Adyen vs PayPal: Key Insights for UK and European Merchants

Note that the information about the payment providers found in this article was taken from their respective websites in January 2025. This information is subject to change.

Although both companies offer strong payment solutions, some differences may affect the business processes. Here's the comparison to assist you in making an informed choice.

Company Origins and Market Focus

Since its founding in 1998 by Peter Thiel and Max Levchin PayPal has been a major force in the digital payments industry. Initially, it merged with Elon Musk’s online bank X.com before being acquired by eBay in 2002 but became independent in 2015. As for who owns PayPal, it is now publicly traded on NASDAQ under the ticker PYPL, with ownership dispersed among various institutional and individual investors. They hold approximately 68% of the company's shares, while the general public owns around 27%.

Adyen was established in Amsterdam in 2006 by Arnout Schuijff and Pieter van der Does. The company's mission is reflected in its name, which translates as "start again" in Sranan Tongo (a Creole language spoken in Suriname), meaning they’re set to reconstruct the payment system. For the past 15 years, Adyen has developed into a significant worldwide payment processor. Who owns Adyen nowadays? About half of the company's shares are held by regular investors, while roughly 46%—by institutional. Baillie Gifford & Co. is the largest stakeholder with over 5.9% of the shares, and CEO Pieter van der Does owns about 2.9% of the company.

Markets and Customer Base: Adyen vs PayPal

Even though both companies are busy with the same world of digital payment, PayPal and Adyen serve different niches.

PayPal offers online and mobile payment solutions that are accessible and easy for small and medium-sized enterprises. Also, it serves as a flexible digital wallet that lets people and companies conduct cross-border and in-person transactions. It is a well-liked option in several industry categories because of its adaptability.

Adyen, on the other hand, targets enterprise-level businesses and is solely intended as a business tool to help big companies simplify and streamline their international payment processes. It provides extensive commerce services that smoothly connect across many platforms and specializes in intricate payment optimization and routing.

Payment Methods and Coverage

As for payment methods, both PayPal and Adyen cover the basics, offering support for the most popular credit and debit cards, as well as integration with Google Pay and Apple Pay.

With its distinctive solution, PayPal leads the digital wallet market, but Adyen stands out for offering a wide range of local payment options, which is essential for companies selling across multiple markets. But this comes with a caveat: the integration process can be complex, and companies often have to cope with higher transaction volumes to unlock the platform’s full potential.

Noda, an open banking solution, challenges these traditional payment processors. By enabling direct bank-to-bank transactions from 28 countries in UK, EU and beyond, Noda bypasses the need for card networks entirely. This approach not only reduces transaction costs but also streamlines the payment process, improving cash flow.

PayPal and Adyen Pricing

Due to their distinct transaction management methods, Adyen and PayPal offer separate charge structures for markets and companies.

Adyen uses its pricing model called Interchange++, which breaks down expenses into three categories: markup, interchange, and scheme fees. Adyen-powered marketplaces have the flexibility to allocate transaction fees to users directly or to the platform's balance account. There is a minimum monthly invoice requirement, however Adyen doesn't charge setup or monthly costs.

PayPal's business fee structure includes a percentage-based charge combined with a fixed fee for transactions, with rates varying depending on factors such as the payment method and transaction type. The platform offers pricing for specific use cases, including micropayments and QR code transactions, making it flexible for businesses of different sizes.

When comparing Adyen fees vs PayPal’s, entrepreneurs must consider their business size and transaction volumes, as well as Adyen's competitors, which may offer different pricing structures or features better suited to smaller businesses. Adyen's pricing can be alluring, but small business owners may find it difficult to obtain the highest price tiers because it is usually only available to high-volume merchants.

Here is a summary of some fees* applicable for commercial transactions:

Settlement Times

Waiting days for your hard-earned profit can seem like an eternity in the world of digital commerce, where money is supposed to be received quickly.

Adyen typically processes payouts within two business days, with timing dependent on the currencies and banks involved. Bank holidays may cause delays, but the system is generally designed for efficient fund transfer.

PayPal offers two withdrawal options: Instant transfer, which typically completes within minutes, and Standard transfer, which can take 1-5 business days depending on the bank. Both methods are subject to PayPal's review process, which can cause delays if irregularities are detected.

While Adyen provides a standard two-business-day withdrawal and PayPal offers both faster and slower options with potential delays due to reviews, there’s a viable alternative. Noda offers a seamless solution for bank payouts, providing businesses with real-time payment schemes. With options like FPS and SEPA Instant, Noda enables instant, secure, and efficient payouts, making it an attractive option for businesses looking for speed in fund transfers.

Integration and Technical Aspects: PayPal vs Adyen

The comfort of integration and technical capabilities can also significantly influence the choice of payment processor.

PayPal provides a straightforward integration process. It has ready-made plugins and a simple setup that allows quick implementation across multiple platforms. Custom integrations are available through REST APIs and JavaScript SDK.

Understanding the nuances of Adyen payment gateway integration is crucial for businesses looking to leverage its advanced features, as it offers more sophisticated options including API, multiple libraries, different integration options for online, in-person payments and marketplace platforms.

Noda, acting as a revolutionary alternative, offers a new approach with its Open Banking API. Its platform goes beyond traditional payment processing by providing additional services such as end-user KYC, LTV prediction, and UX optimization. Moreover, Noda offers seamless payment gateway plugins for popular e-commerce platforms including OpenCart, WooCommerce, and others, enabling merchants to quickly integrate open banking payments without technical expertise, streamlining their checkout process, and enhancing user experience with just a few clicks.

Security & Support

Both Adyen and PayPal are PCI DSS Level 1 compliant and offer robust security features including tokenization and 3D Secure authentication.

Adyen provides around-the-clock technical support. Larger merchants benefit from dedicated account managers, while detailed documentation and developer resources are available for companies that require complex payment solutions. This reflects the level of service offered by Adyen customer support.

PayPal also offers 24/7 customer support through various channels, including phone and email. However, it's essential to ask: what is the disadvantage of using PayPal? User experiences vary, with some reporting difficulties reaching support agents or encountering automated responses.

Alternative to Adyen and PayPal—Noda provides personal account managers to assist merchants at every stage, ensuring a smooth and supportive experience. This approach enhances the onboarding process and may address any specific needs that arise, allowing merchants to focus on growing their business.

Choosing the Right Payment Provider

Choosing the right payment processor is crucial for maximising cash flow and enhancing customer satisfaction. While Adyen and PayPal are established leaders in the market, Noda emerges as a strong alternative by leveraging open banking.

With partnerships across over 2,000 banks in 28 countries, including the UK, EU, Brazil, and Canada, Noda supports a wide range of currencies. This global reach allows businesses to offer customers easy payments through local banks, ensuring fast, secure settlements and competitive pricing. Noda's innovative strategy makes it an attractive choice for expanding businesses.