PayPal works, but it’s not the only option for Australian businesses. Higher fees on international transactions, occasional account freezes, and limited local support push plenty of business owners to look elsewhere.
This guide covers 11 PayPal alternatives available in Australia. Some are payment gateways for accepting card payments on your website. Others handle international transfers, buy now pay later, or contactless checkout. Each has different strengths depending on what you actually need.
After payment gateways specifically? See our guide to the best payment gateways for Australian businesses for a deeper comparison of gateway-only options.
Quick Comparison
| Provider | Type | Domestic Fee (approx.) | Best For |
|---|---|---|---|
| Stripe | Payment gateway | 1.75% + 30¢ | Online businesses wanting API control |
| Square | POS + gateway | 1.6% (in-person) | Businesses with online and physical sales |
| Zip | BNPL | Varies by volume | Retailers selling higher-priced items |
| SecurePay | Payment gateway | 2.4% | Businesses wanting Australia Post backing |
| Payoneer | International transfers | 1% (Payoneer to Payoneer) | Freelancers and exporters |
| Skrill | Digital wallet | 1.9% + $0.29 | International payments and transfers |
| Google Pay | Digital wallet | No fees* | Adding contactless checkout |
| Afterpay | BNPL | Commission-based | Retail with higher basket sizes |
| Wise | International transfers | Varies by currency | Paying or receiving internationally |
| Braintree | Payment gateway | 1.75% + 30¢ | Custom checkout within PayPal’s ecosystem |
| Eway | Payment gateway | 1.5% + 25¢ | Australian businesses wanting local support |
*Google Pay itself charges no fees, but your payment processor still charges its own rates. All fees shown are approximate. Check each provider’s website for current pricing.
1. Stripe
Stripe is a payment gateway built for online businesses. You integrate it into your website using its APIs, and it handles credit cards, debit cards, digital wallets, and local payment methods. Its documentation and developer tools make it one of the most flexible options available.
Fees: 1.75% + 30¢ for domestic cards, 2.9% + 30¢ for international cards and digital wallets. No setup or monthly fees.
Best for: Businesses that want full control over their checkout experience. Stripe’s built-in fraud protection, subscription billing, and reporting tools make it a strong all-rounder. The trade-off is that some technical setup is needed, unlike PayPal’s ready-made checkout button.
2. Square
Square handles both online and in-person payments. It provides card readers for physical sales and a payment gateway for online transactions. You also get inventory management, customer directories, and sales reports bundled in.
Fees: 1.6% for card-present (in-person) transactions and 2.2% for online transactions. No setup or monthly fees.
Best for: Businesses that sell both online and face-to-face. Square’s point-of-sale hardware and software give you a single system across all channels. PayPal can do this too, but Square’s POS tools are more developed.
3. Zip
Zip (formerly ZipPay) is a buy now, pay later service. Customers purchase immediately and repay over time in interest-free instalments. Zip pays you upfront, so you get the full amount regardless of the customer’s repayment schedule.
Fees: Zip charges a merchant commission that varies based on your sales volume. No setup or monthly fees. Contact Zip directly for a quote.
Best for: Retailers selling items over $100 where splitting payments into instalments reduces cart abandonment. Zip is more of a checkout option than a full PayPal replacement, so most businesses use it alongside another payment gateway.
4. SecurePay
SecurePay is owned by Australia Post and operates as a payment gateway for Australian businesses. It accepts credit and debit cards through your website and also offers a virtual terminal for phone orders. PCI DSS compliance is handled for you.
Fees: Flat rate of 2.4% per transaction. No setup or monthly fees.
Best for: Businesses that value an Australian-owned provider with strong security. SecurePay integrates with most major platforms and its backing by Australia Post gives some businesses extra confidence. However, the 2.4% flat rate is higher than alternatives like Stripe or Eway.
5. Payoneer
Payoneer specialises in cross-border payments. It gives you local bank details in multiple countries, so overseas clients can pay you as though you have a local bank account. You also get a Mastercard for accessing your balance at ATMs.
Fees: 1% to receive from other Payoneer users. Fees for marketplace and client payments vary by method and currency. Currency conversion fees apply.
Best for: Freelancers, exporters, and businesses receiving regular payments from overseas. Payoneer’s multi-currency receiving accounts and support for 150+ countries make it stronger than PayPal for international receivables. It’s not designed for accepting customer payments on a website, though.
6. Skrill
Skrill is a digital wallet and payment service that competes directly with PayPal. Customers can pay using their Skrill wallet, bank transfer, or card. The platform also supports international money transfers between individuals and businesses.
Fees: 1.9% + $0.29 per transaction. Currency conversion and international transfer fees apply on top.
Best for: Businesses that deal with international customers who already use Skrill, particularly in Europe. Skrill’s prepaid Mastercard lets you access funds without transferring to a bank account. It’s less well-known in Australia than PayPal, which can limit its appeal at checkout.
7. Google Pay
Google Pay lets customers pay using their phone, tablet, or watch. It works for both online checkout and in-store contactless payments via NFC. Card details are tokenised, so the actual card number is never shared with the business.
Fees: Google Pay itself charges no fees. Your payment processor (Stripe, Square, etc.) still charges its normal rates when processing a Google Pay transaction.
Best for: Adding as a checkout option alongside your existing payment gateway. Google Pay reduces friction for Android users and speeds up online checkout. It’s not a standalone payment solution like PayPal, so you’ll need a gateway behind it.
8. Afterpay
Afterpay splits purchases into four equal fortnightly instalments at no interest to the customer. The business gets paid upfront in full, and Afterpay handles the repayment collection. It’s now part of Square (Block Inc), which means tighter integration between Afterpay and Square’s POS system.
Fees: A fixed transaction fee plus a percentage commission that varies based on your sales volume. Contact Afterpay for a custom quote. For a detailed breakdown, see our guide to Afterpay merchant fees for Australian businesses.
Best for: Retail and service businesses where splitting payments increases conversions. Afterpay’s merchant fees are higher than standard card processing, so it works best when the increased average order value offsets the cost.
9. Wise
Wise (formerly TransferWise) specialises in international money transfers at the mid-market exchange rate. No markup on the exchange rate means you pay what you see on Google or XE. Wise Business accounts let you hold money in 40+ currencies and get local bank details in multiple countries.
Fees: A small percentage of the transfer amount, varying by currency pair and payment method. Typically cheaper than PayPal for international transfers. No monthly fees.
Best for: Businesses that send or receive money internationally and want transparent exchange rates. If your main pain point with PayPal is the currency conversion markup (PayPal adds 3-4% above the mid-market rate), Wise is the most direct fix. It’s not a payment gateway, so it won’t replace PayPal for accepting website payments.
10. Braintree
Braintree is a payment gateway owned by PayPal. It accepts credit cards, debit cards, PayPal, Venmo, Apple Pay, and Google Pay through a single integration. Its APIs let you build a fully customised checkout flow, and its fraud protection uses machine learning to flag suspicious transactions.
Fees: 1.75% + 30¢ AUD for domestic cards, 2.9% + 30¢ AUD for international cards and digital wallets. No monthly or setup fees.
Best for: Businesses that want a custom checkout but still want to accept PayPal alongside cards. Since Braintree is part of the PayPal family, it’s one of the few gateways that natively supports PayPal as a payment method within your own checkout page.
11. Eway
Eway is an Australian payment gateway that integrates with most major platforms including WordPress. It accepts credit and debit cards through your website and offers a virtual terminal for phone orders, recurring billing, and pre-authorisations.
Fees: 1.5% + 25¢ per transaction. No setup or monthly fees.
Best for: Australian businesses that want local phone support and competitive rates. Eway’s 1.5% + 25¢ rate is among the lowest of the gateways listed here, and having an Australian support team can matter when something goes wrong with a payment. It integrates with WordPress, Magento, and most major platforms.
Why Businesses Switch from PayPal
PayPal has genuine strengths. Customers recognise and trust it, it integrates with most platforms, and it handles both domestic and international payments. But there are common reasons Australian businesses look for alternatives.
- Fees add up fast. PayPal charges 2.6% + 30¢ for domestic transactions and adds a currency conversion markup of 3-4% above the mid-market rate. For businesses with high volumes or regular international payments, this gets expensive.
- Account freezes. PayPal’s fraud prevention system can freeze accounts or hold funds for review, sometimes for weeks. This protects against fraud but creates cash flow problems when legitimate transactions get flagged.
- Limited local support. Getting a human on the phone at PayPal Australia can be difficult. Providers like Eway and Square offer local support teams.
- One-size-fits-all checkout. PayPal’s checkout redirects customers to PayPal’s site or opens a popup. Gateways like Stripe and Braintree let you keep customers on your own site throughout the payment process.
That said, many businesses don’t need to drop PayPal entirely. You can add a second payment option (like Stripe or Square) and offer PayPal as one of several checkout methods. This reduces your dependence on a single provider without disrupting existing customers who prefer PayPal.
How to Choose the Right Alternative
The right choice depends on what you’re actually using PayPal for. Here’s a quick decision framework.
- Accepting card payments on your website? Look at Stripe, Square, Eway, Braintree, or SecurePay. Compare their domestic transaction rates and check whether they integrate with your website platform.
- Sending or receiving international payments? Wise and Payoneer both offer better exchange rates and lower fees than PayPal for cross-border transfers.
- Need in-person payments too? Square is the strongest option. It gives you a single system for online and face-to-face sales with unified reporting.
- Want to offer instalments? Afterpay and Zip let customers split payments. Both charge higher merchant fees than standard gateways, so weigh the conversion uplift against the cost.
- Running an online small business in Australia? Stripe or Eway are solid starting points. Both have competitive rates, no monthly fees, and integrate with WordPress and other common platforms.
Before switching, check whether your current website platform supports the new provider. Most website builders and content management systems have built-in integrations for Stripe, Square, and PayPal, but not every gateway works with every platform.
Frequently Asked Questions
What is the best PayPal alternative for small Australian businesses?
It depends on your setup. For online-only businesses, Stripe offers competitive rates (1.75% + 30¢) and works with most website platforms. For businesses with a physical shopfront, Square gives you both online and in-person payments in one system. For international payments, Wise offers the lowest currency conversion fees.
Which PayPal alternative has the lowest fees?
Eway has one of the lowest domestic rates at 1.5% + 25¢ per transaction. Stripe and Braintree both charge 1.75% + 30¢. For comparison, PayPal charges 2.6% + 30¢ for domestic transactions. Keep in mind that rates change, so always confirm directly with the provider.
Can I use a PayPal alternative and still accept PayPal?
Yes. Most businesses add a second payment option rather than replacing PayPal entirely. Gateways like Stripe and Braintree can run alongside PayPal, giving your customers more choice at checkout. Braintree even lets you accept PayPal payments within its own checkout flow since it’s part of the PayPal family.
Which PayPal alternatives support in-person payments in Australia?
Square is the strongest option for in-person payments, with card readers and a full point-of-sale system. Google Pay supports contactless NFC payments (though you still need a payment processor behind it). Afterpay also works in-store through its app.
Which PayPal alternative is best for international transfers?
Wise uses the mid-market exchange rate with no markup, making it significantly cheaper than PayPal for sending money overseas. Payoneer is better if you receive regular payments from overseas clients or marketplaces, since it gives you local bank details in multiple countries.
Do I need to switch completely from PayPal?
Not necessarily. Many Australian businesses keep PayPal as one checkout option while adding a lower-cost gateway like Stripe or Eway as the primary processor. This gives customers choice while reducing your average transaction cost. The main exception is international transfers, where switching to Wise can save a significant amount on currency conversion alone.
Choosing the Right Payment Platform
There’s no single best PayPal alternative. The right choice depends on whether you need a payment gateway, international transfers, buy now pay later, or a combination. For most Australian businesses processing domestic card payments, Stripe or Eway offer lower fees and more control than PayPal. For international payments, Wise beats PayPal on exchange rates by a wide margin.
If you’re building or redesigning your website and want to get payment integration right from the start, get in touch and we can help you choose the right setup for your business.
