Merchants look for a PayPal alternative when the percentage-plus-fixed fee, the 3% currency conversion charge on balances and the dispute fees add up on cross-border sales. Others want card and bank payments without a separate wallet account. They move to a card acquirer or payment service provider, to a bank-based collection tool, or to a merchant of record that also handles sales tax.
Short answer: The first three alternatives to PayPal in our payment processing software ranking are Stripe, Mollie and Adyen. Places 1 to 3 go to challengers, vendors outside the best-known brands in a category, wherever the category has them; the established names follow from place 4 in their ranked order. Choose Stripe if you want card rates below PayPal's and are comfortable integrating an API or hosted checkout. All 11 alternatives below are ranked products from Best Payment Processing Software in 2026, and each says where it differs from PayPal.
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Pricing: Published commercial transaction fees; tiered rate plan on request
Established in: United States
Built for: Sellers whose buyers expect a wallet checkout beside card payments at checkout.
Not for: Low-margin sellers whose average basket is quite small.
01
Why buyers look past PayPal
01
A flat fee that grows with international sales
PayPal's UK fee page (updated 1 October 2026) charges 2.9% plus a fixed fee for most commercial transactions, 0.30 GBP in pounds sterling. For a sender outside the UK it adds 1.29% when the sender is in the EEA and 1.99% for all other markets. A shop that sells across borders pays noticeably more than the headline rate.
02
Rate relief only on request and only at volume
The tiered plan is optional and available on request. In the UK it takes the 2.9% rate to 2.4% above 4,000 GBP of eligible monthly volume and to 2.1% above 8,000 GBP, based on the previous month. The standard rate applies until PayPal confirms enrolment, so small sellers pay full price for the first months.
03
Conversion and dispute charges sit outside the percentage
Converting a business balance costs 3% above the base exchange rate. A chargeback on a card payment not made through a buyer's PayPal account costs 14 GBP, and a standard dispute fee is 12 GBP. A merchant with many foreign customers or returns should add these to the cost per sale before comparing quotes.
Published per-sale percentage plus fixed fee; no monthly charge; volume pricing on request
Merchant of record for digital products, now owned by Stripe
you sell digital downloads, licences or subscriptions and want the platform to handle tax
#12
03
What each one does differently
1
Stripe
United States · Published pay-as-you-go card rates with no setup or monthly fee; interchange-plus on request
A developer-first payment platform with pay-as-you-go pricing and no setup or monthly fee. Its UK page lists 1.5% plus 20p for standard UK cards and 2.5% plus 20p for EU cards, against PayPal's 2.9% plus a fixed fee. Disputes cost 20 GBP each. Custom interchange-plus pricing needs a sales conversation.
Switch from PayPal if you want card rates below PayPal's and are comfortable integrating an API or hosted checkout.
Netherlands · Published per-transaction fees; volume pricing on request above a monthly threshold
A Dutch licensed e-money institution (Mollie B.V.) with no monthly fee. Cards from the European Economic Area start at 1.80% plus 0.25 EUR for consumer cards and 2.90% plus 0.25 EUR for commercial cards. It prices local methods such as iDEAL, Wero, Bancontact and SEPA Direct Debit separately and can add PayPal itself, passing PayPal's fees plus 0.10 EUR.
Switch from PayPal if you sell mainly to European customers and want local bank methods next to cards.
Netherlands · Published fixed fee plus a per-method fee; no setup or monthly fee; other products priced separately
A single platform for online and in-person payments, founded in Amsterdam in 2006. It charges a fixed processing fee plus a fee set by each payment method, with no setup or monthly fee. Its listed card rates for some regions are interchange++ plus 0.80%. Other Adyen products are priced separately, and its pricing page does not suggest a flat consumer rate.
Switch from PayPal if you process serious volume across many countries and can work with interchange++ pricing.
United States · Published rates that vary by plan; entry plan has no monthly fee
A point-of-sale-first provider whose UK online rate is 1.4% plus 25p for UK cards and 2.5% plus 25p for non-UK cards. The Free plan has no monthly fee, Plus starts at 29 GBP a month, and the Premium plan is custom. Squareup Europe Ltd is incorporated in England and Wales. It is built around a shop, appointments or restaurant, not a pure online checkout.
Switch from PayPal if you take card payments in a shop or on the road as well as online.
United Kingdom · Quoted per organisation; flat-rate or interchange++ structures
An acquirer for larger merchants whose pricing page shows no prices, only a flat-rate structure or interchange++ fees built from your business profile and risk category. It lists no setup or account maintenance fees and says it is free for registered charities. The site is written for companies with a sales contact, not a self-serve seller.
Switch from PayPal if you are a mid-size or large merchant who wants a quoted price with card-scheme costs visible.
United States · Published US per-transaction rates; custom and interchange-plus pricing for established businesses
A PayPal-owned gateway. Its US fee page lists 2.89% plus 0.29 USD for cards and wallets for standard merchants, an extra 1% for non-USD currencies, and a 15 USD chargeback fee. Venmo is US only. You still process PayPal payments through it, so it reduces card cost but not dependence on PayPal.
Switch from PayPal if you want a card gateway that still includes PayPal and Venmo and are based in the United States.
United States · Published pay-as-you-go online rates in the UK; custom quotes for larger volume
A card acquirer whose UK page gives an indicative quote through a three-step online tool based on annual card turnover, average transaction value and merchant category code. It does not publish a single rate for online sales. You get a quote rather than a rate you can read off the page.
Switch from PayPal if you take card payments online and in person in the UK and prefer a quote from an established acquirer.
United Kingdom · Published flat rate on pay-as-you-go; paid tier with 7-day trial; tailored rates at higher volume
A small-business provider with a flat 2.50% online fee, no setup and no monthly cost, per its UK online payments page. Tools include payment links, invoices, gift cards and an online store builder. The 2.50% undercuts PayPal's 2.9% plus fixed fee on small baskets, and custom pricing exists only for SDK or API integrations.
Switch from PayPal if you are a sole trader or small shop selling through links, invoices or a simple online store.
United Kingdom · Published per-transaction fees on three tiers; custom package above a revenue threshold
A bank-based collection service for recurring and one-off payments, not a card acquirer. The Standard plan is 1% plus 20p per transaction, Advanced is 1.25% plus 20p and Pro is 1.4% plus 20p, all excluding VAT. Customers set up a Direct Debit or pay by bank, so it does not suit shoppers who expect to pay by card.
Switch from PayPal if you bill invoices or subscriptions where a Direct Debit can replace PayPal's recurring payments.
United Kingdom · Published per-checkout percentage plus fixed fee; custom pricing at high volume
A merchant of record for software and digital products. It charges 5% plus 50 cents per checkout transaction with no monthly fee, and handles global tax, fraud, chargebacks and buyer support in that price. It becomes the seller of record, so it is meant for SaaS and apps, not shops selling physical goods.
Switch from PayPal if you sell software or subscriptions worldwide and want sales tax and VAT handled by the seller of record.
United States · Published per-sale percentage plus fixed fee; no monthly charge; volume pricing on request
A merchant of record for digital products at 5% plus 50 cents per transaction with no monthly charge. Lemon Squeezy's own blog says Stripe acquired it, and the site now mentions Stripe Managed Payments. It collects and pays sales tax as seller of record, and is aimed at digital sellers, not general retail.
Switch from PayPal if you sell digital downloads, licences or subscriptions and want the platform to handle tax.
PayPal remains the right choice when buyers expect to pay with a PayPal account and you do not want to lose those orders. Its fee page covers commercial transactions, tiered rates on request, QR code payments at 1.5% plus a fixed fee for amounts of 10.01 GBP and above, and Buy Now Pay Later at 3.9% plus a fixed fee. Many merchants keep PayPal as one method next to a card processor, because Mollie and Braintree can both offer PayPal inside a wider checkout.
05
What moving off PayPal involves
01
Keep PayPal as a method while you test
Adding a card processor does not require you to close PayPal. Run both for a few weeks and compare the cost per order, including conversion and dispute fees, before you remove any button. Mollie states that its PayPal option passes through PayPal's fees plus a small fee, so check that line if you route it that way.
02
Check what each provider needs before it pays out
Worldpay and Checkout.com price by quote, while Stripe, Mollie, Square and SumUp publish rates you can read before sign-up. Keep PayPal live until the new provider has paid you out once, so a delay at the new provider does not stop sales.
06
Questions about replacing PayPal
6 answers
What is the cheapest alternative to PayPal?
For UK card payments, Stripe lists 1.5% plus 20p for standard UK cards and Square lists 1.4% plus 25p online for UK cards, against 2.9% plus a fixed fee at PayPal.
Rates differ by card origin, so compare your own mix of UK, EU and international customers.
Is there a PayPal alternative with no monthly fee?
Stripe, Mollie, Adyen, Square (Free plan), SumUp, GoCardless, Paddle and Lemon Squeezy all state no monthly or setup charge on their pages. Square's Plus plan and Mollie's in-person Pro plan do charge a monthly fee.
Is there a European alternative to PayPal?
Mollie is registered in the Netherlands and licensed by the Dutch Central Bank as an e-money institution. Adyen was founded in Amsterdam, and GoCardless and Checkout.com give UK registered addresses. Whether a vendor's home is Europe has no bearing on fees, so compare prices instead.
Which alternative handles sales tax for me?
Paddle and Lemon Squeezy act as merchant of record and say they collect and pay sales tax and VAT on your behalf. Both charge 5% plus 50 cents per transaction and are built for digital products, not physical goods.
Can I accept PayPal and cards together?
Yes, through a processor that offers PayPal. Mollie lists PayPal among its payment methods and passes PayPal's fees plus 0.10 EUR. Braintree is owned by PayPal and includes PayPal and Venmo, though Venmo is US only.
Are chargebacks cheaper elsewhere?
Not always. PayPal lists a 14 GBP chargeback fee in the UK, Stripe charges 20 GBP per dispute received, and Braintree lists 15 USD. Fees apply in different situations, so read the dispute terms of the provider before you compare.
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Sources
Checked 23 October 2026
PayPal UK merchant fees: 2.9% plus fixed fee, 0.30 GBP, international fees, tiered plan, conversion 3%, chargeback 14 GBP, dispute fee 12 GBP, QR and BNPL rates.
PayPal UK about: PayPal UK Ltd London address and FCA authorisation.
Stripe pricing: 1.5% plus 20p UK cards, 2.5% plus 20p EU cards, no setup or monthly fee, 20 GBP dispute fee, custom IC+ pricing.
Mollie pricing: EEA card rates, local method fees, PayPal pass-through, no monthly fee.
Mollie homepage: Mollie B.V., Dutch Central Bank e-money licence.
Adyen pricing: fixed fee plus method fee, no setup or monthly fee, interchange++ plus 0.80% on some card regions, other products priced separately.
Founder of The Knowledge Engineers and of 2 Steps Ahead, an AI search visibility agency. Editorially responsible for every page on this site; research and drafting are AI-assisted.
Written, edited and fact-checked by Sebastiaan Smits. Last reviewed
23 October 2026. How we review.
