Best Payment Platforms for Small Businesses: Fees, Features & Hidden Risks

When I started my IT support services business, I didn’t want to go down the traditional route of sending manual invoices with bank transfers as the only payment option.

If we want to get paid as quickly as possible, we need to make it as easy as possible for customers to pay.

So, I set out to find which payment platforms offered the best features and the lowest transaction fees. Sure, you don’t incur any fees when customers pay invoices via bank transfer—but what if they don’t pay at all? How much time are you wasting following up? I genuinely believe that having a convenient payment platform in place is essential for collecting payments fast.

Payment Platform Comparison

Here are the platforms we tested, along with the benefits and hidden drawbacks I discovered (some of these will withhold your funds for weeks without warning). The table below outlines the pricing details, and I’ll go into more depth regarding the nuances of each platform—including a major warning about one provider that could impact small businesses relying on consistent cash flow.

*the table does not include the additional $0.30 per transaction, as this will vary depending on the number of sales you make. The smaller your sales, the more often this fee will apply.

Square – The New Contender

Square is the newer player in the game and has taken over the small business, café, and market scene over the past five years. They offer fantastic point-of-sale (POS) solutions, from large touchscreen terminals to small Bluetooth card readers.

This platform is widely used in Brisbane cafés in 2025, and I’ve personally used it at event days for other business ventures—it’s great for businesses selling products at markets or fairs.

💰 Pricing: Square was the second cheapest option per transaction in our review.

PayPal – Our Warning Platform 🚨

Believe it or not, PayPal is the platform I’d caution against. When I think of PayPal, I think of a secure, trusted platform—so naturally, this was the first option I tested.

I opened a business PayPal account, verified my bank account (which takes 24–72 hours for PayPal to send and verify a small deposit), and attempted to generate an invoice. However, I kept encountering an error message instructing me to contact support. After reaching out, support advised me that the issue was on their backend and that invoicing had now been enabled—which didn’t exactly inspire confidence.

When I finally sent a test invoice, the payment was processed, but PayPal held the funds for THREE WEEKS. That’s excessive and could cripple small businesses before they even get started. To prevent this, you need to meet the following criteria:

• 10 completed payments

• $315 AUD in total sales

• 60 days with no disputes

On the plus side, the UI was clean and allowed customers to pay via PayPal or bank transfer, but this was the most expensive option we tested in terms of transaction fees.

Venmo – Not Ideal for Business

Venmo isn’t widely used in Australia for business payments. While it’s great for transferring money between mates, I wouldn’t recommend it for professional transactions.

The UI also felt a bit dated, and at 2.99% per transaction, it wasn’t a viable long-term option for my business.

Xero – The SMB Leader, But Pricey

Xero is an industry leader in the small-to-medium business (SMB) space, offering accounting, invoicing, and HR solutions. Many accountants and HR professionals aim to become Xero certified, which speaks to its reputation.

However, this is by far the most expensive option in our comparison:

• $35/month (minimum plan)

• 2–4% transaction fees

  
  

💡 While Xero is an amazing platform, it’s overkill for solopreneurs or startups. I’d recommend moving to Xero later in your business journey when you need a full accounting suite rather than just invoicing.

Stripe – Our Top Choice 🏆

So, what’s the best platform for a growing IT support business? Stripe.

✅ No monthly fees

✅ Low transaction rates (1.7% + $0.30 per transaction)

✅ Daily payout schedule after your first transaction

✅ Apple Pay & Google Pay support

✅ Easy setup & customizable invoices

Your first payout is withheld for one week, but after that, you receive payouts daily. Given its affordability and flexibility, Stripe was the clear winner for our business.

Need Help Choosing a Payment Platform?

Each of these platforms offers similar functionality, but when you're just starting, keeping costs low is essential. If your business or side gig needs help setting up any of these payment platforms, feel free to contact our team at Danovation IT!

Final Thoughts

If you want to get paid fast and with minimal hassle, don’t rely on manual invoicing and bank transfers alone. Choosing the right payment platform can make all the difference in ensuring your business stays cash-flow positive while providing a seamless experience for your customers.

What payment platform do you use for your business? Let us know in the comments!