5 Best PayPal Alternatives to Try in 2023

PayPal revolutionized online money management when it was launched in 1998 by a team of tech trailblazers, including Elon Musk, Max Levchin, and Peter Thiel. By 2021 its mobile payment volume had leaped to an astonishing $227 billion – accounting for 22% of all internet-based transactions. PayPal usage in Nigeria started in 2014, and still is a trusted direct money transfer service in the country.

Yet even though PayPal has experienced impressive growth since then, the industry remains far from monopolized. There’s still plenty of room left in this industry. Among the reasons why there are PayPal similar companies developed continuously is that Paypal has its own disadvantages, including:

• PayPal charges much higher fees (3.49% plus USD 0.49) for every transaction
• PayPal requires a longer time to withdraw money from your linked bank account – three to five days – compared to hours in some competitors
• PayPal does not have any protections placed for digital sellers
• PayPal could freeze accounts for up to six months while their Resolution Center investigates an anomaly

Best PayPal Alternatives in 2023

PayPal has several competitors that provide more or less the same service with key benefits for customers. Let us discuss the best PayPal alternatives to help you decide which one is most suitable for your business.

BOSS Revolution

BOSS Revolution is an excellent option if you are transferring money overseas. While it is not yet set up for domestic US transfers, the company offers one of the cheapest and fastest ways for international money transfers from the US to Nigeria. The low-fee structure is available on their web platform and mobile app, and money receivers can access the wired amount in minutes.

BOSS Revolution enables a free first transaction and has lower rates compared to PayPal even in succeeding dealings. Users in Nigeria can select bank deposit or cash pickup delivery methods. Because their system accepts both debit and credit cards, it’s doubly convenient for the sender to wire money overseas, granted that both the sender and receiver’s details are complete and verified.

Wise (formerly TransferWise)

With over 13 million users worldwide, Wise is a popular choice in international money transfers. The London-based company started in 2011 and is a reliable option for businesses with many international transactions.

Wise may not be the cheapest option for wiring money instantly, but they still have a much lower fee than PayPal. Their solution is to provide the ‘real’ exchange rate at the time of transfer without added hidden fees. Wise also has a borderless multi-currency account feature that lets users have a debit card to manage over 40 currencies. This can assist businesses in payroll, charging clients, batch payments, and other activities – while transacting with clients in their own currency.

Those looking for the absolute lowest cost might wish to look elsewhere, but Wise is a good option for companies with multiple international transactions per month.

Skrill

Skrill is another PayPal similar company worth exploring because it benefits merchants and customers alike. Skrill does not charge any fees when sending money to an overseas bank account, making it a great option for international businesses.

Opening an account is free, and their transaction fees are lower than PayPal’s at 2.5-4%, respectively. Your account comes with a Skrill wallet, where you can send money via email to another Skrill wallet, receive funds, or use a Skrill Visa prepaid card. The account remains free as long as it is active within 12 months. Beyond that, the user will be charged just USD 5 to keep the Skrill account active. Withdrawal fees from a bank account incur USD 5.50 per transaction, which is not the cheapest nor the most expensive.

Remitly

Remitly is a money transfer service that caters to 21 countries, including the U.S. and Nigeria. The company has several methods to choose from: debit cards, credit cards, prepaid cards, or bank account transfers, with over 350,000 physical pickup locations available for delivery worldwide. Cash can also be a click away via home delivery. Remitly solves most international transfer bottlenecks because it is designed to be especially helpful for immigrants sending money or remittances back home. The company is a digital service, which means without the cost of maintaining physical locations, they are able to keep costs lower and charge competitive rates for international money transfers.

Remitly is an ideal option for individuals who regularly send money overseas to family and friends. However, the company does have a very varied transfer fee rate because they calculate based on the country where the recipient is, the currency for the remittance, and the amount of money being sent. The transfer fee can range from $0 to over $90. Businesses that transact with several countries often may find other money transfers more convenient because of fixed rates.

Payoneer

 Payoneer is a global financial services provider, offering customers free accounts and convenient access to their funds worldwide. Payoneer fills the need in market sectors, such as eCommerce, freelance creators, online advertising, and vacation rentals. For those who desire greater control over how they wire or transact money in 150 countries, Payoneer also offers prepaid cards that cost just $29.95 per month – plus a relatively low transaction fee of only $1.50 when withdrawing into your bank account locally. Payoneer beats PayPal in affordability but has the scale and efficiency to work for international transactions.

Another reason businesses choose Payoneer as their payments partner is its Billing Service. The feature helps set up customer payment systems at competitive rates starting from 3% on credit cards and 1% on debit cards – making accepting payments secure and easy for SMEs.

What may discourage users is Payoneer’s high credit card fees and the added charges when transferring money to a bank account.

The Takeaway

Making the switch from the conventional PayPal scheme to an alternate payment provider can take considerable time for a final decision, but hopefully, this article has provided some top options for your freelance work or commercial business in Nigeria. Apps like PayPal are created to address any gaps PayPal may have in its platform.

To help you find one that best meets your needs and desires, we’ve compiled a list of suitable alternatives that each bring unique advantages. Take some time to research PayPal similar companies; understanding what services you require and which transaction feature you can maximize is key when selecting from dozens of potential options.