Braintree VS PayPal: 2024 Comparison

It’s come to this: Braintree vs. PayPal. But wait a minute? Doesn’t PayPal own Braintree? Aren’t they running on a lot of the same infrastructure? The answer to both those questions is “yes.” Will that stop us from comparing them? No!

While Braintree is fully integrated into the PayPal ecosystem, it does still have some unique properties that distinguish it from PayPal’s flagship service. Different types of businesses are likely to benefit more from one than the other depending on what, exactly, they need in a payment gateway and/or payment processor.

Let’s take a closer look at Braintree vs. PayPal and see what they have to offer.

Braintree VS PayPal At A Glance

Braintree is owned by PayPal and, as you might expect, the two services have a lot in common. That said, they’re aimed at different audiences. PayPal is designed to be extremely user-friendly, offering quick onboarding and intuitive interfaces for small businesses and contractors. Braintree is very much not that. Braintree is made for businesses that can employ or contract developers to customize their payment processes. Where PayPal is convenient, Braintree is flexible.

Another big difference is that Braintree offers full merchant accounts whereas PayPal is a third-party processor. A full merchant account provides better account stability but has a longer and more vigorous approval process.

New and very low-volume merchants will generally be better served by PayPal, whereas mature businesses selling across borders will often find Braintree to be the better option.

Note that neither service is a great choice for high-risk merchants.

Where Braintree Wins

• Full merchant account
• Easier-to-understand pricing
• Security and customization

Braintree wasn’t always a part of PayPal. Prior to 2013, the Chicago-based company offered merchant accounts, a payment gateway, and a developer-friendly environment that allowed customers to fine-tune their payment processing and reach international markets. Braintree still offers full merchant accounts, which provide more transparency and stability to your payment processes.

Braintree’s developer-centric approach means you’ll have more control over your security features, your checkout pages, the types of payments you can accept, and how you handle international transactions.

Finally, there’s the matter of pricing. PayPal’s pricing has become quite complex in recent years and can vary significantly depending on what type of account you have. Braintree pricing, which is based on PayPal’s own Advanced Credit/Debit Card plan, is far more straightforward. You’ll pay 2.59% + $0.49 for your credit card transactions. Simple. Easy.

Where Braintree Falls Short

• Lack of invoicing features
• No native support for in-person transactions
• Overpriced gateway-only option

Invoices are a very common type of card-not-present transaction, so it’s a little surprising that Braintree doesn’t offer much in the way of billing. Likewise, when even eCommerce-focused competitors like Stripe have been expanding their ability to process in-person transactions, Braintree’s inability to do so is becoming conspicuous. We can cut Braintree some slack here since a PayPal integration addresses many of its shortcomings, but it’s still worth noting that you’ll need to look outside of Braintree’s box for what has become core functionality.

Finally, while Braintree does offer a payment gateway-only option for businesses looking for one, its price point of $49/month with a flat $0.10 transaction fee makes it far more expensive than just using the full Braintree payment processing platform.

Where PayPal Wins

• All-in-one payment platform
• Very user-friendly
• Great for low-volume merchants

PayPal is arguably the biggest name in eCommerce payment processing. PayPal’s flagship service is all about being simple, quick, and easy to use for small businesses. If you sign up for PayPal, you’ll quickly notice how streamlined and intuitive most of the interfaces and options are. Yes, there is higher-level functionality and customization you can tinker with if you have a developer, but where these features are core to Braintree, they’re more icing on the cake for PayPal.

With its proprietary payment method, payment links, P2P processing, and nearly endless integrations, PayPal is a convenient entry point for merchants who want to accept credit cards.

Where PayPal Falls Short

• Virtual terminal isn’t free
• Account stability issues
• ACH not supported for P2B transactions

PayPal offers a lot of functionality without the burden of a monthly fee. Yet, if you want to enter credit card information by hand into a virtual terminal, you’ll need to pay $30 for the pleasure. Many of PayPal’s competitors (as well as Braintree) offer this feature free of charge. Another inconvenience is the lack of support for P2B ACH transactions; PayPal directs those looking for ACH support to Braintree.

While it’s an issue common to all third-party payment processors, we need to talk about account stability here. Using this kind of platform for your payment processing comes with a higher risk of account holds and freezes. Additionally, these issues can be hard to resolve. Your best bet is to adhere closely to PayPal’s policies and make sure you’re not selling any prohibited items.

PayPal VS Braintree: Pricing Comparison

Braintree’s pricing model, though comparable to PayPal’s Advanced Credit/Debit card plan, is considerably more straightforward. Most transactions will run you 2.49% + $0.49, and you won’t be worrying about monthly fees regardless. With PayPal, as mentioned above, we highly encourage you to read our full rundown of the company’s pricing; it’s complicated.

Note that both companies offer interchange-change plus pricing for higher volume merchants, and a reduced online transaction rate of 1.99% + $0.49 for nonprofits. If you want to use Braintree’s gateway independent of its payment processing, it’ll cost you $49/month and $0.10 per transaction.

Depending on the plan you choose and your processing volume, PayPal can be the cheaper option. However, for most merchants, Braintree’s lower chargeback and international processing fees will add up to lower monthly prices.

Braintree VS PayPal: Features

You can think of Braintree vs. PayPal as a battle between two different shipping companies using the same roads. Because of this, the two services have more in common than not. In fact, when Braintree can’t do something that PayPal can, you can generally fix this through PayPal integrations.

Still, we’ll give you a rundown of where these services differ by default.

Which Is Best For My Business Needs?

What’s your favorite soft drink: Coke or Diet Coke? Braintree versus PayPal represents two variations on the same service once you get under the hood. Braintree is best for businesses that need a technical, customizable eCommerce solution with a stable merchant account. PayPal is primarily for lower-volume merchants who need a reliable and user-friendly way to take a wide variety of payment types.

Choose Braintree Payments If…

• Your business needs to accept ACH payments
• You have a developer on your team or are one yourself
• You want a dedicated, stable merchant account
• You handle many different currencies in your online transactions

Choose PayPal If…

• You don’t do a ton of eCommerce transactions
• You want to get your online payments up and running quickly
• You want nearly instant access to your payments
• You want an easy-to-use interface

Not sure if the PayPal ecosystem is for you? Concerned about PayPal and Braintree’s relatively high transaction pricing? Check out your alternatives on our list of best credit card processing companies.