Online payment systems are platforms that allow users to send and receive payments online. With the enormous growth of technology, online payment is a hugely convenient way for the general population to manage their money. Especially for freelance workers and business owners. Online payment systems can be used from personal use, to receive and share and spend money online or with friends; to massively sending out payments to company employees all over the world and in different currencies.

Best Online Payments Systems

There are plenty of options to choose from when it comes to picking an online payment system. While most of them are similar in essence and purpose, they each have a particularity that sets them apart. Some are more business targeted, some more intended for person-to-person use, some are better for online shopping, and some are more beneficial to people in foreign countries and for currency changes.

PayPal

Starting off with PayPal. This platform is probably the most well-known and most used website for online payment right now. It’s fantastic because it allows users to receive and send money in 202 different countries. It’s easy to use and doesn’t have any monthly or annual maintenance fees, so the money that goes into the PayPal stays in PayPal.

Its system is simple, straightforward, and simple to use. A step by step guide can be found on Business Talky on how to quickly create a PayPal account without any trouble.

PayPal allows its users to associate a bank account to their PayPal to enjoy all of its benefits restriction free. However, it’s not 100% a requirement.

As for costs, PayPal charges 2.9% + 0.30$ per debit or credit transaction

Stripe

Stripe is one of the most common PayPal alternatives, it’s excellent for businesses that need payment processing gateways. It allows business owners to receive payments either directly into their Stripe account or by integrating Stripe into their online store. Even though it’s marketed toward business owners, it can also be used by particular non-business owners.

 It provides services in over 130 currencies and is available in 34 countries. In the case of international transactions, Stripe offers its users the option to receive payments in different currencies and convert it into their own for a small fee.

Stripe charges a 2.9% + 0.30$ per debit or credits transaction +1% for international transactions.

Payoneer

Payoneer is perfect for foreign workers and workers in developing countries to receive compensation. As well as for international businesses to provide compensation. It’s also used by a lot of freelance workers to receive payment for their services.  It serves more than 200 countries and supports more than 150 currencies.

With Payoneer the employer or client can simply wire funds into the employees' Payoneer account and it will be converted into their currency of choice, hassle-free. Beneficiaries can also send payment requests to receive funds.

Payoneer users can link their Payoneer account to their bank account and send the money there. They can also use a prepaid MasterCard provided by Payoneer only days after the subscription. Funds can of course be moved freely in-between Payoneer accounts as well.

Venmo

Venmo is actually a platform that was recently acquired by PayPal. Venmo is very convenient for peer-to-peer transactions. It simply wires the money from the senders Venmo account to the receivers Venmo count. Funds can be put into the account either by receiving and collecting money sent on Venmo or linking Venmo to a bank account o card and taking money from there.

It can be used by businesses to pay their freelance employees, to make in-app purchases with online stores and retailers as well as to wire funds to friends and family. Venmo is not only a great way to manage money, it’s also a social media platform. Whenever users send or receive money, the transaction is later posted onto the users' profile for everyone to see. However, this option can be disabled to keep all transactions private

While Venmo is seemingly free, Venmo does charge a 3% fee for payments wired from credit card funds. If the user is in a hurry, Venmo also charges 0.25$ to make instant transfers into their bank account

Other relevant systems are: Apple Pay, Google pay, Skrill, 2Checkout, Authorize.Net, Skrill, Dwolla and Braintree

Pros of Online Payment Services

Easy 24/7 access

One of the biggest appeals of using online payment systems is that money management can happen at any time and place. Users can easily pay employees, receive money, buy online and pay bills while lying in bed, the park, or even on vacation. Writing checks, making calls, and going to the bank and post office to pay bills and other expenses is no longer needed. Everything is just a click away

Fast

For many, having to wait for the bank to process a check to be able to buy some groceries is a reality. With online payment, waiting is no longer a problem because most online payment systems are immediate or execute payments in minimal time

Management and control over all expense info

It allows beneficiaries full access and control to their expenses and income. No more need to collect and look over receipts and bills. All that information regarding transactions like dates, exact amounts, and where the money went is available to the user when accessing their account

Environment

Protecting the planet is always a plus. By sending and receiving all payments online payment users become completely paperless, thus helping reduce waste.

Cons of online payment services

Security

While most online payment systems are pretty safe, working with money over the internet does make it vulnerable to hackers. Users need to be on the lookout for tricks like phishing where hackers create fake similar-looking log-in sites to steal a user’s passwords and information.

Technology dependent

While it is also a pro that all the business is executed online through the phone or computer, it can also be negative in some cases. Phones and computers can break, apps can crash, servers can go down, and poor signal can occur. Incidents like these leave the user without the ability to access their accounts, which is unfortunate.