PayPal Vs Stripe: Which Suits Your Business the Best!

3 min read

As we all know PayPal can be called the user-friendly online payment processor that allows traditional business owners like you and me to integrate payments into our website or more recently accept payments on the go. The payment procedure makes it super easy for us to accept these payments without having any real technical know-how. Stripe on the opposite hand was specially engineered targeting the website developers. It’s a platform that enables mostly tech-savvy coders to feature payments to various websites

So, when you’re driving a lift or taking a lift and you end up paying, Stripe is working behind the scenes there. They have a ton of other big-name clients like “Doordash”, “Postmates”, “Into-the-car” etc. I think they’re even working with Target these days. So, with the elaborated article, you will go through a breakdown of how these two payment processors are similar and also how they’re different from various perspectives.

I am putting them into context and figure out which one of these is better for your business. You will get to see the breakdown of products and services, fees and rates, ease of use, and much more.


PayPal Vs Stripe: Which Suits Your Business the Best!

Products and Services

Products and Services - PayPal Vs Stripe

To begin about the product and services space as I mentioned before although they give you the same output. They do it differently and they kind of cater their services to different audiences. PayPal for traditional businesses, Stripe for web developers.

So, beginning with PayPal, as we all know, they’re in the business allowing average everyday users to integrate payments into their websites easily with several product and service offerings, like PayPal Checkout, PayPal Payments, PayPal Payments Pro.

And they have more recently got into the most traditional point of sales with a mobile payment’s app and several integrations with larger, more-in-depth point-of-sale solutions. Looking at Stripe, although they offer very similar products and services. But they focus on customizability and creating code for developers to allow them to implement various types of checkout processes.


Easy Access for the Customers

Easy Access for the Customers - PayPal Vs Stripe

With the development of technology, human has adapted to follow easy methods and trouble-free techniques. And due to this reason, both Stripe and PayPal is the most well-known payment processor. The interface of both has made it very simple for the customers to pay online without any hassle. Users can have easy access without any mastering skills over the usage of both the payment processors.

Learn more about Financing and Bootstrapping


Ease of Setup for the Merchants

Ease of Setup for the Merchants - PayPal Vs Stripe

PayPal and Stripe have a different customizable interface as I have mentioned before. So, setting up payment processing can become a bit difficult for the merchants depending on their business type. If you want to use Stripe as your payment processor then you have to have technical knowledge. Such as, if you want to add Pay with Card button on your website, you have to gather pre-knowledge about the features on how to add them by using Stripe.

On the other hand, PayPal also offers such features and other tools for the developers. But those come in handy for the merchants to set up. The developer tools in PayPal are formatted in such a design that is easily accessible for almost anyone setting up the payment processing for their website. PayPal also offers you to integrate different third-party e-commerce sites for easy setup.


Fees and Transaction Calculations

Fees and Transaction Calculations - PayPal Vs Stripe

Moving on to fees and rates, after quite a few researches I have noticed that both the payment processor almost offers a very transparent way of payment. There’s no extra commitment even no early cancellation fee or types of fees and rates are all clear out for the users in both PayPal and Stripe. The costs for online transactions are the same for both Stripe and PayPal.  The cost is 2.9 percent plus 30 cents per transaction.

So, if you want to process mobile point-of-sale or over-the-counter in-person transactions, with PayPal it’s going to cost you 2.7 percent. But with Stripe, with their terminal offering, it’s going to cost you 2.7 percent plus 5 cents a transaction. A slight advantage for Stripe here is that they also offer ACH or Automated Cleaning House transactions at 0.8 percent and cap at 5 dollars. On top of that ACH is something that PayPal does not offer. So, there you have it, a very similar price offering between the two. I would say that it’s a tie unless you need an ACH transaction within your app.

You may want to check out: 10 Ways To Cut Business Costs


User Reviews

User Reviews

So, looking at all the positives, PayPal customers mostly seem to be happy with the very easy setup. The widely accepted multiple product amenities and offerings that PayPal offers. Whereas the Stripe customers like the quick and easy setup, the great API or software developer kit, and also the awesome documentation for web developers.

So, taking the pros and cons of taking the minuses and pluses, when it comes to user reviews, both the payment processor works head-to-head. It’s a tie.


Finally, as I have mentioned in the beginning that both PayPal and Stripe fundamentally do the same things but they do it differently. So, it’s really hard to pick a clear and overall winner in case of choosing which payment processor suits your business the best. From my point of view, if you are a non-tech savvy business owner and just easily want to implement online payments then PayPal is the easy way to go.

It is widely accepted and is well known due to its simplicity. But if you are a developer and you want to do some more heavy lifting, then Stripe is the way to go. It has great software developer kits along with its great documentation. The decision is in your hand depending on what type of business you have.

You can also check out Best Budgeting Apps

kacnika mom kacnika mom
4 min read

kacnika mom kacnika mom
4 min read

kacnika mom kacnika mom
3 min read

Leave a Reply

Your email address will not be published. Required fields are marked *