Deep Patel — January 21, 2017 Follow @realdeeppatel— January 21, 2017
PayPal has long been a dominant player in the digital currency industry. However, with the recent innovation stagnation and a platform designed for eBay sellers and buyers, there are many flaws of which competitors can take advantage.
If you’re looking for an alternative to PayPal for your online business, here is a list of the best alternatives in a more and more digital based world:
1. Due
The online invoicing and payment service has capitalized on the needs of freelancers and small business owners. Due specializes in professionally formatted invoices for domestic and international users, and helps users easily manage incoming income.
Handling invoices and incoming payments while managing your own small business could be overwhelming, but Due’s layout enables stress-free organization. Initially, Due handled e-commerce options without offering their own, but eventually implemented their own effective payment platform. Due transaction fee rates run at a low cost of 2.7% per transaction.
2. Square
The ubiquitous square credit card processing terminals, whether the pseudo-cash register version at local businesses or the square reader for cell phone usage, revolutionized how small businesses collect payment.
Square understands that credit card processing companies charge astronomical fees for the service provided and that many businesses simply cannot afford the hardware nor the services. This where the 2.75 percent fee per swipe steps in and simple, affordable hardware, makes in-person card transaction more feasible.
3. Skrill
Skrill’s popularity derives from the frictions Millennials feel when using PayPal. Namely, the hassle of having to constantly withdraw and deposit funds, delays on those transactions, limited selections of international trades and currencies accepted, and high transaction fees have caused irritation with the younger user base.
Thus, Skrill combats all of these problems with instant withdrawals and deposits, low fees, acceptance of over 40 currencies, and incentives to recruit friends to the network.
4. Cash
As the mobile subsidiary of Square, Cash is aiming to disrupt the peer-to-peer payment industry by allowing not just individuals to have seamless payment between one another, but also avoid the problem of businesses using other peer-to-peer networks or “clients” not following through with payments in a documented or timely manner.
Overall adding more structure, including invoices, allowing users to opt-in for automatic withdrawals, and treating the platform serve as tools for both small businesses and individuals to be treated as “peers” in a peer-to-peer network.
5. Venmo
Offering free and immediate transfers between individuals has made the app popular among Millennials and college students due to the ease of transfer and low cost. Each of these players was able to debase PayPal in a particular niche or use case and in turn sculpt out major market share for themselves.
Whether you are a small business, global trader, or card-dependent college student, chances are there is a network besides PayPal that can better serve your needs.
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