Lower Fees

PayPal: Buying is free. Selling is 3.4% + $0.30 per sale (Monthly Sales: $0.00 USD – $3,000.00 USD).
Bitcoin: The transactions fee would have been 0.00001 BTC or US$0.005.

Truly Global

PayPal: PayPal is not available in every country.
Bitcoin: Bitcoin on the other hand is the first true transnational borderless currency.


PayPal: To use PayPal, you must be online and have a credit card.
Bitcoin: Bitcoin can be sent offline via email or even SMS on a dumb-phone.

No Chargebacks

PayPal: Chargebacks are an important feature in the PayPal network.
Bitcoin: When a Bitcoin transaction is sent, it cannot be reversed or “charged back.” These chargebacks often create a problem for merchants as unscrupulous customers can sometimes take advantage of this policy to get the product and money back whereas a Bitcoin transaction is final.


PayPal: Consider that almost 4 billion people on this planet do not have bank accounts and thus, cannot use PayPal.
Bitcoin: Bitcoin lowers the barriers for all to participate in global commerce.


PayPal: PayPal still requires your bank information as a way to verify your account.
Bitcoin: The Bitcoin ledger doesn’t care who you are or if you have a bank account at all. It doesn’t even need to know your name. You don’t even need an online account anywhere to make use of it. You just need to download a wallet on Bitcoin’s official website and secure it before you start earning or buying Bitcoin.


PayPal: PayPal accounts are tied directly to your bank account or credit card and PayPal is a regulated financial institution in many countries. PayPal payments are not in any way anonymous and it is not recommended you make purchase using PayPal that you would not be comfortable with the authorities knowing about.
Bitcoin: Transactions do not need to be tied to a bank account or individual and they are essentially anonymous if some basic precautions are taken.

Horror Stories

PayPal: You hear horror stories about people who lose a lot of money because PayPal suddenly decided to hijack their account. Stories of high fees, delayed payments and frozen accounts are also now abound in forums and news resources. PayPal’s chargeback policy can unfairly penalize merchants who sell digital goods or other virtual items. A plethora of horror stories are available from merchants who have had malicious chargebacks cripple their business or who have had their funds frozen by PayPal for no reason. One member of Bitcointalk had to threaten a lawsuit to get his account back. PayPal had his account suspended because he bought a web address with Bitcoin in the URL. Most of us don’t have the money to pay a lawyer.
Bitcoin: The advantage for merchants is that as bitcoin is digital cash it does not support chargebacks, funds cannot be frozen and payments cannot be blocked. Big win for Bitcoin.

No doubt PayPal has been the king of online community for years now, but the rapid advancement of Bitcoin is rewriting the whole story of online transaction. To Bitcoin users, PayPal’s transaction model now look somewhat antiquated.

Did you previously use PayPal for most of your online transactions before discovering Bitcoin? Think again!