Best Alternatives to PayPal in the UK

Are you relying on PayPal to collect and process all payments from your customers? Although it’s a great solution when you are first getting started – and is easy to get started – eventually you might feel like you’ve outgrown it.

Especially if you are planning  a large launch of your online program or ecourse – and the last thing you would want is for your PayPal to get suspended due to suspicious activity (ie too many sales coming through all of a sudden).

There are alternatives to PayPal, unfortunately many are limited to the US. So here are some of the best solutions available in the UK!

PayPal is probably one of the most popular online transaction services, but entrepreneurs are sometimes reluctant to use PayPal – from high fees to its lack of consistency in customer service. Personally I’ve not had any issues (apart from not being able to get reference transactions for Infusionsoft – but it’s a different topic all together!) but I’ve heard some horror stories.

Why You Need PayPal Alternatives

• Your customers can’t always make or accept PayPal payments. There are always people who can’t (or won’t) pay or receive money via PayPal. In this case, if you are not open to alternatives, you simply lose these customers or partners. On the other hand, you need to make some estimates if the gain is worth the extra effort.
• Your PayPal account could be blocked. We have all heard horror stories about PayPal blocking accounts for various reasons. You shouldn’t put all your payment eggs in one basket–the risk is too high.
• You need a safer way to receive payments, especially for larger sums. PayPal is very convenient for small amounts but if you are processing large transactions then you will be better off with a different safer method.
• You want to reduce costs. Although PayPal fees are reasonable for what they offer, it’s not the cheapest. There are lower cost alternatives but unfortunately they have other limitations.

There are many options out there as alternatives to using Pay Pal for invoicing or online purchases. However many of those won’t work if you are based in the UK (like me). Luckily for you, I’ve done the research, so you can just pick the best option from the list below

Best Alternatives to PayPal in the UK

Authorize.Net (commission plus monthly subscription)

This is a merchant gateway tool that you can link with your ecommerce website, shopping cart, Infusionsoft and many other online tools. You are then able to process payments and collect subscriptions and money will be deposited into your bank account. Application process takes some time and you will need to provide business information in order to qualify for an account.

ClickBank (7.50% plus $1)

If you are only interested in selling digital products then ClickBank can do the trick. They will process payments, deal with EU VATMOSS requirements, pay your affiliates and simply pay you back your earnings – all hassle free. However the commissions for their service and marketplace are higher than many other payment alternatives and the set up process to get started will take time and (tech-savvy) efforts.

Skrill (2.90% + ￡0.20)

Skrill provides you with an online account that is fairly quick to set up and easy to use. You can send money to other users and receive payments, buy items online. The charges are low compared to other payment systems. However the feedback I’ve seen online is that because of fraud prevention your account again can be frozen if you suddenly receive many payments and because of poor customer service it will be difficult to get back online.

Selz (4.90% +￡0.25)

Selz gives you an online store to sell products from, as well as ability to integrate with your ecommerce website. It allows you to sell digital products and subscriptions, as well as physical products and services. It also integrates with email marketing tools so you can build your list while selling products. You can still accept PayPal as an alternative to card payments – all from one Selz interface.

2Checkout (5.50%+$0.45)

This online solution can integrate with ecommerce websites, JotForm, as well as give you code to put on your website – in order to create payment buttons (similar to PayPal). You can accept one-off payments as well as subscriptions. Slightly more expensive than PayPal, but a good alternative to Stripe if you want to have payment buttons on your website without a 3rd-party integration hassle.

Stripe (2.90% + $0.30)

My favourite alternative to PayPal and what I’ve been mostly using for the past year. It integrates with Xero (so your invoices can have an automated payment button), many ecommerce systems, JotForm (to create checkout forms without an ecommerce website). There isn’t a direct integration with Infusionsoft at the moment, so I’m using SamCart to process Stripe payments and subscriptions. Fees are comparable to PayPal and funds are directly deposited into your bank account after clearing. There are even mobile apps that you can use to take payments on the go, while you are meeting with clients – as long as you have Internet access.

Over to you…

What are you using to process payments? Have you been with PayPal? Would you give a go to any of the alternatives listed above? Share your thoughts in comments below.

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