Payment processing is a vital cog in the wheel of any business, be it online or offline. In this digital age, numerous companies worldwide offer payment processing services. Among these, two platforms stand out due to their extensive use and comprehensive feature sets — Worldpay vs PayPal. This article offers a detailed comparison of these platforms for UK businesses seeking to choose a payment processing provider.
Worldpay vs PayPal
| Feature/ Fee | Worldpay | PayPal |
|---|---|---|
| Transaction fee (within the UK) | Quote-based | 2.9% + 30p |
| Transaction fee (international) | Quote-based | 4.4% + fixed fee based on currency received |
| Set-up fee | Yes | No |
| Monthly fee | Yes | No |
| PCI compliance fee | Yes | No |
| Account cancellation fee | Yes | No |
| Chargeback fee | Yes | Yes (£14) |
| Refund fee | Yes | Yes (original transaction fee) |
| Types of payments accepted | Credit/Debit cards, Mobile wallets, Online banking | Credit/Debit cards, PayPal, Local payment methods |
| Multi-channel payments | Yes | Yes |
| Security measures | End-to-end encryption, Fraud screening | Data encryption, Fraud protection |
| Customer support | 24/7 via phone or email, Online help centre | Phone and email support, Help centre, Community forum, Resolution centre |
| E-commerce platform integration | WooCommerce, Magento, Shopify, APIs/SDKs for custom integrations | Major e-commerce platforms, APIs for custom integrations |
| Mobile and POS system integrations | Yes | Yes |
Please note that Worldpay’s fees can vary greatly based on the specific agreement made with the company. Additionally, the pricing of both Worldpay and PayPal are subject to change over time and may differ based on other specific factors related to your business. Always check the latest information from their official websites.
Featured pro tools
What are Worldpay and PayPal?
Worldpay and PayPal are popular payment gateways that businesses use to accept payments from customers securely. As gateways, they facilitate the safe passage of sensitive financial information from the customers to the issuing bank or the card association, or the acquirer bank in the case of card payments.
Understanding Worldpay
Worldpay, originally a British firm established in 1989 and now part of FIS, is a global leader in payment processing solutions. It allows businesses to accept payments through various modes such as credit/debit cards, mobile wallets, and online banking.
Deciphering PayPal
PayPal, headquartered in the USA, is renowned worldwide for its online money transfers and digital payment solutions. It’s been in business since 1998 and is a go-to choice for many due to its extensive reach and user-friendly features.
How do they process payments?
Both Worldpay and PayPal facilitate the processing of payments, but their methodologies differ slightly.
Worldpay’s payment process
Worldpay provides an integrated payment processing system that can handle payments across multiple channels. Businesses can accept payments from all major credit/debit cards, bank transfers, and a variety of mobile wallets. Worldpay offers a secure system with end-to-end encryption and fraud screening, ensuring that transactions are protected throughout the process.
PayPal’s payment process
PayPal enables businesses to accept payments online or in person. Customers can pay using their PayPal accounts, which can be linked to their credit/debit cards or bank accounts. PayPal also allows customers to make card payments directly without a PayPal account. For security, PayPal employs data encryption and anti-fraud technology.
Comparing cost structures
Understanding the cost implications is crucial while choosing a payment gateway. Both Worldpay and PayPal have their unique cost structures, each with its pros and cons.
Worldpay’s cost structure
Worldpay operates on a quote-based pricing model, meaning the rates can be customised according to the specific needs of your business. There is a transaction fee, but the percentage or fixed amount depends on the individual agreement. Some businesses may prefer this as it gives them some room for negotiation. However, Worldpay also levies charges for setup, monthly usage, PCI compliance, and even account cancellation in some cases.
PayPal’s cost structure
PayPal operates on a flat-rate pricing model, charging 2.9% + 30p per transaction for sales within the UK. For international sales, it charges 4.4% + a fixed fee based on the currency received. While PayPal’s pricing is more transparent, it can prove expensive for businesses with smaller transaction sizes. Also, note that PayPal charges a fee for chargebacks and refunds.
Customer support comparison
Customer service is another crucial factor, particularly when dealing with financial transactions where issues may arise.
Worldpay’s customer support
Worldpay provides a dedicated customer service team available 24/7 via phone or email. Their support system also includes an extensive online help centre with guides and resources to help businesses troubleshoot common problems.
PayPal’s customer support
PayPal offers several support options, including phone and email support. They also provide a comprehensive help centre, community forum, and a resolution centre for dispute management. However, users often report longer wait times and less personalised service compared to Worldpay.
A look at integrations
Integration with existing systems can significantly enhance the usability of a payment gateway.
Worldpay’s integration options
Worldpay provides an array of integration options, including popular e-commerce platforms such as WooCommerce, Magento, and Shopify. Their APIs and SDKs allow developers to create custom integrations, and the platform supports mobile and POS system integrations.
PayPal’s integration options
PayPal offers similar integration possibilities, including with major e-commerce platforms, and provides APIs for custom integrations. PayPal’s platform also supports POS systems and mobile integrations.
The final verdict – Worldpay vs PayPal?
Both Worldpay and PayPal offer robust and reliable payment processing solutions, but they cater to different needs and business types.
Worldpay’s flexibility in pricing can benefit larger businesses that have the leverage to negotiate better rates. Its diverse payment options can help businesses cater to a broad customer base, and its robust customer support is a boon for businesses that might need quick assistance.
On the other hand, PayPal is excellent for small businesses or startups due to its straightforward and transparent pricing, extensive reach, and user-friendly interface. Its name recognition can also contribute to customer trust, a critical factor for new businesses.
Ultimately, the choice between Worldpay and PayPal depends on your specific business needs, transaction volume, and the type of customers you serve. Both offer their unique strengths and are leaders in the field of payment processing.
FAQ for Wordpay vs PayPal
A payment gateway is a technology used by merchants to accept debit or credit card purchases from customers. The term includes not only the physical card-reading devices found in brick-and-mortar retail stores but also the payment processing portals found in online stores.
PayPal is both a payment gateway and a payment processor. It allows businesses to accept payments through its gateway and also processes payments, facilitating the transfer of funds from the customer’s account to the business’s account.
Yes, Worldpay provides a secure platform for payment processing. It offers end-to-end encryption and advanced fraud screening to safeguard sensitive financial information.
Yes, PayPal offers buyer protection on eligible transactions. This feature can help customers dispute a transaction if the item they’ve received is significantly not as described or if they never received their item.
Yes, Worldpay offers mobile payment solutions, allowing businesses to accept payments through mobile wallets and offering mobile point-of-sale (POS) solutions.
Yes, PayPal can process credit and debit card payments from customers who do not have a PayPal account.
Yes, Worldpay generally charges a setup fee, although the exact amount depends on your specific agreement with Worldpay.
Yes, PayPal charges a fee of £14 for chargebacks.
Yes, Worldpay can be integrated with popular e-commerce platforms such as Shopify, Magento, and WooCommerce.
PayPal provides phone and email support, a comprehensive help centre, a community forum, and a resolution centre for managing disputes.
Yes, Worldpay supports international payments. However, the charges for such transactions are based on your specific agreement with Worldpay.
Yes, when a refund is issued, PayPal retains the original transaction fee.
Worldpay supports over 120 currencies, enabling businesses to expand their reach globally.
Yes, PayPal is available in more than 200 countries and supports 25 currencies.
Yes, Worldpay usually charges a monthly fee, but the amount can vary based on your specific agreement with them.
PCI compliance refers to meeting the Payment Card Industry Data Security Standard, a set of security standards designed to ensure all companies that accept, process, store, or transmit credit card information maintain a secure environment. PayPal doesn’t charge extra for PCI compliance; it’s part of their service.
Yes, Worldpay offers a virtual terminal that allows businesses to process card payments over the phone or by mail order.
Yes, PayPal supports recurring payments, which is especially useful for subscription-based businesses.
Worldpay is suitable for a wide range of businesses, including online businesses, brick-and-mortar stores, and mobile businesses, due to its diverse payment options and customisable pricing.
Yes, PayPal is often a popular choice for small businesses and startups due to its straightforward pricing, user-friendly interface, and widespread recognition among consumers.