Facebook Pay vs. PayPal: Differences, Pros & Cons, Fees

Here’s a comprehensive guide comparing Facebook Pay and PayPal, two prominent players in the digital payment space.

As we delve into their key features, pros and cons, and pricing, you’ll gain insights into choosing the ideal platform for your online transactions.

Facebook incorporated payment solutions into its ecosystem with Facebook Pay, streamlining transactions within its apps. While PayPal fills the gap of being an independent, widely accepted platform, businesses and marketers may prefer Facebook

Pay for its seamless social media integration, while choosing PayPal for its established global presence, security features, and versatility in transactions.

So what’s the difference between these payment solutions?

The main difference is that Facebook Pay is seamlessly integrated within social media platforms, offering a native experience for transactions within the Facebook ecosystem, while PayPal operates independently and is not directly tied to social media, providing versatility and widespread acceptance across various online platforms globally.

Facebook Pay vs PayPal: Key Features Compared

Take a closer look at the overview of the main features of these payment solutions.

FeatureFacebook PayPayPal
User-Friendly InterfaceSimplified interface within Facebook appsWell-established platform with an intuitive interface
Transaction SecurityUtilizes Facebook’s security protocolsKnown for robust security features and buyer/seller protection
International TransactionsSupports international money transfersOffers global transactions and currency conversion
Integration with Social MediaIntegrated within Facebook, Instagram, WhatsAppIndependent platform, not directly tied to social media
Peer-to-Peer TransactionsEnables P2P transactions through Facebook appsPioneered P2P transactions, widely used for quick transfers
Online Shopping IntegrationFacilitates in-app purchases on Facebook platformsWidely accepted across e-commerce platforms worldwide
Fees and ChargesGenerally free for users, businesses may incur feesTransaction fees for certain transactions, particularly in business accounts

What is Facebook Pay and How Does it Work?

Facebook Pay is an integrated payment system within Facebook’s family of apps, including Facebook, Instagram, and WhatsApp. It allows users to make secure transactions, send money to friends, and shop within the platforms, providing a seamless experience.

Pros of Facebook Pay

  • User-friendly, integrated within familiar social media apps.
  • Secure transactions leveraging Facebook’s security measures.
  • Supports international money transfers.


  • Limited to Facebook ecosystem for in-app transactions.
  • May not be as widely accepted as PayPal across e-commerce platforms.

What is PayPal and How Does it Work?

PayPal is a globally recognized digital payment platform. It enables users to make online transactions, send money, and receive payments securely. Widely accepted across various websites and platforms, PayPal has become synonymous with online payments.

Pros of PayPal

  • Established platform with a wide user base.
  • Robust security features and buyer/seller protection.
  • Accepted across a vast array of e-commerce platforms globally.


  • Transaction fees, particularly for business accounts.
  • May not be as integrated within social media platforms as Facebook Pay.

Facebook Pay vs PayPal: Comprehensive Feature Comparison Guide

Are you ready for an in-depth comparison of the key features of these digital payment platforms? Let’s dive right in.

1. User-Friendly Interface:

Facebook Pay: Facebook Pay boasts a user-friendly interface seamlessly integrated within Facebook’s ecosystem, including Instagram and WhatsApp. Users can initiate transactions with ease, making it accessible to a vast audience. The simplicity of its design aligns with the familiar social media environment, ensuring a smooth user experience.

PayPal: PayPal, with its well-established platform, offers an intuitive interface known for its ease of use. Users can navigate through the platform effortlessly, making payments, sending money, and managing transactions efficiently. Its interface caters to a diverse user base, from individual users to businesses.

Verdict: In terms of user-friendliness, the verdict is a tie. Both Facebook Pay and PayPal prioritize accessibility and ease of use in their interfaces, catering to different user preferences.

2. Transaction Security:

Facebook Pay: Facebook Pay leverages the robust security protocols of the Facebook ecosystem. With encrypted transactions and authentication measures, it ensures secure money transfers. The integration with Facebook’s security infrastructure enhances the overall safety of financial transactions.

PayPal: PayPal is renowned for its emphasis on transaction security. It employs industry-standard security features, including encryption and buyer/seller protection. The platform’s commitment to safeguarding user information and financial data contributes to its trusted reputation.

Verdict: In terms of transaction security, the verdict leans towards PayPal. Its longstanding commitment to security, buyer/seller protection, and industry-standard measures gives it a slight edge.

3. International Transactions:

Facebook Pay: Facebook Pay supports international money transfers, allowing users to send funds across borders. This feature facilitates global transactions, making it a viable option for users with international connections.

PayPal: PayPal excels in international transactions, offering a comprehensive solution for users around the world. It provides currency conversion and the ability to send and receive money globally, making it a preferred choice for cross-border transactions.

Verdict: In international transactions, the verdict is a tie. Both Facebook Pay and PayPal provide robust solutions for users engaged in global transactions.

4. Integration with Social Media:

Facebook Pay: Facebook Pay is seamlessly integrated within the Facebook ecosystem, including Instagram and WhatsApp. Users can make transactions directly within the social media apps, streamlining the payment process and enhancing the overall user experience.

PayPal: PayPal operates independently and is not directly integrated into social media platforms. While it offers versatile integration options for online shopping and transactions, it lacks the native in-app experience provided by Facebook Pay.

Verdict: In terms of integration with social media, the verdict leans towards Facebook Pay. Its native integration within the Facebook ecosystem offers a unique and streamlined experience.

Peer-to-Peer Transactions:

Facebook Pay: Facebook Pay facilitates peer-to-peer transactions through Facebook apps, particularly within Messenger. Users can send money to friends, split bills, and engage in quick and secure P2P transactions.

PayPal: PayPal pioneered peer-to-peer transactions and remains a leading choice for quick and reliable fund transfers between individuals. Its dedicated P2P features make it a go-to platform for users globally.

Verdict: In peer-to-peer transactions, the verdict is a tie. Both Facebook Pay and PayPal excel in providing secure and efficient P2P payment solutions.

Online Shopping Integration:

Facebook Pay: Facebook Pay enhances the online shopping experience by facilitating in-app purchases on Facebook platforms, including Instagram. Users can seamlessly shop and make payments within the familiar social media environment.

PayPal: PayPal is widely accepted across e-commerce platforms worldwide, providing a versatile solution for online shopping. Its integration with numerous online merchants and businesses makes it a trusted choice for users making purchases.

Verdict: In online shopping integration, the verdict leans towards PayPal. Its widespread acceptance across a multitude of e-commerce platforms gives it a competitive edge.

Fees and Charges:

Facebook Pay: Facebook Pay is generally free for users. While businesses may incur fees for certain transactions, individual users can enjoy the convenience of making transactions without additional charges.

PayPal: PayPal may charge transaction fees, particularly for business accounts. Users should be aware of the fee structure, which varies based on the type of transaction and currency conversion.

Verdict: In terms of fees and charges, the verdict leans towards Facebook Pay. Its general user-friendliness with fewer fees makes it a cost-effective choice for individual users.

Use Cases for Facebook Pay

  1. Peer-to-Peer Transactions on Messenger:
    • Users can quickly send money to friends or split bills directly through Facebook Messenger, streamlining peer-to-peer transactions.
  2. In-App Purchases on Instagram:
    • Shoppers can make secure in-app purchases on Instagram using Facebook Pay, creating a seamless shopping experience.

Use Cases for PayPal

  1. Global E-Commerce Transactions:
    • PayPal is widely used for online shopping across various e-commerce platforms, offering a secure and convenient payment option for users worldwide.
  2. Freelance Payments:
    • Freelancers and businesses use PayPal for sending and receiving payments, taking advantage of its global reach and trusted reputation.

Facebook Pay vs. PayPal: Pricing Overview

Below is a summarized breakdown of the pricing for both Facebook Pay and PayPal:

AspectFacebook PayPayPal
Account SetupFreeFree
Sending Money (Domestic)FreeFree (when using PayPal balance or linked bank account)
Sending Money (International)Varies (Currency conversion fees may apply)Varies (Currency conversion fees may apply)
Receiving Money (Goods & Services)Varies (Transaction fees may apply)Varies (Transaction fees may apply)
Receiving Money (Friends & Family)FreeFree (when using PayPal balance or linked bank account)
Withdrawal to BankFreeFree (may take a few business days)
Credit/Debit Card FeesVaries (Depending on the card and region)Varies (Depending on the card and region)


  • Facebook Pay and PayPal both offer free account setup and transactions for sending money domestically or between friends and family when using linked bank accounts or PayPal balances.
  • Transaction fees may apply for certain activities, such as receiving money for goods and services or sending money internationally. These fees vary based on factors like the transaction amount, currency conversion, and payment method.
  • Both platforms may charge fees for withdrawals to a linked bank account.
  • Credit/debit card fees vary depending on the type of card and the user’s location.

Factors to Consider When Choosing a Payment Solutions Platform

1. Social Media Integration:

Consider the role of social media in your transaction preferences. Facebook Pay excels in seamless social media integration, allowing users to make transactions directly within the Facebook, Instagram, and WhatsApp environments. This native integration provides a unique advantage for those who prefer conducting financial transactions within familiar social media platforms, enhancing the overall user experience. On the other hand, PayPal operates independently and is not directly tied to any social media platform. If your preference is for a more versatile and standalone payment solution, PayPal might align better with your needs, catering to a broader spectrum of online transactions beyond social media.

2. Global Acceptance:

Evaluate the global acceptance and versatility of each platform. While Facebook Pay supports international money transfers, PayPal has a more extensive global presence, offering currency conversion and facilitating transactions across a wide array of countries and online merchants. If your transactions involve a global audience or if you frequently engage in international purchases, the widespread acceptance of PayPal may make it the preferred choice. However, if your transactions are primarily within the social media ecosystem, Facebook Pay’s international capabilities could still be suitable for your needs.

3. Transaction Security:

Dive into the security features offered by each platform. Facebook Pay leverages the security infrastructure of the Facebook ecosystem, ensuring encrypted transactions and authentication measures. This integrated security model provides a level of confidence for users conducting financial transactions within the social media platforms. On the other hand, PayPal is renowned for its emphasis on transaction security, employing industry-standard measures such as encryption and buyer/seller protection. If robust security features are a top priority, both platforms offer secure options, with PayPal’s long-standing reputation providing an additional layer of assurance.

4. Peer-to-Peer Transactions:

Examine the peer-to-peer (P2P) transaction capabilities of each platform. Facebook Pay facilitates quick and secure P2P transactions within Facebook apps, particularly through Messenger. This feature is convenient for users who frequently engage in splitting bills or sending money to friends within the social media environment. Similarly, PayPal has been a pioneer in P2P transactions, offering efficient and reliable fund transfers between individuals. If your transaction patterns involve frequent P2P exchanges, both platforms provide robust solutions, with the choice depending on your preferred interface and social media integration.

5. Online Shopping Integration:

Explore how each platform integrates with online shopping experiences. Facebook Pay enhances the online shopping journey by facilitating in-app purchases on Facebook platforms, including Instagram. Users can seamlessly shop within the social media environment, streamlining the payment process. Conversely, PayPal is widely accepted across e-commerce platforms globally, providing a versatile solution for online shopping beyond social media. If your primary focus is on in-app purchases within the Facebook ecosystem, Facebook Pay offers a tailored experience. For a broader online shopping spectrum, especially across various e-commerce sites, PayPal’s widespread acceptance may be advantageous.


Let’s answer some of the common questions you already have.

Q1: Can I use Facebook Pay outside of Facebook apps?

  • Facebook Pay is primarily integrated within Facebook apps, including Instagram and WhatsApp, limiting its use outside of these platforms.

Q2: Is PayPal only for online shopping?

  • No, PayPal is versatile and widely used for various transactions, including peer-to-peer payments and business transactions, beyond online shopping.

Q3: Does Facebook Pay support international transactions?

  • Yes, Facebook Pay does support international money transfers, allowing users to send money across borders.

Q4: Are there any hidden fees with PayPal?

  • Users should be aware of transaction fees, especially in business accounts. Ensure transparency by reviewing PayPal’s fee structure.

Is Facebook Pay or PayPal Better for You?

In summary, when you have to choose between Facebook Pay and PayPal as your digital payment solutions, you need to make decisions based on your specific needs.

For example, if social media integration, in-app purchases, and a user-friendly experience are paramount, Facebook Pay is a suitable choice.

If you prioritize a well-established platform with global acceptance, robust security features, and versatile usage, PayPal may be the preferred option.

What are your payment priorities, transaction patterns, and desired features? These are important considerations that will influence whether you choose Facebook Pay or PayPal for your digital payments.