Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Show PayPal and Stripe are two of the most popular and well-known payment processing platforms. Both companies have similarities, but each platform is better suited for different business needs. While both companies specialize in online payment processing (over in-person transactions), PayPal is better suited for small or new businesses that are just getting started while Stripe is a better fit for larger companies, as it provides more options for payment customization. PayPal vs. Stripe: At a GlancePayPal and Stripe both offer similar services for merchants. It’s easy to set up an account and start accepting payments with both. Neither company requires a contract and you can cancel anytime. The main difference between PayPal and Stripe is that PayPal is better suited for small businesses that are just getting started. It offers an easy setup and does not require advanced technical knowledge. Stripe is better suited for companies that want flexibility and the ability to customize practically every process of the online payment experience. PayPal Cost for Point-of-sale (POS) Card Readers $29 for the first one and $79 for each additional device $29 for the first one and $79 for each additional device Pros & Cons
StripeDeveloper Options Extensive developer options, with 450+ platform and third-party integrations International Payment Options Dashboard Availability Unified dashboard to manage business operations Extensive developer options, with 450+ platform and third-party integrations Unified dashboard to manage business operations Pros & Cons
PayPal vs. Stripe: Credit Card Processing ComparisonStripe’s fee for swipe and chip transactions starts at 2.9% plus 9 cents per transaction while PayPal’s is 2.29% plus 49 cents. The fee for keyed transactions for PayPal is higher, starting at 3.49% plus 9 cents while Stripe’s fee does not change. Both companies issue a chargeback fee—$20 for PayPal and $15 for Stripe. Additionally, PayPal charges an extra 1.50% for international transactions while Stripe charges an extra 1% for international cards, plus 1% if currency conversion is required. Both companies do not refund merchants the transaction fee when a customer issues a return. Both companies accept more payment options than other payment processing platforms on the market. PayPal is available in more countries than Stripe. PayPal offers options in 200-plus countries while Stripe offers services in more than 40 countries. The main difference between Stripe and PayPal is that the first is better suited for creating a customizable checkout flow. This means that you’ll be able to integrate your shopping cart to fit your store’s brand and aesthetics more easily. However, to customize these features you, or someone on your team, will need developer knowledge. Each customization process is outlined online in Stripe Docs. PayPal, on the other hand, doesn’t offer the same customization options, but it’s easy to set up. This makes it best suited for smaller businesses, ones that are just getting started or don’t have the developer knowledge to customize their platforms. PayPal vs. Stripe: Point-of-Sale (POS) ComparisonFeatured Partners Pricing $99 per month, 7 cents to 15 cents per transaction plus interchange rate Pricing $6.95 per month, 0.29% to 1.99% per transaction Offers $0 Setup & No Cancellation Fees Pricing Customized Interchange+ Pricing - Rates as low as 0.2% - 1.95% Offers $0 Setup and Net Zero Processing Option available Pricing $7.95/month and Net Zero Processing Option or 0.35% per transaction Offers SAVE or get a $200 gift card + FREE payment equipment* Pricing Industry-low rates starting at $0.15 batch fee Both Stripe and PayPal were rated one of our top 10 (POS) systems in 2024. Both companies offer terminals to process payments and both charge $249 for the more basic option. The card reader, on the other hand, is handheld hardware that allows you to swipe a credit card and accept payment. It costs $29 for the first one with PayPal ($79 for each additional card reader) and $59 for Stripe. Bottom LinePayPal and Stripe are two of the most well-known names in payment processing. If you’re a small business that’s just getting started and you’re looking for a way to process payments online, PayPal is a good choice. It’s easy to set up, does not have any start-up fees and does not require a contract. PayPal is one of the more recognized names in e-commerce, which ensures customers will feel safe purchasing your products or services. If your business is more established and you want to customize your shopping cart checkout process so that it is integrated with your brand—and you have the developer skills—Stripe is a better choice. |
