How do I reduce the inner padding around the text within an Android button object?

So, at the moment I have a button which looks like the first image above. How do I reduce the padding around the text inside the button itself (To look more like the second image)?

Layout width and height is set as:

android:layout_width="match_parent"
android:layout_height="wrap_content"

The custom style shape has parameters"

<shape xmlns:android="http://schemas.android.com/apk/res/android"
android:shape="rectangle" android:padding="10dp">

With the rest just being color attributes and radii values.

Just to make it clear, I want the frame of the button to hug the "Login" text closer.

All help and feedback is greatly appreciated. Thanks.

It took me forever to find this but the "padding" around the text in a button isn't really padding at all. The default Widget.Button style includes a minHeight property. Changing minHeight on the button will allow you to adjust padding as expected.

<Button
        android:id="@+id/header"
        android:layout_width="fill_parent"
        android:layout_height="wrap_content"
        android:text="@string/test"
        android:textColor="@color/black"
        android:minHeight="40dip"/>


<style name="Widget.Holo.Button" parent="Widget.Button">
    <item name="android:background">@android:drawable/btn_default_holo_dark</item>
    <item name="android:textAppearance">?android:attr/textAppearanceMedium</item>
    <item name="android:textColor">@android:color/primary_text_holo_dark</item>
    <item name="android:minHeight">48dip</item>
    <item name="android:minWidth">64dip</item>
</style>

In the Material Components Library, the MaterialButton has a default style with insetBottom and insetTop with a value of 6dp.

You can change them in the layout:

  <com.google.android.material.button.MaterialButton
      android:insetTop="0dp"
      android:insetBottom="0dp"
      ../>

or in a style:

 <style name="Button_no_insets" parent="Widget.MaterialComponents.Button"..>
    <item name="android:insetTop">0dp</item>
    <item name="android:insetBottom">0dp</item>
 </style>

try this in your custom shape.xml file

<shape xmlns:android="http://schemas.android.com/apk/res/android"
android:shape="rectangle"
android:paddingLeft="10dp"
android:paddingRight="10dp"
android:paddingTop="1dp"
android:padding="1dp">

also you can make change in your button's xml

android:layout_width="wrap_content"
android:layout_height="wrap_content"

If you want a smaller top and bottom padding, use this:

 android:paddingTop="2dp"
 android:paddingBottom="2dp"

Update: If you want to use Material Button: >

You can use style="@style/Widget.MaterialComponents.Button.TextButton" attribute, set insetTop & insetBottom to 0dp. Also set app:cornerRadius="0dp" to get same result of my given picture.

  <com.google.android.material.button.MaterialButton
        android:id="@+id/btnAddMorePassenger"
        style="@style/Widget.MaterialComponents.Button.TextButton"
        android:layout_width="match_parent"
        android:layout_height="wrap_content"
        android:backgroundTint="@color/primary_variant"
        android:insetTop="0dp"
        android:insetBottom="0dp"
        android:text="@string/add_passenger"
        android:textColor="@color/light"
        android:visibility="visible"
        app:cornerRadius="0dp"
        app:icon="@drawable/ic_profile_24dp"
        app:iconGravity="textStart"
        app:iconTint="@color/light"
        app:layout_constraintEnd_toEndOf="parent"
        app:layout_constraintStart_toStartOf="parent"
        app:layout_constraintTop_toBottomOf="@id/toolbar"
        tools:visibility="visible" />

You can use Borderless style in AppCompatButton like below. Also use background color your preferred.

> Widget.AppCompat.Button.Borderless.Colored

Button code

<androidx.appcompat.widget.AppCompatButton
        android:id="@+id/button_visa_next"
        android:background="@color/colorPrimary"
        style="@style/Widget.AppCompat.Button.Borderless.Colored"
        android:layout_width="0dp"
        android:layout_height="wrap_content"
        android:layout_marginTop="@dimen/spacing_normal"
        android:text="@string/next"
        android:textColor="@color/white"
        app:layout_constraintBottom_toBottomOf="parent"
        app:layout_constraintEnd_toEndOf="parent"
        app:layout_constraintStart_toStartOf="parent" />

Output:

For me, need to set all below

minWidth 
minHeight
paddingHorizontal
paddingVertical
layout wrap_content

Done