Stripe VS PayPal: Comparison
Both Stripe and PayPal offer reasonably-priced payment processing. PayPal is easier to use, while Stripe offers more customization, but which is right for you?
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WRITTEN & RESEARCHED BY
Editor & Senior Staff Writer
UPDATED
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| Stripe | PayPal | |
|---|---|---|
| Ideal For |
|
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| Online Payments Rate | 2.9% + $0.30 (2.2% + $0.30 for nonprofits) | 2.99% + $0.49 for standard credit & debit transactions; 3.49% + $0.49 for PayPal & Venmo payments |
| Standout Features |
|
|
| What’s Missing |
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Table of Contents
PayPal VS Stripe: At A Glance Comparison
PayPal and Stripe both support online payments, invoicing, recurring billing, international sales, and in-person payments. PayPal is generally easier to set up and includes access to PayPal, Venmo, and a ready-made POS system, while Stripe offers more customization and stronger developer tools.
PayPal is a better fit for businesses that prioritize simplicity and brand recognition. Stripe is better for businesses that need flexible payment workflows, broader integrations, or more control over the checkout experience.
Where PayPal Wins
- Easy to set up and use
- Online and in-person payment tools
- Accepts PayPal, Venmo, cards, and digital wallets
- Extensive integrations
- Strong international support
Where PayPal Falls Short
- Account holds and funding delays can occur
- PayPal’s per-transaction pricing is complex
- Inconsistent customer support
- Less customizable than Stripe
Where Stripe Wins
- Straightforward flat-rate eCommerce pricing
- Developer-focused and highly customizable
- Advanced reporting tools
- Multicurrency support for international merchants
- Great marketplace and subscription tools
Where Stripe Falls Short
- Account holds or closures can occur
- Advanced integrations may require technical skills
- No full-featured POS system
Stripe VS PayPal: Pricing Comparison
| Stripe | PayPal | |
|---|---|---|
| Monthly Fees | $0/month | $0/month, $5/month, or $30/month, depending on your checkout flow |
| Online Transaction Rates | 2.9% + $0.30 (2.2% + $0.30 for nonprofits) | 2.99% + $0.49 for standard credit & debit transactions; 3.49% + $0.49 for PayPal & Venmo payments |
| In-Person Transaction Rates | 2.7% + $0.05 per transaction (Stripe Terminal) | 2.29% + $0.09 |
| Invoices | 0.4% per transaction | 3.49% + $0.09 for keyed-in mobile & in-store transactions; 3.39% + $0.29 for virtual terminal transactions |
| Cross-Border Fee | 1.5% | Additional 1.5% cross-border fee |
| Currency Conversion Fee | 1% | 3% – 4% |
Stripe charges a straightforward standard rate for online card payments, while PayPal’s fees vary more by checkout product and payment method.
Stripe may be more cost-effective for businesses that need predictable online card pricing or international payment tools. PayPal can be competitive for standard card processing and currently charges lower published rates for in-person payments.
Both companies also offer custom pricing to qualifying businesses with higher processing volumes. Compare the complete cost based on your sales channels, average transaction size, card mix, and international sales.
Stripe VS PayPal: Features
| Stripe | PayPal | |
|---|---|---|
| Online Checkout |
|
|
| Card Reader & Mobile POS | Stripe Terminal: $0/month, $59+ for card reader | PayPal Point of Sale: $0/month, $29+ for card reader |
| Invoices | Starter & Plus Plans | Standard invoicing with optional paid subscription features |
| Buy Now Pay Later Options |
|
|
| International Support |
|
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| Marketplace Tools & Support | (Stripe Connect) | (PayPal Commerce) |
| Available Integrations | Excellent | Good |
| Developer Tools & APIs | ||
| Funding Time | 2 business days; immediately with Instant Payouts for 1.5% ($0.50 minimum) | Instantaneously in PayPal Wallet; immediately in a bank account for 1.5% of the transfer amount ($0.50 minimum) |
Stripe and PayPal offer many of the same core tools, including online checkout, invoicing, recurring billing, international payments, marketplace support, and in-person payment options. PayPal generally offers a simpler ready-made experience, while Stripe provides more control and customization.
Which Is Best For My Business: PayPal Or Stripe?
PayPal and Stripe offer many of the same payment tools, but each is better suited to different business needs.
Choose PayPal If…
- You want to build your eCommerce business yourself without developer help
- Having a POS system is a priority
- You want to offer PayPal and Venmo to your customers
- You want straightforward payment tools for in-person and online payments
Choose Stripe If…
- You want advanced customization or complex payment workflows
- You have access to development resources
- You need extensive subscription, marketplace, or platform tools
- Your business depends on international sales
- You want more control over your payments
Consider the features, pricing, and sales channels your business needs now and as it grows. Neither provider is right for every business, so compare the complete cost and functionality before choosing.
For more options, see our guide to the best credit card processors for small businesses.
Erica Seppala
Editor & Senior Staff Writer at Merchant Maverick
Erica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
View Erica Seppala's professional experience on LinkedIn.
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