Adyen vs PayPal: Find the right payment platform to grow your business

Key takeaways:

• PayPal and Adyen are both widely recognised, globally used platforms that help businesses accept customer payments

• While PayPal offers ease and name recognition, Adyen brings end-to-end acquiring and a wide selection of payment methods

• When comparing PayPal vs Adyen, Airwallex offers an all-in-one platform to help you save on fees while scaling your business

Finding the right payment provider is central to your ability to expand globally, control costs while growing revenue, and delivering a seamless customer experience. For many businesses, comparing Adyen vs PayPal is part of the deciding when navigating international expansion and operational efficiency.

In this guide, we break down how Adyen and PayPal performs in Australia when it comes to fees, functionality, flexibility, and support. We’ll also show you how Airwallex fits into the picture as a powerful platform for ambitious global businesses.

How does PayPal work?

PayPal is a US-based payments giant best known for consumer payments and peer-to-peer transfers. It offers simple online checkout tools, invoicing, and payment acceptance for merchants of all sizes.

Key features:

• Widely trusted by consumers worldwide

• Accepts cards, PayPal balance, Pay in 4, and more

• Easy-to-use checkout integrations

• Instant transfers to bank accounts

• Buyer and seller protection policies

Founded in 1998, PayPal is widely adopted by small businesses and consumers, especially in eCommerce and marketplaces.

How does Adyen work?

Adyen is a Dutch enterprise-grade payment platform used by major brands like Uber, Spotify, and Microsoft. It provides a unified solution for online and in-person payments, combining acquiring, processing, and risk management in a single platform.

Key features:

• End-to-end acquiring in over 40 markets

• Broad local payment method support (cards, wallets, bank transfers)

• Unified platform for online, in-app, and POS payments

• Advanced risk tools (RevenueProtect)

• Interchange++ pricing with transparent pass-through fees

• Built-in reporting and reconciliation for finance teams

• Direct control over payment flows without intermediaries

Adyen is built for scale and control, making it a preferred choice for high-volume, multinational businesses.

Adyen vs PayPal: A head-to-head comparison

Adyen vs PayPal: Fees compared

Both PayPal and Adyen charge fees on a per-transaction basis. PayPal has domestic and international card transaction fees while Adyen uses an interchange ++ model and charges fees based on the payment method used. 

PayPal fees explained

PayPal uses flat-rate pricing that varies by region and payment type. Key fees for Australian businesses include:

• Domestic online payments: 2.90% + A$0.30 per transaction

• International payments: 2.90% + A$0.30 plus an additional 1% and fixed country fee

• Currency conversion: 2.5%–4% margin above the base exchange rate

• Chargeback fee: A$20 per dispute

• Instant transfers: 1% fee to eligible Australian bank accounts or linked cards

• Platform fees: May apply for integrations with PayPal Commerce Platform or marketplaces

While PayPal is easy to set up and widely used, its flat-rate model can become expensive for businesses processing high volumes or working across multiple currencies.

Adyen fees explained

Adyen uses an Interchange++ model, which breaks fees into three parts:

• Processing fee: You’ll be charged a processing fee of A$0.11 per transaction

• Payment method fee: Adyen charges varying fees depending on the payment method used

• Interchange fee: For cards such as Visa and Mastercard, Adyen charges Interchange + + 0.60% on top of the processing fee. These fees are set by the card networks and passed directly to you.

Additional fees relevant to Australian merchants include:

• Chargeback handling: €25 per dispute

• Currency conversion: Typically 0.6%–1.2% above the mid-market rate

• Instant payouts: Custom fees based on payout partner and destination

• In-person POS fees: Varies by hardware and setup

• Fees for high-risk businesses: Assessed case by case

• Setup & platform fees: Custom setups (e.g. marketplaces, multi-region platforms) may incur charges

Quick fee comparison: Adyen vs PayPal

Beyond the basics: Key differences between Adyen and PayPal

• Checkout experience: PayPal offers a familiar, trusted flow for consumers. Adyen supports fully customisable checkouts integrated directly into the merchant’s brand.

• Pricing model: PayPal’s flat-rate is easy to understand but less efficient at scale. Adyen’s Interchange++ allows optimisation but adds complexity.

• Platform maturity: Adyen is built for control, with native acquiring and reconciliation features. PayPal offers simplicity but fewer enterprise-grade capabilities.

• Developer capabilities: Adyen offers extensive APIs and documentation for tailored solutions. PayPal’s integrations are more basic.

• Settlement and payouts: Adyen offers faster, same-day settlement for some card transactions. PayPal often requires 1–2 days unless merchants pay extr for speed.

• Flow of funds: PayPal controls the customer-to-merchant transaction flow. Adyen provides direct acquiring, reducing delays and offering more transparency.

• Dispute resolution: PayPal offers buyer protection, but can freeze merchant funds. Adyen supports merchants more directly with chargeback tools.

• Airwallex advantage: Many businesses find PayPal limiting and Adyen too complex. Airwallex bridges the gap with API-first infrastructure, local accounts, and transparent pricing for global businesses.

Why Airwallex is the payment platform of choice for Australian businesses

Airwallex gives Australian businesses a smarter, simpler way to manage international payments. Where PayPal charges flat-rate fees and adds FX on top, and Adyen requires complex custom setups, Airwallex combines clarity and control in one platform – without the overhead.

Key benefits of using Airwallex:

• Like-for-like settlement in 20+ currencies: Get paid and hold funds in the same currency – no forced conversions, no hidden FX margins.

• Open global accounts fast: Set up local currency accounts in minutes, not weeks.

• Receive local bank details in 21 countries: Accept payments like a local business in major global markets.

• Access interbank FX rates: Get real-time, market-aligned rates on 90+ currencies.

• Cut FX costs by up to 80%: Compared to traditional banks and legacy platforms.

• Send faster global payouts: Over 90% use local rails, with 95% arriving same day or faster.

• Manage everything in one place: Payments, FX, virtual cards, expenses, and approvals – all in one platform.

Airwallex is ideal if:

• You’re looking to reduce international transaction fees

• You want to hold and manage multiple currencies without multiple accounts

• You need fast, reliable payouts across borders

• You want a single, modern platform that simplifies global business banking

Adyen vs PayPal: Frequently asked questions

Is Adyen or PayPal better?

Adyen can be better for large enterprises needing control and customisation. PayPal may be ideal for smaller businesses that want quick setup and a trusted consumer experience. If you want a scalable global solution without the overhead to help your business scale, Airwallex is your your best option.

Who is PayPal's biggest competitor?

Adyen and Airwallex are strong competitors to PayPal for enterprise merchants. Airwallex is known for its advanced API and multi-currency support, while Adyen offers integrations and comprehensive payment services.

Who is Adyen's biggest competitor?

PayPal and Airwallex are key competitors. Airwallex challenges Adyen by offering an agile, cost-efficient option for international businesses.

Can I use PayPal and Adyen at the same time?

Yes, many businesses use both platforms depending on their needs. For example, PayPal might be enabled as a familiar payment method for consumers, while Adyen handles card payments and in-store transactions. This hybrid approach offers flexibility.

What makes Airwallex different from PayPal and Adyen?

Airwallex is built for global businesses that want flexibility, local support, and lower fees. Unlike PayPal, it doesn’t hold your funds or charge hefty FX margins. Unlike Adyen, it’s easy to set up without an enterprise contract. It offers API-first functionality and local bank details in over 150 countries.

Sources:

• https://www.adyen.com/pricing

• https://www.paypal.com/au/business/paypal-business-fees

• https://www.paypal.com/au/digital-wallet/paypal-consumer-fees

The information in this article is based on our own online research. Airwallex was not able to manually test each tool or provider. The information is provided for educational purposes only and a reader should consider the specific requirements of their business when evaluating providers. This research is reviewed annually. If you would like to request an update, feel free to contact us at [[email protected]]. This information doesn’t take into account your objectives, financial situation, or needs. If you are a customer of Airwallex Pty Ltd (AFSL No. 487221) read the Product Disclosure Statement (PDS) for the Direct Services available here.