PayPal Invoicing is functional but limited. High payment fees, account freezes, and a lack of freelancer workflow features push many professionals to look for dedicated invoicing software.
Why freelancers leave PayPal Invoicing
PayPal is widely recognised and convenient to use. These are the practical limitations that send freelancers looking for alternatives.
PayPal charges approximately 3.49% plus a fixed fee per transaction in the US for card payments, and 3.4% plus a fixed fee in the UK. Stripe's standard rates (around 1.5% plus 20p for UK domestic cards) are generally lower. On a PS2,000 invoice, the difference can be PS40 or more.
PayPal is well documented for freezing accounts and placing holds on funds, sometimes without clear explanation. A freeze during a busy billing period can disrupt your cash flow significantly. Stripe accounts are less prone to sudden holds on legitimate business transactions.
PayPal Invoicing is a payment collection tool. There is no time tracking, no project management, and no workflow for turning logged hours into invoices. Freelancers who bill hourly manage this entirely outside PayPal.
PayPal invoices carry heavy PayPal branding. You can add a logo and adjust a few fields, but the overall presentation is recognisably a PayPal invoice rather than a document from your business. For freelancers trying to maintain a professional appearance, this can be a friction point.
PayPal's main advantage is recognition. Almost every client, regardless of their country, has a PayPal account or recognises the PayPal payment flow. For freelancers with international clients, this can reduce payment friction. PayPal also supports payments in over 100 currencies, which is useful for multi-currency billing.
PayPal Invoicing itself is free. You create and send invoices at no cost; you pay only when a client pays you. This makes it easy to start with no upfront commitment.
PayPal Invoicing is free to create and send. Payment processing fees apply when a client pays:
These rates are published on PayPal's fees page, which should be checked directly as rates change over time.
Tidybill is invoicing software that uses Stripe for payment processing. Stripe's card processing rates are generally lower than PayPal's, particularly for UK domestic card payments. Beyond the payment fee difference, Tidybill adds the full invoicing workflow that PayPal lacks:
You can also record manual payments in Tidybill, so if a client pays you via PayPal bank transfer rather than the invoice payment link, you can mark that invoice as paid manually. See our pricing page for plan details. If you are also evaluating Stripe, see the Stripe Invoicing alternative page.
Side by side
The full freelance billing workflow vs a payment link.
| Feature | Tidybill | PayPal Invoicing |
|---|---|---|
| Software cost | $0 free / $7 Starter |
Free |
| Payment processing fees (UK) | ~1.5% + 20p (Stripe) |
~3.4% + fixed fee |
| Time tracking | Built-in |
Not available |
| Recurring invoices | Yes |
Basic recurring |
| Client portal | Yes |
Not available |
| Custom invoice branding | Your brand only |
PayPal branding prominent |
| Manual payment recording | Yes, any payment method |
PayPal payments only |
Full invoicing workflow powered by Stripe payments. Start free, no credit card required.
Start for freeFree plan is free forever. Paid plans from $7/mo.