Why You Should Dump Paypal

Why You Should Dump Paypal

Paypal is known the world over for their web based payment processing and funds management for online retailers such as ebay and thousands of small businesses. I’ve personally been using Paypal for the better part of 9 years and GeekITDown has been using their services from the beginning. Like any service there have been ups and downs, but for the most part Paypal has served their purpose.

However, it’s always been my opinion that if something better or even comparable came along I’d jump ship, cautiously but willingly. After searching, testing and experimenting it’s time to pass judgment and share some reasons why it’s a good idea to move away from Paypal and on to other solutions.


For the better part of a decade Paypal has owned the online payment corner of the web. Those easy days of no competition are long gone and legitimate alternatives now exist.

Google Checkout for Merchants

Google Checkout Merchant

Like Paypal, Google Checkout for Merchants is an online payment processing service.

Why we like it:

  • Everyone knows Google, so the trust factor is already present and they’re easily recognizable.
  • In several ways, Google Checkout is easier to setup, integrate and modify on the fly.
  • Automatic deposits to your bank account.

What they’re missing:

  • Google Checkout lacks customization that Paypal offers.
  • Active users aren’t as great in number as Paypal, mostly due to Paypal’s integration with ebay, and the lack of user base makes Google Checkout somewhat new to unfamiliar consumers.
  • Google support (lack thereof) is the same across all their properties. Luckily, with regards to Checkout, users shouldn’t need much support.


Square Logo

The single biggest threat to Paypal comes from Square. Their recent rise comes in the form of mobile payments through a card reader that accepts payments through smartphones and tablets. They beat Paypal to the punch in the mobile market and are better at it.

Why we like it:

  • Simply put, the app + card reader method works and it works well.
  • Automatic next day deposit to bank account.
  • The signup process is thorough, but less intrusive than Paypal. Where Paypal’s process is more of a personal data harvesting questionnaire, Square’s is specific, to the point and more than adequate to complete a profile to build a payment option around.
  • After 9+ years with Paypal, their mobile payment signup process was more difficult and intrusive than a cavity search. As a new customer with Square I was up and running in about 30 minutes.

What they’re missing:

  • An online payment option similar to Paypal and Google Checkout.


New on the block is Dwolla. We wrote ‘Pay Smarter With Dwolla‘ last year and they’ve continued to progress. Some much needed exposure will enlighten consumers to the benefits and possibilities.

Why we like it:

  • Consumers only spend what they have which means less chance of insufficient funds problems.
  • They’re objective is a noble one with a management team that seems to genuinely care about security in payments and consumer safety.

What they’re missing:

  • Exposure. They need users and for businesses to get on board with their service.

Problem Areas

Paypal does the job, but does little to go beyond their core.


Frankly, it’s terrible. Call Paypal and try to have an objective conversation with anyone on the other end. You’ll find a person who has memorized the secret Paypal handbook with zero deviation or unique analysis for your specific situation or concern.

Mobile Payments

The policy at Paypal must be to harvest as much personal information as possible on customers. The mobile payment signup process in particular was outrageous when I was looking to add that option versus the much more pleasant Square. Again, keep in mind we’re talking about an established Paypal account for nearly a decade in use and a brand spanking new Square account was still easier to get going for mobile payments.


If you’ve been contemplating a move from Paypal or looking for something better, then examine the suggestions above. The fees are comparable, but you’ll gain ease of use, better support and quicker response depending on which services you employ.

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7 years, 3 months ago Comments Off on Why You Should Dump Paypal