Payment gateways enable businesses to accept eCommerce transactions through a secure network. The leading payment processors in the US are PayPal and Braintree, which provide reliable gateways that can boost your growth and performance and make online sales more convenient for your customers.
Understanding the advantages and disadvantages of each platform can help you choose the better fit between Braintree vs PayPal for your business.
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Payment gateways help process payment information and transfer funds between customers and merchants during the authorization process. Working with payment processors — such as PayPal or Braintree — means they can provide you with a merchant account for businesses to access your funds.Â
A payment processor handles the processes from end to end, allowing businesses to accept online payments securely. When choosing a payment processor, it’s a good idea to consider monthly sales volumes, ease of use, setup process, and transaction fees.
There are plenty of benefits that come with integrating a payment processor in your business, such as faster transactions, tighter security, less room for error, and customer experience.
With a payment gateway, you can process online payments much faster than the traditional way of paying cash. Approval only takes a few seconds, and no change has to be given, providing a better shopping experience for your customers.
Payment gateways also enable businesses to accept online payments from all over the world in multiple currencies, without the number of business days needed for processing other forms of payments.
Online payment gateways reduce the need for human intervention, avoiding incidents of giving the wrong change. Some also offer features such as automatic withdrawal and recurring billing.
Most payment gateways come with fraud detection, data encryption, and PCI compliance that can help prevent chargebacks from occurring. Standard features include flagging large transactions, device identification, 3-D Secure, and risk scoring.
Providing a variety of online payment methods at checkout can make your products and services more appealing to a wide range of customers. Using a payment gateway that provides greater flexibility can boost your sales.
Braintree was founded in 2007 and was acquired by PayPal in 2013. It is a payment platform that provides both a merchant account and a payment gateway for users. Some well-known clients that work with Braintree include Uber, StubHub, and Airbnb. It is available for merchants in over 45 countries and regions worldwide.Â
| Advantages | Disadvantages |
| • Great developer tools • Flat-rate pricing • Offers multi-currency options •Comprehensive payment types • Extensive app integrations • Provides recurring billing and subscriptions • Offers ACH payment processing • Good status page | • Expensive gateway-only feature • Not suitable for high-risk merchants • Long setup process for accounts • Instances of closed accounts and on-hold funds • Could use better fraud protection |
PayPal, originally known as Confinity, was founded in 1998. Unlike Braintree, it is a third-party processor that uses individual merchant accounts, allowing users to send and receive money online.
It is one of the first online payment systems, earning the trust of popular clients, including eBay, Shopify, and ASOS. It serves over 30 million merchants in more than 200 countries and regions worldwide.
| Advantages | Disadvantages |
| • Strong fraud protection • Security without added fees • All-in-one payment system • Easy setup and user interface • No fees for sending money to family and friends • Doesn’t offer that many payment types | • Inconsistent phone customer support • Some account stability issues and aggressive account freezes • 1% fee for instant access to your fund • Free bank transfers take several days |
This chart provides a comparison of PayPal features and Braintree features in a table for your reference, including a broad overview of fees, payment methods, and security.
| Braintree | PayPal | |
| Fees | Online Domestic U.S. Transactions: 2.9% + 30 cents | Online Domestic U.S. Transactions: 2.9% + 30 cents |
| Supported Payment Methods | PayPal, Apple Pay, Google Pay, Venmo, major credit and debit cards | PayPal balance, PayPal Credit, debit or credit cards, Venmo, Apple Pay, Google Pay |
| Card Types | Visa, Mastercard, Discover, Diners, American Express, UnionPay, JCB | Visa, Mastercard, American Express and Discover |
| Monthly Fees | None | None |
| Fraud Protection | Basic Fraud Tools and Premium Fraud Management Tools | Basic Fraud Tools and Advanced Fraud Management Tools |
| Availability | United States, Canada, Europe, Australia, Singapore, Malaysia, Hong Kong SAR China, and New Zealand | Available in more than 200 countries/regions |
Overall, both PayPal features and Braintree features provide businesses with reliable and comprehensive payment processing solutions. While Braintree is more suitable for businesses with high-volume transactions and particular needs, PayPal is targeted towards small and mid-size businesses looking for an easy setup process.
Looking for a reliable merchant account? Processing Card offers recommendations to find the right one for your business.Â
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