PayPal Alternatives for Canadian businesses and consumers (2023)

Many businesses and consumers rely on PayPal for sending, receiving, and requesting money in Canada and across the globe. However, there are alternatives to Paypal, each with their own pros and cons.

There are lots of other online payment options out there for both businesses and consumers in Canada. Wise, for example, lets you send and receive money abroad without any hidden fees.

Table of Contents
Stripe Wise Payoneer Square WePay Apple Pay Google Pay Amazon Pay Klarna Skrill Western Union Remitly Frequently Asked Questions

Stripe

If you’re a business owner or freelancer, you might have heard of Stripe. Stripe is a versatile platform that offers great options for online businesses. This platform is aimed specifically at business owners, with advanced reporting tools to understand your money transfers.

Stripe doesn’t charge a monthly fee for businesses, and it’s easy to open an account.

However, this platform levies fees on all money transfers, and it costs 2.9% plus 0.30 CAD for any online transactions. There’s also an additional 0.6% for international cards or 2% if currency conversion is required.¹

There are a few key pros and cons of Stripe.

Pros	Cons
Stripe supports other payment methods, such as WeChat Pay and Alipay for sales to China Customers can pay you in over 135 currencies	Best-suited to online businesses, rather than in-person retail Each online transaction costs 2.9% plus 0.30 CAD

Wise

With Wise, businesses and individuals can hold 40+ currencies and receive in 8+ currencies. They can also send their money to 160+ countries.

Wise comes with a multi-currency account that allows you to make international as well as domestic payments. With the multi-currency account you can send, receive and hold money in multiple currencies. Also, it’s free to open a personal account, and opening a business account only requires a one-time fee.

Wise charges the mid-market rate for all international money transfers - meaning you use the exchange rate that’s seen online. This secure digital platform is a great option if you regularly send and receive your money abroad.

Wise also has a card linked to your business and personal accounts. This can be used for online and in-store purchases. Once equipped with this card, you can even pay using the digital card linked to your Wise account.

There are a few pros and cons to Wise for businesses and consumers.

Pros	Cons
Charged mid-market rate - no hidden fees 8+ currencies to hold your money in Used for payments, money transfer, holding multiple currencies and tracking exchange rates Large transfers exceeding 200,000 CAD¹⁵ available*	You can’t currently make transfers to merchants that facilitate cryptocurrency trading

*Eligibility is subject to verification of customer’s identity. Learn more

Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information.

Payoneer

Payoneer provides simple online money transfers and digital payment services, aiming to help businesses complete transactions worldwide.

Canadian businesses can easily receive payments with Payoneer. One of their main selling points is the Global Payment Service. As a member of this program, you can receive payments in CAD without incurring any fees.

However, Payoneer adds a 3% markup when sending money abroad via credit card.²

There are a few pros and cons to think about before signing up for a Payoneer account.

Pros	Cons
Make fee-free transfers in CAD It’s free to set up an account Make payments to other Payoneer accounts for free	3% markup for international transfers with credit cards. Charged an annual inactivity fee²

Square

If you’re a Canadian business owner, you could use Square instead of PayPal for your daily transactions. This platform aims to provide value to in-person businesses, such as restaurants, cafés, and shops with mobile point-of-sale transactions.

All point-of-sale transactions are charged at 2.75% - and online transactions cost 2.5% + 0.25 GBP for any non-UK transactions.³

Although you can complete money transfers using Sqaure’s online portal, this platform mainly focuses on in-person money transfers.

There are a few pros and cons to Square.

Pros	Cons
Adaptable and scalable software options Different plan options, including a free Basic Plan	Square can freeze your account if inactive Users outside the UK are charged higher transaction fees

WePay

WePay is a popular payment platform for businesses, providing unique solutions for crowdfunding and SaaS platforms. If you’re a business owner, you can integrate this PayPal alternative into your website and use it to handle transactions, set your own pricing, and process payments.

WePay supports transactions in the UK, US, and Canada - but all transfers cost 2.9% plus 0.30 USD.⁴

There are a few pros and cons to this platform.

Pros	Cons
WePay accepts many common payment methods, including Mastercard and Visa WePay is a convenient option for small business owners	Online transactions for merchant platforms without set processing fees cost 2.9% plus 0.30 USD

Apple Pay

If you’re a consumer, chances are you’ll have heard of Apple Pay. This service is a convenient way for anyone to make everyday purchases. Apple Pay doesn’t charge fees for online or in-person purchases in Canada - one of the big benefits of this PayPal alternative!

Apple Pay also doesn’t charge a foreign transaction fee when transferring money abroad. However, your card issuer or bank may still levy fees. It’s also worth noting that Apple Pay Cash, which lets you send and receive money through iMessage, isn’t available in Canada.⁵

There are a few pros and cons of Apple Pay.

Pros	Cons
No fees for purchases - including foreign transaction fees Secure payment portal Make payments without internet connection	Only available on Apple devices Some features aren’t available for Canadian customers, such as Apple Pay Cash.

Google Pay

Google Pay is a simple PayPal alternative for both consumers and businesses. This platform lets you set up payments through your website as a business, or make payments online and in-store as a consumer. Like Apple Pay, Google Pay doesn’t levy any fees for customers or business owners in Canada.

You can also link Google Pay to your bank account, such as your RBC account. All debit card and money transfers are free - but credit cards are charged 2.9% of the transaction amount.⁶

There are also some limits on how much you can spend. For example, you can only spend up to 250 USD using a connected personal RBC debit or credit card.⁷

Read a few pros and cons of Google Pay.

Pros	Cons
iOS and Android apps available Secure payment portal - encrypted by Google Convenient payment option for businesses and consumers	The send money feature is not yet available in Canada.

Amazon Pay

Amazon Pay is an effective PayPal alternative for both businesses and consumers in Canada. As an established online brand, your consumers may feel more secure using Amazon Pay for any transactions. Amazon users can use their saved payment details, giving your business a convenient payment process for every transaction.

However, cross-border transfers cost 0.5% for those in Canada.⁸

There are a few key pros and cons to sending your money via Amazon Pay.

Pros	Cons
Convenient payment option for existing Amazon users	Transaction fees differ depending on country or region

Klarna

Klarna is a common PayPal alternative for consumers to make stress-free purchases online - and it’s used by businesses, too.

This payment processing platform is known for its “buy now, pay later” options, letting customers purchase items without paying straight away.

This platform is a great option for Canadian businesses, letting owners customize their payment portal and integrate with systems such as Shopify and BigCommerce.

However, merchants are charged a fee for each transaction - and these fees can depend on your business. You could be charged between 3.29% and 5.99% of the transaction cost plus 0.30 USD. Fees are worked out on a business-by-business basis.⁹

There are a few pros and cons of Klarna.

Pros	Cons
Consumers can pay in installments without interest No annual fees	Requires a soft credit check Consumers may be charged late fees Transaction fees differ from business to business

Skrill

Skrill lets consumers and businesses transfer their money with ease, aiming to offer benefits for digital users in particular.

It’s free to withdraw your money to a bank account - but currency conversion transfers levy fees. As well as the Skrill exchange rate, you’ll also be charged a foreign exchange fee of up to 3.99%.¹⁰

This platform helps users send and receive their money as quickly as possible, as well as saving card details for quick transfers and purchases online.

In particular, Skrill focuses on cryptocurrency trading and gambling - but there are business account options, too.

There are a few pros and cons to Skrill for businesses and consumers.

Pros	Cons
Users can make purchases using just their email address and password - like PayPal Fast transaction times No start-up fee for business accounts	Mainly aimed at helping to transfer cryptocurrencies Foreign exchange fees of up to 3.99%¹⁰ in addition to the exchange rate.

Western Union

Western Union is a simple way for consumers to make purchases - and it’s also available in Canada as Convera for businesses.

You can send a money transfer with Western Union via their online portal or an in-person branch. This platform offers great options for those transferring money abroad - including fee-free overseas transfers.

Western Union is also available for Canadian businesses as Convera, letting you send and receive money in over 140 currencies. This online platform aims to streamline cross-border payments for businesses.

However, there are limits on how much you can send - and you may be charged transfer fees for every transaction.¹¹

Read a few pros and cons of using Western Union in Canada and further afield.

Pros	Cons
Cross-border transaction benefits specifically tailored to Canadian businesses	Despite zero fees, the exchange rate is higher¹¹ It’s not possible to send more than 7500 CAD online¹¹

Remitly

Remitly is a popular PayPal alternative for consumers across Canada, and this digital payment processing platform offers several different methods to receive your money. You can send and receive money via a mobile app, or use home delivery.

Remitly is known for its low fees - and transactions in some countries don’t levy any fees at all. However, this can vary with the destination country.

For example, it costs 1.99 CAD to send money from CAD to GBP but 2.99 from CAD to USD.¹²

There are a few pros and cons of Remitly.

Pros	Cons
Cash pickup for certain countries.	Services are not available in all Canadian provinces.¹⁴

Frequently Asked Questions

You may have questions about switching to a different digital payment platform. We’ve put together some frequently asked questions for Canadian business owners and consumers to consider when choosing a PayPal alternative.

Which PayPal alternatives work best for International payments?

It’s important to compare the different PayPal alternatives before making a choice, especially when sending, receiving, or spending your money abroad.

Most online payment methods charge a markup on the exchange rate or a currency conversion fee - meaning you end up spending more than expected for your transfer.

As a PayPal alternative for international payments, Wise is a convenient and cost-effective option for your next overseas transfer.

Send money to 160+ countries at the mid-market rate - the standard exchange rate.

Unlike other digital payment platforms, Wise can easily help you understand exactly how much you’re paying for each and every international money transfer.

Which payment methods are available in the US but not in Canada?

Some payment methods aren’t available in Canada - even if they’re popular in the US.

This includes:

• Venmo
• Cashapp
• Zelle

Some mobile payment apps may also have limits in Canada, such as Alipay and WeChat. Apple Pay Cash is currently only available in the US, too.

Is Google Pay like Paypal?

Like PayPal, Google Pay lets you use an online digital wallet to set up payments.

You can also link your Google Pay account to your bank account. However, unlike PayPal, Google Pay doesn’t charge fees for businesses.

Google Pay is also a great PayPal alternative for those under 18, as minors can’t use PayPal.¹³

What are the best PayPal alternatives for freelancers and artists?

If you’re a freelancer or artist, you’ll want to receive every cent of your hard-earned money!

Payoneer is a popular PayPal alternative for artists - and you can sign up for this platform for free. If your client has a Payoneer account, you can also send and receive payments free of charge.

Wise is also a great choice if you regularly work with global clients. Receive and hold your money in 10 currencies and avoid any nasty hidden charges, too!

Both of these options are effective alternatives to PayPal for eBay sales if you’re a freelancer or sole trader.

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Sources

1. Stripe
2. Payoneer
3. Square
4. WePay
5. Apple Pay
6. Orbelo
7. RBC
8. Amazon Pay
9. Payment Cloud Inc.
10. Skrill
11. Western Union
12. Remitly
13. PayPal
14. Remitly User Agreement
15. Large transfers with Wise