In the world of dropshipping, smooth transactions and happy customers are everything. You can ensure both as long as you have the right payment gateway.
While PayPal has been at the top for online payments, it’s always wise to explore alternatives that offer similar functionality and enhanced features.
In this article, we will delve into the PayPal alternatives that are ideal for dropshipping and are just as trustworthy, if not more.
Why You Need A Payment Gateway For Dropshipping
As an online business owner, you want to focus on growing your sales, not worrying about how to process payments.
That’s where a payment gateway comes in. It acts as the trusted middleman between your customers and your business, securely processing transactions and transferring funds to your account.
Without a reliable payment gateway, accepting payments can be a daunting task, consuming valuable time and effort.
If you’ve ever wondered “How do I accept payments when dropshipping?” There are a lot of payment gateways out there that can simplify the process even more than PayPal.
With integration with most popular e-commerce platforms, these payment gateways make it easy for you to accept payments from customers worldwide.
These gateways offer not only secure payment processing but also advanced features such as fraud protection, multi-currency support, and a seamless checkout experience.
Do You Need PayPal For Dropshipping?
Not necessarily.
PayPal has been a go-to for many dropshippers over the years. It’s fast, easy, and familiar. However, it’s not without its limitations.
Have you ever dealt with a frozen account or a long dispute resolution process? Some dropshippers have even faced restrictions on selling certain products or operating in high-risk industries. That’s why it’s crucial to diversify your payment gateway options.
Don’t get me wrong, PayPal is still a solid choice – for instance, if you do your operations on a less known eCommerce platform, its compatibility can come in handy.
However, it’s not your only option. By exploring other payment gateway solutions, you can reduce your risk and provide your customers with a variety of safe and secure payment options.
How To Choose A Payment Processor For Dropshipping?
Starting a dropshipping business is an exciting venture, but it’s important to choose the right payment processor to ensure smooth operations.
Choosing one can be a tricky task- you can make things easier by keeping the following factors in mind as you explore your options:
Integration
Find a payment processor that fits seamlessly into your e-commerce platform of choice. An easy-to-use system will simplify your setup and management of your store, so you can focus on growing your business.
Security
The safety of your business and customers’ sensitive data is paramount. Look for a payment processor that offers reliable fraud protection measures, encryption, and secure data storage.
This will show your customers that you prioritize their security, which builds trust in your brand.
International Support
Are you planning to expand globally? If so, look for a payment processor that supports multiple currencies and offers international payment options.
This will make it easier to serve your customers worldwide and streamline your operations.
Fees and Costs
Every payment processor has its fee structure. Be sure to compare different providers to find one that aligns with your budget and business needs.
Some charge a flat transaction fee, while others may have tiered pricing or additional charges for certain features. Choose the payment processor that offers the best value for your business.
User Experience
Of course, you shouldn’t overlook the user experience. Your customers’ payment experience should be smooth and hassle-free. Choose a payment processor that offers a simplified payment experience.
This will help you avoid cart abandonment and improve conversion rates. After all, happy customers are loyal customers.
Customer Support
Though this is the last factor, it’s just as important. Technical issues can arise even with the best processors out there, including paypal, so choose one with a reliable customer support team. Ensure they offer accessible and responsive support so you don’t end up dealing with ruined sales.
15 Best PayPal Alternatives for Dropshipping in 2023
Now, let’s talk about the alternatives in proper detail.
Stripe
Let me start off with something that has risen in popularity recently because of how easy and flexible it is to use – Stripe.
Stripe is a popular online payment processing platform that allows businesses to accept payments online, including credit card payments. It has low transaction fees too, which is rare to see among other PayPal competitors.
Pros
- Simple setup process.
- Low transaction fees.
- Provides support for recurring payments.
- Offers advanced fraud detection tools.
Cons
- Limited currency support.
- Some industries are not supported.
- Payouts can take longer than other platforms.
- Some users report difficulty with customer support.
Why Should You Consider Stripe over Paypal?
Stripe’s simplicity and low transaction fees make it an attractive option for small businesses engaged in dropshipping. Its advanced fraud detection tools can also help protect your business from fraudulent activity. (Check out Stripe Fee Calculator)
Overall, if you’re looking for a streamlined payment processing platform, Stripe is definitely worth considering.
Skrill
Skrill is a digital wallet that allows for secure and quick online transactions. It is particularly useful when working with high-risk markets due to its risk management system.
Pros
- Easy to set up and use.
- Offers protection against fraud and chargebacks.
- Accepts multiple currencies and payment methods.
- Low transaction fees.
Cons
- Limited customer support options.
- Some countries have restricted access to Skrill.
- Withdrawal fees can be high for certain currencies.
- Verification process can be lengthy.
Why Should You Consider Skrill over Paypal?
If you’re dropshipping in a high-risk market, Skrill’s risk management system can provide extra protection against fraud and chargebacks. Additionally, its multiple currency and payment method support can make transactions smoother for your customers. (Checkout Skrill Fee Calculator)
Although Skrill has some limitations, its low transaction fees and easy setup process make it a strong alternative to Paypal for dropshipping.
2Checkout
2Checkout is a global payment platform that enables businesses to accept payments from customers all over the world. It offers robust fraud protection and supports multiple currencies.
Pros
- Accepts payments from customers in over 100 currencies.
- Supports multiple currencies
- Offers robust fraud protection
- Easy to integrate with most ecommerce platforms
- Provides detailed sales reporting and analytics
Cons
- Higher transaction fees compared to some other payment processors.
- Limited customization options for the checkout page.
- Does not support some popular payment methods in certain countries.
Why Should You Consider 2Checkout over Paypal?
For dropshippers who operate internationally, 2Checkout is an excellent alternative to Paypal. It offers robust fraud protection and supports multiple currencies, making it easier for you to accept payments from customers all over the world.
Additionally, 2Checkout provides detailed sales reporting and analytics, which can help you better understand your business and make informed decisions to optimize your dropshipping operations.
Authorize.net
Authorize.net is less popular and more specific, but it’s another great payment platform that offers a lot of accessibility. It has a range of payment options, including credit card payments. It also supports currencies of the United States, Canada, United Kingdom, Australia & many European countries.
Pros
- Offers a range of fraud prevention tools.
- Supports multiple payment methods, including credit and debit cards, eChecks, and PayPal.
- Easy to integrate with most ecommerce platforms.
- Provides detailed sales reporting and analytics.
- Offers a robust suite of APIs for developers.
Cons
- Can be expensive for smaller businesses with lower transaction volumes.
- Some features require additional fees.
- Customization options for the checkout page are limited.
Why Should You Consider Authorize.net over Paypal?
Authorize.net is a good alternative to PayPal for dropshipping because it offers a range of payment options, including credit card payments, making it easier for customers to pay for their purchases. You can also get fraud prevention tools with it, which makes it even more fit for dropshipping since you can minimize the risk of chargebacks and fraud.
Additionally, Authorize.net provides detailed sales reporting and analytics, which can help you better understand your business and optimize your dropshipping operations.
Payoneer
Payoneer is a versatile online payment processing platform that works for businesses of all sizes.
With its wide range of payment solutions and support for over 150 currencies, Payoneer makes receiving payments from international customers incredibly easy.
Pros
- Low fees for international payments
- Widespread global support.
- Offers a range of tools for managing finances.
- Provides a virtual US bank account for receiving payments from US-based companies.
- Easy to integrate with most ecommerce platforms.
Cons
- Some features, such as the virtual US bank account, may require extra fees.
- Limited customization options for the checkout page.
- Customer support can be slow to respond to inquiries.
Why Should You Consider Payoneer over Paypal?
If you’re in the dropshipping business, you know how important it is to offer convenient payment options to your customers, especially those from different countries.
This is where Payoneer comes in as a great alternative to PayPal. You can expand your global reach and tap into emerging markets that may not be easily accessible through PayPal.
Payoneer’s extensive network allows you to connect with customers in over 200 countries and regions, enabling you to effectively scale your dropshipping business worldwide.
Whether you’re targeting customers in well-established markets or exploring untapped opportunities in emerging economies, Payoneer offers a wider coverage and more diverse payment options to cater to your needs.
Wise
Wise, formerly known as TransferWise, is a global money transfer platform that allows users to hold and send money in multiple currencies with competitive exchange rates and low fees.
Pros
- Low and transparent fees for international transactions
- Competitive exchange rates
- Convenient and user-friendly platform
- Supports multiple currencies within a single account
Cons
- Limited integration options with e-commerce platforms
- Not a direct payment processing solution
- Verification process can be time-consuming for some users
- May not be suitable for small transaction volumes
Why Should You Consider Wise over Paypal For Dropshipping?
For dropshipping businesses that operate internationally, Wise offers several advantages. Its low and transparent fees, combined with competitive exchange rates, can result in significant cost savings for cross-border transactions.
The ability to hold multiple currencies within a single account simplifies managing payments across different markets.
While Wise is not a direct payment processing solution and lacks extensive integration options, its focus on efficient money transfers makes it a suitable alternative for dropshippers.
If you prioritize low fees, competitive exchange rates, and flexibility in managing multiple currencies, Wise is worth considering for your dropshipping venture.
Payline
Payline is a dynamic and reliable online payment processing platform that offers businesses a multitude of payment solutions to elevate their e-commerce game. With its support for over 150 currencies, Payline provides the versatility necessary to cater to a global audience.
Pros
- Offers a range of payment solutions, including credit card payments.
- Customizable checkout pages that can be tailored to your brand.
- Provides detailed sales reporting and analytics.
- Easy to integrate with most ecommerce platforms.
- Has several fraud prevention tools.
Cons
- Can be more expensive than some other payment processors, especially for smaller businesses with lower transaction volumes.
- Some features require additional fees.
- Customer support can be slow to respond to inquiries.
Why Should You Consider Payline over Paypal?
Payline is a great option for dropshipping businesses looking for a PayPal alternative.
It offers customizable checkout pages that can be tailored to your brand, as well as a range of fraud prevention tools to protect against fraudulent transactions.
Not to mention, its detailed analytics can help you better understand your business and optimize your dropshipping operations.
Square
As a dropshipper, you may be looking for a PayPal alternative that can handle multiple currencies. That’s where Square comes in. Designed for small and medium-sized businesses, Square offers a range of payment solutions and tools to manage payments, from in-person transactions to online payments.
Pros
- Easy-to-use tools for managing and accepting payments.
- Offers a range of features to help businesses streamline their operations.
- Provides support for over 130 currencies.
- Provides real-time transaction reporting.
- Easy to integrate with most eCommerce platforms.
Cons
- Higher transaction fees compared to some other payment processors.
- Limited customization options for the checkout page.
- Some features, such as invoicing, require additional fees.
Why Should You Consider Square over Paypal?
Square is an excellent choice for dropshippers who seek versatility and convenience in their payment processing needs.
With its wide range of payment options, including credit card payments, customers can effortlessly pay for their purchases. (Check out Square Fee Calculator)
Plus, another unique thing Square also offers is a free mobile card reader for in-person transactions, perfect for dropshippers who want to accept payments at events or pop-up shops. All of that provides unparalleled flexibility.
Braintree
Braintree is a payment processing platform owned by PayPal that allows for customization of the payment process, making it an attractive option for businesses with unique payment requirements.
Pros
- Highly customizable payment processing.
- No hidden fees.
- Advanced fraud protection tools.
- Accepts multiple currencies and payment methods.
Cons
- Limited customer support options.
- Requires technical knowledge to set up advanced features.
- Higher transaction fees compared to other platforms.
- Limited to certain industries.
Why Should You Consider Braintree Over Paypal?
Braintree’s highly customizable payment processing can make it a great choice for businesses with unique payment requirements, such as those engaged in dropshipping.
Additionally, its advanced fraud protection tools and support for multiple currencies and payment methods can help streamline transactions for your customers.
If customization is a priority for your dropshipping business, Braintree is a solid choice that you won’t regret going for.
Google Pay
Google Pay is a digital wallet and online payment processing platform that is known for its convenience and user-friendly interface.
Pros
- Easy to use and set up.
- No transaction fees for customers or businesses.
- Offers buyer protection for eligible transactions.
- Can be integrated with other Google services.
Cons
- Limited support for international transactions.
- Limited merchant support compared to other platforms.
- Some users may have privacy concerns with Google services.
- No support for chargebacks.
Why Should You Consider Google Pay Over Paypal?
Google Pay’s convenience and lack of transaction fees can make it a great option for dropshipping businesses. Additionally, its buyer protection can help build trust with customers and streamline the payment process. You’re not going to run into any security risks easily either, as it’s directly handled by Google, a tech giant that knows how to handle its security well.
So, all-in-all, Google Pay is the way to go for convenient domestic transactions and cost-effectiveness, and it certainly outdoes PayPal in some ways.
Amazon Pay
Amazon Pay is an online payment service offered by Amazon that allows customers to use their Amazon accounts to make purchases on external websites.
Pros
- Seamless integration with Amazon accounts.
- Trusted brand and recognizable for customers.
- Robust fraud protection measures.
- Simplified checkout process for customers.
Cons
- Limited availability for certain countries.
- Transaction fees can be higher for some businesses.
- More suitable for e-commerce businesses.
Why Should You Consider Amazon Pay Over Paypal?
Amazon Pay can be a valuable alternative to consider for dropshipping ventures.
When it comes to dropshipping, this platform provides a low-barrier payment option that leverages the trust and recognition associated with the Amazon brand. Its seamless integration with customers’ existing Amazon accounts simplifies the checkout process and encourages conversions.
Additionally, it offers excellent fraud protection measures, mitigating risks for dropshippers.
Shopify Payments
First off, you can only use this if you’re a Shopify user. Shopify Payments is an in-house payment processing system that’s fully integrated with the Shopify platform; it’s a great pick for dropshippers who want to streamline their sales process
Pros
- Quick and easy setup with Shopify.
- Offers fraud analysis and chargeback protection.
- Can be used in conjunction with other payment gateways.
- No additional transaction fees on top of Shopify’s standard fees.
- Supports multiple languages and currencies.
Cons
- Only available for Shopify users.
- Limited customization options.
- May not support all countries.
Why Should You Consider Shopify Payments Over PayPal?
Dropshipping can be a high-risk business, with many fraudulent transactions and chargebacks. Shopify Payments offers a fraud analysis tool and chargeback protection, which can save you time and money..
I know that the exclusivity with Shopify can be off-putting for some. However, it’s not a bad thing. If you’re not already, you could use both Shopify Payments and Shopify together for your dropshipping business, as the latter is one of the best eCommerce platforms out there.
Plus, with no additional transaction fees on top of Shopify’s standard fees, you can save money on payment processing costs.
Apple Pay
Apple Pay is a digital wallet that allows customers to use their Apple account to make purchases on your website. With its seamless integration with Apple devices, it’s a great payment option for dropshippers that want some of the highest level of security around.
Pros
- Easy and quick payment process for Apple users.
- Secure and reliable with biometric authentication.
- Fraud detection and prevention features.
- No additional fees for merchants.
- Supported in over 75 countries.
Cons
- Limited to Apple users only.
- Availability depends on the country/region.
- May not be as widely accepted as other payment methods.
Why Should You Consider Apple Pay over Paypal For Dropshipping?
As a dropshipper, you want to provide a seamless payment experience for your customers while ensuring their payment information is secure. Apple Pay offers just that with its biometric authentication and fraud detection features.
With its wide adoption by Apple users, it could potentially increase your conversion rate and customer loyalty. Additionally, since there are no additional fees for merchants, it’s a cost-effective option.
BlueSnap
BlueSnap is a popular payment gateway that provides an easy-to-use platform for processing payments. It offers a wide range of features including online and mobile checkout, POS management and subscription management.
Pros
- Supports over 100 currencies.
- Easy-to-use interface for managing payments.
- Provides fraud prevention and chargeback protection.
- Offers recurring payment and subscription management.
- In-app payments for mobile applications.
- Advanced analytics and reporting tools.
Cons
- Higher transaction fees compared to some other payment gateways.
- Limited customization options for checkout pages.
Why Should You Consider BlueSnap Over Paypal?
If you’re running a dropshipping business, BlueSnap is a solid alternative to Paypal.
First off, it supports over 100 currencies in 47 countries, making it easy to sell globally. This is especially handy if you’re sourcing products from overseas. Plus, BlueSnap’s user-friendly interface and advanced reporting tools can help you manage payments and track sales with ease.
But what about security? BlueSnap has your back there too, with fraud prevention and chargeback protection. And finally, with recurring payment and subscription management, keeping track of your revenue streams will also get a lot easier.
WePay
WePay is a versatile payment processing platform that offers a range of benefits for dropshippers. It is fast, customizable, and secure, providing a hassle-free payment processing experience for businesses and their customers.
Pros
- Compatible with Apple Pay and Android Pay.
- Fast and secure payment processing.
- Extensive support and payment risk coverage.
- Quick and hassle-free fund transfers.
- Customizable checkout process.
- Suitable for both online and in-person sales.
Cons
- Fees may be higher compared to some other payment processors.
- Some features, such as recurring billing, require additional fees.
Why Should You Consider WePay Over PayPal For Dropshipping?
WePay is not just another PayPal clone – it’s a better payment solution for dropshippers. Why? Because it lets you accept Apple Pay and Android Pay, which are quick and easy for your customers. Even more, it can transfer funds to your bank account fast and free, with no hidden costs or delays.
That’s not all – it even protects you and your customers from fraud, with 24/7 support and payment risk coverage.
And to top that off, it lets you customize the checkout process to fit your brand and style, making it stand out.
What Is The Safest Alternative To Paypal?
Stripe is – it offers great features and lower risks for eCommerce businesses.
Online transactions are just as easy and secure as PayPal with this payment platform. It supports multiple currencies and various payment methods. You can accept credit cards, debit cards, digital wallets, and more. It also integrates smoothly with major eCommerce platforms. You can set up and manage your online store without any hassle.
And that’s not even the end of it – Stripe also has advanced fraud protection. It uses machine learning and behavioral analytics to detect and prevent fraudulent transactions. It saves you time and money.
If you want a robust payment gateway that lets you accept payments from customers all over the world, Stripe should definitely be more than enough.
FAQs
Q: Do you need a business bank account for dropshipping?
A: It’s recommended to have a business bank account for dropshipping, but it’s not always mandatory.
Q: Does Stripe allow dropshipping?
A: Yes, Stripe allows dropshipping as long as the business complies with its terms of service.
Q: Is Shopify payment gateway free?
A: No, Shopify charges transaction fees for using its payment gateway, which vary depending on the country and payment plan chosen.
Q: Which payment gateway has the highest success rate?
A: There is no payment gateway that guarantees a 100% success rate, but some of the most reliable ones are PayPal, Stripe, and Authorize.net.
Q: What is the most popular payment method for dropshipping?
A: The most popular payment methods for dropshipping are credit/debit cards, PayPal, and e-wallets like Apple Pay and Google Wallet.
Q: How much does it cost to set up a payment gateway on a website?
A: The cost of setting up a payment gateway on a website varies depending on the provider and the type of plan chosen, but it usually involves transaction fees and monthly charges. Some providers may also charge a setup fee.
Final Thoughts
PayPal is great at being the ol’ reliable. However, you should consider the other options as well, as many offer more flexibility, better rates, and improved security. (Check out my Paypal Fee Calculator)
From the seamless checkout experience of Stripe to the low transaction fees of TransferWise, there are plenty of options available to meet the needs of your business.
So, don’t limit yourself to just one payment provider, explore the alternatives and find the perfect fit for your dropshipping venture.
Remember, when it comes to payment solutions, there’s no one-size-fits-all approach – but by being smart, you can find the right mix of options to keep your business running smoothly.
