PayPal Competitors

PayPal is an American multinational fintech company that offers a multitude of money transfer and associated services around the world. The company, which began life as Confinity in 1998, has enjoyed a first-mover advantage in the peer-to-peer payment industry for many years. Today, the company is consistently profitable and many assume that it will continue to grow and maintain market dominance as eCommerce and consumer finance evolves. 

Google Pay

Google Pay is not that different from Amazon Pay, Samsung Pay, or even Apple Pay. However, it does come the closest to matching PayPal for functionality and, using the influence of parent company Google, has the ability to pose a serious threat.

Like PayPal, Google Pay users can send and receive money wherever and whenever they want for almost any purpose. Payments can also be attached to Gmail messages and merchants can also use it to manage their businesses and customer loyalty programs. 

What’s more, Google does not charge merchants transaction fees for accepting Google Pay in their stores. This makes it a more attractive option than PayPal, with fees as high as 3.49% for sellers in the United States.


Payoneer is another American fintech company founded in 2005 that offers online money transfers, digital payment services, and also provides small and medium-sized businesses with working capital. The latter feature makes it popular among eCommerce businesses, online advertisers, freelancers, and even vacation rental owners.

Sending and receiving money between Payoneer is free up to a specified amount. Like services such as TransferWise, the platform also provides a branded debit card so that funds can be withdrawn from ATMs. The same card can also be used as a hybrid credit card, but fees tend to be higher when compared to bank credit cards.


Skrill was founded as Moneybookers in 2001 by Daniel Klein and Benjamin Kullmann and, just six years later, was one of the top three online payment solution providers in Europe.

Skrill’s merchant fees tend to be lower than those of PayPal, and while the platform has millions of global users, it is not as recognized or widespread as its larger competitor.

Nevertheless, Skrill has an attractive product suite that incorporates forex, cryptocurrency, online games, sports, and betting. However, most enjoy the platform for its digital wallet that has zero withdrawal and deposit fees and the ability to send and receive money for free.


Stripe bills itself as “the new standard in online payments” and has millions of businesses on its platform from the smallest startups to the largest corporations. Stripe offers a fully integrated suite of payments products that is more diverse and functional than what PayPal offers.

Stripe fees are also competitive at 2.9% + 30 cents on every transaction in the United States. It may also be more convenient for business owners and consumers since the checkout process is self-hosted. In other words, there is no need to leave a merchant’s site to complete the transaction using an intermediary like PayPal.

Stripe’s API, dubbed Stripe Connect, is also more flexible in terms of payment processing. Transfers between businesses, customers, and recipients are handled with fewer manually initiated transfers, which makes the API ideal for marketplace and software platform business models. This also reduces the likelihood of fraud or delays that result from account holds.

Key takeaways:

  • PayPal is an American multinational fintech company that offers a multitude of money transfer and associated services around the world. The PayPal platform is multi-dimensional and enjoyed a first-mover advantage in P2P transactions, but competitors have emerged to exploit various segments of the consumer and business finance market.
  • Google Pay is not much different from several other payment platforms from other tech companies. However, it does come the closest to matching PayPal for functionality and can leverage the influence of parent company Google to become a serious threat.
  • Other PayPal competitors include business-centric payment platform Payoneer, English digital wallet provider Skrill, and financial services and software company Stripe.

See Also: History of PayPal

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