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Difference Between YAP and PayPal

With the digitization of services in every field, digitization of payments and transactions has also become essential.


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The necessity to go cashless in every phase of business and life leads to the invention of financial technology companies. These companies make payments and transactions easier, convenient, secure, and cashless.

Two such fintech companies include YAP and PayPal.

YAP vs PayPal

The difference between YAP and PayPal is that YAP has a smaller base of services and users, whereas, PayPal has a wide base of services such as credit cards and others. Moreover, PayPal has been into the digitization of financial services much before YAP. The business models of YAP & PayPal are also different which differentiates their manner of delivery of services to customers and clients.

YAP vs PayPal

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YAP came up as a fintech company from the tea breaks of two tech-savvy friends with a mission to lift banks from their backwardness in digitization.

With a B2B business model, YAP mainly focuses on delivering its services to business individuals.

Moreover, the company and its services are at an elementary stage that means they are still being polished and improved. 

PayPal is another fintech company that has a much-simplified interface. It’s an RBI-approved service provider which provides facilities such as UPI payments and merchant payments.

At PayPal, one can even send money to acquaintances who don’t have a PayPal account.

With a B2C and C2C business model, PayPal offers its services directly to its customers which ensures full safety, security, and transparency.

Comparison Table

Parameters of ComparisonYAPPayPal
FoundersThe founders of YAP are Prabhu R and Madhusudanan R.The founders of PayPal are Yu Pan, Peter Thiel, Elon Musk, Max Levchin, and Luke Nosek.
Founding YearYAP came into existence in 2014.PayPal came into existence in 1998.
Partnerships with BanksYAP has partnerships with 20 banks at the national level.PayPal has partnerships with almost all banks present worldwide.
Geographical Locations ServedYAP serves at locations such as India, the UAE, Philippines, Nepal, New Zealand, and Australia.PayPal serves in 200+ countries.
Products and ServicesYAP acts like a payments-as-a-service wherein it integrates banks with other financial institutions.PayPal’s main products and services include payment systems and credit cards.

What is YAP?

Started by Prabhu R and Madhusudanan R, YAP took birth as a payment-as-a-service from the office tea breaks of its founders.

Both founders of YAP were fintech entrepreneurs who had sound knowledge and grip over handling payments businesses throughout the continent.

They quit their jobs at Visa Inc, Mumbai after realizing the backwardness of banks in keeping up with the trend of digitization.

YAP, which rose as a solution for financial industries and banks, can easily manage retail payment assets.

From their work experience in Citibank, Visa, Paypal for a long time, the founders analyzed the manner of functioning of banks in India.

YAP has a unique API wherein fintech companies, digital platforms, and offline businesses can create easier and faster payment methods and options.

With a mission to let every business enjoy the privilege of being a fintech, today, YAP has about 200 business partners in integration.

YAP works in integration with RAKBANK intending to align with the guiding rules of Fair Finance and develop an embedded finance infrastructure.

The startup has a B2B business model. Thus, companies can easily connect with their target financial institutions and infrastructure within a short time and start offering cost-effective and faster solutions. 

What is PayPal?

Started by Luke Nosek, Elon Musk, Max Levchin, Peter Thiel, and Yu Pan, PayPal today ranks 134th in the list of Fortune 500.

Starting as Confinity, PayPal serves as a payment processor for various sites and clients. With a mission of democratizing financial matters among businesses and people, Paypal came into existence.

The revenue model of PayPal shows that it generates its revenue from the taxes and charges it levies on its customers for their total payments made. 

The value-added services offered by the company also contribute to its revenue model. On a basic level, PayPal refers to another online transaction system that makes transactions and payments easier.

One can grab a PayPal account for free. Moreover, PayPal doesn’t levy charges on its customers for personal transactions.

However, Paypal charges for a few transactions such as foreign goods purchases and withdrawals.

Generally, PayPal offers two types of accounts based on the user’s demands. Personal PayPal accounts are for an individual’s use which an individual can use for making any transaction or payment.

Business PayPal accounts are for businesses. These accounts help businesses make transactions with their customers irrespective of whether their customer has a PayPal account or not.

Main Differences Between YAP and PayPal

  1. YAP arose as a Chennai-based fintech startup. But, PayPal is an American fintech startup.
  2. YAP has no such subsidiaries. But, PayPal had subsidiaries such as Braintree, Xoom Corporation, PayPal Credit, Honey, Paydiant, and others.
  3. YAP has a B2B business model. On the other hand, PayPal’s business model is P2P and B2C. 
  4. With 20 banks as its partner, YAP serves about six countries globally. On the contrary, PayPal has a wide user base linking banks and companies at an international level. PayPal stretches its services to more than 200 countries. 
  5. YAP is still testing its credit card services. But, PayPal has well-established credit card facilities and services for its customers.
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