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Top 5 PayPal Alternatives for Online Businesses in Australia
Ecommerce

Top 5 PayPal Alternatives for Online Businesses in Australia

May 6, 2019, 4 Mins Read.
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Looking for a PayPal alternative for your online business?

PayPal is great for receiving payments. It’s the most popular payment system of its kind. But there can be several reasons why you may want to look for an alternate service.  

For example:

You might not like PayPal’s fee structure in general. PayPal will charge you quite high per transaction. They are also notorious for blocking accounts. If your account gets blocked, you will temporarily lose access to your funds. Plus, you won’t be able to receive payments until they unblock you.

Even if you don’t have any issue with PayPal, why not check the other options you have?

So, here are 5 alternatives to PayPal for online businesses in Australia:

  1. Braintree
  2. Stripe
  3. eWay
  4. SecurePay
  5. AfterPay

Whether you need just a payment gateway or a complete payment system with a merchant account, these are your best options in 2019.

1. Braintree

Site: braintreepayments.com

braintree homepage screenshot

Braintree is ideal for large and established online businesses. If you want to expand outside Australia, they are probably the best choice. Just like PayPal, Braintree offers both a payment gateway and a merchant account for your business.     

PayPal acquired Braintree in 2013. But the two companies operate pretty much independently.

Fees per transaction

Domestic: 1.75% + A$0.30
International: 3.90% + A$0.30

Chargeback: A$25

Accepted cards

Visa, Mastercard, American Express, Diners Club

Pros

  • Supports 130+ currencies. Great for international retailers
  • Discounted pricing for businesses processing over $100K AUD per month
  • Supports digital wallets like Google Pay, Apple Pay and PayPal

Cons

  • Might not be suitable for small businesses or startups
  • Sensitive account termination policy for new businesses

2. Stripe

Site: stripe.com

stripe homepage screenshot

Stripe is another great choice for Australian businesses looking for international expansion. They have powerful, flexible solutions for almost all kind of online stores.   

Stripe comes with industry-leading developer-focused tools with an impressive feature list. However, an average small business owner might find all these a bit overwhelming.

Fees per transaction

Domestic: 1.75% + A$0.30
International: 2.90% + A$0.30

Chargeback: $0 (if the dispute goes to your favour) or A$25

Accepted cards

Visa, Mastercard, American Express

Pros

  • An excellent choice for international merchants. Supports 135+ currencies
  • A wide range of tools and features
  • Refunds chargeback fee if it is not upheld  

Cons

  • Extensive features might be an overkill for small businesses
  • Doesn’t work if your chargeback rate exceeds 1%

3. eWay

Site: eway.com.au

eway homepage screenshot

eWay is a very popular payment service provider in Australia. They are linked to all the major Australian banks and serves over 26,000 businesses.  

eWay started their journey in 1998. Since then they’ve steadily grown to become a top choice for any kind of ecommerce site.  

Fees per transaction

Domestic: 1.90% + A$0.20 (Visa, Mastercard, AMEX)
International: Same

Chargeback: Rate isn’t listed on the site

Accepted cards

Visa, Mastercard, American Express, Diners Club, JCB, Discover

Pros

  • Fast credit card settlement (same day or next day)
  • Very responsive customer support
  • Experienced in dealing with Australian businesses  

Cons

  • Not customizable enough compared to its global competitors

4. SecurePay

Site: securepay.com.au

securepay homepage screenshot

Like any other Paypal alternative, SecurePay provides both an internet merchant account and a payment gateway for your online business. They are a business of government-owned Australia Post.

SecurePay serves over 40,000 Australian businesses and process 1 million transactions every day. They have been operating in the country since 1999.  

Fees per transaction

Domestic: 2.4% (Mastercard, Visa)
International: Rate isn’t listed on the site

Chargeback: A$25

Accepted cards

Mastercard, Visa, American Express, Diners Club

Pros

  • Great for small businesses and start-ups
  • Generates helpful reports
  • Experienced in dealing with Australian businesses

Cons

  • Not ideal for large companies looking for international expansion

5. AfterPay

Site: afterpay.com

afterpay homepage screenshot

AfterPay is different than the other PayPal alternatives that we’ve mentioned above. It gives your customers the flexibility to pay over time via instalments.

AfterPay pays you the full amount of any purchase upfront. They later collect the money from the customers via four fortnightly instalments. Your upfront payment is guaranteed.

AfterPay is very popular in Australia. Their buy now, pay later model has become a standard alternative to regular payment methods.

Don’t get put off by their high transaction fee. AfterPay helps you convert more customers than usual and increases the average basket size.

Here are the AfterPay fees for merchants.

Fees per transaction

Domestic: 4 to 6% (depends on your agreement with AfterPay) + A$0.30 (source)
International: Not supported

Chargeback: Not applicable

Accepted cards

Mastercard, Visa (issued in Australia)

Pros

  • High conversion rate
  • No fraud or credit risk
  • Very popular among customers

Cons

  • Not suitable as the only payment method
  • Doesn’t accept cards issued outside Australia

AfterPay Alternatives

ZipPay is a great alternative to AfterPay. Their fee per transaction is lower (2 to 4% + 0.15 AUD) and merchants get the payment every day at 4 PM.
Openpay is another good AfterPay alternative that you can try.

Choosing the best PayPal alternative in 2019

So, these were our picks for the top 5 PayPal alternatives. There are many others that we haven’t mentioned in this article. For example, Venmo is a good alternative to PayPal for personal use. Payoneer is great for freelancers.    

But, which online payment system is the best for your business?

That largely depends on your business needs. The best way to find out is to contact these payment companies and discuss your specific requirements with them.

They will provide you with more details regarding the available features and fees. You may also get custom solutions and fee structures that fit better with your ecommerce website.

Editor’s Note

Integrating a payment system to your site requires you to know some coding. If you have chosen a PayPal alternative but aren’t sure how to implement it on your site, you are welcome to contact us for technical support.

Are you already using a payment system or gateway? Which one is your top pick?

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