Paypal
2 comparisons available
About Paypal
PayPal is one of the world's most recognized digital payment platforms, with over 430 million active accounts spanning consumers, freelancers, and businesses in 200+ countries and 25 currencies. Founded in 1998 (merged with Confinity in 2000 and spun off from eBay in 2015), PayPal pioneered online payments and remains the default choice for peer-to-peer transfers, marketplace payouts, and small business invoicing. PayPal Checkout is installed on millions of e-commerce websites, offering consumers a familiar and trusted payment experience that can boost conversion rates. For businesses, PayPal provides payment processing, invoicing, subscriptions, buy now pay later (Pay Later), and Venmo (peer-to-peer US payments). PayPal's network effect — consumers already having saved cards and addresses — reduces checkout friction. Standard processing fees are 3.49% + $0.49 for PayPal Checkout (slightly higher than Stripe's 2.9% + $0.30). PayPal is particularly dominant in international payments, marketplaces like eBay and Etsy, and any use case where consumer trust in the payment brand matters. PayPal's brand recognition often lifts conversion rates even at higher fees.
Frequently Asked Questions
How much does PayPal charge?
PayPal charges 3.49% + $0.49 for PayPal Checkout transactions, 2.99% + $0.49 for card-only transactions, and 1.9% + $0.10 for invoices paid with PayPal balance. International transactions add a 1.5% cross-border fee. These rates are generally higher than Stripe (2.9% + $0.30) but PayPal's brand recognition can offset the cost with higher conversion.
PayPal vs Stripe: which is better for businesses?
Stripe is better for developers building custom payment flows, SaaS subscriptions, and marketplaces that need a flexible API and lower fees. PayPal is better for businesses where consumer trust and brand recognition matter — PayPal's checkout button often converts better than a generic card form, especially for first-time buyers. Many businesses use both.
Is PayPal safe for business?
PayPal is safe and PCI-compliant. It offers Seller Protection for eligible transactions, dispute resolution, and fraud monitoring. For businesses, the main risk is PayPal's account holds and freezes, which have affected many sellers — PayPal can hold funds for 180 days if it detects unusual activity. Having a backup payment processor is advisable.
Top Alternatives to Paypal
Stripe
Better developer experience, lower fees, more payment methods
Square
Better for in-person payments and retail businesses
Braintree
PayPal-owned developer-friendly gateway with competitive rates
Venmo
US peer-to-peer payments, popular with younger demographics
Wise
Better for international transfers with real exchange rates
Adyen
Better for global enterprise with unified acquiring