Personal Finance Tips

Apple Pay vs PayPal in the UK: the full comparison

Gert Svaiko

15.01.24 (last updated)

Read time 3 minutes

If you’re a fan of online shopping, you’ll know that there’s more than one way to pay at checkout. A couple of the options you’ll have come across in the UK are Apple Pay and PayPal, both of which can also be used to pay for things using a mobile wallet.

But which is best? Read on for a helpful comparison of the two, looking at pros, cons, fees, limits, security and much more.

We’ll also show you a great alternative for making online and real-world purchases in multiple countries and currencies - the Wise card from the money services provider Wise*. You can also get it as a virtual card.

But for now, let’s get straight into our comparison of Apple Pay vs. PayPal.

What is Apple Pay?

Apple Pay is a mobile wallet payment service, which securely stores virtual versions of your debit cards and credit cards on your phone. If you have an Apple iOS device like a smartphone, tablet or smartwatch, you can use it to pay online, on websites and in apps.

And as it’s a mobile wallet, you can also use Apple Pay for contactless payments using just your phone at real-world shops and supermarkets.

Pros and cons of using Apple Pay

Pros:

Super secure transactions
Fast and easy to make contactless payments using just your phone
Accepted by millions of merchants in-store, online and in the app
No transaction fees

Cons:

Only works with Apple devices - and isn’t compatible with some older models (before iPhone 6)¹
Not all retailers accept Apple Pay
Can’t be used if your phone has run out of battery
Feature to send payments is not available in the UK

📚 Read more: Best debit card to use abroad: Top 6 UK picks

What is PayPal?

PayPal is another online payment service, but it works in a different way compared to Apple Pay. Anyone can open a PayPal account (age 18+), unlike Apple Pay which is restricted to Apple users only.

With a PayPal account, you can send and receive money online, as well as using it to checkout when paying for online shopping purchases.

Your PayPal account is linked to your bank account and card, but you can also pay for things using your PayPal balance.

There’s also a PayPal app which lets you use the service to pay in real-world stores. However, it’s not as easy and seamless as other types of mobile wallets, which let you pay with just one contactless ‘tap’. Instead, you need to open the app and scan the retailer’s QR code to pay.²

Pros and cons of using PayPal

Pros:

Widely accepted, especially when shopping online
Very secure
No device restrictions - use PayPal on any phone, tablet or laptop
Can be used to send and receive online payments - including international payments
Fast or instant payments
Easy to use accounts with multiple features
Pay in-store with the PayPal app and QR codes
Free to open an account and free for many transactions

Cons:

Complicated fees structure
High fees for international payments³
You must have a PayPal account to receive payments
Not as easy and convenient for in-store payments as contactless mobile wallets

📚 Read more: How to pay someone on PayPal in the UK?

Apple Pay vs. PayPal

Now, here’s a quick look at how Apple Pay and PayPal stack up against each other, on all the things that matter:

	Apple Pay	PayPal
Market share	Used by 69% of mobile wallet users⁴	Used by 31% of mobile wallet users⁴
Availability	iOS users only	All users (age 18+)
Fees	None	None for domestic transactions (inc. paying in-store) 5% fee for international transactions³
Limits	None - although some retailers may have £100 contactless limit	None
Security	Payments completed with Face ID or Touch ID	Uses data encryption and has Buyer Protection policies⁵
Privacy	Uses tokenisation so card details aren’t shared with merchants⁶	Protects data with encryption and secure servers⁶
Buyer protection	Payment protection provided by card issuer	Buyer and Fraud Protection policies⁵
Customer support	Apple Support website and phone support⁷	PayPal Resolution Centre, message and phone support⁸
Payment types	Online shopping In-person (app)	Online shopping In-person (app) Send and receive payments

Wise – An alternative to Apple Pay and PayPal

Of course, Apple Pay and PayPal aren’t the only digital wallet options out there. The Wise card is a fantastic alternative, especially if you’re looking for an easy, cost-effective way to pay for your expenses on holidays and overseas trips.

Open a Wise account online and you can get a contactless Wise card or a virtual card so you can pay securely with a tap and add it to mobile wallets.

And whenever you spend in a different currency, it does a very clever thing. The card automatically converts the currency at the mid-market exchange rate – with no margin added on top.

You’ll only pay a small fee* for the conversion, or it’s free if you already have the currency in your Wise account. There are no commission charges, foreign transaction fees or other hidden costs.

So which is better, Apple Pay or PayPal? It all depends on what you’re looking for, whether it’s a mobile wallet or a way to make online payments. And if you’re an iOS user, there’s also no reason you can’t use both services.

After reading this guide, you should have a better idea of what’s on offer with both Apple Pay and PayPal. So, you can choose the right one for the type of payment you’re making.

Sources used for this article:

Mastercard - Mastercard with Apple Pay
PayPal - How PayPal Works
PayPal - PayPal fees
Finder - Digital wallet statistics: Usage and market size
PayPal - PayPal Safety and Security
Journalism - PayPal vs Apple Pay: the battle for your digital wallet
Apple - Get Support
PayPal - Contact Us

Sources checked on 14-Nov-2023.

*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.