Stripe is a major player in the payment processing arena, but it’s not the perfect fit for every business. Whether you’re managing physical goods or running a SaaS (software as a service) company, Stripe’s setup can sometimes be complex and require additional integrations. If you’re exploring alternatives, it’s useful to understand the two main categories they fall into: payment processors and billing solutions that also serve as a merchant of record (MoR). Here, we’ll review top payment processors and billing solutions, focusing on those that excel in different scenarios.
MoRs for SaaS Companies
For SaaS companies, a billing solution that acts as a merchant of record (MoR) simplifies managing global transactions, taxes, compliance, and more. Here are two standout MoRs:
1. Paddle: Payment Infrastructure Platform
Paddle offers an easy MoR solution designed to handle all aspects of billing for SaaS companies. It provides secure checkout, recurring billing management, and advanced reporting. Paddle simplifies the billing process by acting as a single point of contact for all payment and compliance needs.
Some of its Key Features are:
- Secure Checkout: Ensures transaction security with robust fraud protection.
- Recurring Billing: Manages subscription models with ease.
- Invoicing and Reporting: Offers detailed transaction and subscription reporting.
2. Verifone: Formerly 2Checkout
Verifone, formerly known as 2Checkout, offers flexible payment processing solutions suitable for a wide range of businesses, including those in the SaaS space.
Some of its Key Features are:
- Integrated POS: Supports both in-person and online transactions.
- Kiosks and Crypto Payments: Offers diverse payment options, including cryptocurrency.
- Hosted Checkout: Provides customizable checkout experiences.
- Verifone’s extensive experience and adaptable features make it a strong contender for companies needing both MoR services and traditional payment processing.
Billing Software for Selling Physical Goods and Services
For businesses selling physical goods or services, several Stripe alternatives excel in processing transactions and managing customer interactions. Here are five options:
1. Square: Popular Payment Platform for Startups
Square is a solution adapted for businesses of all sizes, particularly effective for retail and service-oriented operations.
Key Features:
POS Integration: Offers a comprehensive point-of-sale system for both online and in-person transactions.
Free Hardware: Provides free card readers and terminals.
Additional Services: Includes marketing tools, banking services, and staff management features.
Square is an excellent choice for startups and established businesses needing a good and flexible payment platform.
Pricing & Rating
With Square, transaction fees differ based on the type of transaction: 2.6% plus 10 cents per transaction for swiped credit cards, and 2.9% plus 30 cents per transaction for manually entered card details.
Square has received strong ratings, earning 4.6 out of 5 stars on G2 Crowd and 4.5 out of 5 stars on TrustPilot.
2. PayPal for Business: Available on Major eCommerce Platforms
PayPal is well-known for its online payment services, but also supports various business needs.
Key Features:
Payment Processing: Accepts debit and credit card payments online and in-store.
Business Financing: Offers financial services and funding options.
Integrations: Works seamlessly with major e-commerce platforms like Shopify and Magento.
PayPal’s broad acceptance and integration capabilities make it a valuable tool for businesses needing a reliable payment processor.
Pricing & Rating
PayPal’s fees differ based on the transaction type, amount, and location. For domestic transactions using a credit or debit card, the fee is 2.9% plus $0.30 per transaction. For international transactions, the fee increases to 4.9%, with an additional fixed charge that varies by currency.
On TrustPilot, PayPal holds a strong rating of 4.2 out of 5 stars.
3. Authorize.net: For Merchants and Small Businesses
Authorize.net provides comprehensive payment solutions tailored for merchants and small businesses.
Key Features:
Multi-Channel Payments: Supports mobile, phone, and online transactions.
Customer Management: Features for managing customer data and transactions.
Fraud Detection: Includes advanced fraud detection tools to protect against fraudulent transactions.
Authorize.net’s extensive features make it a robust choice for merchants seeking a reliable and secure payment processing solution.
Pricing & Rating
Authorize.net generally charges a $25 monthly gateway fee and a transaction fee of 2.9% plus $0.30 per credit card payment. It holds a solid rating of around 4.0 out of 5 stars on TrustPilot, reflecting positive user feedback for its reliability and customer service.
4. Adyen: Robust Financial Technology Platform
Adyen offers a scalable payment solution suitable for growing businesses with diverse needs.
Key Features:
Cross-Channel Support: Handles payments across online, mobile, and in-store channels.
Advanced Fraud Protection: Utilizes sophisticated algorithms to detect and prevent fraud.
Global Reach: Supports a wide range of payment methods and currencies.
Adyen’s advanced technology and global capabilities make it an ideal choice for businesses looking to scale internationally.
Pricing & Rating
Adyen’s billing model includes a charge per transaction and a monthly fee, which varies depending on the payment method selected and the transaction’s geographical location. The monthly fee also fluctuates with the overall volume of transactions processed.
Adyen is highly rated, securing a 4.7 out of 5 stars on G2 Crowd, reflecting its strong market reputation.
5. Amazon Pay: Payment Service and Order Fulfillment
Amazon Pay leverages the trusted Amazon checkout experience for seamless transactions on your website.
Key Features:
Optimized Checkout: Offers a familiar and streamlined checkout process for customers.
Order Fulfillment: Provides options for fulfillment by Amazon if desired.
Integration Tools: Easy to integrate with existing e-commerce platforms.
Amazon Pay is particularly useful for businesses that want to provide a smooth, familiar payment experience to their customers.
Pricing & Rating
Amazon Pay charges a transaction fee of 2.9% plus $0.30 for domestic transactions, with higher fees for international transactions that vary by currency. It has earned a solid rating of around 4.3 out of 5 stars on TrustPilot, praised for its user-friendly checkout and reliable service.
Bottom Line
Choosing the right payment processing solution depends on your business model and specific needs. For SaaS companies, MoRs like Paddle and Verifone provide comprehensive solutions, handling everything from global payments to compliance.
For businesses selling physical goods or services, Square, PayPal, Authorize.net, Adyen, and Amazon Pay offer options for both online and in-person transactions. Evaluating these alternatives based on your unique requirements will help you find the best fit for your business, ensuring efficient payment processing and enhanced customer satisfaction.
If you are considering choosing a payment platform, integrating it into your business, and avoiding compliance mistakes, we invite you to schedule a free consultation with our experts. Book a free consultation right now!
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