Divvy vs PayPal Business

Detailed side-by-side comparison

Divvy

Divvy

Free

Divvy is a comprehensive expense management and budgeting platform that combines corporate cards, expense tracking, and budget management in one solution. It helps finance teams automate expense reporting, gain real-time visibility into company spending, and maintain control through customizable spending limits and budget controls.

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PayPal Business

PayPal Business

Free

PayPal Business is a payment processing and financial management platform designed for small to medium-sized businesses to accept payments, send invoices, and manage cash flow. It provides a trusted payment gateway with extensive integrations and multi-currency support for businesses focused on payment acceptance and transaction processing.

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Feature Comparison

FeatureDivvyPayPal Business
Primary Use CaseInternal expense management and budget control for corporate spending with virtual and physical corporate cardsExternal payment processing for accepting customer payments online, in-person, and through invoices
Payment/Card FeaturesIssues virtual and physical corporate cards with customizable spending limits for employeesAccepts credit cards, debit cards, and PayPal payments from customers; does not issue corporate cards
Expense TrackingAutomated receipt capture, expense categorization, and real-time tracking of employee spending with budget enforcementTransaction reports and sales analytics focused on incoming payments rather than employee expense management
InvoicingNot a primary feature; focused on expense management rather than customer billingProfessional invoice creation with automated payment reminders and integrated payment processing
Accounting IntegrationIntegrates with QuickBooks, NetSuite, and other accounting software for expense reconciliationIntegrates with QuickBooks, Xero, and other accounting platforms for payment and sales data sync
Budget ManagementRobust budget allocation, management, and controls to prevent overspending across departmentsNo dedicated budget management features; focuses on payment processing and transaction reporting

Pricing Comparison

Both platforms start at $0/month, but serve different purposes: Divvy's free tier includes expense management features with credit approval required for cards, while PayPal Business charges transaction fees (typically 2.9% + $0.30 per transaction) instead of monthly fees. Divvy's costs come from credit requirements and potential paid tiers, while PayPal's costs are transaction-based.

Verdict

Choose Divvy if...

Choose Divvy if you need internal expense management, corporate card issuance for employees, and budget control features to manage company spending. It's ideal for finance teams wanting to automate expense reporting and eliminate reimbursement processes.

Choose PayPal Business if...

Choose PayPal Business if you need to accept payments from customers, send invoices, and process transactions online or in-person. It's ideal for businesses focused on payment acceptance, e-commerce sales, and customer billing rather than internal expense management.

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Accounting

Pros & Cons

Divvy

Pros

  • + Eliminates manual expense reports and reimbursements
  • + Provides real-time visibility into company spending
  • + Easy to set up and use with intuitive interface
  • + Robust budget controls prevent overspending

Cons

  • - Requires credit approval for card issuance
  • - Limited customization options for enterprise workflows
  • - Some users report occasional syncing issues with accounting integrations

PayPal Business

Pros

  • + Widely recognized and trusted payment method with high customer adoption
  • + Quick setup with no monthly fees for basic accounts
  • + Robust buyer and seller protection policies
  • + Extensive integration ecosystem with e-commerce platforms and accounting tools

Cons

  • - Transaction fees can be higher compared to some merchant account providers
  • - Account holds and limitations can occur without warning, affecting cash flow
  • - Customer service can be difficult to reach and resolve issues with