Better Billing Alternatives to Stripe & Square for Small Businesses

TL;DR

• If you're seeking Square stripe alternatives for your small business, consider the limitations of these platforms, such as account stability issues and lack of customization.
• Explore alternatives like Togai for flexible pricing strategies, PayPal for its global reach and seller protection, Braintree for its dedicated merchant accounts, and QuickBooks for integrated accounting.
• Consider the specific needs of your business, such as integration capabilities, developer-friendliness, and the ability to handle global transactions, when selecting a payment processing alternative.
• Evaluate the alternatives' customer support quality and reliability, as uninterrupted payment processing is vital for business operations.
• Assess the ease of use and the training required for new users, as these factors significantly impact the transition from Square or Stripe to a new platform.
• For personalized billing solutions that cater to small businesses and freelancers, Togai stands out with its comprehensive platform and robust support.

Why Stripe & Square May Not Be the Ideal Billing Platforms

As small business operations continue to evolve, the selection of a reliable payment processing solution is a critical cornerstone. While Stripe and Square have undoubtedly been stalwarts in this domain, seasoned business owners must not overlook the inherent limitations that accompany these platforms. These limitations, ranging from account actions and payment processing intricacies to compatibility issues and support concerns, underscore the need for a more nuanced approach in choosing a payment processing partner.

Limitations of Stripe

Here are key considerations that prompt businesses to look beyond Stripe:

Stripe excels in various aspects, yet its one-size-fits-all approach may not cater to the diverse needs of businesses. Pricing structures, global reach, customer service, industry-specific considerations, and alternative service offerings are factors that businesses should weigh when evaluating payment processors.

Limitations of Square

Here are some reasons to consider alternatives to Square:

Square, praised for its ease of setup, free hardware, and simplicity, has its drawbacks. Businesses seeking better pricing, robust support, and advanced features may find it worthwhile to explore alternatives that offer a more tailored solution.

How We Evaluated Square and Stripe Competitors & Alternatives

To evaluate the competitors and alternatives of Stripe and Square, we began by pinpointing the areas where the features of both Stripe and Square may have limitations. Subsequently, we gathered a list of potential provider options. Our assessment of each alternative focused on the following criteria:

Price

To find suitable alternatives, we analyzed the pricing models of various providers, aiming to pinpoint cost-saving opportunities and potential drawbacks. Our assessment covered transaction charges, subscription fees, hardware costs, and any hidden fees that could impact a business's bottom line.

In comparing the pricing models and fee structures of alternative providers, we considered factors such as flat fees per transaction or tiered pricing based on transaction volume. We also included factors such as overall cost, including monthly charges, setup fees, and any additional fees for specific features or services.

Capabilities and Features

In our quest to identify viable alternatives, we engaged in a thorough comparison of features, meticulously scrutinizing customization options, functionality, scalability, and integration capabilities for each option. Our focus was on finding alternatives that support a diverse range of payment methods, encompassing digital wallets, international payments, and credit cards. Additionally, we assessed whether the alternatives offer essential features such as recurring billing, subscription management, invoicing, and other functionalities aligned with specific business requirements.

Developer-Friendliness and Integration

In evaluating integration and developer-friendliness, we thoroughly examined the ease of integrating with existing platforms, applications, and systems. A crucial factor in this assessment was the presence of developer-friendly documentation and a robust API (Application Programming Interface), as these elements significantly contribute to a smoother integration process. Our scrutiny also extended to determining whether the alternative provides additional support, such as plugins, software development kits (SDKs), or pre-built integrations tailored for popular e-commerce platforms like WooCommerce, Magento, or Shopify.

Ease of Use

When gauging the ease of use for each alternative, we placed a strong emphasis on intuitive software and user-friendly interfaces, recognizing their significance for businesses transitioning from Square or Stripe. Our assessment took into account various factors, including the training required for users, the overall user experience, and the complexity of setup.

We strategically aligned each of our selected alternatives with distinct business types that have surpassed the capabilities of Square's and Stripe's payment processing, business management solutions, and POS. This tailored matching process aimed to ensure that each alternative addresses the specific needs and growth trajectories of businesses seeking a more user-friendly and advanced solution.

Customer Support

Our assessment considered the quality of customer support offered by each alternative, specifically looking for providers that offer responsive channels like email, phone, or live chat. Recognizing the importance of uninterrupted payment processing, we also scrutinized the uptime and reliability of each alternative. In ensuring minimal downtime and reliable infrastructure, we delved into the reputation and track record of each alternative to make certain they meet the essential criteria for consistent and dependable service.

Top Four Alternatives To Stripe & Square for Small Businesses

Togai

As a billing platform, Togai empowers small businesses with accessible, functional, and secure billing and invoicing capabilities. Its “Entitlement” feature allows businesses to implement flexible pricing strategies, thus further solidifying its position as a comprehensive payment platform for B2B pricing.

Togai is an excellent choice for small businesses looking for the following advantages:

• Streamlined operations
• Better customer experience
• Scalability
• Seamless integration
• Efficient and innovative pricing models
• Competitive value propositions
• Optimized revenue

Advantages of Togai

• Transparent and adaptable pricing strategies with easy feature alignment and real-time tracking.
  Seamless integration with existing systems to make your business more efficient in handling market demands for customized pricing.
• Minimizes operational disruptions and creates cohesive workflows.
• Streamlines your pricing adjustments, contributing to better decision-making and operational efficiency.
• Apt for businesses relying on global transactions involving multiple currencies.
• Tailor-made pricing strategies, encouraging customer-centered tactics and offering a competitive edge.
• Wide array of products to help you generate maximum revenue, maintain excellent customer service, stay current with industry trends, and fulfill the ever-changing market requirements.
• Real-time scalability to handle large volumes of data to ensure business expansion and solid decision-making.
• Automated maintenance of flexible pricing models to enable better billing experiences and customer interactions and eliminate manual tasks.

Disadvantages of Togai

Togai is almost free of any disadvantages except for its lack of tax automation. However, the platform seamlessly integrates with existing bookkeeping software, Adyen, and other customized integrations, including dunning logic.

Togai Pricing

Discover the perfect solution for your small business with Togai's comprehensive billing platform. Contact Togai to explore customized pricing options tailored to your unique needs!

Paypal

Paypal is currently used in more than 200 countries, making it one of the oldest and largest payment providers in the world. Established in 1998, the company has grown considerably over the years. As of 2022, PayPal had earned itself more than 426 million active users worldwide. Today, it represents more than 50% of the online payment processing market.

Operating via its website and user-friendly phone app, the platform facilitates transactions through online money transfers via bank accounts, credit and debit cards, or within the account balance in customers’ PayPal accounts.
Paypal is one of the best alternatives to Stripe and Square, especially if you are involved in e-commerce and international trade. In terms of popularity, it is the most formidable competitor to both platforms, holding its ground as one of the world's most user-friendly and well-known payment platforms.

While PayPal has excellent B2C and P2P (Purchase to Payment) capabilities, it may not be suitable for B2B organizations. For instance, factors like Average Transaction Value and the charges imposed for other transactions and foreign exchange can pose significant challenges for organizations engaging in high-value transactions. Such hurdles are not suitable for B2B companies, which is why PayPal is ideal for B2C players like:

• Solopreneurs
• Occasional sellers
• Online and physical businesses

Advantages of Paypal

• It is trusted by millions of people all over the world. Paypal customers prefer paying through the app than divulging their payment details for e-commerce transactions.
• PayPal’s Seller Protection scheme provides a safe haven for sellers if buyers complain about missing purchased goods or transactions. Under this scheme, sellers receive their full payment as long as they fulfill PayPal’s requirements.
• By utilizing PayPal as a payment method for your vendors or suppliers, you can easily resolve the issue of cash flow gaps that arise due to payout delays. Simply utilize the funds in your PayPal balance to make payments, ensuring a streamlined and efficient process.
• PayPal has robust, watertight security measures with round-the-clock monitoring for all transactions. It immediately detects suspicious activities and protects against money-related scams and frauds. By using PayPal, you can have peace of mind knowing that your financial transactions are secure and your personal information is protected.

Disadvantages of PayPal

PayPal’s aggressive take on account freezes is well-known amongst its users. The online platform can freeze disputable and suspicious accounts for 180 days, thereby preventing you from using the platform in dire need.

PayPal: Price Point

PayPal charges a merchant fee of 2.9% and a fixed fee for online transactions. The fixed fee depends on the country you send or receive the money from. The payment platform’s other fee structures include:

• 2.7% + fixed fee for instore payments
• 2.4% for QR code transactions below $10
• 1.9% + fixed price for transactions over $10

So, next time you're contemplating how to pay or receive funds, consider using PayPal for a hassle-free experience.

Braintree

Braintree is a payment gateway provider and a billing platform designed to accept online payments by storing credit card information from your system on a secure server. The platform is sponsored by PayPal and provides dedicated merchant accounts and several business-related services that PayPal doesn't.

Braintree is also known for its customer protection measures and account stability, which are available at the same price as Square and Stripe. Getting started is fast and easy, thanks to its efficient setup. The platform’s seamless integration with PayPal makes it an excellent choice for B2C businesses and for B2B organizations using a Software-as-a-Service (SaaS) model. The drawback, however, is that Braintree only caters to one part of a SaaS business’ revenue delivery infrastructure.

Braintree is an ideal choice if you want:

• A customized, dedicated, and stable merchant account
• Access to PayPal’s infrastructure
• Help to integrate with some functionalities
• A fundamental, easy-to-use platform
• To use Braintree without other payment services
• A platform that allows an average transaction of over $60

Braintree is advantageous for its:

• Intuitive customer portal that streamlines interactions with a unified login experience similar to that of PayPal.
• Excellent customer service with knowledgeable staff trained to answer queries and offer expert assistance.
• Pre-emptive transaction management enables snitch-free transaction cancellations before they are refunded, thus granting you incredible control over your financial transactions.

As far as the drawbacks are concerned, Braintree may not be ideal for its:

• Lack of SaaS subscription management solutions required for streamlined billing and pricing adjustments.
• Restricted API access limits pricing flexibilities and your ability to create and manage discounts and plans.
• Complex and confusing customer bank statements can make clarifying charges and other details labor-intensive.

Braintree Pricing

Braintree does not charge any monthly fee but charges you only based on what you use. This platform offers the following pricing plans:

• Standard rate: 2.9% +30 cents per digital transaction or card
• ACH deposits: .75% per transaction
• No fees for PayPal transactions, including PayPal credit

Braintree offers discounted rates under 501 ( C) for verified charitable organizations.

Quickbooks

Quickbooks is highly popular amongst small businesses that rely on its software to handle their accounting procedures, from invoicing and payment processing to tracking cash flows.

This payment platform is the best fit for small businesses that require an accounting tool. Nevertheless, like any system, there are advantages and disadvantages to opting for QuickBooks over alternative entry-level solutions or more sophisticated ERP software. Also, you may find this platform restrictive if you are looking for HR management, e-commerce, and warehouse management solutions in one go.

Advantages of Quickbooks

Intuitive, user-friendly interface that allows you to learn and operate the platform without much hassles.

Works and integrates seamlessly with third-party applications to streamline business processes and increase adaptability.

• Budget-friendly tiers and cost-effective financial management tools that help SMEs.
• Real-time, robust reports that give you access to detailed and insightful financial reports to make informed decisions.
• Multi-device accessibility ( tablets, laptops, PCs, and smartphones) for better convenience.
• Error detection and correction features to ensure easy identification, remediation, and accuracy.
• Easy customer information retrieval for easy customer data reference. It helps you deliver personalized service and creates an effective communication channel.

If you choose QuickBooks, be prepared to face the following challenges:

• Minimal reporting capabilities that may not include crucial business and customer-related information.
• Unreliable, unstable software may likely cause system crashes and workflow and data integration disruptions.
• Restrictions in transaction volumes and limitations in software file size may not be compatible with high transaction volumes.
• Easy accessibility of error detection and correction may unintentionally enable unauthorized individuals to manipulate financial records.
• Without direct expert assistance, you may face difficulties in identifying and rectifying issues.

QuickBooks Pricing

QuickBooks pricing is very apt for small businesses. Their plan starts at $30 per month and can scale upto $200 per month, offering flexibility and value for startups and upcoming firms. Moreover, once you purchase the plan, you can access QuickBooks’s accounting platforms. However, you may be charged for add-ons like:

• Real-time bookkeeping support
• Employee payroll
• QuickBook integrations

The accumulation of these numerous small expenses can significantly increase your final bill, surpassing the expected monthly fee range of $30-$200.

Also, read our blog to discover the top billing software solutions tailored for small businesses and freelancers in 2023.

What’s The Perfect Square-Stripe Alternative?

It is understandable if you are in a dilemma to choose amongst the four options. To simplify the process, ask yourself these questions:

• What is my budget? How much can I spend per month, per transaction?
• What are my competitors’ payment platforms?
• How many invoices will I send?
• How can I take advantage of mobile transactions?
• How many customers will I serve on average?
• Do I require hardware to enable credit card payments?

By taking into account these questions and considering the unique requirements of your business or industry, you will be able to navigate your way toward discovering the optimal payment solution that suits you best.

Consider Togai For Your Billing Requirements

One of the easiest decisions you can make is to opt for our Togai. As the top-notch metering and billing software specifically designed for small businesses and freelancers, Togai caters to all your needs, ensuring comprehensive pricing solutions for every possible scenario. Furthermore, Togai is powered by a robust, secure, and reliable billing solution that supports your business through every phase for years to come.

Want to implement Togai? Schedule a demo now!