Revolut vs PayPal

Revolut and PayPal have revolutionised the way we handle digital payments, offering convenient and secure alternatives to traditional banking. While both platforms excel in the domain of online transactions, they differ in their scope of services and target audience. In this article, we will explore the similarities and differences between Revolut and PayPal, highlighting their unique features, international payment capabilities, banking services, and merchant offerings. Whether you’re a frequent traveller, an online shopper, or a business owner, understanding the distinctions between these two popular payment platforms can help you make an informed choice about which one suits your needs best. Let’s dive in and discover the nuances of Revolut vs PayPal.

What is Revolut?

Revolut is a British fintech company that offers a range of banking services through an app-based platform. Founded in 2015, the company’s products include a prepaid debit card (MasterCard or Visa), peer-to-peer payments, currency exchange, and cryptocurrency exchange. Revolut’s mobile app supports spending and ATM withdrawals in 120 currencies, allowing money transfers in 29 currencies directly from the app. The app also provides users access to cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and XRP. In Revolut, you can find four different plans. Each has various benefits, and you can compare them on their website. Find out more about Revolut in our article.

What is PayPal?

PayPal is a widely recognised online payment system that enables individuals and businesses to send and receive money securely over the internet. With its user-friendly interface and widespread acceptance, PayPal has become a go-to digital payment solution for a variety of transactions. Users can link their bank accounts, credit cards, or debit cards to their PayPal account, allowing for seamless and quick online payments.

PayPal offers a range of services, including sending money to family and friends, making purchases from online retailers, and facilitating transactions between buyers and sellers on popular e-commerce platforms.

Revolut vs PayPal: an overview

Although they provide distinct services, both financial platforms also share certain similarities.

• Online payments

PayPal has been a dominant player in the online payments market for over 20 years. It allows users to send and receive money easily, make online purchases, and integrate with various e-commerce platforms. PayPal offers buyer and seller protection, making it a trusted platform for online transactions.

Revolut, on the other hand, is a relatively new player (launched in 2015) in the market but has gained significant popularity. It offers similar features to PayPal, allowing users to send and receive money, make online payments, and integrate with e-commerce platforms. Revolut also provides additional features like virtual cards and disposable virtual cards, making it convenient for online shopping.

• International Transfers

Both Revolut and PayPal offer international money transfers, but there are differences in their approaches. PayPal allows users to send money to over 200 countries and supports multiple currencies. However, PayPal’s fees for international transfers can be relatively high, especially when converting currencies.

Revolut, on the other hand, is known for its competitive exchange rates and low fees for international money transfers. It supports over 30 currencies and allows users to send money abroad with no hidden fees. Revolut also provides a multi-currency wallet, enabling users to hold and exchange different currencies within the app.

• Costs

Revolut generally offers free domestic and international money transfers, but certain premium features and services may involve fees. Currency exchange fees may apply for specific situations, and ATM withdrawals beyond the monthly limit may incur a fee.

PayPal charges transaction fees for receiving payments for goods or services, typically ranging from 2.9% to 3.49% of the transaction amount, plus a fixed fee. Currency conversion fees are applied when converting funds from one currency to another.

• Mobile and User experience

Both Revolut and PayPal offer mobile apps for convenient access to their services. Revolut’s app is highly praised for its intuitive design, user-friendly interface, and ease of use. It provides a seamless experience for managing finances and making payments.

PayPal’s app has been around for longer and offers a comprehensive set of features. However, some users find its interface slightly cluttered and overwhelming compared to Revolut’s sleek design.

• Security

Revolut employs advanced security measures such as two-factor authentication, biometric authentication, and the ability to freeze cards instantly. While it does not offer specific buyer and seller protection programs, it provides chargeback rights for unauthorised transactions.

PayPal utilises strong encryption technology, offers two-factor authentication, and has well-established buyer and seller protection programs. Users can monitor transactions, set spending limits, and report lost or stolen cards.

Credit card options

Revolut provides its users with the option to apply for a Revolut Credit Card. The Revolut Credit Card allows users to make purchases and payments globally, both online and offline. It comes with competitive exchange rates and offers various features like cashback, travel insurance, and lounge access, depending on the user’s account type and location. The availability of the Revolut Credit Card may vary depending on the user’s country.

PayPal offers the PayPal Credit service, which functions as a digital credit line. Users can apply for PayPal Credit, and if approved, they can access a credit limit that can be used for online purchases. PayPal Credit provides flexible repayment options and may offer promotional financing deals, such as interest-free periods for eligible purchases.

Both Revolut and Paypal are good options if you’re looking for a financial digital platform to use. They’re both easy to use and user friendly, for sure one of them will suit you best! You can also know more about Skrill, a competitor that is similar to Revolut and Paypal.