PayPal owns Braintree, which creates an unusual comparison: two products from the same company serving different needs. PayPal is the consumer-facing checkout experience trusted by millions. Braintree is the developer-facing payment infrastructure that powers custom integrations. Understanding when to use each — or both — can optimize your costs and conversion rates.
Fee Comparison
PayPal charges 2.99% + $0.49 for online business transactions. Braintree charges 2.59% + $0.49. Both have the same flat fee, but Braintree's lower percentage saves money on every transaction. On a $100 sale, PayPal takes $3.48 and Braintree takes $3.08 — a $0.40 difference. On $50,000/month in sales, that's approximately $200/month in savings with Braintree.
PayPal Checkout Button vs Custom Integration
PayPal's strength is its trusted checkout button. When customers see the PayPal option, it can increase conversion rates by 10-30% because they don't need to enter card details on an unfamiliar site. Braintree powers the backend — it processes credit cards, debit cards, PayPal, Venmo, Apple Pay, and Google Pay through a single API. You can actually offer PayPal checkout through Braintree.
Integration Complexity
PayPal offers simple drop-in buttons that non-developers can add to any website. Copy some HTML, paste it in, and you're accepting payments. Braintree requires actual development work — SDK integration, server-side setup, webhook handling. For businesses without development resources, PayPal's simplicity is a major advantage. For businesses with developers, Braintree offers far more control and flexibility.
The Best of Both
The smartest approach for many businesses is to use Braintree as the primary processor with PayPal enabled as a payment method. This gives you Braintree's lower credit card rates (2.59% + $0.49) while still offering the PayPal checkout button that boosts conversions. Since Braintree and PayPal are siblings, this integration is seamless and doesn't require two separate merchant accounts.