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PayPal Sucks. Screw PayPal. PayPal Complaints. Occupy PayPal.

IF YOU’VE NEVER experienced a problem with PayPal, those websites, as well as the class action suit filed against the company years ago, might surprise you. If you have had issues – or if you’ve heard some of the seemingly exaggerated stories about how they take Christmas presents from underprivileged children – then you might be on the lookout for other online banking options.

Unfortunately, finding an alternative to PayPal isn’t as easy as finding an alternative to a regular bank. While as of yet there’s nothing out there that offers the exact services PayPal does, it may be possible to find something that will suit your specific needs.

1. Skrill (formerly Moneybooks)

Best for: Apparently, online gamblers. But also anyone else, consumer or merchant, looking for an alternative to PayPal, including those who use eBay.

What is it: According to their site, Skrill was “the first emoney issuer to obtain an electronic money license from the FCA.” Skrill is an online payment provider active in over 200 countries that allows users to make payments online without revealing financial details.

2. Square

Best for: Small business merchants

What is it: Square is a service created by Twitter co-founder Jack Dorsey which allows merchants to accept credit and debit card purchases anywhere via iPhone, iPad, or Android smartphones. They charge a 2.75 percent fee for swiped transactions and a 3.5 percent fee and $0.15 surcharge for transactions which are entered manually – no activation charges, terminations penalties, or any other fees.

3. Google Wallet

Photo by SNarvasa

Best for: Online consumers

What is it: A Google app that turns your smartphone into a virtual wallet by storing your credit card information. You can use it to shop online, or in some brick-and-mortar stores with a simple tap.

4. AllPay

Best for: Merchants and consumers in the UK

What is it: AllPay is an umbrella company that offers services that include direct debit, online payments, mobile payments, and swipe card payments. Fees are reasonable, and the company offers fraud protection for both buyers and sellers.

5. Merchantinc

Best for: Merchants in the US

What is it: This website provides services credit card processing courtesy of National Merchant Bancard. The site is compatible with eBay, there are no activation fees, and the transaction fees are reportedly lower than PayPal’s.

6. Nochex

Best for: Merchants and consumers in the UK

What is it: Users can choose from three options: a merchant account, which allows them to accept card payments around the world; a sellers account, which allows them to receive payments in the UK; and a personal account, which allows them to send and receive money with others.

7. Paymate

Best for: Sellers in Australia and New Zealand

What is it: Paymate is an eBay compatible service for Australia/NZ residents that allows users to receive payments from nearly 40 countries, regardless of whether the buyers have a Paymate account.

8. Neteller

Best for: Merchants and consumers

What is it: A UK-based service regulated by the Financial Services Authority that allows users to send money or purchase items online. Neteller offers great features, including an optional MasterCard, low fees, and support of multiple currencies.

9. iKobo

Photo by alumroot

Best for: Online consumers

What is it: iKobo is based in the US but open internationally. Users can set up a free account with a credit card or bank account, and send payment to sellers regardless of whether or not they have an iKobo account.

10. Bitcoin

Best for: Online consumers with an experimental attitude

What is it: Bitcoin is arguably the most unusual service on this list, as it deals in digital currency, or crypto-currency, built on the concept that “money is any object, or any sort of record, accepted as payment for goods and services and repayment of debts in a given country or socio-economic contest.”

Once thought to be the future of money as we know it, Bitcoin has had its ups and downs, from the disappearance of its mysterious creator to a string of hacks.

Financial Savvy


About The Author

Michelle Schusterman

Michelle is a musician, writer, and teacher just trying to see the world while doing what she loves for a living. She's taught ESL in Salvador, Brazil and kindergarten in Suwon, Korea, and now she's a full-time freelance writer living in Seattle (just to keep the city alliteration going). She'll try pretty much any food once and believes coffee is its own food group.

  • connergo

    Thank you so much for this article Michelle. Being a freelancer based in Cuba (where PayPal is blocked thanks to US embargo), I have had real problems with PP – in short, my acct cannot be accessed and if I try, it’s automatically blocked. They’ve threatened me w legal action even though Im 100% legal under US restrictions for travel here. Ive had to file all manner of paperwork with PayPal and they continue to block my acct for “inaction” which is a viscious cycle bc if I try to have action it gets blocked and on and on.  A real pain.  OK, rant over.

    Thanks again, Ill check out some of these services.

  • RenegadePilgrim

    You missed the one and only one that can truly give PayPal a run for their money.  Check out  Dwolla charges a set $0.25 fee per transaction, no matter how large or small.  They have been written up in many publications and I just recently opened an account with them after canceling my PayPal account.  So far, I have been pleased with them.  Check them out!

  • Philip Cohen

    Scott Thompson abandons the struggling eBay for the struggling Yahoo!

    Oh, Scotty, why? Why? Why?

    Well, obviously, Scotty could see the “” iceberg ahead and decided to jump overboard before the tired old scow, eBay, hit that berg—a very smart move, and …

    “Study Sees PayPal Adoption Down Among Multi-Channel Merchants

    “Twenty-two percent of EPIS merchants who had accepted PayPal on their own websites and off-eBay stores in October 2010 stopped accepting PayPal as a payment method on those sites in October 2011.

    “There were 19% more merchants who accepted credit cards on their own websites and stores in October 2011 than in October 2010.”

    And, Visa is to launch its new online payments gateway “” this year. The idea is similar to that offered by PayPal: you upload details of your payment cards to Visa—even if they’re not Visa-branded—and Visa will process the payment—directly with your banker—without revealing your card details to the merchant; so the using of this “professional” system should reduce the risk of online credit card fraud on both payers and payees to virtually zero.

    Off-eBay online merchants will be able to free themselves from the most unprofessional, parasitic, unscrupulous and “clunky” PreyPal. And, undoubtedly, PreyPal will then atrophy back to it’s mandated use on the eBafia marketplace only, from whence, without its mandated use thereon, PreyPal would never have had the success that it has had. Unfortunately, there is no relief in sight for on-eBay merchants.

    But, be in no doubt that, except for its mandated use on whatever will be by then left of the Donahoe-atrophied eBay Marketplace, the clunky PreyPal will elsewhere be quickly buried by Visa’s professional online offering, “”, once it is up and running this year. Thereafter, as eBay continues to sink lower and lower in the water, so will PreyPal.

    And, as for PreyPal’s projected move into EFTPOS at B&M. Pure science fiction—“Beam me up Scotty”.

    Then, there is that other little problem of corporate image: the eBafia and PreyPal have become the two most despised commercial entities on the planet, even more hated than “the banks”, and that has taken some doing.

    No more underpinning of eBay’s sagging bottom line by the clunky PreyPal. What is the “eBafia Don” to do now? Maybe, if Mittless Romney wins the GOP nomination we can hope that he will pick as his running mate his fellow “Pain from Bain”, the headless turkey, John Donahoe. Donahoe’s nearing the completion of his destruction of the eBay marketplace and so he should soon be looking for an even bigger challenge.

    So, apparently Scott Thompson is smarter than we thought; after all, he would know the real situation at PreyPal and he undoubtedly recognises that the clunky PreyPal is on the cusp of commencing its journey down the gurgler, and he is jumping off the tired old “eBay” scow before it finally goes submarine.

    “PayPal will become bigger than eBay in the next 3-5 years”—John Donahoe, eBay Analyst Day, 10 February 2011

    Notwithstanding his obviously delusional mental state, eBay’s chief headless turkey has got that right: undoubtedly PreyPal will be bigger than eBay soon, but it won’t be because PreyPal has gotten any more successful, just the opposite—Visa’s will see to that; it will be because the eBay “house of cards” has finally imploded.

    And, who but a total idiot would invest in a PreyPal IPO now?

    It appears that Donahoe genuinely was surprised by Thompson’s departure. Who then will take charge of PreyPal? Surely, only a fool would take charge of this clunky entity now. Regardless, the real question now is, when is the eBafia Don also going to abandon ship, or be thrown overboard by the owners of the ship when they finally wake up to the fact that all along they have had “Captain Queeg” at the tiller?

    Hang on, apparently eBay has found a fool to take charge of PreyPal …

    “Ebay Boss John Donahoe To Serve PayPal’s Interim President”

    “PayPal claims PayPal Is Not a Payments Processor!”

    eBay / PayPal / Donahoe: Dead Men Walking.

  • Alireza Sefati

    this is a great post thanks

  • salini

    very informative.good post

  • Local Searches

     Very nice solution many thanks for the post….

  • murphytan

    Quite a few good alternatives! So far I have been using Paypal for my wholesale fashion website and it is quite good. But I guess some customers don’t like using it.

  • Comarzan Alexandru

    Nice post with good informations.

  • High-End Directory

    Thanks for such good and useful information. I always trying o find the best alternative to PayPal but always coming back to them. Really can not find deserving online payment gateway without monthly fees.

  • PhotoVideoCompetitions

    Everybody hates Paypal but there is no good alternative. This market is still available for good and reliable service.

  • Italian Canada

    I am using Paypal just because there is no other gateway available in Canada.  

  • Anonymous

    The last sentence about Bitcoin is inaccurate. Its mysterious creator hasn’t disappeared (which implies something shady), instead he has always protected his anonymity and simply remains anonymous. Also Bitcoin itself has never been successfully hacked in any way, it was only third party websites that offer Bitcoin related services that have been hacked.

  • Jer Youngquist

    ..but seriously… how did you miss listing Dwolla?

  • Anonymous
  • Ronyt Arrora is an independent portal that takes care of all of your e-commerce needs. It is different because it has simple UI with absolutely $0 setup cost and to add to the treat, there is no monthly fees.There are no long installations and it cuts across boundaries of nations.Accepts payments across the Globe.They provide online payment solutions even in pakistan.They support all the payment options including Paypal, Payza, Moneybookers & Credit/Debit Cards. User makes the payment and they add that amount to your MemberChimp account. Redeem it by paypal, check or bank transfer without any hassles.Easy payment solution.
    for every business.

  • Anonymous

    Are there any simple p2p money transfer services? All alternatives are tailored to merchants as shown here.paypal-money-transfer-alternatives.

  • Drew Williams

    If you don’t like how paypal exposes your email for payments you could use as an alternative.

  • VIP Cashback – Your Skrill optimizer

    Please have a look at our PayPal vs Skrill (Moneybookers) comparison for a full detailed report with every information needed for personal account usage:

  • Jon Stern

    Bitcoin should be #1 and is the best and easiest way to send $ cheaply.

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