PayPal has now officially declared that it has cut-off all transactions to India over the next few months. Paypal sucks, that’s no new fact to everyone who’s reading this. They charge hefty transaction surcharge and still provide zero satisfaction. This eBay company is filled with ignorance that no one else but users understand. Let’s give them what they deserve: Alternatives.

“Google Checkout” and “Amazon Payments” are, perhaps, the best Payment gateways, but they are limited to US and UK.

I’ll walk you through the best alternatives for potential readers from India (though all alternatives listed here work worldwide)

Disclaimer: All information is best to my payment gateway knowledge. If you know a better one, let me know @taranfx on twitter OR in comments, and I`ll update it, appropriately.

Remit2India: (Deprecated, service is very unreliable.)

A Times Money co. has some decent offerings for us.

5. Xoom:

I would call them the best for what they do. They have the least no. of hassles in getting the money. You don’t need to signup to transfer money. They do charge bit-more than Moneybookers, AlertPay, etc on transactions, but still 80% more affordable than Western Union.

If payer pays with US bank account they charge $2.99 for payments upto $500, and with CreditCards it varies from 9.99 to 19.99. when the base amount goes above $500, they charge higher.

Signup for Xoom

4. PayPay

PayPay could is a dent in some of PayPal’s business. PayPay lets users send and receive money using their PayPay accounts (even receive through email, SMS, bank accounts, online or through payment buttons).

PROS: Business and personal accounts are free, available to worldwide audience. Fees are low and comparable with PayPal. A seller need not worry of high fees and Buyers can use this service for free. You can even download free software to your desktop that will monitor everything in your account.

OVERALL: Prices are competitive and have everything that PayPal has.

Signup for PayPay

3. AlertPay:

AlertPay is a PayPal alternative for the less mainstream merchants. AlertPay is focused around the idea that some clients need more time and attention when it comes to payments. Personal accounts are designed for the internet beginners as well as the regular online shopper or seller.

AlertPay charges an introductory rate of 2.5% per transaction for Pro account and for Starter it’s FREE. The companies that requires more services will have to pay 3.9%.

All in all pretty decent on prices, a must try.

Signup for AlertPay

2. OboPay:

I guess this is the only Payment gateway that offers iPhone app too. The payments can be taken from a 3rd party with easy signup steps.

They offer various types of account services including: Mobile money, Instant checkout, Family account, prepaid masterCard.

They charge nominal $0.25 per transaction, which is the lowest, I believe, in the industry. They do charge bit extra in exchange rates depending upon the kind of the transaction.

Signup for OboPay

1. MoneyBookers

Moneybookers, based in UK, has close to 3.6 million users, allows you to send and receive payments from around the globe.

The Good: Receiving money is free and sending money is 1% of the total amount sent (person-to-person).  Withdrawing funds can be done by check or directly to your bank account. Buyers/Payers have a great flexible option here. Additionally, buyer and seller protection is offered with very reasonable conditions.

OVERALL: Highly recommended as an alternative to PayPal and as an alternative to sending and receiving online payments. This is one of my personal favorites. Sign up and take it for a test drive — you won’t be sorry!

Signup for Moneybookers

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