If you ask me, the best alternative to PayPal is Moneybookers or Skrill, as it is currently known. My romance with Moneybookers or Skrill, if you like, started back in 2006, when I discovered Skypeout, but was not keen on giving them my credit card number.
Rather than talking about the history of Moneybookers and how exactly it became Skrill, I shall focus on the functionalities of its viable successor.
Compared with PayPal, it costs less to send money from your Skrill account to another person’s bank account. On the other hand, PayPal is available in virtually all languages, whereas Skrill is available I just seven languages.
Speaking of portfolio diversity, it should be mentioned that Skrill maintains forty different currencies, whereas Paypal works with half as much.
If you have to maintain multiple currencies in your Skrill portfolio, you’ve got to sign up for a VIP account, whereas a standard PayPal account can operate with an unlimited number of currencies.
It takes just 24 hours to verify and confirm your Skrill account, while the confirmation and verification of a PayPal account takes two full business days.
Let’s talk about fees. Skrill requires a deposit fee of up to seven percent, whereas PayPal does not charge such. However, Skrill’s merchant transaction fee is just 2.99%, compared to PayPal’s 4.5%.
Skrill charges a currency conversion fee in the amount of 2.99%, whereas PayPal provides absolutely free currency conversion.
In the same line of thought, Skrill provides free cross-border transactions, while PayPal charges from 0.5% to 7.4 percent for such operations.
If you have not used your Skrill account for twelve months, each month after that costs you EUR 1, whereas PayPal does not charge anything for dormant accounts.
In view of the above information, Skrill is PayPal’s closest rival.