Revolut vs PayPal: Is one better than the other?

Note that the information about Revolut and PayPal found in this article was taken from their respective websites on 1 October 2024. This information is subject to change.

There is certainly no shortage of financial services companies providing solutions to personal and business customers.

So, where do you start? How do you choose between them? What factors must you consider before making a final decision?

In this piece we are looking at PayPal and Revolut. For example, is Revolut cheaper than PayPal and is PayPal safer than Revolut?

To help you draw conclusions, we’ll also cover how Revolut is different from PayPal in terms of its key features, security, support and other factors.

We’ll also consider Revolut vs PayPal pricing by outlining the various accounts offered and the prices charged for particular transactions.

Revolut vs PayPal: Initial Overview

Let’s start our PayPal vs Revolut analysis with an overview of both providers and why they should even be considered by potential customers.

History of PayPal

PayPal has been one of the leading names in the world of digital commerce for more than 25 years since it began back in the late 1990s.

When it was first working on digital payments for consumers and businesses, it was known as Confinity. However, this was soon changed to PayPal.

According to the California-based company, it had 426 million active consumer and merchant accounts at the end of 2023 and 27,200 employees.

Currently, its president and chief executive is Alex Chriss, who held various roles at Intuit before joining PayPal.

History of Revolut

Revolut is a much younger business and is one of the new breed of financial services firms to have appeared over the past decade.

It was founded in 2015 by entrepreneurs Nik Storonsky and Vlad Yatsenko, who are chief executive and chief technology officer, respectively.

The company claims that its goal is to help you “spend, send, and save smarter” by offering a range of products and services for personal and business customers.

The UK-based business recently announced that it had reached 10 million customers in the UK, having added nearly two million in 2024.

Revolut Or PayPal: What Are Their Key Benefits?

Let’s take a look at the key features of both businesses.

First up is PayPal:

• International money transfers
• Easy to send and receive money
• interest paid on savings
• Shop online or in person
• Securely store payment methods
• Link your bank accounts
• It’s been established a long time
• Free to download app and create account
• Debit cards

And here is Revolut:

• International money transfers
• Wide variety of personal and business accounts
• Interest paid on savings
• Easy to send and receive money
• Access to global company stocks
• Can collect RevPoints on daily expenses
• Free to download the app and get started
• Access to cryptocurrencies
• Debit cards

Revolut PayPal Comparison

So, is PayPal the same as Revolut? Over the next few sections we’ll try to compare PayPal and Revolut and highlight some of the main differences.

Firstly, is Revolut like PayPal? The short answer is that both firms offer some similar services but they’re far from identical businesses.

Before we consider the differences between PayPal and Revolut, let’s consider some of their similarities. They are both:

• Easy to set up
• Provide access to international money transfers
• Can be used to send and receive money

The main difference between Revolut and PayPal is that the former is a broader financial app, whereas PayPal is more focused on providing electronic payments.

In the next part of our Revolut versus PayPal analysis, we’ll look at both offerings in terms of charges, security and their use for international payments.

Revolut vs PayPal Charges

Those asking the question: is PayPal better than Revolut will need to consider how much each company charges for its services.

This brings us onto Revolut vs PayPal fees. The good news is that it’s free for consumers to use PayPal to pay for purchases unless it involves a currency conversion.

However, when you buy or sell goods or services or receive a payment when you request money, that’s classed as a commercial transaction.

In that case PayPal Merchant Fees will apply. For example, QR Code Transactions upwards from £10.01 will be charged at 1.50% plus a fixed fee.

Now for Revolut.

You can choose from five plans.

Standard

This is free and can be used to send money abroad or stick to a budget.

Plus - £3.99 per month

The next option gives you perks such as priority in-app support and everyday spending protection.

Premium - £7.99 per month

This tier comes with flexible benefits that range from free Deliveroo delivery to a subscription to Headspace.

Metal - £14.99 per month

Higher limits on savings and an array of lifestyle enhancing benefits are on hand for those opting for Metal. These can include a subscription to the Financial Times.

Ultra - £45 per month (introductory offer)

This is the top level of what Revolut has to offer. It offers customers to “experience the exceptional” via an exclusive benefits package.

These are the standard benefits included in the above plans.

PayPal or Revolut For Business?

We have already covered factors that personal customers need to consider, but now we’ll take a look at PayPal vs Revolut for business.

With Revolut, there are several account solutions for business owners, ranging from a basic, free service to one that is tailored for larger organizations.

There’s also one called ‘Grow’ which costs from £19 per month, whereas ‘Scale’ offers a broader range of services from £79 per month.

So when you’re comparing Revolut vs PayPal for small business, you need to consider exactly what type of services are likely to be required.

Security

PayPal states it can reimburse buyers if the eligible purchase doesn’t arrive or doesn’t match the seller’s description.

In addition, the company pledges to monitor every transaction 24/7 to “prevent fraud, email phishing and identity theft”.

Every transaction is also encrypted using the company’s own technology. These are all part of the security measures that PayPal has in place.

How about Revolut? According to co-founder Vlad Yatsenko, security isn’t just a regulatory requirement, it’s a basic right.

He said: “We build systems to keep your money safe – and are on hand 24/7 to help every single customer, worldwide.”

Revolut’s security elements include:

• Strict identity checks powered by machine learning
• Biometric security
• Dedicated control center to personalize security settings
• Physical cards must be activated in the app

Revolut states: “Our award-winning, in-house AI algorithms can flag high-risk transactions and suspicious spending patterns immediately.”

International payments

Now we look at Revolut vs PayPal online payments.

This is an area that’s of interest to an increasing number of people these days as global barriers to commerce continue to get broken down.

You can send money securely to more than 110 countries via PayPal and the transaction can be completed within seconds.

With Revolut, you can receive, hold and exchange money in 25+ currencies worldwide and it prides itself on declaring: No hidden fees.

It also enables businesses to quickly pay employees, contractors and costumes in more than 70 countries with only their card details.

Of course, there’s also a bulk payments option. This enables you to save time by paying all suppliers and employees within a few clicks. Single or multi-currency options are available.

Have you considered Noda?

Noda is one of the alternatives for individuals and businesses that are looking for effective, reliable payment provision.

Its benefits include cost advantages, speed and security and the company demonstrates these qualities across the world.

Currently, its reach spans 1,650 banks in 30 countries. Just think of the number of customers (and potential customers) in these jurisdictions.

We believe Noda offers an efficient, cost-effective and secure alternative to traditional payment methods and benefits both businesses and their customers.

Conclusion

So the big question is: should you use Revolut or PayPal. Unfortunately, there’s no simple answer as it depends on what you’re looking to achieve.

This means it’s virtually impossible to answer the question: is PayPal or Revolut better? They both have their positives so it all depends on a potential customer’s situation.

Broadly, PayPal is more widely known because it has been around for longer and that means people are familiar with its services.

However, Revolut is fast gaining a reputation among personal and business customers for making financial services and transactions simple and easy.

You also need to remember that the terms and rates quoted may change so you need to carry out your own research before making a final decision.