When it comes to payments, there are plenty of fish in the sea to choose from. There are more competitors than ever in the payments industry; so, why should you stay with a service that doesn’t satisfy you.
For many small businesses in Southeast Asia using PayPal is essential for their operations, or so they think. Businesses need to send and receive payments to buy materials, to pay their employees and to get paid for the goods or services they sell. There is no doubt about that, but there are other ways to get it done. Some alternatives to PayPal are less time consuming, cheaper, and they are processed faster.
Many of these problems stem from the way that PayPal was built, mainly as a way for consumers to make safer payments compared to credit cards. Since its inception, it hasn’t changed much, mostly because there wasn’t an alternative. Elon Musk, co-founder of PayPal, said “If PayPal doesn’t do something, it will be screwed” back in 2012. Musk even said their product plan was “slightly worse” than the one he had created years back. These problems might change now that PayPal is no longer a subsidiary of eBay; therefore, it has more autonomy to experiment with new products.
So, who are these alternatives?
Ever heard of Payoneer? They are quite large in the payment space with clients such as UpWork, Fiverr and AirBnb. Payoneer offers international and domestic payments for small and medium payments, just like us. Many businesses choose to use Payoneer to pay their freelancers because payments can be sent directly to the recipient’s bank account or debit card. This feature can be quite convenient for those who don’t have a bank account, which happens to be a lot of people in Southeast Asia. However, this convenience comes with high fees and transactions costs that should be considered.
Dwolla is a relatively young payments company that offers very cheap transfers. Dwolla links directly to your bank account and does mass payments, recurring and one-time payments. Best of all transactions are free if they are under $10 and only 25 cents if above $10. Unfortunately, Dwolla only offers its services to US based customers.
2C2P offers payment processing for e-commerce and m-commerce businesses in addition to facilitating B2B and B2C transactions. Best of all, 2C2P focuses on the ASEAN region. In 2011, 2C2P processed $450 million, and they handle 78,000 transactions daily from the largest merchants in the Asia-Pacific, including banks.
Qwikwire is a billing and payments company based in the United States but focuses on the Philippines – US corridor. Qwikwire helps facilitate transactions between businesses and people. Qwikwire is great because many people face one big problem with PayPal if you don’t already have a bank account or a credit card you can’t even open a PayPal account. That’s why a lot of freelancers in the Philippines choose to use Qwikwire.
There is also Coinpip which we hope you know about 😉
Check out these 10 startups that are changing the money transfer industry.