Adyen vs PayPal: The ultimate 2025 comparison guide for payment platforms

Finding the right payment provider can make or break your ability to grow globally, control costs, and deliver a seamless customer experience. For many businesses, the Adyen vs PayPal comparison is at the centre of that decision, especially when navigating international expansion and operational efficiency.

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

What is PayPal?

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.

What is Adyen?

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 45 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

Data current as of August 2025

Detailed fee comparison table

Data current as of August 2025

This table illustrates how the Adyen fees vs PayPal compare across common use cases. While PayPal is more predictable upfront, Adyen can deliver long-term savings and flexibility for high-volume or multinational businesses.

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

• PayPal Zettle (POS): 1.75% per tap, insert, or swipe

• 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: Typically around 0.60%, depending on payment method and region

• Interchange fee: Set by card networks, varies by card type and country

• Scheme fee: Charged by Visa/Mastercard and passed through directly

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

Unlike PayPal’s flat-rate structure, Adyen’s model rewards businesses with higher volumes or global footprints. While it may require a deeper understanding, it can result in lower fees overall – especially for cross-border and enterprise merchants.

Who is PayPal best for?

PayPal is best suited to small businesses, startups, and individual sellers that want to get up and running quickly. With its simple flat-rate pricing, trusted brand, and plug-and-play setup, it’s ideal for eCommerce, marketplaces, and sellers who prioritise buyer trust and ease of use. Businesses that prefer a hands-off setup and familiar checkout experience will appreciate PayPal’s ease of integration and customer recognition.

Who is Adyen best for?

Adyen is designed for large businesses and enterprises with complex global payment needs. It’s a top choice for high-volume merchants who require full control over the payment stack, detailed reporting, and custom integration options across multiple regions and sales channels. Companies needing flexible infrastructure, unified commerce across online and offline, and granular data visibility will benefit most from Adyen’s robust platform.

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 extra.

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 a powerful alternative to Adyen and PayPal

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 14+ 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 70+ countries: Accept payments like a local business in major global markets.

• Access interbank FX rates: Get real-time, market-aligned rates on 100+ 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

Final verdict: Choosing the right payment partner

Adyen vs PayPal comparisons come down to what your business needs most.

Choose PayPal if you:

• Need a quick, easy-to-set-up checkout

• Prioritise buyer familiarity and trust

• Run a small business or marketplace

Choose Adyen if you:

• Operate at enterprise scale with complex payments needs

• Want granular control and real-time reporting

• Have technical resources for custom setups

Or, consider Airwallex if you:

• Need global reach without the complexity

• Want an affordable, scalable alternative with local support

• Prefer an all-in-one platform that grows with your business

Explore Airwallex today and discover a smarter way to grow your global business.

Adyen vs PayPal: frequently asked questions

Is Adyen or PayPal better?

Adyen is better for large enterprises needing control and customisation. PayPal is ideal for smaller businesses that want quick setup and a trusted consumer experience. If you want a scalable global solution without the overhead, Airwallex could be 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.

What is the best payment gateway?

There’s no one-size-fits-all answer. PayPal suits microbusinesses, Adyen serves enterprises, and Airwallex offers a middle ground for modern, global teams.

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