing to Wise as your primary payment method.
Intuit for Freelancers
Intuit is a good alternative to PayPal for freelancers and small businesses, offering payment management solutions and compatibility with QuickBooks and TurboTax. However, it may not be the best choice for individual customers, and prices are higher without QuickBooks integration.
If you’re already using QuickBooks, signing up for Intuit is a no-brainer as it integrates flawlessly with your bookkeeping, bank account, accept payments and much more.
But let’s take a closer look at the features and limitations of Intuit as a PayPal alternative for freelancers.
Features of Intuit
Intuit offers a wide range of payment management services, including compatibility with QuickBooks and TurboTax, to meet the needs of freelancers and small businesses.
Its regular pricing plan includes free bank transfers and a fee of 2.9% plus $0.25 per credit/debit card transaction.
With these features and prices, Intuit can be a valuable payment solution for freelancers looking for a PayPal alternative, especially if you’re already using QuickBooks.
Limitations of Intuit
There are some limitations to using Intuit as a PayPal alternative. It may not be suitable for individual customers, as it primarily serves as a payment service for business accounting purposes.
Additionally, prices can be higher if you don’t integrate Intuit with QuickBooks, which may not be ideal for all freelancers. These factors should be considered before deciding if Intuit is the right payment solution for your freelance business, as you want as much of the total amount as possible.
Payoneer for Freelancers
Payoneer is an alternative to PayPal that is suitable for freelancers and small businesses. It offers a wide range of payment methods, a 3% fee on credit card payments, and supports 150 local currencies.
There is no fee for transferring money from one Payoneer account to another.
However, it supports all currencies, but it’s not compatible with payment gateways.
Let’s explore the benefits and drawbacks of using Payoneer for your freelance payment needs.
Benefits of Payoneer
Payoneer provides many payment methods, making it a versatile choice for freelancers and small businesses. It allows you to receive payments in multiple currencies, making it easier to work with clients worldwide.
With its strong security system and prepaid debit card, Payoneer is an attractive option for freelancers seeking a reliable and secure payment platform.
Drawbacks of Payoneer
While Payoneer offers many advantages, there are some drawbacks to consider. Payoneer’s integrations are not that elaborate, and it can be quite challenging to integrate with other systems, like a bookkeeping system. This will, unfortunately, force you to perform some manual processes.
It also has a limited withdrawal amount of $5,000, but up to 30 withdrawals daily, and charges a fee of up to 2% per transaction. These limitations should be considered before choosing Payoneer as your primary payment method.
Skrill for Freelancers
Skrill is a PayPal alternative focusing on cryptocurrency transactions and online gaming, but a platform such as Themeforest also uses Skrill.
It offers a prepaid debit card and a robust security system to protect your funds. However, Skrill has a limited withdrawal amount of $10,000 and charges a fee per transaction, depending on your withdrawal method.
Let’s examine the advantages and limitations of using Skrill for your freelance payment needs.
Advantages of Skrill
Skrill offers fast, secure, and instant payments, making it an appealing option for freelancers who value speed and security. It supports invoice transactions, allowing you to create and send client invoices like PayPal easily.
With its wide range of currency coverage, Skrill is an attractive choice for freelancers working with international clients.
Limitations of Skrill
There are several limitations to using Skrill as a PayPal alternative. Skrill may temporarily block accounts, not often, but it has been seen before, which can cause issues for freelancers who rely on timely payments.
Not all merchants have an integration to Skrill, making it difficult to get started, and if you’re working with currencies other than EUR, they charge a conversion fee of up to 3.99%.
These drawbacks should be considered before choosing Skrill as your primary payment method.
Summary
In conclusion, several PayPal alternatives are available for freelancers, each with advantages and limitations. By considering factors like fees, accessibility, and integration, you can find the perfect payment solution for your freelance business.
Explore these options, weigh the pros and cons, and make an informed decision to enhance your payment experience and grow your freelance career.
FAQ
Which payment method is best for freelancers?
Debit and credit cards are the best payment method for freelancers due to their convenience and prompt payment receipt. With Pay By Link, it is even easier for customers to choose their preferred payment option.
Furthermore, having a website isn’t necessary when using this payment method.
Do we need PayPal for freelancing?
Choosing the right payment system is essential for freelancers. Thanks to its convenient features and widespread acceptance, PayPal offers an ideal solution for handling freelance payments. You can easily start managing and accepting payments with a free account setup.
Ultimately, PayPal can be an excellent tool for freelancers. But it can be quite expensive in fees, so you might want to look at Wise or Payoneer.
