On the internet, the usage of credit cards, online shopping portals, and payment methods have exploded on the internet as methods of choice among consumers worldwide! The most familiar monetary transaction system would be PayPal. Like them or hate them, PayPal has aimed to please its customer base for over twenty years!
Who hasn’t heard of PayPal? Assuming you’ve lived under a rock for the past 20 years, PayPal is a service that first became available for public usage in 2002. PayPal, originally started out as Confinity, was actually established in 1998. It then became a wholly-owned subsidiary of eBay later that year, valued at $1.5 billion. In 2015, eBay spun off PayPal to eBay’s shareholders and PayPal became an independent company again.
Payment Of The Times
Much has changed since 2002! Now, two decades later, payment methods between two parties have since exploded! More people are now using online payment methods far more frequently than even as little as a few years ago! Since PayPal, a number of other online transaction platforms have come onto the internet scene, each wanting a piece of the action for themselves! Some have come and gone and some have managed to stand the test of time.
To Trust Or Not To Trust
When something new is brought to the attention of the public, the most common first response is met with scrutiny. And, when it comes to something as sensitive as money, it’s perfectly understandable to be skeptical! With scandals having been linked to PayPal (and other similar payment platforms) that didn’t exactly help ease people’s anxiety, either!
In 2015, the US regulator ordered PayPal to pay $25 million in refunds and fines as a result of its failure to acquire permission from the Consumer Financial Protection Bureau to issue its service, PayPal Credit to consumers.
Also in 2015, a judge approved a $4 million settlement between PayPal and its users after a 6-year court case. PayPal had to answer for themselves why they closed the accounts of the users involved without notice and without explanation. After enduring six years’ worth of soap opera-style negotiations, PayPal ended the matter by paying out the settlement.
Contending With Trust Issues
While 2015 proved to be one of the worst years for PayPal, it’s not the first (nor the last) time they’ve found themselves in hot water due to questionable practices on their part. However, even with that being said, this doesn’t diminish PayPal’s core integrity level! Even as of 2015, much has changed how PayPal does business! The PayPal today isn’t quite the same as the PayPal of 2015, nor the one from 2002!
However, as PayPal seems to have taken the lessons they’ve learned from 2015 to heart, there are still some folks who use online payment methods that prefer to do business with anybody but them! While some people tend to have short-term memories and forget the scandals as quickly as they come out, the same isn’t so among those who do remember. And, among them, not only do they not forget, they do not forgive either!
Who Do We Trust?
Even prior to PayPal’s nightmare of 2015, there have been some online transaction alternatives available to the public. While 1998 (2002 to the public) sees PayPal situated among the ranks of online payment pioneers, they were not the first!
In 1994, Stanford Federal Credit Union was established, making them the first financial institution which offered online internet banking services to all of its members.
In the beginning, the main players in the e-payment market were Millicent (founded in 1995), ECash, or CyberCoin (both in 1996). The majority of the first online services were using micropayment systems and their common attribute was the attempt to implement the electronic cash alternatives (such as e-money, digital cash, or tokens).
In 1994, Amazon was founded (one of the e-commerce pioneers) and Pizza Hut starts accepting online food ordering.
And yeah, believe it or not, Pizza Hut was the first brick-and-mortar business (aside from banks) to branch into an online ordering system where you can order your product!
As previously mentioned, much has changed since the earliest days of online payment platforms! As more people become familiar with doing business on the internet, they also seem to be getting somewhat more comfortable using online payment platforms.
In addition to financial exchanges between buyer and seller, there are also increased paycheck-style transactions towards contractors and freelancers for whatever work they’ve done for clients who’ve hired them!
And, there’s also an explosion of affiliate programs where more people are looking for ways to give their income at least a little boost. And, for some, even aiming to replace their current employment situation so they can spend more time at home.
How Are You Paid?
Since COVID-19, there’s been an increasing number of people who’ve taken to earning an income from their own homes. This may be through an affiliate program, freelancing, or as a steadily paid employee for some company.
As diverse as the work at home possibilities are becoming, there is also a multitude of varied payment types. The most common online that the public seems to know most about is PayPal. However, as mentioned, not everybody is a fan of PayPal and whenever they can, will opt for an alternative instead.
Online Payment Alternatives
Like them or not, PayPal does have a remarkably solid platform where online transactions are concerned. However, not every business, nor contractor, believes PayPal is the best online option to provide them with the best financial transaction platform.
Listed below is a shortlist of the seven, personally favored PayPal alternatives;
(If you wish for more info about any that interest you, please follow the links provided.)
2Checkout – with over 100 currency options in over 30 different languages, this serves as an ideal platform for businesses that operate at an international level!
Google Pay – ideal for quick, easy, and free payments! This method is not only used as an online transaction platform, but brick-and-mortar businesses are also using them! This is likely because their payment is largely free for anyone!
Payoneer – is awesome for small businesses, including those who operate at an international level! This is also a great option for affiliate programs and freelancers!
Their Mastercard feature is a good way for people with credit issues to obtain something handy, especially in travel-related bookings where credit cards are almost always required! Speaking as a former front desk agent for hotels, I know how difficult the travel industry makes it for people without credit cards to book, and even stay, in a room!
ProPay – Mary Kay Cosmetics has a good reason to continue doing business with ProPay as their primary transaction platform of choice for over a decade!
Between the flat-rate pricing and no monthly minimum requirements, it’s an ideal choice for direct sellers and e-commerce businesses alike!
Square – is a good option for e-commerce and smaller business platforms! Their point-of-sale service has been described as incredible by reviewers who are aware of them! For businesses not so dependent on an internet connection for transactions, there is a swipe method that still allows them to accept card payments!
Stripe – great for street shops, as well as on the net! Whether you strictly operate online, offline, or both, Stripe offers a very reliable service! There’s also branding options for own invoices!
Wise (formerly TransferWise) – is a good option for high-volume transactions for businesses that operate at an international level! They also have a decent exchange rate from country to country, something of which seems to be superior compared to most other gateway platforms that are currently available!
However You Pay Up
Knowing how important it is that money is handled securely, you definitely need to do your homework! Make sure, before signing up for anything, that what you’re getting into really is for you! Cross-reference and compare! This way, you avoid finding yourself on the receiving end of a financial fiasco that will likely cost you way more than just money!
If you like this post and would like to receive more, please subscribe! Not only will you be notified each time we post something new, but your name is automatically entered into a monthly draw at our sister site, Pioneer Kitty Market, where you stand to win $250 in-store credit!