With advancing finance technology, newer payment portals such as Revolut and time-tested brands like PayPal are all set to redouble how one deals with cash.
This Revolut vs PayPal guide will compare the two providers according to different features such as fees, customer experience, and money transfer methods.
Using due diligence, we intend to guide you by presenting you with insights to rationalize the changing digital payment technology world.
The primary goal is to help you choose the right option as per your needs.
If you are looking to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me ([email protected]) or WhatsApp (+44-7393-450-837).
This includes if you are looking for a second opinion or alternative investments.
Some facts might change from the time of writing, and nothing written here is financial, legal, tax, or any other kind of individual advice, or a solicitation to invest.
About Revolut
Revolut was founded in 2015 by Vlad Yatsenko and Nikolay Storonsky in London.
It was originally designed to eliminate foreign exchange fees for tourists.
Anyhow, it has since evolved into an end-to-end digital banking platform with advanced features in a range of financial services.
What does Revolut do?
- Multi-currency accounts with near-interbank exchange rates
- Physical and virtual debit cards
- International money transfers to 160+ countries
- Cryptocurrency exchange and trading
- Stock and commodities trading
- Savings vaults with interest
- Premium subscription tiers with additional benefits
- Junior accounts for children and teens
- Business accounts with expense management tools
About PayPal
Started in 1998 as Confinity by Luke Nosek, Peter Thiel, and Max Levchin, PayPal subsequently merged with Elon Musk’s X.com in 2000.
A groundbreaking and highly successful electronic payment system, it was acquired by eBay in 2002 and remained under its parent until it became independent again in 2015.
PayPal Services
- Domestic and cross-border fund transfers
- Online business payment processing services
- Buyer and seller protection programs
- PayPal Credit financing facilities
- Buying, holding, and selling cryptocurrencies
- PayPal Business accounts with enhanced features
- E-commerce solution integration
Who has better fees, Revolut or PayPal?
What are the fees for Revolut?
Revolut exists as a mobile banking product with a multi-level subscription model that has a significant influence on its fees.
The cheapest Standard plan has a free price and includes main features under usage limitations.
On the other hand, Plus (£3.99/month), Premium (£7.99/month) and Metal (£14.99/month) subscriptions include higher usage limits and longer services.
This type of subscription model affects several factors related to Revolut’s fees.
For exchange of currency, Standard members can exchange up to £1,000 monthly at the interbank exchange rate without markup before paying a 0.5% fee.
Whereas Premium and Metal members have no limits on fee-free exchange amount (from Monday to Friday).
Weekend exchange (markets are closed) has an extra 1% markup (1.5% for less commonly traded currencies) on all memberships to cover market volatility.
Revolut charges its ATM fees also in a tiered system, with Standard allowing £200 per month (or 5 withdrawals) for free before applying a 2% fee.
Premium doubles this to £400/month and Metal to £800/month.
International payments by SWIFT may attract intermediary bank fees although Revolut works to minimize these.
In crypto transactions, from 24 March 2025, there is a minimum fee and a tier-based charge which depends on how much you buy and sell cryptoasset (with exceptions) over the last 30 days.
In stocks, there are no commissions paid on a select number of transactions for each plan, with extras at minimum £1 or 0.12% of the order amount (0.25% for Ultra plan).
Revolut charges very competitive cross-border payments exchange rates as well as currency exchange within its bounds.
The clients need to carefully watch their transactional averages relative to the cost of the subscriptions.
Frequent usage clients will see premium schemes save them substantial amounts of money on currency exchange as well as on withdrawal charges compared to a standard bank.
Simultaneously, sporadic users can live with the free plan despite the limitations.
To get a precise estimate, you can go to Revolut fee overview.
What are the fees for PayPal?
PayPal applies a hybrid fee model of percentage and flat fees that differ according to the type of transaction and geography.
No fees are applied for personal domestic transfers from a bank account or PayPal balance, which is convenient when transferring cash to friends and relatives.
On the other hand, you will be required to pay a various percentage charge depending on the country (e.g. 2.9% or 3.4%) plus a flat fee (in the United States, for instance, $0.30) if you make a personal transaction using your card.
Additionally, PayPal will charge withdrawal fees in some regions, primarily outside the U.S. and Europe and there are withdrawal limits.
International transfers cost 5% in addition to the fee applicable to a domestic transfer, with a minimum fee of $0.99 and maximum fee of $4.99 in the US, even if it is from PayPal balance.
For commercial transactions in the US, the following is part of the fee structure:
- Card-present or QR code transactions through PayPal Zettle: 2.29% + $0.09
- QR code payments: 2.29%+ fixed fee $0.09
- Credit card and debit card payments: 2.89% or 2.99%+ fixed fee
- PayPal Checkout: 3.49% + fixed fee $0.49
- Transactions with Pay Later option: 4.99% + fixed fee $0.49
- Invoicing transactions: 2.99% to 4.99% + a fixed fee $0.49
If currency conversion is required, an additional 3~4% can be charged on top of domestic rates.
There are also charges for chargeback processing ($20), disputes ($15), and record requests (between $10 and $30).
PayPal imposed its biggest fee increase in a decade on Jan. 13, 2025, raising processing fees on its Buy Now Pay Later products to 4.99% from 3.49% and a per-transaction fixed fee. The 43% increase made its buy-now-pay-later (BNPL) option more lucrative than its regular credit card processing.
Although merchants can opt out of some fees in their account settings, checkout conversion rate issues have hindered adoption.
Refer to PayPal’s detailed fee overview for precise estimates.
Which is better, Revolut or PayPal?
Revolut has a premium business model with multiple subscription levels (Standard, Plus, Premium, Metal and Ultra) that have increasingly larger limits and benefits. It is highly effective at managing currencies, enabling users to spend, exchange, and hold 29+ currencies at extremely low fees.
Revolut’s spending insights offer in-depth reports of spending habits.
Revolut also features classic banking capabilities with contemporary touches such as disposable virtual credit cards for added security, split bill functionality, and rounding-up savings.
However, weekend currency exchange charges a margin that is somewhat higher because the market closes on weekends.
PayPal can be accessed in over 200 countries and processes transactions in 25 currencies, which makes it one of the most accessible payment systems globally.
Real-time transfers from PayPal to PayPal and bank transfers within 1–3 business days are made available.
Seller Protection is provided by the service to prevent companies from getting scammed and Buyer Protection to ensure consumer transactions are covered.
PayPal has greatly expanded its offerings even further with the addition of point-of-sale features such as PayPal Here and QR payments.
Conclusion
Based on our careful analysis, Revolut and PayPal are targeting different segments of the market with different strengths.
Revolut’s new, feature-oriented strategy with competitive pricing and a digital banking focus will especially appeal to tech-savvy individuals and frequent travelers.
Conversely, PayPal’s established brand, ease of integration with existing web applications, and massive user base remain a solid choice for routine transactions and online commerce.
Ultimately, matching your selection with your unique financial activity and requirements involves ongoing due diligence and periodic reevaluation of each site’s offerings.
Pained by financial indecision?
Adam is an internationally recognised author on financial matters with over 830million answer views on Quora, a widely sold book on Amazon, and a contributor on Forbes.
