By dinesh August 10, 2025
When selecting between Apple Pay, Google Pay, and PayPal in the UK, knowing transaction fees is very important. Each platform charges differently for different types of payments, varying for businesses and users. The comparison here points out the fees of each digital wallet, which will help you determine the best one to use.
Supported Markets and Customer Base for Google Pay, Apple Pay, and PayPal
Google Pay is available in 189 countries and regions, facilitating both online and in-app payments. However, its in-store payment using NFC, through Google Wallet, is only available in around 99 countries.
It allows for 78 currencies and 31 languages, enabling businesses to customize their payment methods in different places. In the UK, it is most accepted by Barclays, NatWest, and HSBC banks, so it is highly sought after by local consumers.
Apple Pay is supported in more than 80 countries, such as the UK, the US, and large parts of Europe. It has functionality across iPhones, iPads, Apple Watches, and Macs, offering both online and offline payments.
It’s compatible with a range of currencies and languages, and in the UK, it has support from leading banks such as Halifax, Nationwide, and Santander.
PayPal, with its huge international presence, has operations in more than 200 countries and accepts 25+ currencies. It’s accessed by companies from industries such as e-commerce, travel, and SaaS, and it gives a localised checkout for customers across the globe. Its huge user base and known reputation make it a favourite among businesses looking to grow internationally.
How Payment Processing Fees work: Google Pay, Apple Pay, and PayPal
When processing transactions using services such as Google Pay and Apple Pay, merchants do not pay direct fees to these systems. Fees are set by the payment service provider (PSP) and usually go between 1.4% to 2.9% plus a small fixed fee, typically between 20–30p per transaction. International transactions or currency conversion can also be charged with cross-border fees and foreign exchange charges.
Conversely, PayPal price generally more for commercial transactions in the UK, coming at the cost of about 1.29% plus £0.30 per transaction. It is important to understand these charges to help businesses appropriately control payment expenses.
Accepted Payment Methods for Google Pay, Apple Pay, and PayPal
While making a choice of payment method for your business, it is important to understand what is accepted by each platform. Google Pay supports most credit and debit cards, including Visa, Mastercard, American Express, Discover, and JCB.
In the United Kingdom, it is supported by big banks like NatWest, HSBC, and Barclays. It can also be integrated with PayPal in certain markets like the US and Germany to provide more flexibility.
Apple Pay supports cards from Visa, Mastercard, and American Express, and in the UK, it covers all leading banks. It’s built into the iOS ecosystem and can be used for online payments via Safari. However, it has limited support for local payment methods.
PayPal also supports Visa, Mastercard, American Express, and Discover. It has a broader coverage for local payment networks, supporting such options as BLIK in Poland, EPS in Austria, and iDEAL in the Netherlands. This makes PayPal ideal for firms that want to serve international customers, particularly in Europe.
Each of the platforms has various options, with Google Pay and Apple Pay concentrating on mobile payments of cards, whereas PayPal supports wider regional payments.
Recurring Billing and Subscription Management for Google Pay, Apple Pay, and PayPal
For companies managing recurring payment or subscription-based revenue models such as SaaS or membership programs, effective management of subscriptions is important. Below is an explanation of how each of the payment platforms supports recurring billing:
Google Pay enables companies to implement recurring payments for services such as digital memberships and app subscriptions, although it does not control the billing engine. Rather, the merchant’s Payment Service Provider (PSP) controls the subscription capability with Google Pay making the payments within its system.
Apple Pay natively supports recurring payments within its ecosystem, but mainly via iOS applications utilizing Apple’s in-app purchase system. It depends on third-party PSPs to handle sophisticated billing cycles and does not natively support recurrent billing functionality outside its platform.
PayPal is unique for its strong recurring billing features. Merchants can create fixed, tiered, or usage-based subscriptions and handle trial offers, upgrades, and account cancellations through their PayPal account. PayPal also provides customers with complete control of their subscriptions so that they can easily manage or cancel them through their account.
As for recurring billing, PayPal has the most complete and versatile tools, with Google Pay and Apple Pay providing less comprehensive but more integrated alternatives.
Pros and Cons of Using Google Pay
Google Pay has a number of advantages, making it widely used. It’s a fully functional mobile wallet that enables you to save payment methods, rewards cards, and even travel passes in one single location, which will save time on online and in-store transactions. It’s free and has robust security measures, which will keep your transactions secure.
But there are a few negatives. Google Pay cannot be employed to make direct transfers, and it’s not compatible with iOS devices. Also, your phone must be at least Android 9.0 and equipped with NFC technology to operate Google Pay, so not all phones are compatible.
Pros and Cons of PayPal Usage
PayPal has numerous advantages, which make it a preferred form of online payment. It’s highly accepted on online platforms, extremely secure, and can be accessed from any device, be it a phone, tablet, or laptop. PayPal accounts are simple to administer and have a variety of features.
Besides, PayPal can accept domestic and international payments. Nonetheless, there are some disadvantages. It’s less accepted for in-store payments than mobile wallets, and it’s less convenient for in-store payments than contactless mobile wallets.
Pros and Cons of Apple Pay
Apple Pay is a quick and safe way of making payments by simply tapping on your device, which saves your time during in-store and online payments. It operates across all Apple devices such as iPhones, iPads, and Apple Watches, allowing users within the Apple ecosystem complete ease. It also provides an added level of security through the use of Face ID or Touch ID to authenticate.
It has some limitations such as only being compatible with Apple users, restricting its use to iOS devices. Also, not all retailers accept Apple Pay, particularly in non-metropolitan areas, which can be frustrating at times. Nevertheless, Apple Pay is an excellent choice for individuals who want an instant, secure, and hassle-free payment experience.
Types of Digital Wallets
1. Closed Wallet
A closed wallet is a digital wallet established by a business for its users, in which money can only be spent on buying products or services from that particular business. Funds in a closed wallet can also be applied to refunds, returns, or cancellations within the same business.
This wallet offers an easy and hassle-free experience for customers who shop often with the issuer. For instance, Amazon Pay is a well-known closed wallet that enables users to save money to spend only within Amazon’s environment.
2. Semi-Closed Wallet
A semi-closed wallet offers more freedom to users with the ability to make transactions in a list of merchants and stores. Although few businesses can accept payments made from these wallets, users can shop both online and offline within the network.
Merchants have to sign up with the issuers of the wallets to be able to take these payments, so not all businesses will accept semi-closed wallets. It’s a good choice for consumers who regularly shop at individual shops or services that provide this sort of wallet.
3. Open Wallet
An open wallet is provided by banks or allied financial institutions and provides customers with more freedom. Along with the features presented by semi-closed wallets, customers can also withdraw cash through ATMs or transfer money to another account.
Open wallets are best for users who prefer to have an entire package of services, such as the freedom to use the wallet for multiple transactions, within and outside the network of the wallet. An open wallet provides a more extensive financial experience, which is more convenient for users.
How Digital Wallets Work for Payments
To pay using a digital wallet, customers initially unlock the application through their fingerprint, facial recognition, or PIN code. After unlocking, they select their default payment option from those saved in the wallet. For e-commerce, all they have to do is select the digital wallet as the mode of payment, then select the payment option, and continue with the checkout.
For in-store purchases, digital wallets leverage technology such as NFC, MST, or QR codes to transfer payment information wirelessly to the card reader. Consumers simply need to open their device, choose the payment method, and place the device near the reader. The transaction should take seconds. The seamless experience provides quick, secure payments, whether buying online or in-store.
Conclusion
Selecting the proper digital wallet depends on your business requirements, particularly transaction fees. Though Apple Pay and Google Pay provide inexpensive options with no immediate merchant fees, PayPal has marginally higher fees but provides stronger features and international access.
Review your transaction level, customers, and payment choices to make the most cost-efficient choice for your company. Take into account the advantages of each wallet to choose the best for your activities.
FAQs
How much are transaction fees with Apple Pay, Google Pay, and PayPal
Apple Pay and Google Pay do not have direct merchant fees, but PayPal charges a 1.29% + £0.30 fee for UK transactions in most cases.
Are there any secret charges when using Apple Pay or Google Pay?
No, Apple Pay and Google Pay don’t directly charge merchants, but there might be fees through your payment service provider.
Am I able to use PayPal for international payments?
Yes, PayPal facilitates international payments and is accepted around the world, but fees might be different.
Does Google Pay work with all banks?
Google Pay is supported by most major UK banks such as Barclays, NatWest, and HSBC, but it is regionally variable.
Are there any limitations on Apple Pay?
Apple Pay is exclusive to Apple devices, and certain merchants or methods of payment may be excluded, depending on the region.
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