PayPal vs Razorpay: Difference and Comparison

As an e-commerce payment gateway modality, PayPal is committed to improving the ease of digital transactions. It provides features like online payments, payment analytics, payment processing, and invoice processing.

While Razorpay has features like online payments through debit, and credit card integrations, UPI, and multicurrency payment processing.

Key Takeaways

  1. PayPal is a global online payment system that allows individuals and businesses to make and receive payments securely.
  2. Razorpay is a payment gateway for Indian businesses that offer various payment options, including credit and debit cards, UPI, and net banking.
  3. PayPal is more widely accepted and offers more advanced features, while Razorpay is more tailored to the Indian market and offers competitive pricing.

PayPal vs Razorpay

PayPal is a global payment platform that allows individuals and businesses to send and receive payments online; it supports transactions in multiple currencies. Razorpay is an Indian payment gateway that enables businesses to accept online payments through various payment modes, primarily focused on transactions in Indian currency.

PayPal vs Razorpay
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A process that is repeated, evaluated, and refined is called __________

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Which of the following semiconductor is mostly used to construct electronic circuits?

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PayPal is more suited for smaller businesses and the e-commerce marketplace. Razorpay is a cloud-based payment gateway solution that benefits SMEs and larger enterprises.

It facilitates the smooth management of their finances through process automation, vendor payouts, and subscription options.

Comparison Table

Parameters of Comparison PayPalRazorpay
SuitabilityPayPal is the best international payment gateway for local merchants.Razorpay operates best as a convergence payment gateway that allows customers the largest payment integration of online payment modalities.
FeaturesPayPal includes features like electronic signature, in-person payments, and ACH payment processing.These features are absent from Razorpay.
SecurityPayPal provides better security than Razorpay. PayPal offers credit card vault and protection.These measures are absent from the otherwise competent security structure of Razorpay.
Multicurrency SupportPayPal supports multicurrency transactions.Razorpay does not support multicurrency transactions.
Customer BaseCaters to SMEs as well as individuals and freelancers.Does not cater to freelancers.
Customer SupportCustomer service representatives are not available 24X7 to offer support to customers.Customer service representatives are available 24X7 to offer support to the customers.
Recurring PaymentsPayPal allows users to make and receive recurring payments.Razorpay does not allow users to make and receive recurring payments.
Ease of OperationPayPal is more user-friendly, especially when we take cognizance of its speed of processing refund requests.Razorpay is less user-friendly than PayPal because it takes longer to refund disputed payments.

What is PayPal?

The American payment gateway solution provider PayPal now operates globally as an e-commerce payment facilitator. It is now operating in over 200 countries. It caters to the needs of businesses and freelancers, aiding them in their digital transformation journey.

PayPal provides its customers with the ability to undertake online transactions in a safe, free, and easy manner.

The forte of the brand is that it allows customers to shop from over a million online stores using its digital payment methods. The platform is free and does not require any extra withdrawal charges. The brand is hailed for the simplicity embodied in its interface.

Transactions can be started just after the registration process is completed. It also supports multicurrency transfers making it an apt international payment gateway. Moreover, the customer service the brand offers is unmatched and quite coveted.  

paypal

What is Razorpay?

Razorpay is also a payment gateway solution provider headquartered in Bangalore, India. It operates as one of the leading digital payment platforms in India. Razorpay is extremely popular among businesses of varying sizes. However, its services are not extended to freelancers.

As a free platform, Razorpay does not charge any setup or annual maintenance fees from customers. Charges are applied only on transactions. Moreover, it supports international credit cards and the major e-commerce CMS systems.

Razorpay also offers a feature called RazorpayX that functions as the company’s business banking arm making end-to-end money transfers easier. Automating transfers, integrating wallets of other payment methods, and providing digital payment assistance are the fortes of the firm.

However, customers complain about how long the interface takes to refund disputed payments. This is a drawback for the brand.

razorpay

Main Differences Between PayPal and Razorpay

  1. The main difference between PayPal and Razorpay is that the former offers feature catering to the e-commerce platforms like online payments, payment analytics, invoice payments, and others. At the same time, Razorpay is a convergence platform that caters to medium and large-sized enterprises through features like multicurrency payments processing, online payments, and credit and debit card integrations.
  2. PayPal allows for more integrations than Razorpay. Fewer integrations make Razorpay a less favourable choice among customers.
  3. Freelancers and individuals cannot use Razorpay. Enterprises of various sizes can only use it. However, PayPal can be used by enterprises as well as freelancers.
  4. Razorpay has 24×7 customer representatives to provide customer support to users. PayPal does not provide such round-the-clock live representative guidance to customers.
  5. Although they both provide quite an extensive list of features, PayPal has more offerings in this arena than Razorpay. Features like electronic signature, in-person payments, ACH payment processing, and others are offered by PayPal. Razorpay does not offer these features.
  6. Recurring payments can be made through Razorpay. Such payments cannot be made through PayPal.
  7. PayPal is more secure than Razorpay. It offers SSL support, credit card vaults, and fraud protection that are absent from Razorpay.
  8. PayPal is more user-friendly as it provides quick refunds on disputed payment requests. Razorpay is not as user-friendly as PayPal, as it takes days to respond to such requests.
References
  1. https://books.google.com/books?hl=en&lr=&id=u9KiDwAAQBAJ&oi=fnd&pg=PR7&dq=PayPal+vs+Razorpay&ots=CNXdPu57nX&sig=v6iIy02W3v7oTj3ejBr6N5OWhl4

Last Updated : 11 June, 2023

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