In the past 20 years, technology and innovation have progressed more than ever. The developments have largely been focused on the digital side of things, with new internet-based technologies appearing at a rapid pace.
One of the most significant developments in the past two decades has been the rise of e-commerce.
What Is E-Commerce?
Electronic commerce, or e-commerce, refers to any and all electronic purchasing services. The most notable form of electronic commerce in 2023 is of course, through the internet.
Whether we are ordering pizza, purchasing groceries, buying new clothes, or ordering books, if we are doing so electronically, we are engaging in e-commerce.
While e-commerce predates the internet, today it is largely associated with websites like Amazon, E-Bay, or GoodReads, where you can order a product and have it delivered to your doorstep.
Naturally, e-commerce websites require some form of payment. For a long-time, the only available, and most popular method for transactions were credit and debit cards. However, thanks to the introduction of online payment systems, that has largely changed.
What Is An Online Payment System?
Online payment system, often called electronic payment system or e-commerce payment system, is a software which facilitates online payments.
For example, using one of these systems, one could transfer a certain amount of cash to another account, in exchange for goods and services. These kinds of payment systems are exceedingly popular in quite a few industries, most notable the e-commerce and the iGaming industry.
For those who don’t know, iGaming refers to all forms of digital wagering. Whether you are betting on sports, spinning slots, or playing poker, if you are doing so online, you are participating in the so-called iGaming industry. And when it comes to online casinos, PayPal is the most popular online payment system.
What Is PayPal?
In 1998, three entrepreneurs established a company called Confinity. The goal was to develop security software for handheld devices.
During its first year, Confinity was largely unsuccessful, which forced them to switch over to a new business model, focusing on digital wallets. And thus, PayPal was born.
Today, PayPal is the most popular and well-regarded online payment system in the world. Operating in multiple countries around the globe, PayPal produced an estimated revenue of over $20 billion in 2022. With an operating income of around $3 billion, that is quite an accomplishment.
Their most recent innovation came only a year ago, when PayPal opened up to crypto-based transfers.
As of 2022, PayPal’s users can send, receive, and even trade cryptocurrencies like Bitcoin, Ethereum, Tether, and Dogecoin.
Unsurprising, considering cryptocurrency has had quite a boost in popular culture recently. The crypto market is one of the fastest-growing trading markets in the world, and more and more businesses are embracing crypto transactions. So, it would seem PayPal hopped on the bandwagon at just the right time.
However, PayPal’s success has led to quite a few imitators. The question we have is this: is PayPal still the best digital wallet, or has a new online payment system supplanted it? In this article, we would like to explore alternative options, and see how they compare to the original.
Alternatives To PayPal
In 2023, we are spoiled for choice when it comes to e-wallets. PayPal may be the most popular, but it isn’t the only one.
So, let us explore some alternatives, and see how they compare to the top dog. Starting with one of the top-rated digital wallets aside from PayPal, Stripe.
Stripe
Stripe is a financial service company headquartered in Ireland and the USA. Their main product is a payment-processing software used by quite a few e-commerce websites.
According to the company, they handle transactions worth billions of dollars every year. So, what separates Stripe from PayPal?
The key difference is that Stripe is a pretty straightforward solution to the problems of e-commerce. Users get a wide variety of tools, which can help them to customize their own personal payment processes.
And while that sounds great at first, it also leads to Stripe’s major disadvantage. That is, you need a good degree of technical know-how to operate Stripe.
With PayPal, all you need is an account, and maybe a glance at the tutorial. With Stripe, you need to know quite a bit about programming languages.
For this reason, Stripe is most popular, and indeed designed, for larger firms, rather than individual transactions.
Payline
Headquartered in Chicago, Payline is another popular alternative to PayPal. The service offers gateway payment processing, and can integrate over 170 online shopping carts.
With low monthly fees and a built-in security and fraud protection software, what more can you want from an e-wallet?
So, why would someone want to avoid Payline? The main disadvantage here is the transparency when it comes to transaction costs. Namely, there is none.
The company is not entirely open about the costs for transactions, which may lead to some customers spending more money than they bargained for.
Some may think it is worth it. After all, Payline comes with a low monthly fee (much lower than PayPal’s), an excellent mobile app, and is probably one of the more secure digital wallets you can find.
However, others are put-off by the lack of transparency. At the end of the day, you have to make your own choice and decide whether the service is worth your while.
Why PayPal Remains The Most Popular?
In this final section, we would like to take a look at why PayPal remains the most popular online payment system in 2023, despite some slowdown in growth.
One of the main reasons is that it is already familiar. Most businesses already have a PayPal, and it is the most popular e-wallet among customers. Most people would rather stick to what they know, rather than switch over to a new service.
Another reason has to do with the accessibility. PayPal is easy to set up, and even easier to use. Even in 2023, most people are not overly familiar with how computers and programming languages work.
They want a simple, straightforward service, and PayPal certainly provides. Which is the main reason why it remains the most popular e-wallet in 2023.
