Bitcoin or PayPal: Which is Better for Merchant Payments?

In this article, you'll learn a side-by-side comparison of Bitcoin & PayPal for merchant payments, helping you decide which one works best for you. By the end of this article, you'll better understand how best you can implement these payment solutions. So buckle up, and let's dive in!

Bitcoin or PayPal: Which is Better for Merchant Payments?

In today's digital world, staying on top of the payment game is crucial for any business to survive and thrive. While PayPal has long been the go-to payment option for many merchants, Bitcoin has emerged as a new player in the game, offering its own unique advantages.

Let's face it, we all know that the world is constantly evolving, and this evolution is causing cryptocurrencies to become mainstream. In fact, your business may be seen as one behind the trend if you don’t accept cryptocurrencies.

In this article, we'll give you a side-by-side comparison of Bitcoin and PayPal for merchant payments, helping you decide which one works best for you. By the end of this article, you'll better understand which payment option is right for you and how best you can implement these payment solutions. So buckle up, and let's dive in!

PayPal as a Merchant Payment Option

When it comes to online payment services, PayPal has been the go-to option for many businesses for a long time. And why not? With over 435 million active accounts worldwide, it's no surprise that PayPal is widely accepted and easy to use. Let's take a closer look at the pros and cons of using PayPal as a merchant payment option:


  • Widely accepted payment option: PayPal is accepted by millions of merchants and customers worldwide, making it a trusted and convenient payment option for businesses.
  • Easy integration: PayPal can be easily integrated into e-commerce platforms and shopping carts, allowing businesses to quickly start accepting payments online.
  • Multi-currency support: PayPal supports payments in over 100 currencies, allowing businesses to sell to customers worldwide and receive payments in their local currency.
  • Protection against fraudulent chargebacks: PayPal offers protection against fraudulent chargebacks, which can be a valuable feature for businesses that sell high-value or digital products.
  • Easy to use and manage invoices: PayPal provides a simple and intuitive interface for creating and managing invoices, allowing businesses to keep track of their transactions and payments easily.


  • High transaction fees for merchants: PayPal charges transaction fees of up to 3.49% + 49 cents per transaction for international payments, which can be a significant expense for businesses.
  • Potential for account suspension or termination: PayPal has strict terms of service, and violations can result in account suspension or termination, which can be a serious issue for businesses that rely on PayPal for their payments.
  • Delayed access to funds: PayPal often places a hold on funds for a period, which can be a problem for businesses that need immediate access to their funds.

Bitcoin as a Merchant Payment Option

Bitcoin is a digital currency that allows for fast and secure online transactions. It is a decentralized currency, meaning it is not controlled by any government or financial institution. Here are some pros and cons to consider:


  • Low transaction fees compared to traditional payment methods. Bitcoin transactions typically have fees ranging from 0.5% to 1% of the transaction amount, which is significantly lower than PayPal's fees of up to 3.49% + 49 cents per transaction for international payments.
  • Transactions are secure and irreversible, which protects merchants from fraudulent chargebacks.
  • Bitcoin provides merchants with a global payment solution that is not restricted by borders.
  • Easy to set up and use without a bank account or credit card.


  • The value of Bitcoin can be volatile, which means that merchants accepting Bitcoin payments may need to convert them quickly into stablecoins or fiat currency to avoid any losses.
  • Lack of chargeback protection: Unlike PayPal, Bitcoin transactions are irreversible. This means that if a customer disputes a payment, the merchant may not have any recourse to recover the funds.

Paypal vs. Bitcoin: Side-by-Side Comparison





Transaction fees

PayPal charges a transaction fee of up to 3.49% + $0.49 per transaction for international payments, with lower fees for domestic payments. Conversion fees may also apply.

Bitcoin fees for merchants depend on the crypto payment gateway used. The average fee is around 1% of the total transactions; however, some could be way less or even free.



Paypal offers protection against false chargebacks, which reduces (but doesn’t outrightly eliminate) the risk of financial losses from these fraudulent chargebacks.

Bitcoin transactions are irreversible; hence, chargebacks are impossible. However, merchants can manually offer refunds to valid payment orders.


Ease of Integration

Paypal is quite easy to integrate with many E-commerce platforms and shopping carts.

Many of the crypto payment gateways that facilitate Bitcoin payments are pretty much easy to integrate, some even much easier than Paypal.


Access To Funds

Paypal sometimes locks funds for about a week, which may not be ideal for all businesses, especially those with a small cash flow.

Bitcoin payments are nearly instant and are usually available after 10 minutes.


Currencies Supported

PayPal supports over 25 fiat currencies that can automatically be converted to the merchant’s local currency.

Most Bitcoin payment processors can be converted into other cryptocurrencies, and some can even be converted to fiat currencies.


Terms of Service

Paypal’s terms of service are well established and strict, which often leads to unexpected account suspensions and terminations.

Although Bitcoin is decentralized and permissionless, Crypto payment processors have clear terms of service, which are typically less strict than PayPal’s.


Global availability

Paypal is available in over 200 countries/regions

Bitcoin is borderless and is  accepted globally, even in restricted countries.

Upon comparing both payment options for merchants, it is safe to say that Bitcoin payments offer more advantages in terms of flexibility, transaction fees, funds accessibility, security, etc. However, to enjoy the best of Bitcoin payments, you need to choose a payment processor that will optimize your experience.

CCPayment : a crypto payment gateway for you to accept Bitcoin payments

CCPayment is one of the best crypto payment gateways for you to accept Bitcoin or 45+ additional cryptocurrencies. Its unique perks include

  • 0.03% service fee on API payment.
  • 80+ countries supported.
  • Security-audited payment gateway.
  • Transactions are available with 70+ wallet providers, including popular ones such as Binance, MetaMask, Cwallet, Trust Wallet, etc.


Bitcoin and PayPal are two popular options available for E-commerce businesses to accept payments. Upon careful consideration of their advantages and drawbacks, it’s safe to say that Bitcoin’s highlighted advantages make it the pick of the two.

Don’t forget! To enjoy the best of Bitcoin’s advantages, you need to use a crypto payment gateway that offers the cheapest services and best advantages. Get started with CCPayment now!