Google Pay vs PayPal - Which is Best Suited for Your Business?

Please note that the information about the payment platforms in this article was taken from their respective websites on 14 March 2025. This information is subject to change.

Choosing the right payment solution is crucial for any business seeking to streamline transactions and improve customer experience. In this guide, we compare Google Pay vs PayPal, two of the most popular digital payment solutions. We explore their features, security, fees, and more, uncovering Noda’s open banking as a modern, cost-effective alternative for businesses seeking faster, safer, and more affordable payment processing.

Overview

Google Pay, originally launched as Android Pay in 2015 and rebranded in 2018, is a digital wallet and mobile payment platform developed by Google, a subsidiary of Alphabet Inc., based in the United States. It primarily focuses on retail consumers by offering seamless peer-to-peer transactions, mobile-based payments and integration within Google’s broader ecosystem.

PayPal, established in 1998 as Confinity and later rebranded, is a publicly traded American company with headquarters in San Jose, California. Its primary focus is secure online and cross-border payments for businesses and consumers, offering user-friendly digital wallets and smooth international transactions.

Supported Markets and Customer Base

Google Pay or GPay supports online and in-app payments in 189 countries and regions worldwide. However, the Google Wallet or GPay Wallet for contactless payments (In-store) is available in 99 countries. Google Pay supports 31 languages and 78 currencies tailored to local markets, allowing merchants to accept payments in their preferred currency and language across various industries such as retail, travel, e-commerce, entertainment, food services, SaaS, and transit.

PayPal operates in over 200 countries and regions worldwide, supporting international and cross-border transactions in 25 currencies. It also offers localised checkout experiences in various languages to businesses in diverse industries, including retail, technology, education, marketplaces, and travel.

Features

Supported Payment Methods: PayPal vs Google Pay

Recurring Billing and Subscription Management

Google Pay online solution supports recurring billing and subscription payments. Merchants can streamline payment processes by setting up automatic recurring transactions for services such as subscriptions, memberships, or regular deliveries.

PayPal enables merchants to effortlessly set up recurring billing, supporting flexible subscription models, including fixed, variable, and tiered pricing through robust management tools. Additionally, consumers benefit from transparent subscription management, allowing them to view, manage or cancel automatic payments directly through their PayPal account.

Unique features

Google Pay account does not support buying, selling, or storing cryptocurrencies directly within its platform. However, it has partnered with Affirm, Zip, and Afterpay to allow US users to split purchases into manageable instalments. Google Pay, together with Google Wallet, also enables users to tap their devices and make contactless in-person payments using NFC technology at compatible point-of-sale (POS) terminals for quick transactions.

PayPal enables US customers to buy, hold, and transfer cryptocurrencies such as Bitcoin, Litecoin, Ethereum, Bitcoin Cash, and PayPal USD (PYUSD) directly within PayPal accounts. Additionally, PayPal offers BNPL options through Pay Later (Australia, France, Italy, Germany, Spain, the UK, and the US) and PayPal Credit in the US and UK. The eligible UK buyers can Pay in 3 interest-free payments for purchases between £30 – £2,000. Furthermore, through PayPal Zettle, businesses can accept in-person payments using POS solutions. 

Security & Compliance- GPay vs PayPal

Google Pay (GPay) ensures high-level security through tokenisation, replacing actual card details with encrypted tokens during transactions. PCI DSS and 3D Secure compliance are handled by the payment processors and card issuers integrated with Google Pay, adding additional layers of security when required. In the US, Google Payment Corp. is a licensed money transmitter in multiple states, and in the UK, Google holds an electronic money institution license from the FCA, authorising it to issue and manage money.

PayPal employs advanced fraud detection tools, PCI DSS-compliant systems, end-to-end encryption, and tokenisation to secure transactions. PayPal also supports 3D Secure (3DS) for enhanced authentication where required. As a global payments platform, PayPal holds multiple financial licenses worldwide, including electronic money institution from the FCA in the UK and is registered as a licensed money transmitter in the US. It also holds a banking license in Luxembourg that allows it to conduct banking business across the EU.

Ease of Integration- Which is Better, PayPal or Google Pay?

Google Pay offers ready-made plugins for nine major e-commerce platforms like Shopify and Magento, which can be integrated through Google Pay API for web and mobile apps. It also supports third-party integrations with payment processors like Stripe and Adyen. However, it is important to note that online merchants must register with a Payment Service Provider (PSP) such as Stripe, Square, Adyen or Checkout.com to accept Google Pay as a payment method. Since Google Pay does not process transactions directly, it serves as a payment facilitator, with PSPs handling authorisation, settlement, and compliance. While Google Pay integrates well into existing checkout flows, its focus is primarily on streamlined in-app and online payments, with less emphasis on broad third-party services like accounting tools.

PayPal offers extensive ready-made plugins for 26 e-commerce platforms, including Shopware, BigCommerce, and WooCommerce. It also provides robust REST APIs and SDKs for deeper custom integrations and connects with third-party services, including accounting tools (like Xero and Quickbooks), marketplaces, and other business services, making it highly versatile.

Merchant Dashboard Usability

Google Pay integration is designed to be simple, requiring minimal development work. It enables merchants to manage settings through a connected merchant dashboard. PayPal’s dashboard, on the other hand, is comprehensive, offering powerful tools for managing subscriptions, payments, invoicing and detailed reporting.

Pricing- PayPal vs Gpay

Google Pay (GPay) payment gateway pricing does not include setup fees, monthly fees, or additional transaction fees charged directly by Google. However, merchants still incur standard processing fees from their chosen Payment Service Provider (PSP), such as Stripe, Adyen, or Checkout.com – similar to Visa, Mastercard, and other card transactions. Thus, while Google Pay itself does not charge merchants, the overall cost-effectiveness depends on the PSP’s pricing structure, including transaction fees, chargebacks, and currency conversion costs. Hence, businesses should carefully evaluate the PSP’s fee structure to determine the actual Google Pay fees for merchants. 

PayPal does not charge setup fees, but depending on the type of business account, some premium services, like PayPal Payments Pro, may involve a $30 monthly estimate PayPal fees. For UK merchants, domestic transaction PayPal fees are typically 2.9% + £0.30 per transaction and international transactions attract higher fees, around 2.9% + 1.29% + £0.30, if the sender is from EEA; otherwise, 2.9% + 1.99% + £0.30. Additionally, PayPal charges conversion fees of 3% for cross-currency payments and chargeback fees of 14 GBP in case of transaction disputes.

Settlement Times

Google Pay settlements are handled by the merchant’s acquiring bank or processor, not Google itself. Settlement options may include daily, instant, or on-demand settlements, depending on the processor’s offerings.

PayPal manages its own settlement process. Once a transaction is approved for settlement, funds are typically posted to the merchant’s bank account within 48 to 72 hours. Additionally, PayPal offers customisable withdrawal schedules, allowing merchants to choose daily, weekly or monthly transfers of their PayPal balance to their linked accounts.

Support

Google Pay provides customer support mainly through online guides and help centres, but it lacks direct channels like live chat, phone or email support for merchants. It does not offer personal account managers during onboarding or afterwards, relying instead on self-service resources. There are limited reviews on Trustpilot for Google Pay merchant services, but some user feedback on community forums highlights difficulties in assessing support.

PayPal offers multiple support options, including live chat, phone, email, and extensive online guides. However, user reviews on its Trustpilot profile, which has a rating of 1.3, frequently criticise customer service responsiveness and account issues. Additionally, PayPal generally does not assign personal account managers to merchants unless they meet the high transaction volume criteria.

Google Pay vs PayPal- Is Google Pay Better than PayPal?

Choosing between Google Pay and PayPal depends on business needs. Google Pay is better than PayPal for small businesses and merchants seeking a cost-effective, simple, and mobile-first solution without setup or transaction fees, especially for in-app and online payments. In contrast, PayPal offers a broad set of features, including cryptocurrency transactions, BNPL, and in-person POS payments through Zettle, along with wider global reach and more third-party integrations, but with higher fees. For businesses prioritising versatility and international reach, companies like PayPal may be better, while those focusing on cost-efficiency and simplicity may prefer Google Pay.

Google Pay and PayPal Alternatives- Noda’s Open Banking Platform

While Google Pay and PayPal are among popular payment solutions, they rely heavily on card-based networks and intermediaries that add high fees, delays, and risks like chargebacks. For businesses looking for a faster, cost-effective, and more secure solution, open banking payments present a superior alternative - enabling direct, instant bank-to-bank transfers without card networks or intermediaries.

Noda is a revolutionary open banking platform that offers merchants the ability to accept instant payments directly from customer bank accounts, eliminating the need for cards and reducing costs. With extensive coverage across 2000+ banks in 28 countries, including the UK, EU, Canada and Brazil, Noda ensures merchants reach a global audience with higher payment acceptance rates of up to 94%. Unlike traditional platforms, Noda does not involve chargebacks, offers instant settlements, and supports lower transaction fees, improving business cash flow and profitability.

What Makes Noda Stand Out?

• Instant bank-to-bank settlements - merchants get their funds without delays, improving cash flow.
• No chargebacks - protection from fraud risks.
• Lower transaction fees - no card networks or intermediaries, saving cost.
• Global reach - connections with 2000+ banks in 28 countries.
• High acceptance rates - up to 94%, enhanced by “Noda Buffett”, which customises payment options for major banks in each country.
• LTV prediction tools - help identify high-value users to improve business strategies.
• Smooth onboarding - identity verification without document uploads.
• Built-in analytics and reporting - real-time insights to optimise payment performance.
• Easy integration - via APIs and ready-made plugins for popular e-commerce platforms like WooCommerce, Magento and more.
• Personalised support - with dedicated account managers for onboarding and ongoing assistance.
• Industry versatility - ideal for e-commerce, gaming, travel, SaaS and more.

Let’s explore your specific business needs and find the perfect payment processing solution. Contact us now for a free consultation—we’re happy to help!