Google Pay vs PayPal

The Business Blocks

Check out this Google Pay vs PayPal article and see which platform suits your requirements better.

The internet changed the way people pay. Today, there is no need to wire money through a bank to facilitate payments to people, particularly when the recipients are in another country. There are also no long waiting times when it comes to sending and receiving money. Digital wallets, also known as e-wallets, allow people to send and receive money instantly.

These digital wallets are also designed to be easy to use. One can finish an online payment in just a few clicks (or taps if you are using a mobile device). More importantly, digital wallets offer an additional layer of security to people who make online payments.

This article will discuss the similarities and differences between Google Pay and PayPal, two of the most popular digital wallets available today.

A digital wallet helps users to secure their financial information and simplify online payments.

What is Google Pay?

Google Pay is an online payment solution offered by Google. Google markets this product as a safe, helpful, and simple way to pay and manage money. It is clearly designed for mobile device users, as web browser integration became available months after Google Pay’s official launch. It should also be noted that although Google Pay was officially launched as such in 2018, it has two predecessors called Google Wallet and Android Pay. Google Wallet was released in 2011 while Android Pay was released in 2015. Thus, Google is not really a newcomer in the digital wallet industry.

Google Pay has two features that set it apart from other digital wallets. These features are:

  • Spending Search – Google Inc. is known for its powerful search engine. It is not surprising that Google Inc.’s digital wallet comes with a powerful search system. One can easily search for previous transactions. To get better search results, the user can link his Gmail and/or Google Photos to Google Pay.
  • Cashback Rewards – With Google Pay, users can earn rewards from their favorite businesses. Cashback rewards can also be obtained from everyday purchases. The rewards can then be used to pay for other transactions. Moreover, these rewards are separate from what is offered by the user’s credit card company. Thus, a user can get double the number of rewards from a single transaction.

What is PayPal?

PayPal is the most popular digital wallet today. It has roughly 426 million registered accounts. It is known for being fast, secure, and easy to use. Other digital wallets claim that they also have these characteristics. But with PayPal, it is not just a claim. PayPal has proven that it is the top digital wallet out there for more than two decades. Two features set PayPal apart from the competition:

  • Protection – PayPal is known for the level of security it offers. The bank and credit card information of users are secured through PayPal’s sophisticated encryption system. This digital wallet’s “Purchase Protection” feature adds another level of security for eligible transactions. With this feature, users can get a full refund in case (a) they did not receive what they paid for or (b) they received something different from what they ordered.
  • Huge Payment Network – Many businesses and organizations accept PayPal as a mode of payment. From eBay, a popular auction site, to the International Correspondence Chess Federation, a nonprofit website for correspondence chess players, PayPal is available as a payment option.

The problem with other digital wallets is that they require several steps to complete the payment. Sometimes, they might even be completely inapplicable to a transaction. It means the user will have to directly enter the bank or credit card information on the seller’s website. PayPal is usually integrated into the payment sections of websites, meaning the user can complete the transaction just by logging in and clicking or tapping a few times.

Similarities Between the Two Platforms

The similarities between Google Pay and PayPal are:

  • Accessibility – Both Google Pay and PayPal can be accessed using computers and mobile devices. They have mobile applications that can be downloaded to manage user accounts. They can also be accessed using the web browser of a computer. It should be noted, however, that the functions available in the iOS version of Google Pay are limited to what is available in the Android version.
  • Available Funding Sources – Both products allow users to set their credit card, debit card, and bank account as the source of their funds. Users can even add all three types of funding sources. Thus, users may choose which funding source the money will be taken from for each transaction.
  • Free to Transfer Money – Both products allow users to send money for free. This applies whether the transaction is commercial or personal. That means users will not have to worry about any additional amounts that will be deducted from their accounts when sending money to others.

What Makes One Better Than the Other

  • Integration with Other Services

Google Pay can be linked with other Google apps to enhance its functionalities. Google Pay’s search transaction feature is a case in point.

Moreover, if one is using Google Chrome, Google Pay integration comes in nicely. However, this might not be ideal for those who are wary of putting all of their personal data in one place. There are in fact some people who do not use Google Pay because it would mean Google will have all their information, including their financial ones.

PayPal is a standalone product although it was previously closely linked with eBay as the auction site’s mode of payment. Thus, there are no integrations with other apps.

  • Ease of Use

Most merchant websites and payment webpages have a PayPal button. This button allows the user to easily log in, choose a funding source, and complete the transaction. The same thing cannot be said with Google Pay.

Google Pay is relatively new. It is not on the same level as PayPal yet when it comes to popularity and accessibility. Thus, if users want a quick and easy checkout process when paying online, PayPal is the better option.

  • Security

PayPal is known for the level of security it offers to its users. In fact, security has been the cornerstone of its brand. People who use PayPal know that their transactions are secured and that their financial information is inaccessible to third parties.

PayPal has been in business for 24 years, its security features being improved over time. Moreover, PayPal’s Purchase Protection feature can be a huge help for people who buy stuff online. If the product does not arrive or is different from what was advertised by the seller, a full refund can be demanded.

Google Play claims security features similar to that of PayPal, but Google products have been hacked before. It is true that these hacking incidents involved other products, such as Google Chrome and Gmail. However, these products are all from Google – if these products have been hacked before, Google Pay might also be hacked in the future.

Conclusion

Both Google Pay and PayPal offer great features. They are two of the best digital wallets available today. However, PayPal’s security features and ease of use give it an edge over Google Pay.