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Paddle vs PayPal: What are the differences?

Key Differences between Paddle and PayPal

Paddle and PayPal are both popular payment processing platforms used by businesses worldwide. However, they differ in several key aspects.

  1. Integration and Ease of Use: Paddle offers a seamless integration process, allowing businesses to easily set up and start accepting payments on their website. On the other hand, PayPal also provides integration options but may require additional steps and technical know-how for a smooth setup.

  2. Supported Payment Methods: Paddle supports a wide range of payment methods, including credit cards, Apple Pay, and Google Pay, providing customers with flexibility. In contrast, PayPal primarily focuses on PayPal accounts for transactions, although it does support credit card payments too.

  3. Global Reach and Currency Support: PayPal has a vast global network and supports multiple currencies, enabling businesses to cater to customers worldwide. Paddle also has worldwide coverage but offers more limited currency options.

  4. Pricing Structure: Paddle adopts a transparent pricing structure with fixed rates, allowing businesses to accurately calculate their costs. PayPal, on the other hand, has a more complex pricing system, with varied fees based on transaction types and country-specific charges.

  5. Customization and Branding: Paddle provides businesses with greater customization options to align the payment flow with their website's branding. PayPal, although offering some customization features, has more limitations in terms of branding.

  6. Additional Features: Paddle offers advanced features like subscription management and sales analytics, empowering businesses to streamline their operations. Conversely, PayPal primarily focuses on payment processing, with fewer additional features compared to Paddle.

In summary, Paddle excels in integration, payment method flexibility, and advanced features, while PayPal boasts a global reach, extensive currency support, and a robust reputation in the market. The choice between the two platforms depends on the specific needs and priorities of the business.

Decisions about Paddle and PayPal
Lucas Litton
Founder & CEO at Macombey · | 4 upvotes · 290.9K views

We use GoCardless to simplify the way clients and partners pay for our services. What intrigued us is the quick and easy ACH feature that gives our clients the option to log in with their bank account and shoot the funds directly to our account. The fee, compared to Stripe is less. Stripe and PayPal charge 2.9% + 30c and Stripe also forces the client to enter in all of their payment details manually and then if the payment doesn't work, the client has to try all over again. GoCardless charges 1% + 25c which is much more reasonable dealing with the large projects that we are currently working on.

We integrate GoCardless with Xero to easily send out quick invoices, receive the funds and track all revenue in one place.

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Pros of Paddle
Pros of PayPal
    Be the first to leave a pro
    • 196
      Most known service
    • 135
      Consumers know it
    • 113
      It's available for many countries
    • 70
      Easy
    • 54
      Best way to get paid outside US
    • 35
      Most widely used payment processor
    • 25
      Express Checkout
    • 16
      Consumers trust it
    • 15
      Flexible and secure
    • 6
      Digital Goods for Express Checkout

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    Cons of Paddle
    Cons of PayPal
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      • 1
        Not well written recurring payment api
      • 1
        Less countries supported
      • 1
        Harder to get started with

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      What is Paddle?

      A platform that takes makes it incredibly simple to sell apps, games and other digital products.  We think that creators should be allowed to focus on building awesome products, so we handle all of the boring things like payments, analytics, customer support and VAT so that they can do just that. Using Paddle's software development kits, developers can easily set up trial versions, licensing mechanisms, in-app purchases and even track performance & usage with Paddle’s in-app analytics technology -- all under a single dashboard.

      What is PayPal?

      PayPal is an online payments and money transfer service that allows you to send money via email, phone, text message or Skype. They offer products to both individuals and businesses alike, including online vendors, auction sites and corporate users. PayPal connects effortlessly to bank accounts and credit cards. PayPal Mobile is one of PayPal’s newest products. It allows you to send payments by text message or by using PayPal’s mobile browser.

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      What companies use Paddle?
      What companies use PayPal?
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      What are some alternatives to Paddle and PayPal?
      Stripe
      Stripe makes it easy for developers to accept credit cards on the web.
      Braintree
      Braintree replaces traditional payment gateways and merchant accounts. From one touch payments, to mobile SDKs and international sales, we provide everything you need to start accepting payments today.
      Blockchain
      It is a bitcoin block explorer service, as well as a cryptocurrency wallet supporting bitcoin, Bitcoin Cash, and Ethereum.
      Stripe Billing
      A set of billing and subscription tools for developers and business people. Developers can use out-of-the-box functionality to get started quickly or use the composable API building blocks to design fully customized subscription logic and pricing models. Business people can create and manage subscriptions and invoices—and view detailed financial reports.
      Adyen
      A payments technology company that provides a single global platform to accept payments anywhere in the world. Businesses can process payments across online, mobile and in-store (POS) with over 250 payment methods and 187 currencies.
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