10 Best Online Payment Systems For Internet Businesses

When it comes to accepting and receiving payments online, PayPal system is the reigning champion. In fact, it’s the de facto online payment solution for online customers, freelancers, and business owners.

10 Best Online Payment Systems For Internet Businesses

While people tend to love PayPal for a variety of reasons, technology has opened the door for a number of competitors to challenge PayPal by offering cheaper frees, faster transactions, and enhanced security.

The 10 Online Payment Systems For Internet Businesses

  • PayPal
  • Stripe
  • Payoneer
  • Skrill
  • WePay
  • Braintree
  • Authorize.Net
  • Adyen
  • Venmo
  • Square

1. PayPal


Founded: December 1998
Headquarters: 2211 North First Street
San Jose, California, U.S. (corporate headquarters)
Omaha, Nebraska, U.S. (operative center)
Users: Increase 305 million (2019)

Paypal is currently the most secured and trusted online payment platform in the world. PayPal Holdings, Inc. is an American company operating a worldwide online payments system that supports online money transfers and serves as an electronic alternative to traditional paper methods like checks and money orders.

As of 2020, PayPal operates in 202 markets and has 305 million active, registered accounts. PayPal allows customers to send, receive, and hold funds in 25 currencies worldwide.

PayPal services:

PayPal's services allow people to make financial transactions online by granting the ability to transfer funds electronically between individuals and businesses. Through PayPal, users can send or receive payments for online auctions on websites like eBay, purchase or sell goods and services, or donate money or receive donations. It is not necessary to have a PayPal account to use the company's services. PayPal account users can set currency conversion option in account settings.

2. Stripe


CEO: Patrick Collison (2010–)
Employees: 2000+ (September 2019)
Founded: 2009, San Francisco, California, United States
Headquarters: San Francisco, California, United States

Stripe is an American technology company based in San Francisco, California. Its software allows individuals and businesses to make and receive payments over the Internet.

Stripe Services:

Stripe provides the technical, fraud prevention, and banking infrastructure required to operate online payment systems. As summarized by the San Francisco Chronicle in 2019, Stripe succeeded by "[distilling] the complex, creaking infrastructure of online payments into a handful of lines of code that could be inserted into a clients website."

3. Payoneer


Headquarters: New York, New York, United States
CEO: Scott Galit (Oct 2010–)
Founder: Yuval Tal
Founded: 2005
Number of employees: 1,395 (2019)

Payoneer is a financial services company that provides online money transfer, digital payment services and provides customers with working capital.

Payoneer services:

Account holders can send and receive funds into their bank account, Payoneer e-wallet, or onto a re-loadable prepaid MasterCard debit card that can be used online or at points of sale. The company specializes in facilitating cross-border B2B payments. It provides cross-border transactions in 200 countries and territories and more than 150 local currencies, with its cross border wire transfers, online payments, and refillable debit card services.

Companies like Airbnb, Amazon, Google and Upwork use Payoneer to send mass payouts around the world. It is also used by eCommerce marketplaces such as Rakuten, Walmart and Wish.com, freelance marketplaces such as Fiverr and Envato, and works with ad networks to connect these firms with publishers based outside of their headquartered country.

4. Skrill


Headquarters: London, United Kingdom
Parent organization: Paysafe Group
CEO: Joel Leonoff (Jan 2015–)
Founded: 17 June 2001, London, United Kingdom
Number of employees: 500

Skrill is an e-commerce business that allows payments and money transfers to be made through the Internet, with a focus on low-cost international money transfers.

Skrill Services:

Skrill accounts can be created in one of 40 supported currencies and you can add more currencies to your account later on. Customers can purchase a Skrill-branded prepaid card, linked to the account in one of the four currencies: USD, EUR, PLN, and GBP. High-turnover customers are offered premium membership called "Skrill VIP" that includes additional features, such as a security token, multi-currency accounts and the ability to earn loyalty points.

5. WePay


Number of employees: 250-300
Headquarters location: Redwood City, California, United States
Parent organization: JPMorgan Chase
Founded: 2008, Boston, Massachusetts, United States

WePay is an online payment service provider based in the United States that provides an integrated and customizable payment solution through its APIs to platform businesses such as crowdfunding sites, marketplaces and small business software companies. It offers partners fraud and risk protection.

WePay services:

WePay is a privately held company that offers payment capabilities to business platforms and makes money by charging service fees when processing funds. WePay enables secure, customized, and frictionless payments to platforms through its APIs.

WePay offers fraud and risk protection as a service through its proprietary risk prevention system and through several third party vendors. The company detects fraud by using a number of data sources, including social data connections as well as machine learning algorithms. According to Aberman, "WePay uses your online identity to verify your identity in the real world."

6. Braintree


CEO: Bill Ready (Sep 2011–)
Founder: Bryan Johnson
Founded: 2007
Subsidiaries: Venmo, MODEST, INC., Braintree San Francisco
Parent organization: PayPal
Headquarters locations: Chicago, Illinois, United States, United States

Braintree, a division of PayPal, is a company based in Chicago that specializes in mobile and web payment systems for e-commerce companies. The company was acquired by PayPal on September 26, 2013. Braintree provides clients with a merchant account and a payment gateway.

Braintree services:

Braintree provides businesses with the ability to accept payments online or within their mobile application. On October 1, 2012, Braintree launched instant signup, streamlining the signup process for US merchants to a few minutes. Braintree announced the v.zero SDK in July 2014. It allows automatic shopping cart integration with PayPal among other payment types. In September 2014, the company announced a partnership with Coinbase to accept Bitcoin.

GitHub and ParkWhiz are among the companies that launched with the v.zero SDK, which supports "One Touch Payments". PayPal's mobile also allows One Touch Payments. It does not require those users to create an account on an e-commerce site or enter credit card details every time they want to buy something. The concept of One Touch is based on a prior product called Venmo Touch, which was developed in conjunction with Venmo, the payment service Braintree bought in August 2012. Venmo Touch was the first one-touch mobile buying experience to hit the market.

7. Authorize.Net


Parent organization: CyberSource (Visa)
Headquarters: American Fork, Utah, United States
Founded: 1996
Acquisition date: November 2007

Authorize.Net is a United States-based payment gateway service provider, allowing merchants to accept credit card and electronic check payments through their website and over an Internet Protocol connection. Founded in 1996, Authorize.Net is now a subsidiary of Visa Inc.

Authorize.Net services:

Authorize.Net processes card and ACH payments for companies from small and medium-sized merchants. It offers fraud protection services, recurring billing subscriptions, and simple checkout options. For developers, it provides an application programming interface (API) and software development kits for Android and iOS. Its Virtual Terminal and Invoice features can process manual payments. It also offers recurring billing and a plugin for the integration with Authorize.Net, and technical support is available for merchants.

Authorize.Net has the most customers of any payment processor and has been described as one of the more senior players in the payment processing industry, retaining a "decent portion" of the industry's market share.

8. Adyen


Headquarters: Amsterdam, Netherlands
Founded: 2006
Number of employees: 1,200
Key person: Pieter van der Does

Adyen is a global payment company that allows businesses to accept e-commerce, mobile, and point-of-sale payments. Adyen has more than 3,500 customers and is listed on the stock exchange Euronext.

Adyen Services:

Adyen offers merchants online services for accepting electronic payments by payment methods including credit cards, bank based payments such as debit cards, bank transfer, and real-time bank transfers based on online banking. Adyen's online payment platform connects to payment methods across the world. Payment methods include international credit cards, local cash-based methods, such as Boleto in Brazil, and Internet banking methods, such as iDEAL in the Netherlands. The technology platform acts as a payment gateway, payment service provider and offers risk management and local acquiring.

9. Venmo


Headquarters location: New York, New York, United States
Founded: 2009
Platform: iOS; Android; Web
Parent organizations: PayPal, Braintree

Venmo is a mobile payment service owned by PayPal. Venmo account holders can transfer funds to others via a mobile phone app; both the sender and receiver have to live in the U.S. It handled $12 billion in transactions in the first quarter of 2018.

Venmo services:

Users create an account via a mobile app or website and provide basic information and bank account information. Recipients of transactions can be found via phone number, Venmo username, or email.

Users have a Venmo balance that is used for their transactions. They can link their bank accounts, debit cards, or credit cards, to their Venmo account; alternatively users can order a Venmo MasterCard and pay through it. Paying with a bank account or debit card is free, but payments via credit card have a 3% fee for each transaction. Some credit card providers may charge cash advance fees for Venmo payments. If a user does not have enough funds in the account when making a transaction, it will automatically withdraw the necessary funds from the registered bank account or card.

Users get rewards into their accounts when Venmo is used with selected merchants. Through Venmo Rewards Program, they can use these by bank account transfer or debit card and merchants in-app. When users first create an account, total transactions cannot exceed $299.99 until their identity is verified. After their identity has been verified, users can send up to $2,999.99 in each seven day period.

10. Square


CEO: Jack Dorsey (2009–)
Headquarters: San Francisco, California, United States

Square, Inc. is a financial services, merchant services aggregator, and mobile payment company based in San Francisco, California. The company markets several software and hardware payments products and has expanded into small business services.

Square services:

In December 2012, Square began allowing merchants to issue virtual gift cards; a QR code is scanned from the customer's smartphone to use the funds. Physical gift cards were added in the service in 2014.

In 2014, Square launched Square Capital, which offers business financing to merchants using Square. In 2014, an online booking tool was added to the firm's offerings, allowing small businesses to accept appointments on their website. The service only accepts scheduled appointments based on a service provider's availability, and does not accept restaurant reservations.

In 2015, the firm launched Square Payroll, a tool for small business owners to process payroll for their employees. The product, available in all 50 states + DC, automatically handles a business's withholdings, payroll payments, and tax filings. In 2018, Square began allowing merchants to develop custom interfaces for the platform, via an application programming interface.

Video on How To Accept Online Payments On Your Website

Making it as easy as possible for your customers to pay is essential for increasing conversions and sales.

This is why your checkout page is critical. It’s the final stop for people shopping on your website. It’s the place where they hand over their credit card information and finally part with their hard-earned cash. Read this blog post on how to make the payment process easy.


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