Apple Pay vs PayPal: which should you use to pay, and when?
Apple Pay and PayPal are both ways to pay without typing in your card number, but they work differently. Apple Pay is a wallet on your iPhone, Apple Watch or Mac that passes payments to a card you have added; Apple charges nothing and never holds your money. PayPal is an account with its own balance, its own fee schedule and its own rules for paying other people, converting currencies and protecting purchases.
That difference decides which one is cheaper. Below we compare the two for shopping, paying friends at home and abroad, currency conversion and moving money back to your bank, using Apple’s and PayPal’s published terms for the UK, Germany and the US.
At a glance
| Apple Pay | PayPal (personal account) | |
|---|---|---|
| What it is | Wallet for your debit and credit cards on Apple devices | Online payment account with a balance, linked bank accounts and cards |
| Cost of paying a shop | None from Apple; your card’s usual fees apply | Free for buyers when no currency conversion is involved |
| Paying friends in your country | Apple Cash, US only: free | Free from balance or bank (UK, Germany, US); US card-funded 2.90% + $0.30 |
| Paying friends abroad | Not available | 5% international fee, capped at £2.99 / €3.99 / $4.99, plus any conversion fee |
| Currency conversion | Set by your card issuer | PayPal’s rate including a conversion fee (US page: 3.00% or 4.00%; UK and German pages give no %) |
| Instant cash-out to a card | Apple Cash Instant Transfer 1.7% (min $0.25, max $25) | US instant transfer 1.75% (min $0.25, max $25); Germany to a card 1% (min €0.25, max €10) |
| Purchase protection | From your card issuer | PayPal Buyer Protection on eligible purchases |
Shopping in stores and online
Apple Pay works in shops, in apps and on websites that accept it. Apple says it does not charge any fees when you pay with Apple Pay and that your actual card number is not stored on Apple’s servers or shared with merchants. Abroad, the exchange rate and any foreign-transaction fee are your card issuer’s, so the card you add decides the price.
PayPal is mainly an online checkout. Paying for a purchase with PayPal is free for the buyer when no currency conversion is involved, in the UK, Germany and the US alike. The cost appears when the shop charges in a different currency from the one PayPal takes from you: PayPal converts at its own rate, which includes a currency conversion fee. PayPal’s US consumer fee page lists 3.00% or 4.00% depending on the type of transaction; the UK and German fee pages do not publish a percentage for personal accounts and say the rate includes a conversion fee.
You can also combine the two. PayPal says its PayPal Credit and PayPal Debit Mastercards can be added to Apple Pay, and in the US the PayPal Debit Card can be added on iPhone.
Worked example: a US shopper buys a €100 item from a European website
With Apple Pay and a US card that has no foreign-transaction fee, you pay the card network’s exchange rate and nothing else. With a card that charges, for example, 3%, the extra is about $3.34 at the mid-market rate on our check date.
With PayPal paying in dollars, PayPal converts at its own rate with a 3.00% to 4.00% conversion fee, so roughly $3.34 to $4.45 on top of the mid-market price. If the checkout offers it, letting your card be charged in euros, rather than having PayPal convert, moves the conversion to your card issuer.
Paying friends and family in your own country
Apple Cash lets you send and receive money in Messages and Wallet, but only in the 50 US states, the District of Columbia and Puerto Rico, for US residents aged 18 or over. Sending is free. In the UK, Germany and the rest of Europe there is no Apple equivalent, so Apple Pay cannot be used to pay a friend.
PayPal’s friends-and-family payments are free in the UK and Germany when no currency conversion is involved. In the US they are free from your PayPal balance or a linked bank account, but paying with a credit or debit card costs 2.90% plus $0.30.
Worked example: paying a friend $200 in the US
| Method | Cost |
|---|---|
| Apple Cash | $0 |
| PayPal from balance or bank | $0 |
| PayPal funded by a debit or credit card | $6.10 (2.90% + $0.30) |
Source: Apple Cash support page and PayPal’s US consumer fee page.
Paying someone in another country
Apple Pay has no way to send money abroad: Apple Cash works only inside the US. PayPal does, at a price. A personal payment to someone in another country carries an international fee of 5% of the amount, with a minimum of £0.99 and a maximum of £2.99 in the UK, €0.99 to €3.99 in Germany and $0.99 to $4.99 in the US. If the money also changes currency, PayPal’s conversion fee is added on top: 4.00% for US friends-and-family payments in another currency.
Worked example: sending money to family abroad
| Payment | PayPal international fee | Plus conversion |
|---|---|---|
| UK sender, £100 to Spain | £2.99 (5% capped) | PayPal conversion fee if paid in euros; % not published on the UK page |
| German sender, €200 to Switzerland | €3.99 (5% capped) | Conversion fee if paid in Swiss francs; % not published on the German page |
| US sender, $500 to Mexico, paid in pesos | $4.99 (5% capped) | 4.00% = $20.00 |
For cross-currency transfers a specialist is usually cheaper: Wise charged $3.42 to $9.87 to send $1,000 from the US to euros on our check date.
Getting your money out
Apple Cash: a standard transfer to your bank is free and usually takes 1 to 3 business days. Instant Transfer to an eligible debit card costs 1.7%, with a $0.25 minimum and a $25 maximum, so $3.40 on $200.
PayPal: withdrawing to your bank account is free in the UK, Germany and the US when no conversion is involved. In the US, an instant transfer costs 1.75% (minimum $0.25, maximum $25), so $3.50 on $200. In Germany, withdrawing to a card costs 1% (minimum €0.25, maximum €10). Withdrawing pounds from a UK account to a US bank account costs 3%.
Protection when something goes wrong
PayPal Buyer Protection can reimburse you for eligible purchases that do not arrive or are significantly not as described. It is one of the main reasons to pay a small or unfamiliar online shop with PayPal. It is designed for purchases, so it is not a safety net for payments to friends.
Apple Pay does not add its own purchase protection: disputes go through the card issuer behind the payment, under that card’s terms. What Apple Pay adds is security at the till, because the merchant never receives your real card number.
For money held in the account: PayPal’s US site states that PayPal is not a bank and is not FDIC insured, although balances can be eligible for pass-through FDIC insurance at its partner banks under certain conditions. In Europe, PayPal (Europe) S.à r.l. et Cie, S.C.A. is a credit institution supervised in Luxembourg. Apple Pay holds no money; Apple Cash is a separate US service.
Where each one works
Apple’s support page listed 101 countries and regions for Apple Pay on 27 October 2026, and you need an Apple device. PayPal works on any phone or computer and has separate fee schedules for each country, which is why its caps and charges differ between the UK, Germany and the US. Whether Apple Pay is accepted depends on the shop’s card terminal or checkout; whether PayPal is accepted depends on the online shop.
Verdict by use case
| If you want to… | Better choice | Why |
|---|---|---|
| Pay in shops with your phone | Apple Pay | Free from Apple, and your card number is never shared with the shop. |
| Buy from an unfamiliar online shop | PayPal | Buyer Protection on eligible purchases, and the shop never sees your card. |
| Buy in a foreign currency | Apple Pay with a no-fee card | PayPal adds its conversion fee (3.00% to 4.00% in the US). |
| Pay a friend in the US | Apple Cash or PayPal from bank | Both free; avoid card-funded PayPal payments (2.90% + $0.30). |
| Pay a friend in the UK or Germany | PayPal | Free without conversion; Apple has no person-to-person payments outside the US. |
| Send money abroad | PayPal over Apple Pay, but a specialist over both | PayPal charges up to £2.99 / €3.99 / $4.99 plus conversion; Apple Pay cannot do it. |
Our view: use Apple Pay for everyday tap-to-pay with a card that has no foreign-transaction fee, and keep PayPal for online checkouts where Buyer Protection matters and for paying people by email. Neither is the cheapest way to move money across currencies.
Frequently asked questions
Is Apple Pay or PayPal cheaper?
For shopping in your own currency, both are free for the buyer. Abroad or in a foreign currency, Apple Pay costs whatever your card charges, which can be nothing, while PayPal adds its own conversion fee (3.00% to 4.00% on its US fee page).
Can I add PayPal to Apple Pay?
PayPal says its PayPal Credit Mastercard and PayPal Debit Mastercard can be added to Apple Pay. In the US, the PayPal Debit Card can be added on iPhone.
Can I send money to friends with Apple Pay?
Only in the US, through Apple Cash, which works in the 50 states, DC and Puerto Rico. In the UK and Europe, use PayPal or a bank transfer.
How much does PayPal charge to send money abroad?
5% of the amount with a minimum of £0.99 / €0.99 / $0.99 and a maximum of £2.99 (UK), €3.99 (Germany) or $4.99 (US), plus a conversion fee if the currency changes.
Does Apple Pay have buyer protection like PayPal?
Apple Pay has no separate buyer protection; disputes go through your card issuer. PayPal Buyer Protection covers eligible purchases that do not arrive or are significantly not as described.
Which is faster for cashing out in the US?
Both offer instant transfers to a debit card for a fee: 1.7% with Apple Cash and 1.75% with PayPal, each with a $0.25 minimum and $25 maximum. Standard transfers to a bank are free with both.
Sources
Every fee on this page was checked against these official provider pages on .
- Apple — Apple Pay (fees and security)
- Apple Support — Apple Pay countries and regions
- Apple Support — Apple Cash availability and transfer fees
- PayPal — consumer fees (UK)
- PayPal — consumer fees (Germany)
- PayPal — consumer fees (US)
- PayPal Help (UK) — exchange rates include a conversion fee
- PayPal (UK) — Buyer Protection
- PayPal Help (UK) — adding PayPal cards to Apple Pay or Google Pay
- PayPal (US) — add the PayPal Debit Card to Apple Pay
- PayPal (US) — managing money, FDIC disclosure
- PayPal (Germany) — about PayPal (regulation)
- Wise — price calculator quote (USD to EUR, 1,000), for reference
Fees, limits and availability change and can differ by country and account type. Worked examples apply each provider's published fee rules to round amounts; exchange rates move constantly, so confirm the final price in the provider's app before you pay. How we check fees is explained on our methodology page.