Overview

Senders need a PayPal account, but customers can pay without one. That lowers the barrier for clients while tying the billing workflow to PayPal. The service is available in more than 200 markets, and PayPal reports that invoices have facilitated $144 billion in payments globally across more than 755 million invoices.

Key features

Invoices can carry a business name, logo, brand colors, taxes, discounts, shipping details, and notes. That gives freelancers, consultants, and service businesses room to make bills recognizable and explain charges. Invoices can go by email, SMS, messaging apps, social media, or QR code, so senders are not limited to one delivery channel.

A dashboard tracks whether invoices were sent, opened, or paid, making it easier to spot bills that still need attention. Recurring invoice templates, automatic reminders, and QuickBooks and Xero syncing can cut repetitive billing and bookkeeping work. The PayPal app lets users create and manage invoices away from a desk.

PayPal says its invoicing service operates in over 200 markets and 24 currencies; its broader supported-currency count is 130. Email payment links are encrypted, and PayPal cites transaction encryption, fraud protection, Seller Protection on eligible transactions, and round-the-clock fraud analysis. These safeguards are useful, but Seller Protection applies only to eligible transactions.

Pricing

Invoicing itself has no setup or subscription fee. The Free plan costs 0.00 USD per free, but customers’ payments still incur transaction fees, so it is free to send bills, not to collect money.

The PayPal and Venmo option is priced at 3.49 USD per once and charges 3.49% + $0.49 per transaction. The Pay Later option is 4.99 USD per once and charges 4.99% + $0.49 per transaction. Fixed fees vary by currency received, and international transactions may add a percentage-based fee. These costs make the free invoicing plan more attractive for occasional billing than for businesses comparing payment processing costs closely.

Free invoicing is also described as included with a PayPal account, with custom pricing not applicable to the core act of creating and sending invoices. No seat or invoice-volume cap is attached to that plan. Buyers should focus instead on the per-payment charges and any added international fee when estimating costs.

Platforms

PayPal Invoicing works on the web, iOS, and Android, with invoice management through the PayPal app. That covers desktop and mobile workflows, although the service does not support offline payments.

Who it's for

Freelancers, service professionals, consultants, and small businesses billing clients directly are the clearest fit. It is especially practical for sellers who want repeat invoices, reminders, and multiple ways to send a payment request without adding a subscription. Businesses that need to minimize payment-processing costs or avoid a PayPal sender account should look elsewhere.

Pros and cons

Pro: No subscription fee to create and send invoices, which keeps basic billing costs low before transaction fees.
Pro: Customers can pay without a PayPal account, reducing friction for clients who receive an invoice.
Pro: Recurring templates, reminders, invoice status tracking, and QuickBooks/Xero sync reduce manual follow-up and administration.
Con: Payments are not free: listed options charge 3.49% + $0.49 or 4.99% + $0.49 per transaction, with possible additional international charges.
Con: Senders must have PayPal accounts, so the service is not a fit for businesses unwilling to route invoicing through PayPal.

Alternatives

Zoho Invoice is worth considering for businesses that want a free plan with up to two users, three projects, and 500 invoices per year, particularly Indian businesses eligible for its free-forever offer. InvoiceOcean may suit a very small operation that can work within its free limit of three invoices per month and one user, with a paid Basic plan at 9.00 USD per month.

SumUp Invoices offers a free plan with unlimited invoices and quotes plus recurring invoices, making it an option for users who want those functions without a subscription. Hiveage may fit a business that needs unlimited invoices and estimates but can stay within a five-client free plan.

Zoho Billing is a paid alternative at 39.00 USD per month billed annually, with up to three users, multi-currency transactions, and automated payment reminders. ProfitBooks has a Startup plan with one user and ten invoices per month, or an Essential plan at 9.95 USD per month.

Invoicera may suit teams needing a paid plan with five users, recurring invoices, and a client portal; its Operate plan is 50.00 USD per month billed annually. Billbooks is another invoicing option with a 30-day trial that does not require a credit card.

Browse more options in Invoicing software, Payment Facilitation Platforms, Virtual Terminal Software, Cross-Border Payment Platforms, Mobile Payment Processing Software, and Payment Link Software.

Verdict

PayPal Invoicing is a strong fit for freelancers and small businesses that want flexible invoice delivery, repeat billing, payment tracking, and reminders without a subscription. Choose it when client convenience and PayPal-connected billing matter more than payment fees; look elsewhere if transaction costs or the required sender account do not suit your workflow.

	PayPal Invoicing	VirtualCards
Free plan	Yes	Yes
Free trial	No	No
Paid from	Free	€33.33/mo
Open source	No	No
Platforms	Web, iOS, Android	Android, iOS, Web
Free plan	Yes	Yes
Asset scope	—	cards_only
Virtual cards	—	No
Supported platforms	—	Web, Android, iOS

PayPal Invoicing vs VirtualCards

PayPal Invoicing

VirtualCards