Top PayPal Alternatives for Canadian Businesses in 2025

PayPal revolutionized online payments, but its 2.9% transaction fees and 2.5-4% foreign exchange markups have become increasingly burdensome for Canadian businesses. Add slow international transfers, limited multi-currency support, and poor integration with modern business tools, and it's clear why companies are seeking alternatives.

This guide examines the best PayPal alternatives available to Canadian businesses in 2025. We'll compare payment processors, business banking platforms, and specialized solutions across key criteria: transaction fees, FX rates, multi-currency capabilities, and integration options. Whether you're an eCommerce seller frustrated by cross-border fees, a service business tired of manual reconciliation, or a growing company needing more than just payment processing, you'll find options tailored to your needs.

Why Canadian Businesses Look for PayPal Alternatives

PayPal's limitations become apparent as businesses scale and operate internationally. The platform charges 2.9% + $0.30 per domestic transaction, rising to 3.9% for international cards. These fees compound quickly for businesses with significant transaction volumes.

Foreign exchange fees present an even larger burden. PayPal applies a 2.5-4% markup on currency conversions, significantly above mid-market rates. A business processing $100,000 USD annually loses $2,500-4,000 to FX fees alone, not including transaction costs.

Multi-currency operations face additional challenges. PayPal doesn't provide true multi-currency accounts. You cannot hold USD, EUR, or GBP balances without converting to CAD, triggering conversion fees on every transaction. This forces businesses to either absorb FX costs or pass them to customers.

Speed and integration limitations further hamper operations. International transfers take 3-5 business days, creating cash flow challenges. PayPal's limited accounting software integration means manual reconciliation, increasing administrative burden and error risk. Modern businesses need payment solutions that integrate seamlessly with their financial stack, automate reconciliation, and provide real-time visibility into cash flow.

What to Look for in a PayPal Alternative

Choosing the right payment solution requires evaluating your specific business needs against platform capabilities. Consider these critical factors when comparing alternatives.

Start with total cost of ownership, not just headline transaction rates. Calculate transaction fees in CAD, foreign exchange rates and markups, monthly account or subscription fees, and costs for specific features like wire transfers or chargebacks. Many platforms advertise low transaction fees but compensate with hidden FX markups or monthly charges.

• Transaction fees and FX rates (in CAD)

• Multi-currency account support (CAD, USD, EUR, GBP)

• Transfer speed (domestic and international)

• Integration with QuickBooks, Xero, and eCommerce platforms

• Corporate card and expense management features

• Canadian payment rails (Interac e-Transfer®, EFT, ACH)

• Security and regulatory compliance (CDIC protection, PSP registration)

Best PayPal Alternatives for Canadian Businesses in 2025

We've evaluated the leading payment platforms across fees, features, and ideal use cases. Each serves different business needs, from comprehensive banking to specialized payment processing.

‍

Venn: All-in-One Business Banking Platform

Best for: Canadian businesses seeking a complete financial operations platform with payment processing, multi-currency accounts, and expense management.

Venn isn't a traditional payment processor like PayPal. It's a comprehensive business banking platform that includes payment acceptance, multi-currency accounts, corporate cards, and accounting automation. For Canadian businesses, this means you can replace multiple tools with one integrated solution.

What sets Venn apart is that you get real local CAD and USD accounts (not just payment processing), enabling you to accept payments, hold funds in multiple currencies, pay vendors globally, and manage team expenses all from a single dashboard.

Key Features:

• Local CAD, USD, GBP, and EUR accounts

• Free unlimited Interac e-Transfer® (only Canadian fintech offering this)

• 1% unlimited cashback on all corporate card spend

• FX rates from 0.25% (lowest in Canada)*

• Built-in invoicing with Stripe integration for credit card acceptance

• Two-way QuickBooks and Xero sync

• OCR receipt capture and expense management

• $6-10 global wire transfers

Pricing:

• No monthly account fees on Essentials plan

• $0-2 ACH/EFT transfers depending on plan

• 0.25%-0.45% FX conversion fees

Pros:

• Replaces multiple financial tools (payment processing, banking, expense management)

• Lowest FX rates in Canada*

• Real US account with ACH capabilities (rare for Canadian businesses)

• No cross-border fees when receiving Stripe, Shopify, or PayPal payouts in USD

• Automated accounting reconciliation

Cons:

• Not available in Quebec

• Newer platform compared to established payment processors

• Requires business verification (not instant signup)

Stripe: Developer-Focused Payment Processing

Best for: Tech-savvy businesses and developers who need customizable payment infrastructure and API flexibility.

Stripe charges 2.9% + 30 cents for transactions with Canadian credit cards and 3.9% + $0.30 for international cards. While Stripe excels at online payment processing with robust APIs, Canadian businesses face a significant challenge: Stripe charges a 1% foreign exchange fee on USD payouts to Canadian businesses, plus an undisclosed exchange rate markup.

For businesses earning USD revenue (common when selling to US customers), these FX fees add up quickly. Unlike Venn, Stripe doesn't provide true multi-currency accounts, meaning you can't hold USD without converting to CAD and paying the associated fees.

Key Features:

• Powerful payment APIs and customization

• Support for 135+ currencies

• Subscription and recurring billing

• Fraud detection (Stripe Radar)

• Integration with major eCommerce platforms

Pricing:

• 2.9% + $0.30 per domestic transaction

• 3.9% + $0.30 per international transaction

• 1% FX fee on payouts + markup

• $15 chargeback fee

Pros:

• Excellent developer documentation

• Wide range of payment methods

• Strong fraud prevention tools

• No monthly fees

Cons:

• High FX fees for Canadian businesses with USD revenue

• No multi-currency holding accounts

• FX fees non-refundable on refunds

• Limited customer support for small businesses

• No expense management or business banking features

Wise Business: International Transfer Specialist

Best for: Businesses focused primarily on international payments and currency exchange, not full business banking.

Wise (formerly TransferWise) specializes in low-cost international money transfers and multi-currency accounts. Providers like Wise and OFX specialize in international money transfers and often offer lower fees, better exchange rates, and more transparency than PayPal.

While Wise offers competitive FX rates (0.4-0.6%), it's not a complete business banking solution. You can't pay Canadian taxes, process payroll, or use it as your primary business account. There's also no support for Interac e-Transfer®, which many Canadian businesses rely on for domestic payments.

Key Features:

• Hold 40+ currencies

• Real exchange rates with transparent fees

• Local account details in USD, GBP, EUR, AUD

• Integration with QuickBooks and Xero

• Batch payment capabilities

Pricing:

• No monthly account fees

• 0.4%-0.6% FX conversion fees

• Variable transfer fees based on currency and method

Pros:

• Excellent for international payments

• Transparent, low FX fees

• Multi-currency holding

• No minimum balance

Cons:

• No corporate cards or cashback

• Cannot be used for Canadian payroll or tax payments

• Limited business banking features

• No in-person payment acceptance

Square: Point-of-Sale and Retail Payments

Best for: Retail businesses and restaurants that primarily accept in-person payments.

Square charges 2.5% for in-person credit card payments, 3.3% + 15¢ for manually entered transactions, and 2.8% + 30¢ for online transactions. Interac debit is 0.75% + 7¢ per tap, insert or swipe. Square's strength lies in its point-of-sale hardware and in-person payment processing, making it ideal for brick-and-mortar businesses.

However, Square is limited to CAD-only operations. There's no multi-currency support, no real USD accounts, and international payment capabilities are minimal. For businesses with any cross-border activity, Square's limitations become apparent quickly.

Key Features:

• Free POS software

• In-person payment hardware

• Inventory management

• Employee management tools

• Next-day deposits

Pricing:

• 2.5% for in-person card payments

• 2.8% + $0.30 for online transactions

• 3.3% + $0.15 for keyed-in transactions

• No monthly fees

Pros:

• Excellent for retail and in-person sales

• Free POS app and software

• Easy setup and use

• Competitive in-person rates

Cons:

• CAD only (no multi-currency)

• Limited international payment support

• No business banking features

• No expense management

• Higher fees for online transactions

Shopify Payments: Built for Shopify Stores

Best for: Businesses already using Shopify for eCommerce who want streamlined payment processing.

Shopify Payments is Shopify's native payment solution, offering seamless integration with Shopify stores. Fees start at 2.9% + $0.30 for the Basic plan, with lower rates available on higher-tier plans. The main advantage is eliminating the additional transaction fee that Shopify charges when using third-party payment processors.

The major limitation: Shopify Payments only works within the Shopify ecosystem. You can't use it for invoicing, vendor payments, or any financial operations outside your Shopify store. It's a payment processor, not a business banking solution.

Key Features:

• Native Shopify integration

• No additional transaction fees (when using Shopify Payments)

• Multi-currency selling

• Fraud analysis tools

• Fast payouts

Pricing:

• 2.9% + $0.30 (Basic plan)

• 2.7% + $0.30 (Shopify plan)

• 2.5% + $0.30 (Advanced plan)

• 1.5% cross-border fee

Pros:

• Seamless Shopify integration

• No extra transaction fees within Shopify

• Built-in fraud protection

• Multi-currency selling

Cons:

• Only works with Shopify stores

• 1.5% cross-border fee on international cards

• No standalone business banking features

• Limited use outside eCommerce

• No corporate cards or expense management

Moneris: Traditional Canadian Payment Processor

Best for: Established businesses with high transaction volumes who prefer traditional payment processing relationships.

Moneris is Canada's largest payment processor, backed by RBC and BMO. It offers custom pricing typically ranging from 2.5-3% per transaction, with additional monthly fees. Moneris offers a monthly terminal fee of $30.00 and a wireless account service package fee of $9.95/month.

While Moneris has strong Canadian presence and supports both in-person and online payments, it operates on traditional pricing models with monthly fees, equipment rentals, and often long-term contracts. It lacks modern features like multi-currency accounts, automated accounting sync, or expense management.

Key Features:

• Extensive POS hardware options

• In-person and online payment processing

• Canadian-based support

• Integration with major accounting software

• Merchant account services

Pricing:

• Custom pricing (typically 2.5-3% per transaction)

• $30+ monthly terminal fees

• $9.95/month wireless service fees

• Additional gateway fees

Pros:

• Established Canadian presence

• Wide range of hardware options

• Dedicated support

• High transaction volume discounts

Cons:

• Monthly fees and equipment rentals

• Often requires long-term contracts

• Higher overall costs for small businesses

• No multi-currency accounts

• Limited modern fintech features

• Complex fee structures

Payoneer: Cross-Border Payment Platform

Best for: Freelancers and businesses receiving international client payments, particularly from marketplaces.

Payoneer specializes in receiving payments from international clients and marketplaces like Amazon, Upwork, and Fiverr. It provides local receiving accounts in multiple currencies, making it easier to get paid by US and European clients without high wire fees.

However, Payoneer's fees can be opaque, with charges for receiving payments (up to 3%), withdrawing funds (up to 2%), and currency conversion. It's not a full business banking solution and lacks features like corporate cards, expense management, or the ability to pay Canadian bills and taxes.

Key Features:

• Receive payments from global marketplaces

• Local receiving accounts (USD, EUR, GBP, JPY)

• Mass payout capabilities

• Integration with freelance platforms

• Prepaid Mastercard

Pricing:

• Up to 3% to receive payments

• Up to 2% to withdraw to bank

• 0.5%-2% FX conversion fees

• $29.95 annual card fee

Pros:

• Good for marketplace sellers

• Multiple currency receiving accounts

• Integration with major freelance platforms

• Prepaid card for spending

Cons:

• High fees (up to 3% to receive + 2% to withdraw)

• Complex fee structure

• Not suitable as primary business account

• No Canadian payroll or tax payment support

• Limited customer support

• No expense management features

How to Choose the Right PayPal Alternative for Your Canadian Business

Selecting the right payment and banking solution depends on your specific business model, transaction volume, and operational needs. Consider these key factors to find the best fit.

Match the Platform to Your Business Model

eCommerce businesses need robust online payment processing with shopping cart integrations. Service-based businesses and freelancers benefit from invoicing capabilities and low transfer fees. Retail and restaurant operations require point-of-sale hardware and in-person payment processing. SaaS and subscription businesses need recurring billing and automated payment collection.

Evaluate Total Cost of Ownership

• Transaction fees as a percentage and fixed cost per transaction

• Monthly account fees or subscription costs

• FX conversion rates if you deal with multiple currencies

• Wire transfer and ACH/EFT costs for vendor payments

• Chargeback and dispute fees

• Hidden costs like equipment rentals or gateway fees

• Opportunity cost of manual processes vs. automation

Assess Multi-Currency Needs

If you sell to US customers, receive international payments, or pay foreign vendors, multi-currency support becomes critical. Look for platforms offering real local accounts (not just payment processing) in the currencies you use. The difference between 0.25% and 2.5% FX fees compounds dramatically over time.

Consider Integration and Automation

Modern businesses need their financial tools to work together. Prioritize platforms with two-way accounting software sync (QuickBooks, Xero), automated reconciliation, and API access for custom integrations. Manual data entry and reconciliation waste hours every month and introduce errors.

Evaluate Beyond Payment Processing

The most cost-effective solution often consolidates multiple financial functions. Consider whether you need corporate cards with cashback, expense management and receipt capture, invoicing and accounts receivable, accounts payable and vendor payments, or multi-user access with role-based permissions. Using one integrated platform typically costs less and saves more time than juggling multiple tools.

Why Venn Is the Best PayPal Alternative for Canadian Businesses

While PayPal popularized online payments, Canadian businesses today need more than a checkout button. They need a complete financial operations platform that handles payments, banking, FX, and expense management without forcing them to cobble together multiple disconnected tools.

Venn was built specifically to solve this problem for Canadian businesses. Unlike PayPal, which charges high FX fees and doesn't offer real multi-currency accounts, Venn provides local CAD and USD accounts with the ability to send and receive ACH transfers. This is exceptionally rare in Canada and eliminates the cross-border fees that eat into margins when using traditional payment processors.

The financial impact is substantial. Venn's FX rates start at 0.25%, compared to PayPal's 2.5-4% markup. For a business processing $50,000 USD monthly, that's the difference between paying $125 and $1,250-2,000 in FX fees. Venn also offers free unlimited Interac e-Transfer®, making it the only Canadian fintech platform to do so, while providing 1% unlimited cashback on all corporate card spend with no minimum thresholds.

Beyond cost savings, Venn consolidates your entire financial stack. You can accept credit card payments through Venn's Stripe integration, invoice clients and receive payments directly in USD or CAD, pay vendors globally with $6-10 wires instead of $30-50, manage employee expenses with corporate cards and receipt capture, and automate your bookkeeping with two-way QuickBooks and Xero sync. This replaces PayPal, your business bank account, Wise or other FX services, expense management tools, and manual reconciliation processes.

Making the Switch From PayPal

Moving away from PayPal to a more comprehensive solution doesn't have to disrupt your operations. Most Canadian businesses complete the transition in under a week.

Start by opening your new account and completing verification. With Venn, this typically takes a few business days. Update your payment methods on your website, invoicing system, and eCommerce platforms. Most modern platforms support multiple payment processors simultaneously, so you can run both during the transition.

Notify key clients and vendors of your new payment details, particularly your new USD account information if you're receiving international payments. This eliminates FX fees on incoming transfers. Gradually shift your operations to the new platform, starting with new invoices and payments while letting existing transactions complete through PayPal.

Once you've fully transitioned, you can close or maintain a minimal PayPal account for customers who specifically request it. Many businesses keep PayPal as a checkout option while using Venn for all banking, FX, and financial management operations.

Conclusion

PayPal served an important purpose in making online payments accessible, but Canadian businesses today need more sophisticated financial infrastructure. High transaction fees, expensive FX markups, and the lack of true business banking features make PayPal increasingly inadequate as businesses grow and operate across borders.

The best PayPal alternatives for Canadian businesses offer lower fees, real multi-currency accounts, and integrated financial operations. Venn stands out by providing a complete solution: payment acceptance, local CAD and USD accounts, the lowest FX rates in Canada*, corporate cards with cashback, and automated accounting, all in one platform. For businesses tired of juggling multiple financial tools and paying excessive fees, Venn offers the most comprehensive and cost-effective alternative.

Explore Venn's business banking platform

Frequently Asked Questions

Q: What is the best alternative to PayPal for Canadian businesses?

A: The best alternative depends on your needs. Venn offers the most complete business solution with payment acceptance, multi-currency accounts, expense management, and corporate cards. Wise is strong for international transfers only, Square for in-person retail, and Stripe for developer-focused online payments—though Stripe has high FX fees for Canadian businesses earning USD.

Q: Why are businesses moving away from PayPal?

A: PayPal charges 2.29%–3.49% plus a fixed fee per transaction, and its FX markups (2.5–4%) significantly increase costs. Businesses also switch due to slow international transfer times (3–5 days), inability to hold multiple currencies without forced conversion, and weak integration with business banking and expense management platforms.

Q: Can I use Venn instead of PayPal for my business?

A: Yes. Venn offers more functionality than PayPal, including payment acceptance via Stripe, multi-currency invoicing, real CAD and USD accounts for receiving payments, vendor payments, and corporate cards. Most businesses find Venn replaces PayPal plus several additional tools.

Q: How do PayPal’s fees compare to other payment processors in Canada?

A: PayPal typically charges 2.9% + $0.30 CAD per transaction, with higher FX fees (2.5–4%) than alternatives like Venn (0.25%–0.45%) or Wise (0.4%–0.6%). Stripe’s standard rate is similar (2.9% + $0.30), while Square’s in-person rate is lower (2.5%). PayPal’s FX costs often make it the most expensive option overall.

Q: Can I hold USD in my account to avoid conversion fees?

A: Yes—if the platform supports it. Venn provides real local USD accounts for holding, sending, and receiving USD without conversion. Wise also offers multi-currency balances. PayPal, Stripe (for Canadian accounts), and Square require conversion to CAD, creating ongoing FX costs for Canadian businesses earning USD.

Legal Disclaimers:

*Based on internal analysis of total markups and FX fees charged by major Canadian financial institutions and fintech platforms in December 2025.

Venn is a financial technology platform, not a bank. Venn safeguards all funds and is a registered PSP in Canada, with funds covered under CDIC insurance protection and compliant with RPAA legislation.
---

**Disclaimer:** This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Venn Software Inc or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.