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PayPal vs Razorpay: What are the differences?

PayPal vs Razorpay

PayPal and Razorpay are two widely used payment gateway platforms that offer secure and convenient online payment processing for businesses. While both platforms serve a similar purpose, there are several key differences between them.

  1. Integration Options: PayPal provides a range of integration options, including REST APIs, SDKs, and customizable payment buttons, allowing businesses to seamlessly integrate PayPal into their websites or mobile apps. On the other hand, Razorpay offers easy-to-use APIs and SDKs, but it also provides ready-made plugins for popular e-commerce platforms like Shopify, WooCommerce, and Magento, making it easier for businesses to quickly start accepting payments.

  2. International Support: PayPal is known for its extensive international support, allowing businesses to accept payments from customers worldwide in multiple currencies. It provides localized payment options for different countries, making it convenient for customers to pay using their preferred methods. In contrast, Razorpay primarily focuses on serving businesses in India and supports transactions in Indian Rupees (INR) only. While it offers some international payment options, its coverage is limited compared to PayPal.

  3. Payment Methods: PayPal and Razorpay support various online payment methods. PayPal accepts credit/debit cards, bank transfers, PayPal Wallet, and PayPal Credit, providing customers with flexibility in choosing their payment options. Razorpay, on the other hand, accepts credit/debit cards, net banking, UPI (Unified Payments Interface), and popular Indian digital wallets like Paytm, PhonePe, and Google Pay. This focus on local payment methods makes Razorpay more suitable for businesses targeting the Indian market.

  4. Transaction Fees: Both PayPal and Razorpay charge transaction fees for processing payments. PayPal's fees vary depending on the transaction volume, currency conversion fees, and other factors. It offers competitive rates for businesses of all sizes, including discounted rates for non-profit organizations. Razorpay, on the other hand, has transparent pricing with fixed transaction fees based on the payment method used. It also offers custom enterprise pricing for large businesses.

  5. Settlement Period: PayPal and Razorpay have different settlement periods for transferring funds to the merchant's account. PayPal typically offers faster settlements, with funds being transferred within a few minutes to a few days, depending on factors like account type and transaction volume. Razorpay follows the standard settlement timelines of Indian payment gateways, with settlements usually taking 2-3 working days. This difference in settlement speed can be a crucial factor for businesses requiring quick access to funds.

  6. Customer Support: PayPal provides extensive customer support for both businesses and customers, offering phone support, email communication, and a comprehensive knowledge base. It also has a dispute resolution process for handling payment disputes. Razorpay offers customer support through various channels like phone, email, and chat, ensuring businesses receive prompt assistance. However, given its localized focus, the availability of support may vary for businesses based outside India or targeting international customers.

In summary, PayPal and Razorpay differ in their integration options, international support, accepted payment methods, transaction fees, settlement periods, and customer support. The choice between the two platforms depends on the specific requirements and target market of a business.

Decisions about PayPal and Razorpay
Lucas Litton
Founder & CEO at Macombey · | 4 upvotes · 264.6K views

We use GoCardless to simplify the way clients and partners pay for our services. What intrigued us is the quick and easy ACH feature that gives our clients the option to log in with their bank account and shoot the funds directly to our account. The fee, compared to Stripe is less. Stripe and PayPal charge 2.9% + 30c and Stripe also forces the client to enter in all of their payment details manually and then if the payment doesn't work, the client has to try all over again. GoCardless charges 1% + 25c which is much more reasonable dealing with the large projects that we are currently working on.

We integrate GoCardless with Xero to easily send out quick invoices, receive the funds and track all revenue in one place.

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Pros of PayPal
Pros of Razorpay
  • 195
    Most known service
  • 135
    Consumers know it
  • 113
    It's available for many countries
  • 70
    Easy
  • 54
    Best way to get paid outside US
  • 35
    Most widely used payment processor
  • 25
    Express Checkout
  • 16
    Consumers trust it
  • 15
    Flexible and secure
  • 6
    Digital Goods for Express Checkout
  • 3
    Upi payments support

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Cons of PayPal
Cons of Razorpay
  • 1
    Not well written recurring payment api
  • 1
    Less countries supported
  • 1
    Harder to get started with
    Be the first to leave a con

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    What is PayPal?

    PayPal is an online payments and money transfer service that allows you to send money via email, phone, text message or Skype. They offer products to both individuals and businesses alike, including online vendors, auction sites and corporate users. PayPal connects effortlessly to bank accounts and credit cards. PayPal Mobile is one of PayPal’s newest products. It allows you to send payments by text message or by using PayPal’s mobile browser.

    What is Razorpay?

    Razorpay is the only payments solution in India that allows businesses to accept, process and disburse payments with its product suite. It gives you access to all payment modes including credit card, debit card, netbanking, UPI and more.

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    What are some alternatives to PayPal and Razorpay?
    Stripe
    Stripe makes it easy for developers to accept credit cards on the web.
    WePay
    WePay helps people sell tickets to events, send invoices, sell items online, and accept donations online. WePay also provides an API that allows developers to access its payments platform.
    Payoneer
    It is a financial services company that provides online money transfer and digital payment services and working capital solutions
    TransferWise
    It bypasses pricey international payments entirely by using two local transfers instead of one international transaction. If you want to convert your pounds to euros, you send the money in pounds to its UK-based account.
    Braintree
    Braintree replaces traditional payment gateways and merchant accounts. From one touch payments, to mobile SDKs and international sales, we provide everything you need to start accepting payments today.
    See all alternatives