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Personal Finance · head to head

PayPal vs Kraken

PayPal logo

PayPal

Personal Finance

The simpler, safer way to pay and get paid

From
$29/month
Rated
-
Full reviewWebsite
Kraken logo

Kraken

Personal Finance

Secure cryptocurrency exchange for serious traders

From
Free
Rated
-
Full reviewWebsite

The short version

  • Only Kraken has a free tier, so it costs nothing to try first.
  • 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; Kraken restricted in 16 jurisdictions due to compliance requirements
  • They diverge on capability: PayPal covers Payment processing, Kraken covers Spot Trading.

Where they differ

Only the attributes on which PayPal and Kraken actually diverge.

Attributes where PayPal and Kraken differ
AttributePayPalKraken
Starting price$29/monthFree
Pricing modelusage-basedfreemium
Free tierNoYes
PlatformsWeb, Ios, Android, ApiWeb, Ios, Android
Founded19982011

Identical on both: 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 Kraken

  • Spot Trading
  • Futures Trading
  • Margin Trading
  • Staking
  • OTC Desk
  • Bank transfers
  • SWIFT
  • Plaid

Both cover

  • Web support
  • Ios 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 Kraken
  • Sending money to friends and family domestically and internationallynot Kraken
  • Holding balances in multiple currencies for cross border purchasesnot Kraken

Kraken

  • Exchangesnot PayPal
  • Tradingnot PayPal
  • Stakingnot 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

Kraken

  • Restricted in 16 jurisdictions due to compliance requirements
  • Withdrawal processing delays due to KYC verification, blockchain confirmations, and compliance checks
  • Account restrictions triggered by scam prevention can only be lifted after 90 days
  • Margin trading limited to 5x leverage on most assets; 10x available only to eligible users

Pricing, plan by plan

PayPal

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

Kraken

Free
  • StarterFree
    • Basic trading
    • Staking
    • Instant buy
  • ProFree
    • Advanced trading
    • Margin trading
    • Futures

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 Kraken if

  • You need spot trading.
  • You want to start without paying.
  • You work on Web, Ios, Android.
  • You also want futures trading.
Kraken review

Questions people ask

Is PayPal or Kraken better?
Neither clearly leads. PayPal starts at $29/month and Kraken at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, PayPal or Kraken?
Kraken has a free tier; the other does not. Paid plans start at $29/month for PayPal and Free for Kraken.
Does PayPal or Kraken run on more platforms?
PayPal runs on Web, Ios, Android, Api. Kraken runs on Web, Ios, Android.
Can I use Kraken for free?
Yes. Kraken has a free tier, so you can try it without paying. PayPal starts at $29/month.
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 Kraken is typically brought in for.
What can PayPal do that Kraken cannot?
PayPal covers Payment processing, PayPal Checkout, Invoicing, Business debit card. Kraken covers Spot Trading, Futures Trading, Margin Trading, Staking. Both handle Web support, Ios support, Android support.

Answered from the vendors’ own pages

Kraken: How much does Kraken charge in fees?

Kraken Pro spot trading fees start at 0.25 percent maker and 0.40 percent taker for entry-level volume, decreasing to 0.00 percent maker and 0.08-0.10 percent taker at USD 10M+ monthly volume. The Kraken standard platform charges 1 percent on instant trades and 1.5 percent on custom orders. Kraken+ membership costs 4.99 USD/month or 49.99 USD/year for up to USD 10k/month in fee-free volume.

Source
Kraken: In how many countries can I use Kraken?

Kraken supports 190+ countries and 9 major fiat currencies (USD, EUR, GBP). However, services are restricted in 16 jurisdictions including Russia, Iran, North Korea, Syria, and Afghanistan due to regulatory compliance requirements.

Source
Kraken: Is Kraken custody secure?

Kraken holds ISO/IEC 27001:2022 certification and passed SOC 2 Type 1 examination. The exchange uses cold storage with crypto infrastructure in secure cages under 24/7 armed surveillance. Kraken Custody uses multiparty computation (MPC) and hardware security module (HSM) technology. As a Wyoming SPDI-chartered institution, Kraken Financial operates on full-reserve basis, holding 100 percent of client deposits in unencumbered liquid assets.

Source
Kraken: What cryptocurrencies can I trade?

Kraken supports 500+ cryptocurrencies across 600+ crypto trading pairs. The platform also offers tokenized equities (xStocks) for direct trading of stock exposure, and supports staking rewards on eligible digital assets.

Source
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