borderless™ vs. Paypal: A Closer Look

How does borderless compare to PayPal? Better pricing, no cards, payment tracking, and more!


The only US based international and local direct debit solution.

borderless™ vs. Paypal: A Closer Look


Read this post to learn more about borderless™ and Paypal, and how these two payment platforms compare.

What exactly do borderless™ and Paypal do?

borderless™ is an international and local direct debit solution (i.e. global ACH) facilitating money transfers directly between bank accounts for both individuals and businesses. It is an alternative payment method (APM) to credit cards, operating as a payment processor for business-to-business and consumer-to-business transactions. 

Paypal is a global online payments processor that facilitates online money transfers between businesses and individuals. Paypal is arguably the most recognized or well-known name in the e-commerce and online payments industry, and it is a common feature of online checkouts on shopping sites like Amazon and eBay.

Though both borderless™ and Paypal are payment processors and compete in the same niche in the payments ecosystem, an important distinction to highlight is that PayPal processes credit cards, while borderless™ does not.

Who uses borderless™ and Paypal and why?

Many businesses around the world use payment platforms such as the ones offered by borderless™ and Paypal to collect payments on their websites. These businesses come from many industries, including:

  • Travel & hospitality 
  • Shipping, logistics and fulfillment
  • Software
  • Education
  • E-commerce 

These two payment processors allow individuals to securely pay merchants for products/services in these industries via online payment gateways that businesses can integrate with their websites or redirect to the borderless™/Paypal sites.

Due to its global reach, Paypal is commonly linked with eBay online shopping in countries like the US, Canada, Australia, and those in the EU (in fact, PayPal used to be a subsidiary of eBay). Thus, Paypal is often relied upon out of necessity, despite the fact that other, more affordable options exist.

In addition to this consumer-to-business (C2B) e-commerce, business-to-business (B2B) e-commerce is another growing industry that requires online payment solutions. This type of e-commerce is much more feasible with low tiered pricing and capped fees, which as you will soon see, borderless™ provides while PayPal does not. 

So now that you understand the basics of the services that borderless™ and Paypal offer, how do these two companies and products compare?

borderless™ vs. Paypal at a Glance>>

What are some common, useful features of both platforms?

1. Secure and easy payment process 

Consumers only input their bank account credentials (or card information for PayPal) once when making their borderless™ or PayPal account. Then, when making online payments with borderless™ or PayPal, consumers only need to input their borderless™ or PayPal account ID and password. By getting rid of the hassle of manually inputting this information for every transaction, both borderless™ and PayPal expedite the checkout process for consumers and save businesses time when making payments. 

With borderless™, connecting your account to your bank account can be made even easier. If you already have an online banking account with your local bank, you simply enter your online banking credentials to link the two accounts together. This means, with borderless™ you never have to input your bank information in any stage of payment. 

Overall, this also means greater security, as merchants never have access to your private information. This allows for more protection against fraudulent transactions while engaging in e-commerce. And for B2B payments, businesses do not have to share their banking information with their clients, making the process more private and secure.

2. Account for both individuals and businesses

Both borderless™ and PayPal offer the ability to create business and personal accounts, unlike other payment processors like Stripe, which only allow business accounts. 

This service allows individuals to be able to pay businesses in C2B transactions. Since e-commerce is a growing market, this is an important feature. With Paypal, users can also engage in peer-to-peer (P2P) transfers, similar to Venmo (which is actually owned by Paypal). While this feature is not yet available with borderless™, it is an upcoming addition.

In addition, making a personal or business account with borderless™ and PayPal is easy– with borderless™, creating an account takes only two minutes!

3. Contactless in-person payments 

Both borderless™ and PayPal offer contactless in-person payments for businesses. What does this mean? If a consumer goes in-person to a store, and wants to pay for their purchases using borderless™ or PayPal, the consumer can do it with contactless in-person payments. 

With PayPal, businesses can accept in-person payments with PayPal card reader and scannable QR codes that bring the consumer to the PayPal payment gateway. Similarly, with borderless™, merchants can use QR codes to bring the consumer to the business’s unique PayMe™ page, where the customer can then make the payment.

Check out our blog post on contactless payments for more information!

6 Key Differences between borderless™ and PayPal

1. Pricing and Fees 

The biggest difference between Paypal and borderless™ relates to pricing and fees. PayPal is a much more expensive option than borderless™, both locally and internationally.


Paypal does not charge consumers a fee for making local payments in-person or online. In other words, buying is free with Paypal. However, for merchants who are selling to consumers (C2B) or for business-to-business (B2B) payments, the fee for an online transaction is 2.9% plus a flat fee of $0.30, with no fee cap.

On the other hand, borderless™ charges only 1% plus a flat fee of $0.30, with capped fees of $200 for merchants receiving payments. Moreover, for B2B transactions, there is tiered pricing, with a max fee of $5 for the first $2,000 and 0.1% fee on any amount above $2,000. 

For example, for a $5,000 payment, the processing fee would be $145.30 using Paypal, whereas using borderless™, the fee would be $50.30. That is a 67% cost-savings, allowing you to keep nearly three times more of your hard-earned money. 


Although Paypal does have more of a global presence than borderless™ (service in 73 countries whereas borderless™ is currently* only available in the US, Canada, and Australia), international payments with PayPal rack up much more in fees.

For an online international transaction, Paypal charges 4.4% plus a flat fee that depends on the country in question (e.g. $0.30 USD and €0.35 EUR). In addition to this fee, Paypal charges 3% for currency conversion and 1.5% for receiving payments from another country. All these fees add up tp 8.9% for merchants receiving international payments.

In contrast, borderless™ charges just 2% plus a flat fee of $0.30 per transaction, with a capped fee of $200. And unlike Paypal, the currency conversion is included, with a better exchange rate close to the mid-market rate (the average of the price at which people are buying and selling the currency).

This difference in rates is astronomical. Consider an American consumer trying to make a $10,000 payment to a Canadian business. Using borderless™, the fee would be just $200. But using PayPal, the fee would be $890. borderless™ would enable your business to save nearly 5x more, allowing you to keep more of your money.

With these capped fees and low tiered pricing, borderless™ is the obvious choice for B2B e-commerce.

Your business can save a lot of money with borderless™. Check out our calculator tool that shows you how much money you can save by using borderless™! 

In addition, we make your savings even clearer for you by letting you know how much money you’ve saved for every transaction you make. Yes, we are that serious about saving your business money. 

*borderless™ plans to expand service to 26 additional countries by 2021.

2. Credit Cards 

One of the primary reasons why borderless™ is able to offer these low, affordable rates is because we do not process credit cards.

PayPal processes credit cards on their platform, and borderless™ does not. While at times this may be an advantage of PayPal, the reality for businesses is that credit cards are actually more expensive and risky than alternatives, like the borderless™ direct debit payment platform.

Online payments, especially for e-commerce, have mostly been dominated by credit cards. However, recent trends show that millennials are ditching credit cards due to the high debt burden they carry and by 2021, bank transfers (ACH direct debit) will be the second most popular APM for ecommerce transactions. 


When it comes to a business’ method of accepting payments, an important aspect of security is failure rates, i.e. the percentage of payments that fail to go through successfully. Credit cards have about a 5% failure rate due to credit card expiry and cancellation, while direct debit has less than a 1% failure rate. Meaning, by using a service like borderless™ businesses can improve customer retention rates. 

The borderless™ direct debit solution also offers a more secure payment method as bank accounts can’t be “cloned” like credit cards, which is a hacker’s way of stealing information from a traditional card and making a new one.


Credit cards incur high fees compared to alternative payment methods like direct debit. ACH direct debit transactions typically have the lowest fees of any payment method, whereas for credit cards, the number of intermediaries for a single transaction as well as the risk of default result in a significant cost.

3. Holding Funds

PayPal is characterized by having an account that can hold a balance of money. If you are familiar with Venmo, it operates in a similar way. When you receive a payment via Paypal, the funds are deposited into your PayPal account.

Though transferring funds over Paypal takes place immediately, transferring the funds from your PayPal account to your bank account usually takes 1 business day for local transactions, but it can take up to 5 days “depending on your bank’s clearing process.” Moreover, for international transactions, the transfer takes at least 3-5 business days.

borderless™, on the other hand, does not hold your funds in an intermediary account. There is no middleman. Instead, in 2-4 business days, the funds are transferred directly from the payer’s bank account to the recipient’s bank account. 

4. Customer Service

Though it may not be the first thing one thinks about when it comes to a product or service, customer service is a vital part of a payments company. Questions or issues are bound to arise in the course of conducting business. 

Paypal is not known for incredible customer service. In fact, a simple Google search will tell you that customers are generally not satisfied with the help they receive from Paypal.

Customer service at borderless™ is different. We provide quick responses to questions that you might have as you navigate our website or use our product.

In addition to having the ability to talk on the phone to a customer service representative, there is a live chat option on our website (pictured above) that will connect you to a team member within 15 minutes so your question can be addressed.

When you use borderless™, you can rest assured that you will have a simple and secure user experience, and that there will always be a real person there to help you around the clock.

5. Payment Tracking & Request Reminders

Another key difference between borderless™ and PayPal is that borderless™ offers payment tracking and reminders, while PayPal does not. With borderless™, you can track your payment in real-time so you know where your funds are at all times. You can also send request reminders directly through the platform to avoid chasing people down. 

These abilities provide borderless™ users many benefits:  

  • Improved control over your liquidity (cash flow) with estimated funds arrival time. 
  • Transparency over the whole payment process for peace of mind – No more guessing if they have paid or not. 
  • Reduced admin work so you can focus on what is truly important for your business. 
  • Reminders are sent from borderless™ and not the requestor removing the friction between you and the client for outstanding payments. This feature keeps a more efficient and professional relationship between you and the client with less back-and-forth interactions.

6. Fast Bank Checkouts

A final key difference between borderless™ and PayPal is that borderless™ enables your customers to pay with their bank without signing up for an account, while PayPal does not.

This is a sample product shot of what your business’ website could look like with borderless™’ e-commerce plugin. Customers can choose to pay with their bank and pay without creating a borderless™ account!

With borderless™, One-Time bank checkouts are now possible, which enables your customers to checkout more conveniently while saving you up to 70% on payment processing fees vs PayPal. This is just the latest way that the borderless™ team is committed to saving you money and keeping you and your money safe with the highest privacy and security standards.

Final Thoughts

Paypal and borderless™ are two payment processors that offer similar services to your company.

borderless™ is designed by dreamers, not bankers. That’s why we care about what matters most to your company: your bottom line, ease of use and customer service.

borderless™ is the more affordable payment processor by far, like x5 more! This is not to mention our superior customer service and user experience.

Ready to get ahead? Create your borderless™ account today and experience global bank payments for yourself (Use code: BORDERLESS20). Time for peace of mind with simple, cost-effective, and secure local and international payments. 

Get borderless.

For more information about specific differences between borderless™ and PayPal, check out our helpful comparative chart below.

Table showing the general differences between borderless and PayPal

Fees and Pricing
Table showing the differences in pricing and fees for borderless and PayPal (local pricing, international pricing, hidden fees, transferring balance to bank accounts)

Table showing the differences in payments between borderless and PayPal (in person, making payments, recurring, B2B, payment tracking)

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Want to see our product live in action? Please enter your details below and a member of our team will schedule a time for a demo.

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