Lago vs PayPal: Which Should You Choose in 2026?
Choosing between Lago and PayPal comes down to understanding what each tool does best. This comparison breaks down the key differences so you can make an informed decision based on your specific needs, not marketing claims.
By Toolradar Team · Last updated February 22, 2026 · Methodology
Short on time? Here's the quick answer
We've tested both tools. Here's who should pick what:
Lago
Open-source billing infrastructure for usage-based monetization at scale.
Best for you if:
- • Open-source billing infrastructure for usage-based monetization.
- • Processes up to 1 million events per second for real-time billing.
PayPal
The original online payment system, still everywhere
Best for you if:
- • You want the higher-rated option (8.0/10 vs 0.0/10)
- • You want to try before committing
- • PayPal is a global payment platform for online transactions
- • It enables payments, invoicing, and checkout for businesses worldwide
| At a Glance |  Lago |  PayPal |
|---|---|---|
Price | Paid | Free + Paid |
Best For | Invoicing | Invoicing |
Rating | —/100 | 80/100 |
| Feature | Lago | PayPal |
|---|---|---|
| Pricing Model | Paid | Freemium |
| Editorial Score | — | 80 |
| Community Rating | No ratings yet | No ratings yet |
| Total Reviews | 0 | 0 |
| Community Upvotes | 0 | 0 |
| Categories | InvoicingSubscription Billing | InvoicingPayment Processing |
How Lago and PayPal Compare
Lago
Open-source billing infrastructure for usage-based monetization at scale.
Paid
PayPal
The original online payment system, still everywhere
Free tier available · 80/100 score
Who Should Use What?
On a budget?
PayPal has a free tier. Lago is paid only.
Go with: PayPal
Want the highest-rated option?
PayPal scores 80/100. Lago is unrated.
Go with: PayPal
Value user reviews?
Neither has user reviews yet.
Go with: PayPal
3 Questions to Help You Decide
What's your budget?
Lago is paid. PayPal is freemium. PayPal lets you start free.
What's your use case?
Both are invoicing tools. Compare their specific features to decide.
How important are ratings?
Not all tools have been rated yet.
Key Takeaways
PayPal
- Higher score: 80/100 vs unrated
- Free tier available
- Our pick for this comparison
Lago
The Bottom Line
PayPal (80/100) is our pick.
Frequently Asked Questions
Is Lago or PayPal better?
PayPal scores 80/100 in our evaluation. Lago is paid and PayPal is freemium.
What are Lago and PayPal used for?
Lago: Open-source billing infrastructure for usage-based monetization at scale.. PayPal: The original online payment system, still everywhere.
What does Lago cost vs PayPal?
Lago is a paid tool. PayPal is freemium (free tier + paid plans). Visit their websites for detailed pricing.