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Betterment vs PayPal

Betterment logo

Betterment

Software

Your path to financial independence

From
$5/month
Rated
-
Full reviewWebsite
PayPal logo

PayPal

Software

The simpler, safer way to pay and get paid

From
$29/month
Rated
-
Full reviewWebsite

The short version

  • Each has a real cost: Betterment digital automated investing charges $5 per month fee for accounts under $24,000 balance; PayPal currency conversion on international purchases and sends carries a 4.00 percent fee, and 3.00 percent in other conversion scenarios
  • They diverge on capability: Betterment covers Automated investing, PayPal covers Payment processing.

Where they differ

Only the attributes on which Betterment and PayPal actually diverge.

Attributes where Betterment and PayPal differ
AttributeBettermentPayPal
Starting price$5/month$29/month
Pricing modelsubscriptionusage-based
PlatformsWeb, iOS, AndroidWeb, Ios, Android, Api
Founded20081998

Identical on both: free tier (No), user rating (Not yet rated), category (Unknown).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in Betterment

  • Automated investing
  • Retirement planning
  • Financial advisory
  • Goal tracking
  • Bank accounts
  • Investment accounts
  • IOS support

Only in PayPal

  • Payment processing
  • PayPal Checkout
  • Invoicing
  • Business debit card
  • Working capital loans
  • Shopify
  • WooCommerce
  • BigCommerce

Both cover

  • Web support
  • Android support

What people use each for

The jobs each tool is most often brought in to do.

Betterment

  • Small investors starting with automated investing at no minimum balancenot PayPal
  • Fee-only digital wealth management for accounts under $24,000 via $5/month flat feenot PayPal
  • Premium advisory access for high-net-worth individuals with $100,000+ balancenot PayPal

PayPal

  • Paying online merchants without sharing card detailsnot Betterment
  • Sending money to friends and family domestically and internationallynot Betterment
  • Holding balances in multiple currencies for cross border purchasesnot Betterment

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

Betterment

  • Digital automated investing charges $5 per month fee for accounts under $24,000 balance
  • Premium advisory service requires minimum balance of $100,000 in eligible investments
  • Foreign transaction fees apply to checking account (though reimbursed after the fact)
  • High-balance fee discounts only available above $1,000,000 account balance

PayPal

  • Currency conversion on international purchases and sends carries a 4.00 percent fee, and 3.00 percent in other conversion scenarios
  • Instant transfer to a bank or debit card costs 1.75 percent of the amount, with a minimum of 0.25 USD and a maximum of 25.00 USD
  • International personal transactions carry a 5.00 percent fee regardless of payment method, with a minimum of 0.99 USD and a maximum of 4.99 USD
  • Sending domestic personal payments funded by a credit card costs 2.90 percent plus a fixed fee of 0.49 USD
  • Instant transfers are capped at 25,000.00 USD per transaction

Pricing, plan by plan

Betterment

$5/month

No published plan breakdown. See the Betterment review.

PayPal

$29/month
  • Standard$2.99/transaction
    • Card payments
    • PayPal checkout
    • Invoice payments

Which should you pick?

Choose Betterment if

  • You need automated investing.
  • You work on Web, iOS, Android.
  • You also want retirement planning.
Betterment review

Choose PayPal if

  • You need payment processing.
  • You work on Web, Ios, Android, Api.
  • You also want paypal checkout.
PayPal review

Questions people ask

Is Betterment or PayPal better?
Neither clearly leads. Betterment starts at $5/month and PayPal at $29/month, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Betterment or PayPal?
Betterment starts at $5/month and PayPal at $29/month.
Does Betterment or PayPal run on more platforms?
Betterment runs on Web, iOS, Android. PayPal runs on Web, Ios, Android, Api.
What is Betterment best used for?
Betterment is most often used for small investors starting with automated investing at no minimum balance, fee-only digital wealth management for accounts under $24,000 via $5/month flat fee, premium advisory access for high-net-worth individuals with $100,000+ balance. Of those, small investors starting with automated investing at no minimum balance and fee-only digital wealth management for accounts under $24,000 via $5/month flat fee are not what PayPal is typically brought in for.
What can Betterment do that PayPal cannot?
Betterment covers Automated investing, Retirement planning, Financial advisory, Goal tracking. PayPal covers Payment processing, PayPal Checkout, Invoicing, Business debit card. Both handle Web support, Android support.
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