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Personal Finance · head to head

PayPal vs Starling Bank

PayPal logo

PayPal

Personal Finance

The simpler, safer way to pay and get paid

From
$29/month
Rated
-
Full reviewWebsite
Starling Bank logo

Starling Bank

Personal Finance

UK-licensed digital bank with FSCS-protected deposits, built and majority-owned without a US parent

From
Free
Rated
-
Full reviewWebsite

The short version

  • Only Starling Bank 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; Starling Bank as a UK-only bank, customers wanting broad multi-currency holding, international transfers or in-app investing will need a separate product, since Starling's feature set stays deliberately focused on core banking.
  • They diverge on capability: PayPal covers Payment processing, Starling Bank covers FSCS-protected deposits.
  • Prices and features above were last checked on 1 September 2026.

Where they differ

Only the attributes on which PayPal and Starling Bank actually diverge.

Attributes where PayPal and Starling Bank differ
AttributePayPalStarling Bank
Starting price$29/monthFree
Pricing modelusage-basedFree personal current account; business accounts have free and paid tiers
Free tierNoYes
PlatformsWeb, Ios, Android, ApiiOS, Android, Web
Founded1998Unknown

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 Starling Bank

  • FSCS-protected deposits
  • Business banking suite
  • Fee-free foreign card spending
  • Savings Spaces
  • Joint accounts
  • Starling mortgages

What people use each for

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

PayPal

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

Starling Bank

  • A UK resident wanting a free, fully licensed current account with FSCS deposit protectionnot PayPal
  • A sole trader or small business wanting a business account with built-in invoicing rather than a separate accounting subscriptionnot PayPal
  • A frequent traveller wanting fee-free card spending abroad on a UK-regulated accountnot PayPal
  • A saver wanting goal-based Spaces sub-accounts without opening a separate savings productnot 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

Starling Bank

  • As a UK-only bank, customers wanting broad multi-currency holding, international transfers or in-app investing will need a separate product, since Starling's feature set stays deliberately focused on core banking.
  • Business account paid tiers add a monthly fee for features that some competitors bundle for free, so cost comparison against other business banking options should account for the tier actually needed, not the free entry point.
  • Like other app-first banks, Starling has very limited physical presence, which is a real limitation for customers needing to deposit cash or prefer in-person service.
  • Mortgage lending is limited to buy-to-let through a subsidiary rather than a full residential mortgage range, so it is not a one-stop option for a typical homebuyer.
  • Interest rates on savings Spaces and any lending products are set individually and can change, so the specific rate should be checked at the time of opening rather than assumed from marketing.

Pricing, plan by plan

PayPal

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

Starling Bank

Free
  • Personal current accountFree
    • Free current account with FSCS-protected deposits
    • Fee-free foreign currency card spending
    • No monthly account fee
  • Business Toolkit$7/month
    • Integrated invoicing and expense categorisation
    • Multiple sub-accounts (Spaces) for tax and VAT setting-aside
    • Accounting software integrations

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 Starling Bank if

  • You need fscs-protected deposits.
  • You want to start without paying.
  • You work on iOS, Android, Web.
  • You also want business banking suite.
Starling Bank review

Questions people ask

Is PayPal or Starling Bank better?
Neither clearly leads. PayPal starts at $29/month and Starling Bank at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, PayPal or Starling Bank?
Starling Bank has a free tier; the other does not. Paid plans start at $29/month for PayPal and Free for Starling Bank.
Does PayPal or Starling Bank run on more platforms?
PayPal runs on Web, Ios, Android, Api. Starling Bank runs on iOS, Android, Web.
Can I use Starling Bank for free?
Yes. Starling Bank 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 Starling Bank is typically brought in for.
What can PayPal do that Starling Bank cannot?
PayPal covers Payment processing, PayPal Checkout, Invoicing, Business debit card. Starling Bank covers FSCS-protected deposits, Business banking suite, Fee-free foreign card spending, Savings Spaces.

Answered from the vendors’ own pages

PayPal: Does PayPal charge fees and when do they apply?

PayPal states that fees apply when converting currency and sending money to accounts in another country. Specific fee amounts are not disclosed on the homepage but are referenced in their published fee schedule.

Source
Starling Bank: Is Starling Bank a real bank?

Yes, Starling Bank Limited holds a full UK banking licence and is regulated by the FCA and PRA, the same framework as traditional UK banks.

PayPal: Is there a subscription cost to use PayPal's basic services?

No subscription fees are mentioned on the homepage. PayPal operates on a transaction-based fee structure for money transfers and payments rather than recurring charges.

Source
Starling Bank: Are deposits protected if Starling fails?

Eligible deposits are covered by the Financial Services Compensation Scheme up to 85,000 pounds per eligible person, the same statutory protection as other UK banks.

PayPal: Are there restrictions on when I can use buyer protection?

PayPal offers buyer protection for eligible purchases, but coverage limitations exist. A user agreement sets the specific conditions for protection eligibility.

Source
Starling Bank: Is Starling good for a small business?

It has a well regarded business banking product with integrated invoicing and accounting software links, commonly used by UK sole traders and small companies.

PayPal: What payment methods can I link to PayPal?

PayPal's digital wallet allows storage of multiple payment methods and can be used for secure money transfers, payment requests, and checkout at major retailers.

Source
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