In today's digital world, making payments quickly and safely is essential for individuals and businesses alike. As the world moves from using cash to electronic payment processes, an influx of apps and software can be seen designed around this. PayPal and PayPal alternatives are increasing in number as a result.
The question, however, remains. How effective are these tools for SMEs? Throughout this article we will assess the various alternatives and evaluate their performance. All of this, in an effort to determine how useful they are. So, let’s get into it.
SMEs have risen in number exponentially over the years. The ecommerce boom has opened the flood gates for everyone to have their own small business. As such, the rise of payment processing tools has complemented them. Electronic payments has taken center stage and it is clear which way the future is headed.
Electronic payment methods allow for more easier and simpler payments. They’re safer, more flexible, and almost always more convenient than cash. As such, many companies are now offering their own dedicated electronic payment apps. The market has opened.
A key player in the market is PayPal. The app has revolutionized payments by providing a secure and convenient platform for users to pay online. It has become integrated into many e-commerce platforms. It has been incorporated as the default option due to its acceptance. Everyone uses it now.
However, PayPal is not the only player in the market. Despite being a clear leader, there are many PayPal alternatives that seek to add value and unique propositions. The rise of small businesses and ecommerce stores has facilitated the growth of electronic payment methods and online payment tools.
There are many reasons why a small business would want to opt for software platforms. Here are some advantages that they seek to benefit from.
As we discussed, software options provide many benefits for small businesses. PayPal is one of many that is used throughout the world. Many people have latched onto it due to its ease of use and accessibility for small businesses. Here are some features the application offers that detail why it is so effective in the industry.
Despite being quite beneficial to small businesses who use it, PayPal has its downsides as well. Let's explore some of them to assess their effectiveness.
If you think that PayPal is not for you, you might consider these alternatives to suit your needs. Let's explore them and see what they offer.
Bonsai offers comprehensive business management capabilities. It allows for invoicing, contract management, CRM integrations, and robust reporting features. These functions make it ideal for small businesses to streamline their financial management operations.
Best for: Small business owners (solopreneurs) & freelancers
Square offers convenient payment processing solutions. It provides card readers and registers as well as dedicated software for inventory management and analytics. This makes it good for physical businesses with at least one location to conduct point-of-sale activities.
Best for: Retail locations
Authorize.Net allows for secure online payments. It provides robust security measures such as fraud detection, which ensure user safety and protection. It can also be integrated into various e-commerce sites for billing and mobile payments.
Best for: e-commerce
Braintree offers a transparent pricing structure that seamlessly integrates with websites and mobile apps. It has advanced fraud detection capabilities and supports multiple payment methods. It is quite versatile in this regard.
Best for: Multi-device payments & flexibility
2Checkout is a payment giant that processes multiple payment options, such as credit cards and PayPal itself. It allows for localized checkout experiences and has comprehensive safety features.
Best for: flexibility of payment methods (Braintree runner up)
Payoneer is a good option for conducting international payments in various currencies. It features global bank transfers and currency conversion features, providing flexibility with each transaction.
Best for: international payents
Amazon Pay allows users to conduct their payments using their Amazon accounts. It also uses stored information such as shipping and billing addresses, removing the need for manual entries.
Best for: Convenience for those embedded in Amazon ecosystem
Google Pay is a good payment solution for secure transactions. It allows for contactless payments in physical stores and in-app and online payments. Its integration with the Google ecosystem is by far its biggest strength.
Best for: Convenience for those with saved info in Google ecosystem
Skrill is a digital wallet and payment platform focusing on international money transfers. It accommodates peer-to-peer payments and even cryptocurrency exchange. As such, it is suitable for various businesses and clients.
Best for: P2P Payments & cryptocurrency
QuickBooks Payments is integrated with the QuickBooks accounting software. It allows for payments to be made directly using the interface, making financial management more secure and streamlined.
Best for: Power QuickBooks users
When considering choosing any of the alternatives we discussed, it is important to plan ahead. When settling on a payment platform, here are the factors you must consider.
Throughout this article, we discussed PayPal and how effective it can prove to be for small businesses. However, we also considered the limitations that hamper its adoption among small businesses.
There are many PayPal alternatives, such as Bonsai, which offer scalability and integration. These can be easily applied to businesses and help them manage their finances.
If you still have questions, then these frequently asked questions will help set your mind at ease.
No, PayPal alternatives may vary in their features and suitability for different types of businesses. It is important to evaluate the specific needs of your business, such as payment methods, international transactions, or industry-specific requirements, to determine which alternative payment platform is most suitable for you.
Yes, it is possible to use multiple payment platforms simultaneously. Some businesses offer their customers multiple payment options to cater to different preferences.
However, managing multiple platforms may require additional integration work, accounting processes, fees, and customer experience considerations. It's essential to assess the feasibility and benefits of using multiple platforms for your business needs before implementing them.
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“Backbone of my business”
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