Comparing Tipalti vs PayPal for UK Businesses

Send payments to partners, freelancers, and vendors in 200+ countries—without the complexity.

For UK businesses working with international freelancers, affiliates, and creators, choosing the right payment platform is essential. Key considerations include support for UK payment rails like Bacs, Faster Payments, and CHAPS, alongside international capabilities.

In our article, we explore two popular brands in the global payments space relevant to UK businesses: Tipalti and PayPal. We’ll examine the main features, compare the capabilities of each platform, and discuss which platform could work best for your global and domestic payments needs, viewed from a UK perspective.

What Does Tipalti Do?

Tipalti is a cloud-based end-to-end global payables automation platform and international payments platform that allows a business to manage mass payments across the entire payment operations and accounts payable cycle. The system focuses on streamlining various financial processes related to payees, including mass payments and invoice processing.

Tipalti is a robust payment solution that covers everything from partner onboarding and management to executing global payments, strengthening financial controls (crucial for UK regulatory compliance), and reconciling payables data across a multi-entity organisation. It offers significant finance automation for payables teams.

What Does PayPal Do?

PayPal is a widely recognised online payment processor that provides features for sending and receiving funds electronically. The brand facilitates everything from e-commerce transactions to international payments, peer-to-peer payments (though primarily consumer-focused), payment gateway services, mobile payments, and seller protection.

PayPal also offers a mass payment service called PayPal Payouts. This enables a business to send money to multiple recipients simultaneously, typically to their PayPal accounts.

To use PayPal Payouts, you need a PayPal Business account linked to a verified bank account. Access to the Payouts feature often requires application and approval by PayPal.

It’s important to note that for this comparison, we are focusing on PayPal Payouts as the primary service for mass payments, distinct from PayPal’s broader merchant services for customer payment acceptance.

Comparing Key Features: Tipalti vs. PayPal Payouts

Feature	Tipalti	PayPal Payouts
UK Payment Methods	Global payouts to 200+ countries and territories in 120+ currencies. UK methods include BACS, Faster Payments (FPS), CHAPS, plus SEPA, Global ACH, Wires, Prepaid Debit, Cheques, and and sending to a recipient’s PayPal account.	Payouts to recipients in 150+ markets in 20+ currencies, primarily delivered to the recipient’s PayPal account.
Partner Onboarding	A branded, self-service portal can be embedded. Payee’s choice of preferred currency and payment method. Includes UK bank data validation (e.g., sort code, account number structure) and 26,000+ global rules. Sanctions list screening.	Standard PayPal branded onboarding (recipient needs/to create a PayPal account). No white-labelling. No inherent bank data validation beyond linking an account.
Mass Payment Comms	White-label, payment status emails, and a 24/7 partner hub portal to reduce enquiries.	PayPal branded email notifications when payment-related events occur, transaction history via PayPal account/app.
UK Tax Compliance	Supports HMRC compliance: Features UK VAT ID validation, helps manage reverse charge VAT scenarios. Aids MTD for VAT compliance through digital record keeping for supplier payments.	Limited UK tax compliance features. Does not typically collect/validate VAT IDs.
FX Solutions	FX conversion visibility, choice of payer/payee bearing fees, advanced solutions like intercompany transfers and FX hedging.	Currency conversion with PayPal’s standard FX mark-up applied (can be 3-4%+ above market rates). Multi-currency balance holding available. No advanced FX capabilities like hedging.
UK Integrations	Robust API supports integration with key business systems like performance marketing and affiliate platforms.	Strong API. Performance marketing integrations. Often requires manual data export/import for reconciliation with UK accounting systems, or reliance on third-party connectors for deeper integration.
Customer Support	Tipalti reports 98% customer satisfaction with the support team. It offers dedicated Customer Success Managers and has a UK office and support available.	General PayPal support channels. Online reviews sometimes report slower response times or difficulties resolving issues like frozen funds. Dedicated Payouts support level may vary.
Security and UK Regulation	Robust security, Blue-chip bank network, Tipalti Detect fraud monitoring. Tipalti Europe Ltd is authorised by the UK Financial Conduct Authority (FCA) as an Electronic Money Institution. Adheres to GDPR.	Secure encryption, Buyer/Seller protection (context varies for Payouts), PCI compliance, two-factor authentication. Operates under PayPal UK Ltd’s Electronic Money Institution authorisation. Adheres to GDPR.
Multi-Subsidiary	Organisation designed to manage multiple entities/subsidiaries/brands with different processes/workflows from a single instance. Consolidated HQ view.	Not designed for complex multi-subsidiary management within the Payouts feature itself.

Tipalti Mass Payment Solution

The Tipalti platform reports a 99% global customer retention rate and offers capabilities like:

Self-Service Onboarding Portal

Tipalti offers a multi-language, brandable self-service portal for easier partner management and a multitude of payment options. The system validates banking and payment data using real-time workflows and over 26,000 global banking rules (including UK sort code and account number validation) to reduce human errors and help ensure compliance with UK payment standards. The portal is accessible 24/7 for greater visibility into payments. Partners can also receive instant payment notifications (IPNs) for a more proactive approach to transactions.

Financial Controls and UK Compliance

Businesses can scale faster using their Tipalti account by strategising mass payments with compliance, operational, and financial controls. A company can securely pay thousands of partners in minutes, whether it’s via UK domestic rails like Bacs or Faster Payments, or international methods like SEPA and wire bank transfers. Tipalti includes screening against relevant sanctions lists (e.g., OFAC, HM Treasury) during onboarding and before payments.

UK Tax Compliance

Tipalti helps UK businesses manage tax compliance. While it can handle US W-8/W-9 forms if you pay US persons, crucially for UK operations, it assists with collecting and validating UK VAT Registration Numbers (VRNs) for suppliers where applicable. It supports local and VAT tax ID collection in numerous countries, including many in Europe, with built-in validation rules to minimise errors. Tipalti aids compliance with HMRC requirements through robust record-keeping and reporting functionalities, which is vital in the era of Making Tax Digital (MTD) for VAT. It offers capabilities to generate data useful for tax reporting, although direct submission to HMRC typically occurs via MTD-compatible accounting software.

Global Reach

An organisation can send global payments to partners in 200+ countries and territories in 120+ currencies, using various payment methods including Global ACH (covering SEPA for Europe), wire transfers, US ACH, Faster Payments (UK), BACS (UK), prepaid debit cards, PayPal, and even cheques (though less common for mass payouts). Effortlessly trigger payments to your partner base linked to performance analytics derived from performance marketing systems. Tipalti also allows a business to integrate detailed, accurate transaction reports with popular ERP and UK accounting systems like Sage, Xero, and QuickBooks Online.

Tipalti transforms partner payments for fast-growing, digital-first companies. Every freelancer, streamer, developer, creator, affiliate, or publisher can count on you to offer a best-in-class partner experience, while you can count on saved time, increased resources, and sustained working capital.

Tipalti API and System Integration

One of Tipalti’s core strengths is its ability to seamlessly integrate with existing business systems, automating the entire mass payment workflow end-to-end.

Trigger payouts automatically: The API allows your systems (like performance marketing, affiliate management, or influencer platforms) to programmatically trigger payments based on performance data, thereby eliminating file uploads and reducing payment delays.
Streamline reconciliation: Integrating payment data back into accounting software like Oracle NetSuite or Xero simplifies reconciliation for comprehensive financial management.
Custom workflows: Tipalti’s robust API enables building custom workflows, reports, and real-time dashboards tailored to specific operational needs in the UK and globally.

Instead of relying on deep, pre-built AP-focused ERP connections, the Mass Payments solution prioritises API-driven flexibility, allowing you to seamlessly connect your payment operations engine to the unique software stack that drives your business.

Pricing

Tipalti’s pricing model is designed for scalability, so it can fit your business needs as you grow. Add capabilities as you go, like enhanced tax form support or multi-entity payables. Pricing for Mass Payments for UK businesses is typically provided on a bespoke quote basis, ensuring scalability.

Trusted by Finance Leaders. Backed by Industry Awards.

Tipalti has been recognised by leading industry research platforms, including G2, GetApp, and Software Advice. It was also featured on the 2025 Capterra Shortlist and holds top ratings on TrustRadius.

TrustRadius Top Rated 2024 badge with a blue hexagonal shape and white text, featuring five stars at the bottom.

Simplify and scale global payouts beyond what PayPal can offer

Tipalti helps UK businesses cut FX costs, reduce churn, and offer a branded payee experience across 200+ countries, while reducing support tickets by up to 80%.

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PayPal Features Overview

How does PayPal work for mass payouts? PayPal reports having over 400 million active accounts worldwide across many markets. Top capabilities for mass payments relevant to UK businesses include:

Streamlined Mass Payouts

PayPal Payouts enable a business to send payments to multiple recipients at once, streamlining the disbursement of funds. Generally, all you need is the recipient’s email address or mobile number associated with their PayPal account. Payments are primarily sent to the recipient’s PayPal balance. Set up payments with the Payouts API, use Payouts Web via the PayPal interface, or manually upload a file.

Note: Unlike dedicated AP platforms, payouts are usually funded from your PayPal balance or linked bank account, not direct debiting from multiple sources.

Global Reach

PayPal Payouts supports global payments, enabling companies to send money to recipients with PayPal accounts in numerous countries (PayPal states over 150 markets). The system supports multiple currencies. You can make payouts originating from your UK account in various currencies (PayPal lists over 20).

Currency conversion fees typically apply when sending or receiving funds in a non-default currency – often a percentage markup (potentially around 3-4% or more) over the base exchange rate, which UK businesses should factor in as part of the transaction fees.

Developer-Friendly API

PayPal Payouts provides APIs that businesses can use to integrate into their own systems. These APIs enable programmatic control of the payment process, so companies can automate and customise their mass payout workflows.

Tracking and Reporting

Track the status of payments and obtain transaction details. Companies can use PayPal Payouts to monitor the progress of payments, generate reports, and reconcile transactions within the PayPal ecosystem. Review and track each payment from a single dashboard, download transaction details, and view your entire mass payment history. Data often needs exporting for full payment reconciliation within UK accounting software.

Security and Compliance

PayPal mass payments incorporate the brand’s security measures to help protect sensitive financial data and ensure secure transactions. PayPal UK Ltd is authorised as an Electronic Money Institution (FRN: 994790). PayPal does not typically perform supplier tax ID validation (like VRNs) as part of the Payouts process.

PayPal Integrations

While PayPal supports a big number of ERP and accounting integrations, PayPal Payouts does not typically provide out-of-the-box, pre-built integrations or connectors to seamlessly manage the full payouts workflow between the platform and major ERP systems.

The native integration capabilities are limited compared to dedicated accounts payable automation solutions focused on deep ERP synchronisation. PayPal Payouts instead offers APIs that tech teams can use to build some level of custom integration and automation with internal systems like ERPs to trigger payouts and potentially import transaction statuses.

Alternatively, businesses can export PayPal Payouts transaction reports manually and import them into ERPs for reconciliation, but this process lacks real-time synchronisation and can become labor intensive.

Some popular accounting software packages offer general connectivity to the overall PayPal platform, which can sync basic payment data, but these integrations are not designed specifically for operationally managing the PayPal Payouts workflow.

Companies wanting tight integration between their ERP systems and the entire lifecycle of PayPal Payouts for mass payments will likely need to either build custom integrations using the Payouts APIs, evaluate PayPal’s enterprise solution, ‘Hyperwallet’ or choose other dedicated AP automation solutions such as Tipalti designed for deep ERP synchronisation.

Pricing

PayPal Payout fees for domestic payouts within the UK typically have a small percentage fee and/or fixed fee per transaction, with a maximum fee cap per recipient. According to PayPal’s US website, the fees for payouts, which are mass payment services, are 2% capped at $1.

The PayPal UK website on mass payments does not state any fees applicable for UK sellers, so it is reasonable to assume that international payouts from the UK incur a similar fee structure, also structured as a percentage and/or fixed fees per recipient, with potentially higher caps. According to their merchant fee schedule, for domestic payouts within the UK, the fee is also 2% per recipient, capped at £10 per transaction. For international payouts sent from the UK, the fee remains 2% per recipient but is capped at £60 per transaction.

Senders typically pay the payout fees. Recipients generally don’t pay fees, unless converting currencies or withdrawing funds, which is typically 3 – 4% for currency conversion.

For current, tailored PayPal UK payout pricing, consult their official fee pages or contact their sales team directly. Fee schedules may vary based on transaction volume, account type, and specific agreements.

When to Choose Tipalti

You want to provide a professional, branded payment experience

A company chooses Tipalti when it wants to provide a customisable, best-in-class payment experience for partners/suppliers. Offering flexible UK payment methods like BACS and Faster Payments alongside international options is crucial. Full transparency can be provided on fees, including payee FX options. Payments are delivered reliably within expected timeframes for each method (e.g., same/next day for FPS, 3 days for BACS). Branded, proactive payment status notifications keep partners informed and reduce finance team enquiries.

You need robust UK/International Tax and Regulatory Compliance

If managing UK VAT number collection/validation, handling potential reverse charge VAT scenarios, screening payees, and ensuring a strong audit trail for HMRC is critical, Tipalti’s dedicated compliance features are a major advantage.

You require seamless integration with UK accounting systems and ERPs

Tipalti’s focus on integrating with ERPs and specific UK accounting platforms (Xero, Sage, QuickBooks Online) streamlines reconciliation and supports MTD for VAT processes more effectively than basic data exports.

You operate multiple UK or international entities

Tipalti’s multi-entity architecture is designed for businesses managing payables across different subsidiaries or brands from one central point.

You value dedicated support

Tipalti’s model often includes a Dedicated Customer Success Manager (CSM), which can be invaluable for complex setups and ongoing support. If required, verify UK-based support availability.

See what our customers are saying

It took us four to six weeks of solid work to do all the statements and payments, whereas now, it’s 30 minutes of solid work. We were spending a long time trying to get royalty payments done, and now we’re ahead.

Shahid Khalid

Head of Finance, Spitfire Audio

With Tipalti, our royalty payments not only happen faster, but it has also helped reduce the pressure on our team and may have delayed or removed the need to increase headcount.

Dawn Dobson

CFO, Ninja tune

I’ve seen improvements in the last two years of using Tipalti. It’s really something that I’ve learned to just rely on and not have to worry about. We just did our [payouts] for creators yesterday. And it was as simple as it has been. No issues popped up. It’s been reliable. And it’s something that I don’t even have to think about anymore.

Matt Jakubowski

Chief Executive Officer, Warp World

When to Choose PayPal Payouts

You primarily pay recipients who already use PayPal

If your freelancers, affiliates, or partners largely prefer or already have PayPal accounts, Payouts is a very direct way to pay them.

Your payment needs are relatively simple

Payouts can be straightforward if you don’t require complex onboarding, UK tax ID validation, deep accounting integration, or multi-entity management, and mainly need a way to send batch payments to PayPal accounts.

Cost for basic batch sending is a primary driver

Assuming the verified UK fees are competitive for your transaction volume and after factoring in PayPal’s FX conversion mark-ups (which can be significant, potentially around 3-4% or more above base rates), Payouts might appear cost-effective, especially as there’s typically no monthly SaaS fee for the basic Payouts function. However, weigh this against the potential hidden internal costs of manual reconciliation and compliance work.

Brand recognition is important

PayPal is a globally recognised name that can offer familiarity to payees worldwide.

Expand PayPal Capabilities with Tipalti

If you cannot decide, Tipalti integrates with PayPal. Tipalti is a PayPal partner, allowing you to offer PayPal as one payout option alongside BACS, FPS, SEPA, Wires, etc., all managed within the Tipalti platform. This gives payees a choice while centralising your control, compliance, and reconciliation.

Four Signs It’s Time to Upgrade to Tipalti

While PayPal Payouts is easy to set up and can handle basic payments, your business might be ready for a dedicated AP automation and global mass payment platform like Tipalti if you’re experiencing these challenges:

1) You Struggle to Efficiently and Compliantly Pay Global Suppliers and Partners.

Basic payout tools like PayPal payouts may offer international reach, but often lack comprehensive currency management and payment method choice. Tipalti can send payments to 200+ countries in 120+ local currencies via BACS, SEPA, Global ACH, Wires, and PayPal, all from one platform.

2) You Are Overwhelmed by the Volume of Invoices and Payments

If you manually process hundreds of invoices and payments monthly, you need an AP automation solution that scales efficiently with your business. Tipalti automates the entire payables workflow, from invoice capture and approval to payment execution and reconciliation with your ERP.

3) You Need Deeper Financial Controls and UK Compliance Capabilities

As you navigate UK regulations like MTD for VAT compliance screening, you need more controls and auditability. Tipalti’s enterprise-level financial controls include role-based permissions, invoice and supplier audit trails, VAT ID validation support, and reporting to support audit preparedness and HMRC compliance.

4) You Have an Increasing Number of Reconciliation Challenges

With Tipalti, payment remittance results are consolidated into built-in reports for more accurate, faster payment reconciliation to speed up financial close.

Frequently Asked Questions (FAQs)

What are the main differences between Tipalti and PayPal Payouts for making mass payments?

Tipalti is an end-to-end AP automation platform for managing the entire supplier payment lifecycle, including effective mass payment services to 200+ countries in 120+ currencies. PayPal Payouts is primarily a service to send bulk payments to recipients’ PayPal accounts, with simpler onboarding and less focus on deep AP/tax/ERP integration.

Why should my business choose Tipalti if I already use PayPal Payouts?

If you need a more sophisticated supplier onboarding, wider payment method choice beyond just PayPal accounts (e.g., direct to UK bank via BACS/FPS), robust UK VAT number verification features, multi-entity support, automated invoice processing, deeper financial controls, and seamless ERP reconciliation, Tipalti excels in all these areas.

Can I use Tipalti to pay recipients who prefer PayPal?

Yes, Tipalti is a PayPal partner. Through the Tipalti platform, you can offer PayPal as one of several payout options, giving your payees a choice while maintaining centralised control and reconciliation within Tipalti.