Top PayPal Alternatives In 2023
In our days, we have all become accustomed to the idea that we can work from home, whether as designers, programmers, or accountants. We can order products online and even receive payments instantly through well-known platforms like PayPal. Today, I would like to introduce you to some alternatives to PayPal because keeping up with the times allows you to choose a platform that suits your specific needs. As users, payment speed, fees, and, most importantly, reliability play a significant role for us.
What is PayPal?
PayPal is an online payment service that enables users to send and receive money from each other. It was founded in 1998 and is one of the largest online payment companies worldwide. PayPal is available in over 200 countries and is used by people and businesses of all sizes.
To start using PayPal, users need to create an account and link it to a credit card or bank account. When a user wants to make a payment, they simply enter the recipient’s email address and the payment amount. PayPal then transfers the money from the sender’s account to the recipient’s account.
PayPal can be considered one of the oldest and safest ways to pay for goods and services online. It is used by individuals and businesses of all sizes and is accessible in more than 200 countries.
Reasons why PayPal may not be the best option for receiving money from abroad:
- PayPal charges a commission for sending and receiving money internationally. These fees can vary depending on the country but usually amount to 6% of the payment value. The problem is that PayPal applies a discount when converting your money, effectively making the 6% rate closer to 12% until the funds reach your account.
For example, if you receive $100 USD, and the exchange rate is 26.93 TRY, you will actually get 2,523 TRY. Know that PayPal has already deducted its 6.28% fee:
So, you end up with approximately $93.6 USD. Well, nobody works for free, PayPal is a service, and they also need to make money.
But here’s another problem — the absurd percentage they charge on top of the dollar value.
If today’s commercial dollar rate is 26.93 TRY, you would expect to receive 93.6 x 26.93 = 2,521 TRY (rounded up), right?
PayPal charges up to 4.5% for the dollar conversion, which amounts to up to 20 cents or more compared to the current commercial dollar exchange rate.
So, if today’s commercial dollar rate is 26.93, in practice, you’ll get 26.73, which is 93.6 x 26.73 = 2,501 TRY, right?
Well, you would expect 2,521 TRY, but in practice, you get 2,501 TRY, which is 20 TRY less. It may not seem like much, right? But imagine receiving money 2 or 3 times a month, for 1 year?
“Oh, well, the fees are expensive, but at least they pay us quickly.”
Well, at that time, PayPal accepted PIX and processed transfers through PIX, yes, that was correct.
The problem is that PayPal removed PIX from its platform because PIX is practically free, and if their goal is to profit from payment processing, using PIX wouldn’t help them achieve that.
So now, when you request to withdraw your funds, they do it through TED (like your parents, grandparents, what a modern platform, right?).
They claim that the money will reach your account within 3 business days, and in most cases, that’s true. But there are also people, including myself, who have been in a similar situation and had to wait nearly 5 days. In the digital age, at the peak of technology, you have to wait up to 5 business days for your money, which is comparable to receiving a check (that old thing your ancestors used).
Best PayPal Alternatives in 2023
If you are looking for a cheaper and more efficient way to receive money from abroad, you may consider using another money transfer service. There are plenty of different options available, such as Western Union, MoneyGram, Wise (formerly Transferwise), Payoneer, and Skrill. These services usually charge lower fees than PayPal and can process payments faster. They are also more widely accepted in a greater number of countries.
Here are some alternatives to consider:
Wise (Formerly TransferWise)
Wise is a payment company that allows users to send and receive money worldwide. It was founded in 2011 by Taavet Hinrikus and Kristo Käärmann, two friends who met while working at Skype. Wise operates by utilizing a global banking network to transfer money between bank accounts in different countries. This enables users to send and receive money quickly and affordably without the need for currency conversion. Wise also offers a multi-currency account, allowing users to hold money in various currencies, which can be beneficial for international travelers or businesses.
Advantages of using Wise:
- Wise charges low fees for sending and receiving money. In many cases, the fees are lower than traditional banks.
- Wise processes payments quickly, with funds arriving in minutes or hours in many cases.
- Wise is a secure and regulated company, prioritizing customer protection and utilizing the latest security standards.
- Wise offers various features, including multi-currency accounts, international debit cards, and payment solutions for businesses.
Whitepay via WhiteBIT
Whitepay is an excellent solution for accepting cryptocurrency payments and donations. It was founded in Ukraine in 2020. In 2022, Whitepay introduced various products for both online and offline businesses, such as POS systems, a cryptocurrency exchange platform, a platform for crypto donations, crypto acquiring, and a fiat gateway. Whitepay ensures low fees, instant withdrawal of funds, and protection against hidden fees. Whitepay is enabling the crypto payment option with some of the most renowned tech stores in Ukraine, including Tehnoezh and Stylus.
Advantages of using Whitepay:
- Whitepay users can easily create a decentralized network of exchange points with remote management and track transactions in real-time.
- Whitepay allows for seamless payment and acceptance of cryptocurrencies, providing access to detailed financial reports and analytics.
- One of the key advantages of Whitepay is the ability to withdraw funds in national currencies, as the company supports more than 140 currencies.
- Whitepay prioritizes the security and confidentiality of user data, employing high-security standards to protect its clients.
Moreover, recently, they announced on their Twitter that they now support invoicing in Turkish Lira.
WhiteEX
Additionally, I want to draw your attention to another project within the WhiteBIT exchange ecosystem — WhiteEX.
This project is an excellent solution if you are just starting to explore the world of cryptocurrencies and looking for the most convenient way to fund your balance.
WhiteEX is a physical card that allows you to fund your WhiteBIT exchange balance. These cards come in various denominations and can be activated within 5 minutes.
The card features three layers of protection:
- WhiteBIT Code: A 38-character code that is impossible to guess.
- Password: Each card is additionally protected by a unique password hidden under a scratch-off film.
- Activation: Before selling the card, it must be activated using the WhitePay terminal at the point of sale.
The main goal of the WhiteEX project is to provide an alternative and convenient service for easy entry into the crypto world, using the secure tool in the form of the WhiteEX card. Moreover, the card can serve as a great gift for someone who already has everything.
With the WhiteEX card, you can:
- Easily make deposits on the exchange.
- Convert fiat currency to cryptocurrencies.
- Preserve savings from inflation.
Conclusion
Our world continues to evolve alongside technological advancements, and so have the methods of handling financial transactions. While PayPal remains a familiar and widely used platform, it is essential to be aware of its limitations, especially when dealing with international transactions due to higher fees and conversion rates. Fortunately, there are viable alternatives that offer more economical and efficient solutions.
There are other cryptocurrency exchanges and companies with their own crypto cards and payment systems, for instance, Binance Pay. Binance Pay is a cryptocurrency payment system that enables transactions. However, it’s worth noting that the security of the Binance exchange remains questionable, particularly after several SEC lawsuits, which have negatively affected its reputation, leading users to consider other platforms.
The trust of many users has also been shaken after the news of the exchange suspending certain functions. Such incidents have occurred repeatedly, emphasizing the importance of verifying the security of trading and investment platforms in general.
We need to explore different payment platforms that open up a world of possibilities for cost-effective, fast, and secure financial transactions in the digital age. As the landscape continues to evolve, being informed about these options allows us to make more sensible choices based on our individual needs. Utilizing these alternatives can significantly impact the optimization of our financial experiences.
