PayPal payments: features, advantages and alternatives

In the dynamic world of global eCommerce, businesses and freelancers in Hong Kong are increasingly looking for payment solutions that are flexible, diverse, and cost-effective. While PayPal has long been a go-to for many local merchants for cross-border payments, many are now exploring more efficient and cost-effective alternatives, such as the all-in-one fintech platform, Airwallex.

This article will take a close look at PayPal's core features, advantages, and limitations. It will then provide a detailed comparison with Airwallex regarding fees and functionality, helping you choose the right solution for your business.

PayPal’s key features 

PayPal offers a comprehensive online payment solution, allowing merchants to get paid from global customers through their website, social media, or email. The platform supports over 120 currencies and accepts a range of payment methods, including major credit and debit cards, PayPal wallets, as well as Apple Pay and Google Pay. Customers can also complete a purchase without a PayPal account. It also integrates with major eCommerce platforms like Shopify, WooCommerce, and Magento.

The PayPal checkout process is optimised for mobile devices and includes a fast checkout feature that allows customers to save their payment details for future use, reducing abandoned carts. Merchants can also set up ‌recurring payments, instalment plans, and partial refunds to suit different business models. In terms of security, PayPal provides 3D Secure authentication, fraud detection, and compliance tools.

Advantages of using PayPal

One of PayPal's main advantages is its brand reputation and user adoption. Consumers are generally familiar with the PayPal checkout interface, which can boost confidence and increase conversion rates.

For merchants, the barrier to entry is relatively low. The account setup process is straightforward, so even those without a technical background can get set up quickly, making it a suitable option for SMEs and new cross-border businesses. Furthermore, its pre-existing integrations with many eCommerce platforms and tools simplify the setup and management process.

For international business, PayPal covers over 200 markets and supports more than 120 currencies. This makes it a widely accepted and reliable payment channel that helps businesses connect with customers in Europe, North America, Southeast Asia, and other emerging markets.

PayPal’s common limitations

Limited flexibility with cash flow

When merchants transfer their PayPal balance to a local bank account, the process typically takes 3–5 business days. This delay can be a source of pressure for businesses that require quick access to funds, as the actual time varies depending on the bank's settlement procedures.

Account risk controls

When PayPal's system detects unusual activity, it may restrict or freeze a business account without prior notice or immediate customer support. This poses a potential risk for businesses that rely on stable cash flow.

Airwallex vs. PayPal for payment collection 

Credit card processing fees are often a primary consideration when selecting a payment solution. Airwallex offers a more competitive pricing model with a wider range of supported payment methods, and it supports like-for-like settlement in 14+ currencies, helping businesses budget and manage revenue more accurately by reducing forced conversion fees.

Why you should choose Airwallex for your cross-border business

Airwallex provides greater flexibility and technical agility for businesses, especially those looking to expand into multiple markets quickly. Merchants can integrate the payment module directly into their website or generate a "one-click" Payment Link and send it to customers to complete a transaction in minutes.

The platform supports over 130 currencies and more than 160 local payment methods, including major options like credit cards, WeChat Pay, Apple Pay, Google Pay, and Klarna. Additionally, Airwallex offers seamless connections with major eCommerce platforms like Shopify and WooCommerce, and it provides APIs to meet complex cross-border and multi-currency needs.

Moreover, Airwallex allows merchants to open local currency accounts online, enabling them to receive payments like a local business. Funds can be converted at interbank FX rates with high transparency and at a much lower cost than traditional financial institutions, helping businesses budget their revenue more accurately.

Frequently asked questions

1. Can I use both PayPal and Airwallex simultaneously?

Yes, you can use both platforms simultaneously. For instance, you could use PayPal for transactions where customers prefer to use their PayPal wallet, as Airwallex also supports receiving payments from PayPal. Meanwhile, you can use Airwallex for large-amount payments and in overseas markets to reduce fees and improve cash flow efficiency.

2. Can funds from Airwallex be withdrawn to a local Hong Kong bank?

Yes. Airwallex supports transfers to over 200 countries and regions, allowing you to withdraw your account balance to your local bank.

3. What specific advantages does Airwallex offer for cross-border payments?

• Supports 130+ currencies and 160+ payment methods, improving the customer payment experience

• Offers local receiving accounts for businesses to easily accept payments in multiple currencies

• Provides competitive FX rates

• Offers fast and reliable international transfers, with 95% of payments arriving on the same day

These features enable businesses to expand into overseas markets while effectively controlling payment costs and cash flow risks.

Source: 

Information on PayPal was retrieved as of August 2025, from the sources below. Information provided is for reference only. Please refer to the official website of PayPal for the most up-to-date details

1. https://www.paypal.com/hk/cshelp/article/%E5%A6%82%E4%BD%95%E5%BE%9E%E6%88%91%E7%9A%84-paypal-%E5%B8%B3%E6%88%B6%E6%8F%90%E6%AC%BE%EF%BC%9F-help394?locale.x=zh_HK

2. https://www.paypal.com/hk/business/platforms-and-marketplaces?locale.x=zh_HK

3.  https://www.paypal.com/hk/business/accept-payments?locale.x=zh_HK

4.  https://www.paypal.com/hk/business/paypal-business-fees

5. https://www.paypal.com/hk/cshelp/article/%E7%82%BA%E4%BD%95%E6%88%91%E7%9A%84-paypal-%E5%B8%B3%E6%88%B6%E4%BD%BF%E7%94%A8%E6%AC%8A%E5%8F%97%E9%99%90%EF%BC%9F-help534

Disclaimer: The information was based on our own online research and we were 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 every 6 months. If you would like to request an update, feel free to contact us at [email protected].