Choosing Secure Payment Methods: Alibaba vs. PayPal

Many buyers source on for quality goods. But, it is crucial to choose a secure payment method to prevent payment fraud. There are some Alibaba payment methods available to pay on Alibaba. Alibaba Trade Assurance is the safest way to pay on Alibaba. Besides, Paypal offers a secure payment service for you to pay suppliers online. Other payment methods are also available, like wire transfer and Western Union. You should choose the safest way to pay on Alibaba. We’ll share the Alibaba and Paypal payment methods to pay on Alibaba in this post. Let’s get started.

1) Why choose Paypal on Alibaba

Let’s see the pros and cons when you choose Alibaba payment and PayPal payment option:


Secure Payment System

Alibaba Trade Assurance is the safest way to pay suppliers. Besides, Paypal is a secure payment method that provides an extensive online payment solution.

Avoid Payment Fraud

Alibaba secure payment verifies every detail in each transaction to avoid payment fraud. On Paypal, you’ll also get a complete refund when you win a payment dispute. There is even an option for the reverse transaction I have used. PayPal offers me complete payment security and gets my funds back in case of any problem. I remain safe.

Reduced Transaction Fees

The Alibaba payment system charges low transaction fees to your bank account. Paypal payments also have low transaction charges compared to other payment options. But, it has a slightly higher transaction fee than Alibaba.

Fast Payments

The payment process is much faster when using the Alibaba and Paypal payment options. You can save more time handling other business processes.


Fewer Seller Advantages

An Alibaba Trade Assurance supplier might face several problems with Trade Assurance Order. For instance, frozen, delayed funds, or no refund of transaction fees on canceled sales. Besides, Paypal might freeze the seller’s account when there are violations of terms and conditions.

Transaction Amount Limit

Both payment methods have a maximum transaction amount limit per transaction.

2) Two methods to use Paypal on Alibaba

Here are two common Alibaba payment methods to pay on Alibaba:

  1. Direct payment method via Alibaba

Based on the convenience and safety of Alibaba, you can pay for your products directly via Alibaba Trade Assurance. If you’re going to buy samples from Chinese suppliers or wholesale products from Trade Assurance suppliers, the following procedure will help.

Step 1: Go to Orders — select ‘View More’ on the order details page — Click ‘Send initial payment’ /’Pay the balance‘ on the order details page Step 2: Click ‘Pay with Paypal‘ –go to the PayPal interface to complete the verification (only the buyer who first use PayPal required) Step 3: Check the payment result.

  1. Indirect payment method via suppliers

Except for the situation above, the most common method is to contact suppliers. After communicating and you decide to buy items from the suppliers, they will send you a Paypal link, then you can pay them via Paypal.

3) Why some Alibaba suppliers don’t support Paypal?

Alibaba is a famous website for international buyers in product sourcing. But, some Alibaba suppliers do not accept Paypal. Let’s discover why:

Some Alibaba suppliers are Alibaba Trade Assurance suppliers

A supplier who chooses the Alibaba Trade Assurance option does not accept Paypal. Alibaba Trade Assurance is an escrow service that holds your money safely. It only releases the money until your products are delivered, and you are satisfied with it.

Whenever I buy from Alibaba, my aim is to trade safely. And trade assurance provides me with essential safety. There is 100% transparency in deals. No risks for the businesses. But, the Alibaba payment system only supports bank wire transfers, debit credit cards. So, some Alibaba suppliers do not accept payment from Paypal.

Some Alibaba suppliers do not have much reputation

Some suppliers might not provide the best product or service for each sales process. It will cause returns or refunds due to inferior products or delays in deliveries. So, they might be scared of chargebacks by Paypal company.

Some Alibaba suppliers find that Paypal has fewer seller advantages

Paypal has higher transaction charges and sometimes takes a long time to withdraw. Besides, sellers might face Paypal payments problems with canceled sales. For example, frozen, delayed funds, or no refund of transaction fees. That is why some of the suppliers on Alibaba accept only Alibaba pay and not Paypal.

4) Paypal vs. Alibaba Trade Assurance

Alibaba Trade Assurance

Alibaba Trade Assurance is an Alibaba secure payment system that is a safe way to pay suppliers. It provides trade insurance with guarantees or money refunds for unsatisfied goods. All communication must be on the Alibaba Trade Assurance platform for buyer protection.

Alibaba Trade Assurance ensures buyer protection. It withholds money after buyers pay on Alibaba. This escrow service only releases payment when buyers are satisfied with the goods. Otherwise, buyers can return the goods. Then, the Trade Assurance will transfer money back to buyers.


Paypal is an online payment gateway with payment protection. It ensures a secure online transfer money process. You’ll get a refund when payments do not arrive at the receiver’s account. Yet, this payment gateway does not guarantee the quality of the goods you buy. Its policy only ensures that each payment is secure with an OTP.

5) FAQs

What are the best Alibaba payment methods to pay on Alibaba?

How does the bank transfer process work?

You must get the supplier’s bank account details to make wire transfers. Bank details are the beneficiary name, address, bank account number, bank, swift code, and country. Only online transfer to bank accounts held by the same company name on Alibaba. Do not wire transfer If the bank account details are different.

What is the complete payment process on Paypal?

There are a few simple steps to pay on Alibaba using the Paypal payment method. First, ask for the supplier’s Paypal email. Then, log in to your PayPal account and click “send money.” Next, key in the supplier’s email and the payment amount. Select “goods and services” to ensure payment protection, and click “Pay Now.”

What are other precaution steps when I pay on Alibaba?

You must choose the most suitable way to pay based on the payment amount. Besides, you must verify the payment details and Alibaba account details before payment. Remember to confirm and verify your payment receipt by your supplier. You should also make a pre-shipment inspection to ensure good quality.

6) Final thoughts

There is some secure way to pay on Alibaba. It includes wire transfer, Western Union, bank transfer, and other payment methods. Alibaba Trade Assurance is the best way to pay Alibaba. Besides, this Alibaba secure payment method is fast with low transaction charges. It can also cover Western Union payments. Paypal is another Alibaba payment method you can choose. But, this Alibaba payment method has less seller advantage. So, not all merchants support Paypal.

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