Monday, May 18, 2015

Four Alternatives to PayPal

When we think about systems for making online payments, PayPal is probably the one that comes to mind first.  PayPal's connection to (and eventual takeover by) eBay sparked its rise to prominence.  I use PayPal whenever I can because I prefer to keep my credit card numbers away from as many sites as possible.  However, if you do not (or cannot) use PayPal, there are other alternatives you can consider to make online payments.  Here are four PayPal alternatives:

1) Dwolla - Dwolla is becoming popular with merchants because it has very small transaction fees.  Dwolla charges 25 cents per transaction with the fee waived for purchases under $10.  However, Dwolla does not accept credit card payments; you must link your checking account with your Dwolla account.

2) Amazon Payments - Amazon got into the payments business in 2008, but it has suprisingly made very little headway given the dominance of Amazon in other markets.  Amazon Payments requires very little set up; in fact, if Amazon already has your credit card, you might not have to do anything except log in to your Amazon account.  Amazon Payments also includes purchase protection.  Buyers using Amazon Payments will have no fees; sellers will be charged 2.9% of the transaction.

3) Google Wallet - Google Wallet allows you to make purchases online or in-person using a compatible smartphone.  You can also use it to send money to any person who has a Gmail address.  Plus, you can get a card linked to your Google Wallet account and spend the money in your Google Wallet anywhere MasterCard is accepted.

4) Apple Pay - Apple Pay is an iPhone-based payment system currently limited to a few Apple devices.  However, if you have a supported device and a supported card, Apple Pay is becoming widely accepted at many major merchants.  Plus, if you lose your device, you can disable Apple Pay through your iCloud account.

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