8 alternatives ranked

PayPal Invoicing Alternatives in 2026

Looking for an alternative to PayPal Invoicing? Here are the best invoicing tools to consider — ranked by cost, features, and Australian compliance.

★ TOP RECOMMENDATION

InvoiceSonic — the free, AU-first alternative

InvoiceSonic beats PayPal Invoicing on 8 features (vs 1 the other way) and is free for unlimited Australian-compliant tax invoices. No signup required for PDF download, native ABN and GST handling.

Other PayPal Invoicing alternatives

Xero
New Zealand · AU$35/mo (Starter)

Xero is a full accounting platform — overkill if you only need invoicing. InvoiceSonic is purpose-built for fast, free invoice creation with ATO-compliant GST handling. Use Xero if you also need bookk…

MYOB
Australia · AU$29/mo (Lite)

MYOB is the Australian incumbent for SMB accounting — battle-tested, ATO-integrated, but priced and built like enterprise software. InvoiceSonic is a free, modern invoice generator that ships in secon…

QuickBooks Online
United States · AU$33/mo (Simple Start)

QuickBooks Online is a powerful US-built accounting platform with an Australian edition. It is feature-rich but pricey and built for growing teams, not solo freelancers. InvoiceSonic is free, AU-focus…

Wave
Canada · Free (Pro Plan US$16/mo)

Both are free. Wave is a great free option globally but has weak Australian localisation — no native ABN field, no auto-GST formatting, and AU payment processing is limited. InvoiceSonic is purpose-bu…

FreshBooks
Canada · AU$17/mo (Lite)

FreshBooks is a polished, US-built invoicing-and-accounting tool that started focused on freelancers. It is well-designed but pricey and AU-localisation is weaker than local options. InvoiceSonic is f…

Invoice2go
Australia · AU$8.99/mo (Starter)

Both are Aussie-built. Invoice2go is mobile-first with a paid app model; InvoiceSonic is web-first, free, and faster to use without signup. Invoice2go suits tradies billing on-site from their phone; I…

Hnry
New Zealand · 1% of income (capped at AU$1,500/yr)

Hnry and InvoiceSonic solve different problems. Hnry is a managed service — they handle PAYG, GST, super, and tax filings for you in exchange for 1% of income. InvoiceSonic is a free invoice generator…

Frequently asked questions

What's the best alternative to PayPal Invoicing?

For most Australian freelancers and small businesses, InvoiceSonic is the most cost-effective alternative — free unlimited invoices with ATO-compliant GST handling. For accounting-heavy needs, Xero and MYOB are common upgrades. The right choice depends on whether you need invoicing only (InvoiceSonic) or full bookkeeping (Xero/MYOB).

Why do people switch from PayPal Invoicing?

2.6% + AU$0.30 per paid invoice — adds up fast on larger amounts Many users only need invoicing, not a full accounting suite, so they downgrade to a focused tool.

Is there a free alternative to PayPal Invoicing?

Yes — InvoiceSonic is free for unlimited invoices with no signup required. Wave is also free but has weak Australian localisation (no native ABN field, no automatic "Tax Invoice" formatting).

How hard is it to migrate from PayPal Invoicing?

Most invoicing platforms let you export clients and invoice history as CSV. The actual data migration is usually under an hour. The longer task is reconfiguring templates, payment terms, and any integrations. For invoicing-only workflows, the switch is straightforward.

Can I use multiple invoicing tools at once?

Yes — many businesses use a free generator like InvoiceSonic for routine invoicing while keeping their accountant's tool (e.g., Xero) for the books. This is a common cost-saving pattern.

Which alternative is best for Australian compliance?

InvoiceSonic is built Australia-first with native ABN, ATO "Tax Invoice" formatting, and automatic 10% GST. Xero, MYOB, and Invoice2go are also AU-focused. FreshBooks, Wave, and PayPal Invoicing handle GST manually and may not auto-format ATO requirements.