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PayPal vs Trustly: What are the differences?
Introduction: PayPal and Trustly are both popular online payment methods that offer convenience and security to users. However, there are key differences between the two that set them apart in terms of their functionality and usage.
Availability and Accessibility: PayPal is available in over 200 countries and supports transactions in multiple currencies. It can be accessed through its website or mobile app, making it highly accessible for users worldwide. On the other hand, Trustly primarily operates in Europe and is supported by select banks in specific countries, limiting its availability to a certain geographic region.
Integration with Bank Accounts: PayPal allows users to link their bank accounts or credit/debit cards to make transactions. This flexibility enables users to choose their preferred funding source. Meanwhile, Trustly directly connects to the user's bank account, eliminating the need to link additional payment methods. This direct bank account integration simplifies the payment process.
Transaction Speed: PayPal offers instant transfers within its network, allowing users to send and receive funds quickly. However, when it comes to withdrawing funds from PayPal to a bank account, it can take a few business days. In contrast, Trustly facilitates real-time transfers, ensuring immediate availability of funds. This speedy transaction process makes Trustly advantageous for time-sensitive payments.
Fees and Costs: PayPal charges fees for certain types of transactions, such as cross-border payments and currency conversions. These fees can vary based on the user's location and specific transaction details. Trustly, in comparison, generally does not charge fees to users for using its services. However, it's important to note that individual banks may apply their own fees for Trustly transactions.
Payment Security: Both PayPal and Trustly prioritize the security of their users' financial information. PayPal offers buyer protection and dispute resolution services, which add an extra layer of security for buyers in case of fraudulent transactions. Trustly, on the other hand, utilizes bank-level security measures and authentication processes, leveraging the user's existing online banking credentials for secure transactions.
Use Cases: PayPal is widely accepted by e-commerce platforms and online stores globally, making it a popular payment method for online shopping. It is also commonly used for person-to-person money transfers and fundraising campaigns. Trustly, on the other hand, is particularly useful for online banking transactions, such as depositing funds into a gaming account or paying bills directly from the bank balance. Trustly focuses more on the convenience of bank-to-bank transactions.
In summary, PayPal offers global availability, bank account integration, and buyer protection, while Trustly focuses on real-time bank account transfers, no additional fees, and convenience for online banking transactions.
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.
Pros of PayPal
- Most known service195
- Consumers know it135
- It's available for many countries113
- Easy70
- Best way to get paid outside US54
- Most widely used payment processor35
- Express Checkout25
- Consumers trust it16
- Flexible and secure15
- Digital Goods for Express Checkout6
Pros of Trustly
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Cons of PayPal
- Not well written recurring payment api1
- Less countries supported1
- Harder to get started with1