Top 5 PayPal alternatives: compare fees, features & benefits

Key takeaways

• PayPal is one of the best-known digital payment solutions, but it isn’t the right fit for every business. The best PayPal alternatives in Australia include Airwallex, Stripe, Square, eWay, and Adyen.

• When comparing PayPal alternatives, look beyond brand recognition. Consider domestic and international transaction fees, supported payment methods, and features such as corporate cards and reporting tools.

• Airwallex is the best PayPal alternative for businesses operating internationally. It offers multi-currency accounts to hold funds in different currencies, low cross-border transaction fees, and support for 160+ payment methods across 180+ countries.

If you need to accept payments from international customers, PayPal might be the first solution that comes to mind. While it’s widely used for simple transactions, it’s not the best fit for all businesses – for example, those handling cross-border transactions. 

This guide covers the top five PayPal alternatives, including Airwallex, Stripe, Square, eWay, and Adyen. It also explains what to look for when choosing the right option, including transaction fees, supported payment methods, and features, such as multi-currency accounts and expense management tools.

What is PayPal? 

PayPal is a widely recognised online payment system that lets businesses and individuals to transfer funds electronically. It was founded in the United States in 1998, and has grown to offer payment solutions in over 200 countries. Users can send and receive money, manage currencies, and make purchases securely online. PayPal also provides various financial services, including merchant services, payment gateways, and mobile wallet solutions. 

Whilst PayPal offers services to individuals and businesses, this article will focus on the PayPal alternatives for businesses. 

Top five alternatives for PayPal 

Here are the top alternatives to PayPal. 

• Airwallex is a global financial technology company that offers a range of financial services, including online payment acceptance and processing (checkouts), international payments, multi-currency accounts, and corporate cards. Founded in Australia, we strive to simplify cross-border transactions for businesses of all sizes.

• Stripe is a financial services and software-as-a-service company that facilitates online payment processing for businesses of all sizes. It provides an infrastructure for accepting payments ‌and managing revenue.

• Square is a financial services and mobile payment company that equips businesses with the means to accept payments, oversee sales, and optimise operations. It also offers portable card readers and POS systems.

• eWay is a payment solution designed for businesses operating primarily in Australia. It offers its own merchant accounts and payment gateway, allowing customers to manage everything in one place with a straightforward fee structure.

• Adyen is a global platform that supports a wide range of payment methods, including in-store terminals. It also provides advanced data and analytics by collecting information across payment channels to inform business decisions.

Why might someone look for an alternative to PayPal?

PayPal works fine for some businesses, but it has some noteworthy limitations, such as: 

• High transaction fees: PayPal charges a 2.9% fee on all commercial transactions, plus a fixed fee based on the currency received (A$0.3 for AUD). International transactions can also incur an additional 1% fee¹. 

• Expensive foreign currency conversion: In addition to transaction fees, PayPal charges a currency conversion markup of around 3–4%, depending on the type of transaction. This can significantly increase costs for international payments.

• Limited multi-currency offering: While users can hold money in multiple currencies in their PayPal account, they aren’t issued local account details. So businesses can’t send or receive international payments like a local entity, and often face unnecessary (and expensive) currency conversions.

• Limited business management tools: PayPal doesn’t offer features like corporate cards, expense management, or advanced spend, making it less suitable for businesses that need an integrated financial setup. 

Compare the top 5 alternatives to PayPal

The top PayPal alternatives: key features and fees

Airwallex, Stripe, Square, Wise, and Payoneer are all alternatives to PayPal, but each have their strengths. Our platform, Airwallex stands out from the rest with our end-to-end financial operations and global reach. It’s a strong option for businesses that are looking to scale their financial and payment operations domestically or internationally. 

Below, we summarise the key features and fees of each PayPal alternative. For full product and fee information, including other charges, please visit each provider’s official website. 

Airwallex

Airwallex is a global payment solution that lets you accept payments in more than 160 payment methods across 130+ currencies and 180+ countries. Unlike PayPal, Airwallex offers a more comprehensive all-in-one financial solution designed to support global growth. 

Airwallex offers multiple ways to accept online payments, including payment links and direct integrations with eCommerce platforms such as Shopify.

You can also reduce costs through like-for-like settlement into multi-currency accounts, which let you settle payments in the same currency that your customers pay in, saving you on costly exchange rates. It’s easy to open the account – there’s no need to go to a bank or complete any complicated paperwork.

In addition to accepting payments, Airwallex offers FX and international transfer solutions, with competitive interbank rates, giving you greater control over how and when you move money across borders. 

Uniquely, our investment product, Yield, allows businesses to earn competitive rates on their idle AUD and USD funds. 

The platform also offers low-code solutions (such as our checkout feature) to fully customisable integration options, making it easy to get started quickly. Finally, it lets you issue corporate cards (including virtual cards) and provides advanced expense management features to track how your team spends company funds.

Airwallex fees

Subscription Fees: Airwallex’s ‘Explore’ bundle starts from A$29 per month, which can be waived by holding a minimum of A$10,000 or depositing A$5,000 per month. 

Domestic transactions: Free

International transactions: Free to 120+ countries

Pros

• An all-in-one platform for business financial operations, combining accounts, payments, corporate cards, and more

• Low-cost international transfers 

• Extensive global reach to convert, send, and hold funds

Cons

• No physical branches – digital only platform and service

• New updates and optimisations being released regularly, which may not suit the user habits of all consumers

• Physical POS system coming soon

Stripe 

Stripe is a financial technology company that provides businesses with infrastructure for offline and online payments. It offers a suite of payment processing APIs, letting businesses accept, manage, and reconcile online transactions. For brick-and-mortar stores, they offer a POS system to accept in-person payments. 

Stripe's tools and services support various payment methods and currencies, providing global reach. These include invoices, payment links, and local payment methods, such as WeChat and SEPA direct debits (used across several European countries).

However, unlike Airwallex, Stripe does not offer a multi-currency account to hold international funds, or expense management tools to assist with a full suite of financial operations.

Stripe fees

Subscription fees: No account fees

Domestic transactions: 1.7% + A$0.30 per transaction

International transactions: 3.5% + A$0.30 per transaction. An additional 2% is charged if currency conversion is required 

Pros

• Extensive analytics and reporting tools

• POS system for physical stores

• Minimal subscription fees may make Stripe an accessible option

Cons

• Primarily a payments product, with no multi-currency accounts or corporate cards

• Users may need another platform to manage other financial operations

• Costly for international transactions, especially where currency conversion is involved

Square 

Square is widely used by both physical and online businesses for its point-of-sale (POS) solutions and customisable payment links for online transactions. It accepts Afterpay, which lets businesses receive money upfront while customers pay in installments, and is also well-suited for physical businesses, offering a range of hardware tools, inventory management, and employee management features. 

However, the higher fees for online transactions and the inconsistency in customer support can make it a less favourable option for eCommerce and international businesses.

Square fees

Subscription fees: No account fees

Domestic transactions: Physical card transactions incur a 1.6% surcharge, whereas online or no-card transactions cost 2.2% 

International transactions: Same as domestic transactions

Pros

• Services in-person and online businesses 

• Social media management tools available as it integrates with Facebook and Instagram

• Easy set up with POS

Cons

• Higher fees for international transactions

• Separate software is required for multi-currency accounts and Square does not hold mulicurrency funds 

• Limited customisation options in exchange for easy use

eWay

Established in 1998, eWay is one of the oldest platforms on this list. It was first launched in Australia, but has since expanded to nearby regions (including New Zealand). 

eWay lets businesses accept payments through most major credit and debit cards, digital wallets (including Apple Pay and Google Pay), plus manual payments through a virtual terminal. Businesses can choose between an all-in-one service with an eWay merchant account or connect their existing merchant account to eWay’s payment gateway.

The platform is known for its simple fee structure, with a single transaction rate across all major card networks, including Mastercard, Visa, and American Express. It also provides a central portal to access all relevant information, such as a breakdown of transactions and refund reports, so you don’t need multiple platforms. Additionally, eWay offers additional benefits, including 250+ integrations (including Xero) and a free fraud management tool.

While eWay supports multi-currency transactions, customers must have eWay accounts in each currency, plus a merchant account – a more complex system than some competitors. 

eWay fees

Subscription fees: None

Domestic transactions: 2.5% + A$0.25

International transactions: 3.49% + A$0.25

Pros

• Volume discounts for some businesses 

• Wide range of integrations

• Free built-in fraud protection

Cons

• Separate eWay accounts required for multi-currency transactions 

• Fees for less popular card providers

• Customer support limited to phone and email

Adyen

Adyen is a global payments platform that lets businesses manage their payments and payment data in one place. It supports a wide range of online and in-person payment methods, including cards, digital wallets, Buy Now Pay Later (BNPL), and online banking in multiple countries. It also connects to in-store card terminals.

You can easily view payment data across all regions and channels through Adyen’s “Unified Commerce” system, and use these insights to make decisions – for instance, about where to expand or open new locations based on regional performance.

Adyen uses a pricing model called Interchange++, which helps you track Interchange rates and fees and provides transparency into payment costs. However, pricing is more complex than flat rate models as fees vary by payment method rather than using a single transaction rate.  

Adyen supports multi-currency capabilities to some extent via the option to configure multiple payout currencies for a merchant account. However, it doesn’t offer its own multi-currency accounts for holding balances.

Adyen fees

Monthly fees: None

Domestic transactions: Fixed processing fee (charged in Euros) + variable payment method fee

International transactions: Fixed processing fee (charged in Euros) + variable payment method fee

Pros

• Broad coverage of local payment methods across regions

• Sophisticated data and analytics capabilities

• Transparent breakdowns of payment and FX costs

Cons

• Minimum invoice requirements apply, depending on industry or business

• Complex pricing structure 

• No dedicated multi-currency account 

Why choose Airwallex over PayPal?

Why Airwallex is the platform to choose over PayPal

Over 200,000 companies use Airwallex’s platform, including the Airwallex Payments solution, to manage their financial operations more efficiently and grow their revenue.

You get like-for-like currency settlements to avoid unnecessary conversion fees, support for 160+ payment methods across 180+ countries, and seamless integrations with major eCommerce platforms like Shopify, WooCommerce, and Magento. For currency conversion, Airwallex offers interbank rates with a 0.5–1% margin, compared to PayPal’s higher fees. 

PayPal may be a familiar option, but for businesses serious about cutting costs and scaling internationally, Airwallex offers a clear edge. 

Frequently asked questions

What are the best PayPal alternatives for Australian businesses?

While PayPal is a household name, Australian businesses often seek alternatives like Airwallex, Stripe, and Wise to reduce high transaction fees. Airwallex is specifically designed for businesses with global ambitions, offering 0% domestic transaction fees and access to 160+ local payment methods.

How do PayPal’s business fees compare to alternatives like Airwallex?

PayPal typically charges a standard rate of 2.6% + $0.30 for domestic transactions and 3.6% + a fixed fee for international sales, plus a 3-4% currency conversion markup. In contrast, Airwallex offers more competitive rates (typically 1.6% + $0.30 for domestic cards) and allows you to bypass forced FX markups entirely through "like-for-like" settlement. This means you can collect USD from a customer and keep it in your USD account without paying conversion fees.

Can I use an alternative to PayPal and still accept PayPal payments?

Yes. Choosing an alternative gateway doesn’t mean you have to lose PayPal as a payment option for your customers. With the Airwallex online payment gateway, you can integrate PayPal as one of many "Local Payment Methods" at checkout. This allows you to offer your customers the familiarity of PayPal while you manage all your funds, corporate cards, and international transfers through a more cost-effective, all-in-one business account.

Which PayPal competitor is best for managing global team expenses?

If your business needs to manage team spending alongside payment acceptance, an "end-to-end" platform is superior to a simple payment processor. While PayPal offers basic debit cards, alternatives like Airwallex provide multi-currency corporate cards with built-in expense management. This allows you to issue virtual cards to employees, set real-time spending limits, and pay for global SaaS subscriptions directly from your multi-currency balances with zero foreign transaction fees.

Sources

For more information on Airwallex, visit Airwallex Business Account and Airwallex pricing.

1. https://www.paypal.com/au/business/paypal-business-fees 

2. https://stripe.com/au/pricing 

3. https://squareup.com/au/en/pricing 

4. https://www.eway.com.au/online-payments/#pricing 

5. https://www.adyen.com/en_AU/pricing

Disclaimer: The information in this article is based on our own online research. Airwallex was not able to manually test each tool or provider. The information is provided for educational purposes only and a reader should consider the specific requirements of their business when evaluating providers. This research is reviewed annually. If you would like to request an update, feel free to contact us at [[email protected]].

The Airwallex Yield Liquidity Fund (Yield) is issued by K2 Asset Management Limited (K2) (ABN 95 085 445 094, AFSL No 244393), a wholly owned subsidiary of K2 Asset Management Holdings Limited. This information doesn’t take into account your objectives, financial situation, or needs. Read the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for Yield, available at www.airwallex.com.au/terms from Airwallex Capital Pty Ltd (ABN 37 609 653 312, AFSL No. 549026). All investments carry risk.