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PayPal vs Ripple: What are the differences?
Introduction:
PayPal and Ripple are both digital payment platforms, but they differ in several key aspects. In this article, we will explore the major differences between these two popular payment systems.
Ownership and Control: PayPal is a centralized payment system, owned and controlled by PayPal Holdings Inc., a company registered in the United States. On the other hand, Ripple is a decentralized system that operates on a distributed ledger technology called XRP Ledger, with no central authority controlling it.
Currency Support: PayPal primarily supports traditional currencies like the US dollar, euro, pound sterling, etc. It provides a platform for users to send, receive, and store fiat currencies. Ripple, however, focuses on digital currencies and aims to enable instant, low-cost international money transfers. It introduces XRP as a native cryptocurrency but also supports the issuance and use of other digital assets on its platform.
Transaction Speed and Cost: PayPal transactions typically take a few minutes to process, depending on the payment method used. It charges fees for certain types of transactions, such as cross-border payments and currency conversions. Ripple, on the other hand, aims for almost instant transactions, settling within a few seconds. It also boasts significantly lower fees compared to traditional payment systems.
Intermediaries: PayPal often requires intermediary banks and financial institutions to facilitate cross-border transactions, leading to increased costs and potential delays. Ripple eliminates the need for intermediaries by using its network of validators to reach consensus and verify transactions. This streamlined process reduces costs and enables faster transactions.
Technology and Integration: PayPal operates on a traditional centralized infrastructure, making it easier to integrate with existing banking systems and online platforms. Ripple, being a decentralized system, utilizes blockchain and distributed ledger technology. Its decentralized nature and interoperability make it suitable for integration with various payment systems and financial institutions.
Use Cases: PayPal is commonly used for online transactions, e-commerce, and peer-to-peer payments. It is widely accepted by merchants worldwide as a payment method. Ripple, on the other hand, primarily focuses on facilitating cross-border remittances and international money transfers, with an emphasis on enabling efficient transactions between financial institutions.
In summary, PayPal is a centralized fiat currency payment system widely used for online transactions, while Ripple is a decentralized platform that focuses on digital currencies and provides fast, low-cost international money transfers.
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 Ripple
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Cons of PayPal
- Not well written recurring payment api1
- Less countries supported1
- Harder to get started with1
Cons of Ripple
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What is PayPal?
What is Ripple?
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