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Personal Finance · head to head

PayPal vs Betterment

PayPal logo

PayPal

Personal Finance

The simpler, safer way to pay and get paid

From
$29/month
Rated
-
Full reviewWebsite
Betterment logo

Betterment

Personal Finance

Your path to financial independence

From
$5/month
Rated
-
Full reviewWebsite

The short version

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

Where they differ

Only the attributes on which PayPal and Betterment actually diverge.

Attributes where PayPal and Betterment differ
AttributePayPalBetterment
Starting price$29/month$5/month
Pricing modelusage-basedsubscription
PlatformsWeb, Ios, Android, ApiWeb, iOS, Android
Founded19982008

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

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 PayPal

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

Only in Betterment

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

Both cover

  • Web support
  • Android support

What people use each for

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

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

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

Where each one falls short

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

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

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

Pricing, plan by plan

PayPal

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

Betterment

$5/month

No published plan breakdown. See the Betterment review.

Which should you pick?

Choose PayPal if

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

Choose Betterment if

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

Questions people ask

Is PayPal or Betterment better?
Neither clearly leads. PayPal starts at $29/month and Betterment at $5/month, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, PayPal or Betterment?
PayPal starts at $29/month and Betterment at $5/month.
Does PayPal or Betterment run on more platforms?
PayPal runs on Web, Ios, Android, Api. Betterment runs on Web, iOS, Android.
What is PayPal best used for?
PayPal is most often used for paying online merchants without sharing card details, sending money to friends and family domestically and internationally, holding balances in multiple currencies for cross border purchases. Of those, paying online merchants without sharing card details and sending money to friends and family domestically and internationally are not what Betterment is typically brought in for.
What can PayPal do that Betterment cannot?
PayPal covers Payment processing, PayPal Checkout, Invoicing, Business debit card. Betterment covers Automated investing, Retirement planning, Financial advisory, Goal tracking. Both handle Web support, Android support.
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