Paysafe vs PayPal - Which Payment Solution is Best for Your Business?

Please note that the information about the payment providers in this article was taken from their respective websites on 20 March 2025. This information is subject to change.

Choosing the right payment processor is crucial for businesses looking to optimise transactions, reduce costs, and enhance customer experience. In this guide, we compare Paysafe vs PayPal, analysing their key features and pricing to help you determine the best fit for your business.

Overview

Paysafe’s origins can be traced back to multiple companies, including Netbanx (founded in 1996), Optimal Payments (founded in 1997), and Neteller (founded in 1999 in Canada). Neteller, which played a crucial role in Paysafe online evolution, acquired other payment firms over the years, including Netbanx in 2005 and Optimal Payments in 2011, eventually leading to the company’s rebranding as Paysafe Group in 2015. The company is now headquartered in London, UK, and focuses on digital wallets, online payment processing, and prepaid solutions, catering primarily to high-risk industries such as igaming, forex and crypto.

PayPal was established in the United States in 1998 as Confinity by Max Levchin, Peter Thiel, and Luke Nosek. In 2000, it merged with Elon Musk’s X.com to eventually become PayPal in 2001. The company went public in 2002 and was acquired by eBay before spinning off into an independent entity in 2015. It is currently headquartered in San Jose, California, and operates as a comprehensive online payment platform that facilitates peer-to-peer transactions, mobile payments, and merchant services.

Supported Markets and Customer Base

Paysafe operates in over 120 countries, with a strong presence in North America, Europe, Latin America, and parts of Asia and the Middle East. It is particularly active in regions with high demand for alternative payments, such as gaming, crypto, and forex, in addition to the regular travel, financial services and retail sectors. It supports 40+ currencies and offers services in multiple languages, particularly in markets where Paysafe Group’s owned Skrill, Neteller, and paysafecard are widely used.

Paypal is available in over 200 countries and territories, supports 25+ currencies, and operates in multiple languages. It serves a wide range of industries, including retail, travel, SaaS, e-commerce, digital goods, professional services, and freelance markets.

Features

Supported Payment Methods

Recurring Billing and Subscription Management

Paysafe’s Payment Scheduler API enables businesses to manage recurring billing and subscriptions with customisable billing cycles, trial periods, and auto retry logic. Merchants can create plans, manage subscriptions, and update pricing seamlessly. Additionally, Merchant-Initiated Transactions (MITs) support automated payments for subscriptions and instalment plans, improving efficiency and cash flow.

PayPal Checkout supports recurring billing and subscription management, allowing businesses to automate billing cycles, customise pricing models (fixed, quantity-based, or trial-based), and enhance the checkout experience with flexible payment options. Merchants can also access real-time insights via the subscriptions dashboard, manage plan upgrades or downgrades, and ensure secure transactions through PayPal’s global payment infrastructure.

Unique Features

Paysafe has expanded its cryptocurrency services through NETELLER and Skrill, allowing users to buy, hold, and sell cryptocurrencies like Bitcoin and Ethereum with their digital wallets. While Paysafe no longer offers its own BNPL services, it continues to support businesses with a range of Point-of-sale (POS) solutions, including SwipeSimple, Clover, and ValorPay, ensuring seamless and flexible payment processing.

PayPal, on the other hand, offers a comprehensive suite of financial services, including cryptocurrency transactions, BNPL options, and POS systems. Users can buy, sell, hold and spend cryptocurrencies directly through their Paypal accounts, facilitating seamless digital currency transactions. PayPal’s BNPL services, such as “Pay in 4” and “Pay Monthly” in the US, “Pay in 3” in the UK, and PayPal Credit available in both the US and UK, provide flexible payment plans, allowing customers to split purchases into manageable instalments. Additionally, PayPal’s Zettle POS system enables businesses to accept various payment methods, including contactless payments and digital wallets, while offering features like inventory management and sales analytics to streamline operations.

Security & Compliance

Paysafe ensures security and compliance through PCI DSS Level 1 certification, 3D Secure 2 (3DS 2), and tokenisation services that replace sensitive payment data with secure tokens. Its fraud prevention tools use real-time monitoring to detect and block suspicious transactions. Paysafe is registered in multiple jurisdictions and holds various financial institution licenses, such as money transmitter licenses in various US states. It is authorised and regulated by the FCA under the Electronic Money Regulations 2011 in the UK and as an EMD agent by the Central Bank of Ireland.

PayPal maintains PCI DSS compliance and secures transactions with 3D Secure authentication, tokenisation, and advanced fraud protection tools powered by machine learning and 24/7 monitoring. It provides businesses with secure, hosted checkout solutions to help them meet compliance requirements. PayPal holds money transmitter licenses in various US States, is authorised and regulated as an electronic money institution by the FCA in the UK and is licensed as a bank in Luxembourg, enabling it to offer services across the EU and EEA.

Integration

Paysafe provides seamless integration for businesses through ready-made plugins, APIs, and SDKs, supporting 9 e-commerce platforms, including OpenCart and WooCommerce. Its Paysafe JS enables PCI-compliant, secure transactions, while developers can utilise Payments API and Mobile SDKs to build custom payment integrations. Additionally, businesses can integrate Paysafe with third-party accounting tools, enhancing business workflow optimisation.

PayPal offers extensive integration capabilities, supporting 26 e-commerce platforms, such as BigCommerce, Shopify, and Wix, through ready-made plugins. Its REST APIs and SDKs enable developers to create customised payment experiences, ensuring flexibility across web and mobile applications. Additionally, businesses can integrate PayPal with 8 accounting software tools, such as Xero and Zoho, enhancing operational efficiency and financial management.

Merchant Dashboard Usability

Paysafe Merchant Back Office provides a user-friendly interface with robust reporting features, allowing merchants to manage transactions effectively, while PayPal’s merchant dashboard offers an intuitive interface with detailed transaction data and reporting features, assisting businesses in monitoring and managing their operations effectively.

Pricing – Paysafe vs PayPal

Paysafe, one of the PayPal competitors, follows an InterChange Plus Payment Program, offering US merchants transparent pricing by adding a fixed markup to the standard interchange fees set by the card networks. Notably, Paysafe provides discounts on these fees based on the merchant’s business category, processing volume, and risk scores. Moreover, Paysafecard’s Scale-Based Standard Model follows a transparent sliding pricing structure, with fees starting at 15% and reducing to 9.5% for merchants processing over €350,000 per month. Pricing may vary by industry and PSPs, but there are no setup fees, subscriptions or hidden fees. PayPal, on the other hand, uses a flat-rate pricing model. Merchants are charged a fixed percentage and a per-transaction fee. Comparing the pricing structures of both platforms will help determine whether Paysafe is better than PayPal for small businesses and enterprises.

Settlement Times – PayPal vs Paysafe

Paysafe merchant services offer two settlement options: Auto Settlement and Manual Settlement. In Auto Settlement, when a customer completes a payment, the funds are immediately transferred to the merchant’s account without further action. In Manual Settlement, the merchant must manually initiate the settlement process, and once released, funds can take up to 48 business hours to reach the merchant’s bank.

Paypal settlement times depend on the withdrawal method. Standard Transfers are typically completed within 3-5 working days, and Instant Transfers usually take a few minutes to complete but can take up to 30 minutes.

Support

Paysafe Solutions offers a range of customer support options, such as live chat, phone, and email, along with comprehensive online guides for self-assistance. Merchants receive a dedicated account manager during onboarding, with continued support afterwards. However,  its Trustpilot rating of 1.2 highlights recurring issues such as unauthorised charges and challenges in reaching effective customer support.

PayPal offers multiple customer support options, including live support, phone support, and email assistance. It also has a Help Center with extensive online resources to help users solve common issues independently. However, dedicated account managers are available for businesses using premium services or conducting high-volume transactions. PayPal's Trustpilot rating of 1.3 indicates challenges such as difficulties in dispute resolution and sudden account restrictions without clear explanations. 

Which is Better: Paysafe vs PayPal?

Paysafe is ideal for merchants in high-risk industries like igaming, forex, and crypto, offering specialised payment solutions, digital wallets, and prepaid cards. Meanwhile, PayPal is a versatile and widely recognised payment system that supports e-commerce transactions, peer-to-peer transfers, and BNPL services, with extensive global adoption and seamless integrations.

Paysafe and PayPal Alternatives – Open Banking Solutions Like Noda

Open banking offers a faster, more secure and cost-effective alternative to traditional card payments. With direct bank-to-bank transfers, online merchants benefit from lower fees, instant settlements, and zero chargebacks while enhancing security through biometric authentication and PIN verification. This streamlined payment method also improves checkout experiences and supports financial inclusion, making it a future-ready alternative to Paysafe and an ideal PayPal substitute.

Noda – A Leading Open Banking Solution

Noda is a global open banking platform that redefines online payments with direct bank-to-bank transactions, advanced identity verification, and high payment acceptance rates. Unlike traditional payment providers, Noda offers a full C2B2C payment cycle, managing both pay-ins and pay-outs – a rare feature ideal for industries like gaming, e-commerce, marketplaces and others. With coverage across 2,000+ banks in 28 countries, including the UK, EU, Germany, Netherlands and more, Noda provides businesses with a truly global reach.

What Sets Noda Apart?

• High Payment Acceptance Rate (Up to 94%) - Ensures more successful transactions, reducing payment failures and lost sales.
• Instant Settlements - Utlises Faster Payments (UK) and SEPA Instant (EU) for real-time fund availability, improving cash flow.
• No Chargebacks - Eliminates disputes and financial unpredictability, providing businesses with greater stability.
• Noda Buffet - Enhances checkout experiences by displaying multiple bank payment options tailored to users’ locations, increasing conversion rates.
• AI-Powered Payment Links & Branded Pages - Allows businesses to generate promotional pages without the need for a website, simplifying marketing efforts.
• LTV Prediction & Identity Verification - Assists businesses in identifying high-value customers, verifying identities, and optimising marketing strategies.
• Seamless Integrations - Compatible with e-commerce platforms such as PrestaShop, Magento, OpenCart, WooCommerce, and more, facilitating smooth implementation.

By offering fast, secure, and cost-effective open banking payments, Noda positions itself as a powerful alternative to Paysafe and PayPal, aiding businesses in enhancing profitability and improving customer experiences.

So, let's discuss your business needs and find the ideal payment solution for you. Contact us now for a free consultation – we’re happy to help!