With the introduction of digital/ online payments, the world is moving at a rapid pace, several companies have launched their software for online payment. Currently, the two major systems for online payment are QuickBooks and PayPal. Knowing the difference between them will aid in making a perfect choice.
QuickBooks vs PayPal
The main difference between QuickBooks and PayPal is that QuickBooks is accounting software specifically designed for small-scale businesses that primarily focuses on payments, bill dues, etc., on the other hand, PayPal is a company that focuses on online payments and was introduced as a replacement of the traditional cheque method.
QuickBooks is a software launched by Intuit and is one of the oldest online payment services to date. QuickBooks was launched with some features like Electronic Payment Services, Mapping through Google Maps, Marketing through Google, etc. Intuit also launched a cloud version called QuickBooks Online which has more features than QuickBooks.
On the other hand, PayPal is a technology software company that mainly provides online payment services. It is one of the best services that offer a free version to use too, additional features include Fraud Detection, In-Person as well as Mobile Payments, Data Security, Electronic Signature, etc. To date, it is one of the highest-ranked companies in The United States.
Comparison Table Between QuickBooks and PayPal
|Parameters of Comparison||QuickBooks||PayPal|
|Description||Accounting Software||Payment System/ Company|
|Key Features||Billing, Invoicing, Online Payment, Multiple Payment Options, Electronic Signature, etc.||In-Person Payments, Mobile Payments, Fraud Protection, Data Security, etc. |
|Customer Care||Email, Feedback Forms||Phone, Chat, Email Support|
What is QuickBooks?
As mentioned above, QuickBooks is an accounting software developed and launched by Intuit. Although its initial launch was in December 1983, the recent version was released in 2021 with additional features suggested by the feedback of certain professionals. The latest 2021 version has all the significant features like automated payment features, a reminder about the payments, customized receipts, etc.
QuickBooks originated in the year 1983 and was highly inspired by Quickens (Financial Management Tool) which was also developed by Intuit. Initially, QuickBooks was launched by using the same codebase as Quickens, later a new codebase for Windows and Mac Version was introduced.
This software was popular and critically acclaimed by many small-scale businesses as it focused on the amateurs with no training on financing and accounting- provided them basic training, manual, etc. But QuickBooks faced criticism from professional accountants citing that the software lacked many features that were quite significant which led to the launch of the updated and better versions.
The updated version had better security, audit trail, etc. Intuit also introduced two versions- Pro and Basic within a decade of the launch of the original version. The updated versions just got better and better with specific versions- specific reports, segregation of each business with trade terminologies, for instance, specific versions for contractors, manufacturers, wholesalers, etc.
Currently, QuickBooks has many country-based versions too, for example, the Australian, Canadian, and British Versions have their country-specific taxing system. To improve the consumer’s experience QuickBooks has now launched QuickBooks online- a cloud service, wherein a monthly subscription fee is charged to the user but all the services remain the same.
What is PayPal?
Aforementioned, PayPal is a company launched in the year 1988 as a replacement to the conventional methods of money transfer. Back then, PayPal was the only software that supported In-person as well as mobile payments. Currently, modern-day numerous payment software is highly inspired by PayPal.
It originated in the United States as Confinity but later went through an IPO (Stock Launch), through which eBay became the prime shareholder and owner. eBay then spun off; thus, the status of an independent company was retained by PayPal.
PayPal primarily functions as a company that actively processes payments, users just have to pay a fee for the transaction. The basic functions include fund transactions electronically, money transfers to shopping websites like Amazon, eBay, etc., Money Donations, Payments for online auctions, etc. PayPal does not force the user to create an account, it is the user’s choice.
In the 2000s, PayPal introduced PayPal Students Account wherein parents set up an account for the students and transfer some money for their use through a debit card. PayPal provided training material to the students so that they can learn about the importance of money in their teens. But later after 8-9 years of launch PayPal’s student’s account was discontinued citing some issues.
PayPal also supports money conversion from country to country, users can control if they want money conversion while setting up their account. Currently, PayPal is available on every website/app ranging from iTunes, eBay to Google Play and also allowed many restaurants and shops to accept payments through PayPal thus acquiring major global markets. PayPal launched its app in the year 2013 supporting both iOS and Android. Recently, PayPal introduced acceptance and use of cryptocurrencies to trade and shop.
Main Differences Between QuickBooks and PayPal
- QuickBooks functions as accounting software that processes payments whereas PayPal is a financial technology company that aids in money transfer.
- QuickBooks support mobile payments while PayPal supports In-person as well as mobile payments.
- QuickBooks provides training through documentation, whereas PayPal trains through videos as well as documentation.
- QuickBooks charge a monthly or annual subscription fee and do not have a free version but a free trial, on the other hand, PayPal has a free version for the users but does not have a free trial.
- QuickBooks support payments through debit and credit cards, manage POS (Point of Sales), securely stores digital cheques, formulate invoices, etc., while PayPal aids in money transfer right from small local businesses like restaurants to huge markets like Amazon, eBay, etc., and also provides almost 25+ currency conversions.
- QuickBooks helpline works through email, feedback forms, FAQs whereas PayPal provides helpline and support through Phone, Chat, Email, Forum, FAQs, etc.
From the above-mentioned points, it is evident that although QuickBooks and PayPal provide similar functions, they carry subtle differences which make them unique and beneficial to every user. QuickBooks is the pioneer of every financing software that is popular currently, while PayPal is easily accessible even to small-scale businesses and serves as a good replacement to the conventional methods.
Nevertheless, the introduction of these cloud-based accounting systems has improved the economic growth of many countries and many third-world countries have started becoming digitally developed. Owing to their accessibility even through a phone, these accounting systems have become quite popular in recent years and the launch of their updated versions is the icing on the cake.