tech from europe
vsPayPal

GoCardless vs PayPal

Last updated August 2026

Looking for a European alternative to PayPal? Here's how GoCardless compares, on EU hosting, GDPR and what it does.

Our pick for a European buyer: GoCardless. We weight data residency, GDPR and EU jurisdiction above everything else — that is the constraint this directory exists to solve.

GoCardless
PayPal
What it is
UK-based payment gateway for recurring and one-off bank debit and open banking payments
not established
Headquarters
🇬🇧 GB
No
EU data residency
Yes, for all customers
not established
DSGVO / GDPR
Yes
not established
Certifications
ISO 27001, PCI DSS
not established
Price from
1% + 20p per transaction (capped at £4 domestic, £4 international)
not established
Free plan
No
not established
Open Source
No
not established
Ratings
G2 4.6/5 (321) · CAPTERRA 3.9/5 (53) · GETAPP 4/5 (73) · TRUSTPILOT 2.4/5 (2,437) · TRUSTRADIUS 8.4/100 (19)
No
Integrations
Xero, QuickBooks, Zuora, Chargebee, Maxio +7
not established

We have not yet completed our own research on PayPal; rows above show only what we can evidence. Check the vendor for specifics.

Where each one wins

GoCardless

Strengths

  • +Easy setup with a user-friendly dashboard and straightforward interface
  • +Automated recurring payments reduce administrative workload
  • +Seamless integrations with Xero, QuickBooks, and Salesforce with automatic reconciliation
  • +Lower transaction fees than credit card payments, especially for high-value invoices
  • +Transparent per-transaction pricing with no setup costs
  • +Strong security with Verified Mandates and Protect+
  • +High reliability for recurring payments with low failure rates
  • +Compliance with SEPA and GDPR standards

Limitations

  • −Slower payment processing times, up to 7 working days for first collections
  • −No support for credit/debit cards, digital wallets, or buy-now-pay-later options
  • −Customer service issues, including slow responses and unresolved account suspensions

PayPal

Review sentiment not yet compiled.

Data residency & compliance

GoCardless
PayPal
EU data residency
Yes, for all customers
not established
Transfer mechanism
Not required — data stays in the EU
not established
DPA
not established
not established
Sub-processors
not established
not established
Certifications
ISO 27001, PCI DSS
No

Pricing

GoCardless

  • Standard 1% + 20p per transaction (capped at £4 domestic, £4 international) per transactionNo setup costs or hidden fees · Monthly rolling contract · Free trial available
  • Advanced 1.25% + 20p per transaction (capped at £5 domestic, £5 international) per transactionIncludes Success+ for failed payment recovery · Verified Mandates for identity checks · No setup costs or hidden fees
  • Pro 1.4% + 20p per transaction (capped at £5.60 domestic, £5.60 international) per transactionIncludes Protect+ for fraud protection · All Advanced features · No setup costs or hidden fees
  • Custom On request Volume-based discounts · Dedicated customer support · Fully customised package
  • Add-ons Your name on bank statements: +£50/month; Custom checkout: +£150/month per monthYour business name on bank statements · Fully custom checkout (not available on Standard) ·

Prices vary by region and transaction type. Caps apply to domestic and international payments.

PayPal

No published pricing we could verify.

Features

GoCardless

Global payments
Collect one-off, subscription, membership, and instalment payments, Set up, pause, edit, schedule, or cancel payments via dashboard, Collect from 40+ countries using mid-market exchange rates (powered by Wise), Flexible Direct Debit setup (online, paper, or phone)
Connect & customise
350+ pre-built integrations (Xero, QuickBooks, Zuora, Chargebee, etc.), API for custom integrations, Fully customisable payment pages and email notifications, Display your business name on bank statements
Add-ons & protection
Success+: Automatically recover up to 70% of failed payments, Protect+: Advanced fraud protection and chargeback challenges, Verified Mandates: Enhanced identity checks for new customers, Access capital via Pipe
Payment capabilities
Recurring Pay by Bank (variable recurring payments), Faster checkouts with 'Remember Me' feature, Invoicing, Open Banking support

PayPal

Feature breakdown not yet compiled.

See GoCardless →More PayPal alternatives