Difference Between PayPal and Razorpay

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.

PayPal vs Razorpay

The main difference between PayPal and Razorpay is that PayPal operates solely as a payment gateway catering to the e-commerce platform. Razorpay is a convergence payment gateway, embodying several diverse features.

PayPal vs Razorpay 1

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

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

Comparison Table Between PayPal and Razorpay

Parameters of ComparisonPayPalRazorpay
SuitabilityPayPal is the best international payment gateway for local merchants.Razorpay operates best as a convergence payment gateway that allows the largest payment integration of online payment modalities for customers.
FeaturesPayPal includes features like electronic signature, in-person payments, ACH payment processing.These features are absent from Razorpay.
SecurityPayPal provides better security than Razorpay. Credit card vault and protection are offered by PayPal.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 not as user-friendly as 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 journey of digital transformation.

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

The forte of the brand is that allows customers to shop 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 offered by the brand is unmatched and quite coveted.  


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 as well as 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 transfer easier. Automating transfers, integrating wallets of other payment methods, and providing digital payment assistance are the fortes of the firm.

However, customers often complain about the long duration taken by the interface to refund disputed payments. This is a drawback for the brand.


Main Differences Between PayPal and Razorpay

  1. The main difference between PayPal and Razorpay is that the former offers features catering to the e-commerce platforms like online payments, payment analytics, invoice payments, and others, while Razorpay is a convergence platform that caters to medium and large-sized enterprises through features like multicurrency payments processing, online payments, credit and debit card integrations.
  2. PayPal allows for more integrations than Razorpay. Fewer integrations make Razorpay a less favorable choice among customers.
  3. Razorpay cannot be used by freelancers and individuals. It can only be used by enterprises of various sizes. 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 secured 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.


Both PayPal and Razorpay are renowned payment gateway solutions available across the world. Both offer quality features and services to their respective clienteles. The popularity and performance of both platforms are quite competitive. However, a few differences can be noted between the two platforms.

PayPal is more suited as an e-commerce payment gateway that caters to the need of international money transactions. Its features are designed with this as the central aim. However, Razorpay is oriented towards facilitating the integrations of payment methods available in the country.

It allows SMEs and large enterprises to streamline their payments by integrating wallets and payment methods offered by other gateways.

The choice between the two can be a complicated one. If you are a freelancer looking for a suitable digital payment gateway, PayPal is the better option.

However, if you are seeking a reputed payment gateway for your medium-sized enterprise, Razorpay may be better poised to fulfill your requirements.


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