Revolut vs PayPal for business banking – Comparing costs, features, pros and cons

When it comes to managing finances for your business, choosing the right banking solution is crucial. Two popular options that have gained significant traction among businesses in the UK are Revolut and PayPal.

Both platforms offer a range of features and services tailored to meet the needs of businesses, but they have distinct differences that can influence your decision. In this article, we will compare Revolut vs PayPal for business banking, outlining the pros, cons, key differences, costs, and other essential considerations.

Revolut vs PayPal

Features	Revolut	PayPal
Account Types	Personal and Business	Primarily Business
International Payments	Yes	Yes
Expense Management	Advanced tools	Basic tracking
Budgeting Features	Yes	No
Advanced Security	Two-factor authentication	Buyer and Seller protection
Banking Licenses	e-Money License	Full banking services
Customer Support	Some reported challenges	Generally reliable
Payment Options	Digital payments	Credit/debit cards, bank transfers
Integration with E-commerce	Limited	Extensive
Transaction Fees	Competitive rates, potential fees	Transaction fees, currency conversion fees
Withdrawal and Transfer Limits	Imposed limits	Flexible limits
Transaction Holds	Not applicable	Occasionally holds funds

Please note that the table provides a general overview, and it’s recommended to visit the official websites of Revolut and PayPal to obtain the most up-to-date and detailed information on their features and services.

Statistics

1. Revolut:

• As of 2021, Revolut had over 16 million personal and business customers worldwide.
• Revolut processed over 150 million transactions per month.
• The company has raised over $900 million in funding, with a valuation of $33 billion as of 2021.
• Revolut operates in over 35 countries and supports over 150 currencies, making it a strong choice for businesses engaged in international trade.

2. PayPal:

• As of 2021, PayPal had over 400 million active accounts worldwide.
• In the first quarter of 2021, PayPal reported $6.03 billion in revenue, representing a 29% year-over-year increase.
• PayPal processed 4.4 billion payment transactions in the first quarter of 2021.
• The company’s market capitalisation exceeded $300 billion as of 2021, highlighting its position as a leading digital payment provider.

Pros of Revolut

• Easy account setup: Revolut provides a user-friendly and hassle-free account setup process, enabling businesses to open an account swiftly.
• International payments: Revolut’s global presence and extensive currency exchange capabilities make it an excellent choice for businesses engaged in international trade.
• Expense management: The platform offers powerful expense management tools, allowing businesses to track and categorise expenses efficiently.
• Budgeting features: Revolut provides budgeting features that help businesses keep track of their spending, set financial goals, and manage cash flow effectively.
• Advanced security: Revolut emphasises security, implementing features such as two-factor authentication and the ability to freeze and unfreeze cards instantly.

Cons of Revolut

• Limited banking licenses: Revolut holds an e-money license, which means it does not provide full banking services like loans and overdrafts. This limitation may restrict certain financial transactions for businesses.
• Customer support: Some users have reported challenges with Revolut’s customer support, including delayed responses and difficulty in resolving issues promptly.

Pros of PayPal

• Wide acceptance: PayPal is widely accepted by merchants and customers globally, providing businesses with a convenient and recognisable payment method.
• Integration with e-commerce platforms: PayPal integrates seamlessly with various e-commerce platforms, making it easy for businesses to set up online stores and accept payments.
• Buyer and seller protection: PayPal offers buyer and seller protection programs, which can help resolve disputes and provide an extra layer of security for online transactions.

Cons of PayPal

• Transaction holds: PayPal occasionally places funds on hold for security purposes, which can cause delays in accessing your money.
• High transaction fees: PayPal charges transaction fees, particularly for international payments and currency conversions, which can significantly impact businesses with frequent cross-border transactions.

Revolut vs PayPal – Key differences

1. Account types: Revolut offers both personal and business accounts, whereas PayPal primarily focuses on business accounts.
2. Transaction fees: Revolut offers competitive exchange rates for international transactions but may charge fees for certain types of transfers. PayPal charges fees for international transactions and currency conversions.
3. Payment options: PayPal allows customers to make payments using various methods, including credit/debit cards and bank transfers. In contrast, Revolut emphasises digital payment options through its mobile app.
4. Withdrawal and transfer limits: Revolut imposes certain limitations on daily and monthly withdrawals and transfers, which may impact businesses with high transaction volumes. PayPal offers flexibility in withdrawal and transfer limits, depending on your account type and verification status.

Revolut vs PayPal – Costs and other considerations

Both Revolut and PayPal offer different pricing structures for their business accounts.

It is essential to review their fee schedules and compare them based on your specific business requirements.

Additionally, consider factors such as integration with accounting software, reporting capabilities, user experience, and the overall reliability and reputation of each platform.

Compare the fee structures of both platforms, including transaction fees, currency conversion fees, withdrawal limits, and any other charges that may apply to your business.

Assess your specific financial needs and transaction volumes to determine which platform offers the most cost-effective solution for your business.

Revolut vs PayPal – Verdict

In conclusion, choosing between Revolut vs PayPal for your business banking needs requires a careful evaluation of their pros, cons, key differences, costs, and other relevant factors.

Revolut’s strengths lie in its ease of use, international payment capabilities, and robust expense management features, while PayPal excels in its wide acceptance, integration with e-commerce platforms, and buyer and seller protection programs.

However, Revolut’s limited banking licenses and potential customer support challenges should be taken into account, while PayPal’s transaction holds and higher transaction fees for certain transactions may impact your decision.

Ultimately, the choice between Revolut vs PayPal for business banking comes down to your specific requirements, priorities, and preferences.

Consider the unique needs of your business, whether it’s focused on international transactions, online sales, expense management, or a combination of factors.

Revolut vs PayPal – FAQ

Remember, these FAQs provide general information, and it’s recommended to visit the official websites of Revolut and PayPal to obtain the most accurate and detailed information related to your specific business needs and requirements.