Skrill vs PayPal for Business: Which Provider to Choose

Please note that the information about the companies in this article was sourced from their respective websites as of 29 January. This information may be subject to change.

Choosing the right payment provider can be frustrating. Skrill and PayPal are two of the biggest names in the industry, but they offer very different features and come with their own limitations.

So which one actually fits your business? Which will help you increase conversions, lower costs, and keep payments running smoothly?

In this guide, we’ll break down Skrill versus PayPal – their strengths, weaknesses, and which one really delivers what your business needs. Keep reading to make the right choice.

Skrill vs PayPal Comparison: Overview

PayPal launched in 1998 in the US and has grown into a global payments giant. It’s an independent, publicly traded company with millions of users worldwide.

Skrill, founded in 2001 in the UK, started as a smaller competitor. It’s now part of Paysafe, a UK-based digital payments group that also owns NETELLER and Paysafecard. Skrill is their arm for retail clients, while Paysafe serves merchants.

PayPal also operates as a two-sided platform, connecting businesses that accept payments with consumers who use PayPal for shopping, money transfers, and more.

Skrill (Paysafe) originally focused on online gambling after PayPal exited the industry due to UK regulations. Over time, it expanded into cross-border money transfers and now offers payment processing for merchants, especially in gaming, betting, and trading.

Skrill vs PayPal: Online Payments

Online Payments

• Skrill (Paysafe)

Skrill, part of Paysafe, provides a range of payment options. Merchants can accept card payments, pay-by-bank, and 100+ global payment methods. It also supports in-house digital wallets, Skrill and NETELLER, as well as cryptocurrency withdrawals.

For cash-based online payments, Skrill offers the Paysafecard – a prepaid solution with a 16-digit code, allowing customers to pay online using cash.

Skrill enables crypto transactions, letting customers withdraw funds directly to their chosen crypto wallet.

Skrill’s Quick Checkout enables merchants to integrate payments via a hosted payment page, e-commerce plugins for platforms like Wix, Magento, Shopify, and WooCommerce, and an API for custom setups.

Skrill also supports recurring payments for merchants. They offer a feature called Skrill 1-Tap, which allows customers to make repeat payments quickly. Merchants can set up recurring billing for subscriptions and other regular payment scenarios.

• PayPal

PayPal provides a checkout solution that accepts cards, PayPal, digital wallets like Apple Pay and Google Pay, and its own BNPL option, Pay in 3. There are also 10+ local payment methods in over 100 currencies and from 200+ markets.

With Pay in 3, customers split payments into installments, while merchants receive the full amount upfront. Merchants can also send online invoices, allowing customers to pay with their preferred method.

As its main payment gateway, PayPal offers PayPal Checkout. The provider offers integration via APIs and SDKs as well as e-commerce platforms, such as Shopify. PayPal also allows merchants to create a link, button, or QR code payments.

In terms of recurring payments, merchants can create customisable subscription plans, automate billing, and manage customer subscriptions through PayPal's platform.

For offline payments, PayPal offers various PoS systems. Merchants can accept contactless payments via their phone using Tap to Pay (Zettle by PayPal) without extra hardware. It also provides card readers, terminals, and other PoS options.

Merchants also get reporting tools, customised reports, a shipping centre, and dispute management. For businesses with more complex needs, PayPal provides enterprise solutions, including payouts and payment orchestration.

Other Features

• Skrill

Skrill offers iGaming and affiliate marketing experts to offer tailored solutions for brands looking to drive revenue in the iGaming, forex and lottery industries. They also offer platform scaling options, custom payment flows and routing preferences.

• PayPal

PayPal provides extra features like a business debit card with cashback rewards and access to working capital. It integrates with e-commerce platforms, accounting software, in-store systems, and business tools. Charities can also accept donations easily with PayPal’s donate buttons.

Key Difference Between Skrill and PayPal

Skrill is great for businesses selling globally or offering different ways to pay. It’s a strong choice for merchants targeting international or unbanked customers. But it doesn’t have no-code payments, so if you need an easy setup without tech work, it may not be the best fit.

PayPal is a good option if you want a simple way for customers to pay both online and in person, making it well-suited for retail businesses with both online and in-person sales. However, it doesn’t support open banking payments, which means you might pay higher card fees and miss out on faster payments.

Skrill is more specialised, catering to businesses in iGaming, forex, and lottery with tailored affiliate marketing support. PayPal provides useful extras for everyday business needs. It’s also a solid choice for charities, with simple donation options.

When choosing Skrill or Paypal, think about what matters most to you – global reach, easy setup, or lower costs – before deciding.

Skrill vs PayPal: Fees

• Skrill

Skrill (Paysafe) does not disclose a full breakdown of its merchant fees online. Merchants need to contact the provider to negotiate pricing. The platform uses a volume-based pricing model, meaning fees vary depending on transaction volume.

• PayPal

PayPal lists its pricing on its website, but fees are structured into different plans, such as Advanced Credit and Debit Card Payments and Website Payments Pro. The fixed fee (£0.30 in the UK) also varies by region.

Here are some of the processing fees of PayPal:

Fees as of January 2025. Please see the provider's website for up-to-date fees.

Here is more clarity on the monthly plans:

Fees as of January 2025. Please see the provider's website for up-to-date fees.

Additional fees:

Fees as of January 2025. Please see the provider's website for up-to-date fees.

Noda: Alternative Payment Provider

Skrill and PayPal are solid payment providers, but they have key limitations.

Skrill lacks no-code payment solutions like payment links and QR codes, while PayPal doesn’t support open banking payments – missing out on faster, lower-cost transactions.

Fortunately, Noda offers it all.

Why Choose Noda?

Noda is the ultimate payment provider, offering cards, open banking payments and payouts, and advanced data tools – all in one platform. With our Open Banking API and easy set-up plugins you’ll cut costs, eliminate chargebacks, and offer a seamless checkout experience.

Integration is effortless with plugins for OpenCart, WooCommerce, Magento, and PrestaShop, while businesses with limited resources can set up payments instantly using no-code payment pages and instant payment links & QR codes.

Our network connects to 2,000+ banks across 28 countries, supporting multiple currencies for global payments. Boost conversions, simplify payments, and scale faster with Noda.