Best PayPal Alternatives for Businesses in 2025

PayPal is the name everyone knows, the familiar blue button at checkout. It works for a huge crowd, yet it doesn’t click for every business. Companies evaluate alternatives when they want a payment platform that supports their workflow with more precision and fewer tradeoffs.

What Is PayPal and How Businesses Use It?

PayPal solved a problem that used to keep small businesses offline. Before PayPal, accepting credit cards meant dealing with banks, merchant accounts, and complicated paperwork. PayPal changed that. You could sign up in minutes and start taking payments the same day.

That ease of use is a big part of why many companies stick with it. People recognize the logo and feel comfortable finishing a purchase. It covers simple orders and ongoing billing, and you can send invoices through email or drop a payment button onto your site in a few minutes. For a new business, it often becomes the default because it works right out of the box and doesn’t demand any technical wizardry.

The platform works for basic payment needs. But as businesses grow, those same features that made PayPal attractive early on start to feel limiting.

Why Businesses Are Looking for Alternatives to PayPal

PayPal works fine until it doesn't. Here's where businesses typically hit friction:

Transaction fees add up fast: The standard rate is 3.49% + $0.49 for online payments in the U.S. That's manageable for high-ticket items, but it destroys margins on lower-priced products. High-volume sellers watch thousands of dollars disappear to fees every month.

Account holds happen without warning: PayPal's risk system can freeze your account based on patterns it doesn't explain. You might wake up to find $10,000 locked for 180 days. No appeal process works quickly. Your business just stops while PayPal investigates.

Payouts take too long: Standard transfers take 3 to 5 business days. Instant transfers cost an extra 1.5% per transaction. When you're managing tight cash flow, waiting nearly a week for your own money becomes a real problem.

Features don't scale: Basic subscription management works for simple billing. Try to set up usage-based pricing or complex proration, and you'll need third-party tools. The reporting is basic. Customizing checkout flows is nearly impossible.

International payments get expensive: Sending or receiving money across borders costs 4.99% plus a fixed fee. Currency conversion adds another markup. If you work with international clients regularly, these fees compound quickly.

Businesses switch to alternatives when one of these pain points starts costing more than the hassle of changing processors.

Evaluation Methodology

We reviewed transaction costs, supported payment options, payout timing, market availability, integration paths, and the types of companies each service tends to suit best. The information comes from official sources as of December 2025. Prices shift over time, so it’s worth checking the latest numbers before making a call.

6 Alternatives to PayPal for Businesses

1. Sensapay

Sensapay consolidates online payments, mobile checkout, recurring billing, in-person terminals, and ACH transfers into a single platform. The system is designed for businesses that need more flexibility than basic processors offer but want to avoid enterprise-level complexity. One notable difference is its approach to high-risk merchants. Where many processors apply blanket restrictions to categories like CBD, nutraceuticals, or subscription boxes, Sensapay evaluates these businesses individually through dedicated underwriting.

Key Features:

• Unified dashboard for online, mobile, in-person, and invoice payments

• High-risk merchant underwriting for restricted industries

• Transparent pricing with no hidden account maintenance fees

• Built-in subscription and recurring billing management

Pros: One platform handles all payment types. Faster payouts (1-2 days vs PayPal's 3-5). Accepts high-risk categories other processors decline.

Cons: Newer brand with less recognition. Underwriting review required for some categories.

Best For: Online shops that outgrow entry level tools, subscription based companies, service teams that rely on flexible invoicing, and merchants in categories that mainstream processors often hesitate to support.

2. Stripe

Square provides payment processing and business management tools for companies that sell both in person and online. It keeps in-person transactions, online orders, inventory, and employee management in sync through a single interface. Its point-of-sale software includes a free plan where businesses pay only for transactions, and optional hardware is available for different retail setups.

Key Features:

• Comprehensive API with documentation and SDKs

• Support for 135+ currencies and 45+ countries

• Stripe Radar for machine learning-based fraud prevention

• Advanced subscription billing including usage-based pricing

Pros: Complete checkout customization. Excellent global reach. 600+ pre-built integrations.

Cons: Fees match PayPal (2.9% + $0.30). Requires developer resources for setup.

Best For: Tech companies, SaaS platforms, marketplaces, and businesses needing custom payment infrastructure or international expansion.

3. Square

Square offers integrated payment processing and business management tools designed for businesses with both physical and online sales channels. The system synchronizes in-person transactions, online orders, inventory tracking, and employee management through a unified interface. Square's point-of-sale software is free, with optional hardware purchases for different retail environments.

Key Features:

• Free POS software with hardware options

• Automatic synchronization between in-person and online sales

• Next-day standard deposits with instant transfer option

• Integrated inventory tracking, employee management, and loyalty programs

Pros: Seamless omnichannel syncing. No monthly fees for basic plans. Simple setup for non-technical users.

Cons: Higher in-person rates (2.6% + $0.10). Limited e-commerce customization.

Best For: Retail stores, restaurants, service businesses, and merchants selling through both in-person and online channels.

4. Wise (formerly TransferWise)

Wise specializes in international money transfers and multi-currency accounts, using mid-market exchange rates rather than marked-up rates common with traditional payment processors. The platform supports holding balances in 50+ currencies and provides local account details for receiving international payments. Wise is designed for cross-border transactions rather than high-volume card processing.

Key Features:

• Multi-currency accounts with local account details in 50+ currencies

• International transfers at mid-market exchange rates

• Payment request links for client invoicing

• Batch payment processing for multiple recipients

Pros: International fees 0.4-1% vs PayPal's 4.99%. Real exchange rates with no markup. Transparent fee structure.

Cons: Not designed for card acceptance. Limited e-commerce integrations.

Best For: Freelancers, agencies, and businesses with international clients or vendors prioritizing low-cost currency conversion.

5. Payoneer

Payoneer provides multi-currency receiving accounts and integrates directly with major marketplaces including Amazon, Upwork, Fiverr, and Airbnb. The platform enables receiving payments in multiple currencies, with options to hold funds or convert them for withdrawal. Payoneer includes local receiving accounts in major economic regions and mass payout capabilities for businesses paying multiple contractors or suppliers.

Key Features:

• Multi-currency receiving accounts in major global currencies

• Direct integration with Amazon, Upwork, Fiverr, Airbnb, and other marketplaces

• Local receiving accounts in U.S., EU, UK, Japan, China, and Mexico

• Mass payout functionality for multiple recipients

Pros: Direct marketplace integrations. Low or zero receiving fees. Local accounts without foreign banks.

Cons: Conversion fees up to 2% above mid-market. Focused on receiving rather than processing.

Best For: Freelancers on platforms like Upwork or Fiverr, marketplace sellers on Amazon or eBay, and service providers working through international platforms.

6. Braintree

Braintree, owned by PayPal since 2013, offers payment infrastructure that accepts credit cards, PayPal, Venmo, Apple Pay, and Google Pay through a single integration. The platform provides API-level control similar to Stripe while including PayPal's network as a built-in payment option. Braintree targets developers building custom checkout experiences for established e-commerce operations and SaaS applications.

Key Features:

• Unified integration for cards, PayPal, Venmo, and digital wallets

• Advanced fraud protection with built-in tools and Kount integration

• Subscription billing with failed payment recovery

• Secure payment method vault for storing customer details

Pros: Multiple payment methods in one integration. Quality API documentation. PayPal access with more control.

Cons: Requires technical implementation. Pricing (2.59% + $0.49) similar to PayPal.

Best For: Established e-commerce businesses, SaaS companies with complex subscription requirements, and mobile apps needing PayPal reach with developer flexibility.

Table Snapshot: Quick Comparison

What to Consider Before Switching to Another App Like PayPal

Changing payment processors affects how money flows through your business. A few things worth thinking through before you commit:

Account eligibility: Some processors are pickier than PayPal about which businesses they accept. Others, like Sensapay, specifically work with industries PayPal rejects. Check that your business type is supported before going through the application process.

Payout timing: PayPal's 3 to 5 day standard payout is slower than many alternatives. But platforms offering instant deposits usually charge 1% to 1.5% extra per transaction. Calculate whether faster access to funds justifies that cost for your cash flow needs.

How refunds work: PayPal refunds your transaction fee when a customer returns something. Not all processors do this. If you run a business with frequent returns, that difference in refund handling can add up to real money over time.

Chargebacks: Every processor charges around $20 when a customer disputes a charge. Where they differ is how easy it is to contest those disputes and what evidence they require. This matters especially if you sell digital products or ship internationally.

Existing integrations: If PayPal currently syncs with your accounting software or e-commerce platform, verify your new processor offers similar connections. Losing automated reconciliation can create more manual work than you save on fees.

Industry restrictions: All processors maintain lists of prohibited businesses. Review these lists carefully. Some industries PayPal accepts might be restricted elsewhere. High-risk categories like CBD, nutraceuticals, or travel should confirm acceptance before switching.

Which Alternative Is Best for Your Business?

The best alternative to Paypal depends on which limitation is costing you the most. Maybe it's fees, maybe it's account restrictions, maybe it's international costs or missing features. Pick the platform that solves your biggest operational problem.