Paypal Vs Stripe: Which is Better for Online Business

While starting an online business, you must work on various Strategies to skyrocket your sales. The most daunting question at this time is Paypal vs Stripe. How should you receive the payments?

The two biggest names in the online payment method are Paypal and Stripe. Although they target different audiences, still they considered Competitors.

Paypal was founded in 1998 and has widespread recognition with over 360 million active users globally. Stripe was founded in 2010 and offers comprehensive documentation and resources for developers.

Let us do a quick Paypal vs Stripe to answer this burning question- Which is better among them?

A Quick Breakdown of Paypal

paypal vs stripePaypal is a well-known Payment solution that lets users make and receive money online. Paypal has over 267 million active users, including over 21 million merchants. This service even offers a PayPal Gift Card that has lots of benefits.

This payment procedure is generally used to send money to friends, relatives, and clients and receive payments. Paypal also offers merchant services like POS Systems and Credit Card Processing.

Setting up a Paypal Account is straightforward. It lets new users access Digital Wallet for sending or receiving funds. Further, you can order a POS system, acquire a business loan and send individual invoices.

PayPal integrates with various popular eCommerce Platforms Shopify, Wix, WooCommerce, Squarespace, and more. You can check some businesses that accept PayPal payments.

A Quick Breakdown of Stripe

paypal vs stripeStripe is the most popular Online Payment Service that lets people send or receive money over the Internet globally.

It is the best tool for big businesses. Larger Companies that use Stripe are Pinterest, Blue Apron, and TaskRabbit. Stripe supports transactions globally. It can process over 135 Currencies and

Paypal Vs Stripe: A Detailed Comparison

paypal vs stripe

1. Accepted Payment Types

Paypal accepts payments through Credit Cards, Debit cards, PayPal balances, bank transfers, Rewards balances, and Paypal branded Credit/Debit cards.

While Stripe accepts Payments through Debit cards, Credit cards, GPay, Apple Pay, Mobile Wallets, bank transfers, cash-based vouchers, and more. Stripe offers more options as compared to Paypal

2. Regional Availability

Paypal is available globally and caters to 200+ Countries across the globe. However, Stripe is currently available in just 32 Countries and trying to expand faster. Paypal wins here

3. Currencies Support

Paypal support only 25 Currencies, while Stripe support over 135+ currencies. Stripe offers more currencies than Paypal.

4. Pricing and Plans

Both PayPal and Stripe allow users to create their Accounts for free. While creating an Account on Stripe, users must choose between Integrated and Customized Accounts.

Integrated Accounts are for regular users who can access all the basic features at the standard charges of 2.9% plus $0.30 for Credit Card transactions and 0.8% plus a varying fee for bank transfers.

While the customized plan is only for businesses that have completed a significant number of transactions.

On the other hand, PayPal’s pricing system is quite complex. Users must choose between two types of Accounts- Paypal Payment Standard and Paypal Payment Pro.

Payment Standard is a basic Paypal business plan that redirects users to Paypal for Payment processing.

Besides this, Payment Pro is the most commonly used payment method that enables you to process sales over the phone or virtual terminals.

This account will cost you $ 30 per month as maintenance fees. So, all in all, both Paypal and Stripe offer similar plans. As far as pricing and Plans, Stripe wins here.

5. Ease of Use

Paypal offers a user-friendly dashboard that makes it easier to manage your Paypal Account.

Signing up for a PayPal Account is damn simple. Paypal users can set up their accounts and start taking payments quickly. Even non-technical users can pick this payment method without any hesitation.

On the other hand, the user dashboard of Stripe could be more friendly. To access it, you must either understand the code or hire a developer to make your Stripe functionality.

6. Security

paypal vs stripeBoth Paypal and Stripe are PCI Compliant. It means that all your and your Customer’s data is stored securely and will not be shared by third parties.

However, Stripe provides more intense Security to their Customers. It is because Stripe does arrive with a stunning feature of the browser-side JavaScript library Stripe.js.

When you use Stripe.js, the credit card data you enter is sent directly to Stripe instead of the Server.

However, Paypal provides a different Security than Stripe.js. The sensitive card data will go through the Server first, putting a big security burden. Paypal is not as secure as Stripe

7. Data Portability

Unfortunately, Paypal does not provide the feature of Data Portability. Data Portability means transferring all the card data from one payment procedure to another.

It is a significant factor to consider if you own an Online business. For instance: Suppose you own a successful website powered by PayPal Subscriptions.

But when you want to move to another payment procedure, it does not allow you to transfer Credit Card data.

All the customers must sign up again on the website, which could be better! On the other hand, Stripe allows you to securely migrate all Credit card data. Stripe wins here.

8. Digital Wallet

Paypal provides a feature of a Digital Wallet. This feature makes it easier for users to manage their money online. However, Stripe does not provide the feature of a Digital Wallet at all.

9. Payment procedure

Paypal often payout in 1 business day. However, Stripe usually takes 7 days to transfer funds in certain countries.

Funds were transferred in two business days in the United States and Australia. If faster access to funds is important for you, you need to go with Paypal

Paypal Vs Stripe: Similarities

  • Both do not offer Refunds.
  • Both are compatible with WordPress.
  • Support for multiple Payment methods.
  • eCommerce Integration
  • These platforms charge almost similar fees from their users.
  • Both are PCI- Compliant.

Paypal Vs Stripe: Head-to-head Comparison

  Comparison   Paypal Stripe
Transaction fees   1.2% + fix fees        1.4% + £ 0.20
Monthly fees    No charges           No Charges
   PCI Compliance  Yes                Yes
Countries Availability    200                44
Chargeback fees    $15               $20
      Invoicing    Yes                Yes
Cost of Card Readers Card Reader costs $29 and $79 for additional device          It costs $59


Paypal and Stripe are well-known Payment Processing Platforms well-suited for different Businesses.

At the same time, Paypal is best suited for small and new businesses that have just started. It requires no technical knowledge, and the setup procedure is easier.

Stripe is better suited for larger Companies that provide more payment Customization options.

So in Paypal vs Stripe, Which one is better? 

It completely depends on your business’s individual needs. The type of Customers you have and what you are selling.

Thanks for reading!!

Bony Nakhale
A developer by profession, I'm passionate about new PC Games, Technology, and Development techniques. I'm a thirty-something gamer living in India who decided it was time to share his thoughts, opinions, and ramblings about video games with the world.


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