Braintree vs PayPal: Choosing the Right Payment Solution for Your Business

Note that the information about Braintree and PayPal found in this article was taken from their respective websites on 27 September 2024. This information is subject to change.

Choosing the right payment processor can feel like a daunting task. Yet the platform you choose has a huge impact on your checkout experience and overall customer satisfaction.

When comparing PayPal and Braintree, it’s easy to get confused since they’re part of the same ecosystem – PayPal acquired Braintree in 2013.  But the key question is – which services aligns with your business needs best?

In this PayPal and Braintree comparison,  we’ll explore the main differences between Braintree and Paypal, looking at everything from their features and fees to integration options. By the end of this article, you will hopefully be able to decide which solution is the better fit for your business.

PayPal vs Braintree for Online Payments

PayPal for Online Payments

PayPal’s payment gateway lets developers build a customised checkout flow using its REST APIs and JavaScript SDKs, enabling e-commerce stores to create scalable, personalised solutions.

For businesses using established e-commerce platforms, PayPal is already integrated with major platforms like BigCommerce, WooCommerce, OpenCart, Visualsoft, Cubecart, Bluepark, Mal’s, and Shopify, making setup easy and quick.

PayPal also offers no-code checkout options, like payment links and QR codes, which are perfect for small businesses that need simple, developer-free setups. There’s also PayPal’s own BNLP solution, Pay in 3, but so far it is only available in the US, UK, and Australia.

PayPal’s security includes seller protection, fraud prevention with machine learning, and a chargeback protection tool that covers disputes such as fraud or undelivered goods (subject to conditions).

PayPal offers nine core payment methods and an additional 13 global alternatives, bringing the total to 22 options, including Buy Now, Pay Later (BNPL), credit/debit cards, and digital wallets.

Braintree for Online Payments

Braintree Direct is Braintree’s complete payment solution for handling transactions on both websites and mobile apps. It serves as both a payment gateway and a merchant account provider, streamlining the payment process.

Braintree’s checkout provides pre-built user interfaces, such as drop-in and hosted UIs, making it easy to start accepting payments quickly.

The payment options vary by region and include PayPal, Venmo, ACH transfers, credit/debit cards, digital wallets like Apple Pay and Google Pay, and other local payment methods tailored to each market. Overall there are 25 global payment methods.

For fraud protection, Braintree offers two levels of support: Basic Fraud Tools for standard fraud prevention and Premium Fraud Management Tools for advanced detection and prevention strategies, ideal for more complex cases.

Braintree operates in the US, Canada, Australia, Europe, Singapore, Hong Kong, Malaysia, and New Zealand, supporting cross-border payments in over 130 currencies with multiple settlement options.

Additionally, Braintree integrates with third-party platforms, enterprise plugins, e-commerce sites, shopping carts, and analytics services, making it a flexible choice for various business needs.

The Braintree Payouts solution from Hyperwallet allows marketplace businesses to manage and automate their outbound payments, offering a scalable solution for handling complex payouts.

Braintree Fees vs PayPal Fees

In terms of Braintree vs PayPal charges, the provider use slightly different approaches.

PayPal charges fixed fees that depend on the transaction’s currency. Dispute fees can increase based on the frequency of disputes a merchant experiences. For the latest details on fees, it’s best to check PayPal’s website for a complete pricing breakdown.

PayPal fees in GBP, as of 27 September 2024. For more information go to PayPal website.

Braintree’s standard pricing is 1.9% + £0.20 per transaction, but they also offer custom pricing options based on transaction volume and the business model. This flexibility makes it possible for larger businesses to negotiate tailored rates.

Braintree fees in GBP, as of 27 September 2024. For more information go to Braintree website.

Other Features

PayPal offers a range of business services beyond payments. This includes card issuing through its PayPal business debit card and business funding via PayPal Working Capital. In addition, PayPal provides tools for risk management, financial reporting, shipping support, and dispute management.

Braintree offers reporting for data tracking and transaction analysis.  Braintree Extend allows secure sharing of payment data with partners to build enhanced commerce experiences.

Which Is Better: PayPal or Braintree?

PayPal and Braintree might be part of the same family, but they serve different business needs.

PayPal is more suited for smaller businesses or individual sellers looking for a quick, plug-and-play solution. With its simple setup and wide recognition, it’s perfect for those who want to start accepting payments without needing technical expertise. Its no-code tools like payment links and QR codes make it especially useful for businesses wanting to offer fast payment options without complex integrations.

Braintree, on the other hand, is a better fit for larger businesses and enterprises that need more flexibility and control. It’s designed for companies wanting a customised checkout experience with advanced tools. With Braintree, businesses can tailor everything from payment flows to fraud management, making it ideal for companies with complex needs or those operating in multiple markets.

So, if you’re looking for a straightforward, user-friendly option, PayPal might be the right choice. But if your business requires a high level of customisation and advanced features, Braintree’s more comprehensive suite is the way to go.

Alternatives to Stripe and PayPal

Looking for a simpler, smarter way to process payments? Noda is a great alternative to Stripe or PayPal, especially for small and medium-sized businesses. Our platform offers everything you need for smooth, secure payments and easy integration.

Why Choose Noda?

Noda does more than process payments. With Noda’s Open Banking API, you can offer direct bank payments with better user experience, lower fees and no chargebacks. That means a smoother, more secure payment flow for your customers and more savings for your business.

With payment plugins for popular e-commerce platforms like OpenCart, WooCommerce, Magento, and PrestaShop, Noda is easy to set up and use. Whether you’re starting out or scaling, we’ve got flexible plans to fit your needs.

Reach More Customers

We offer instant bank payments with flexible fees and a great acceptance rate, partnering with over 16,500 banks in 27 countries, supporting many currencies. Noda lets you leverage pay-by-bank technology internationally, saving money on avoiding middlemen fees and chargebacks and offering your customers the convenience of paying through their trusted local banks.

Grow Your Business

From helping with customer verification (KYC) to improving the user experience and providing customer insights, Noda’s tools are designed to grow your business. We help you make payments easier and forecast long-term value.