Stripe vs. PayPal: Which Is Right for Your Business?
Stripe and PayPal make the checkout process seamless, but cost and customization level are big differentiators.
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Stripe and PayPal are payment service providers, or PSPs, that help small businesses accept payments. Both offer free monthly subscriptions, sell card readers for in-person payments and facilitate online checkout options. The biggest differences between the two are their customizability, in-person hardware options and payment processing rates.
PayPal is an ideal fit for brick-and-mortar businesses that require a full POS system setup and accept sales mostly in person. Alternatively, Stripe is better for online businesses that need a highly customizable online checkout solution and sell internationally. Each is among NerdWallet’s picks for the best payment processing companies overall.
Here's how these options stack up.
Stripe pros and cons at a glance
Stripe Payments
2.7% + 5¢
in-person; 2.9% + 30¢ online.
Highly customizable.
Supports more international currencies than PayPal.
24/7 customer support.
Doesn’t sell full POS systems for brick-and-mortar businesses.
» MORE: Read our full Stripe review
PayPal pros and cons
PayPal
2.29% + 9¢
In-person; 2.89% + 49¢ online.
More hardware options for brick-and-mortar businesses than Stripe.
Low payment processing rates (2.29% plus 9 cents) for in-person transactions.
Brand recognition among both businesses and consumers.
Charges high flat fees (2.59%-3.49% plus 49 cents) for online transactions.
» MORE: Read our full PayPal review
Stripe vs. PayPal comparison
Stripe | PayPal |
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Monthly POS software costs | |
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Payment processing fees | |
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Hardware costs | |
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Customer support | |
24/7 phone, email and chat support. |
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Where Stripe stands out
Online customization options
One of Stripe’s defining characteristics is its online checkout customizability. The processor was built with developers in mind, and tools, like Stripe Elements, let you build an online checkout experience that meshes seamlessly with your business’s brand.
Not all of its solutions require coding. But if you don’t have developer experience or access to such resources, your business may get more overall value from PayPal or a different Stripe alternative.
Supports more than 135 currencies
Stripe accommodates global transactions and can process over 135 currencies. It also supports multiple languages — including Chinese, Spanish, French, Dutch and Italian — which can be valuable for small businesses that want to expand overseas.
PayPal can still process international sales, but its scope is more limited with support for just 25 currencies.
24/7 support
Online businesses’ checkout pages are open 24/7, and a payment processing snafu — at any time of the day or night — can negatively impact sales. This is where Stripe’s 24/7 support comes into play. You can reach one of Stripe’s representatives by phone, email or chat whenever you need to so that you can quickly address problems and avoid losing sales.
Where PayPal stands out
POS hardware options
PayPal Zettle, one of PayPal’s many payments solutions, is made specifically for in-person sales and offers a range of hardware items, including countertop POS terminals with cash drawers, barcode scanners, and mobile card readers. This makes it a solid solution for brick-and-mortar businesses.
Stripe’s hardware selection is limited to mobile card readers. You can integrate Stripe’s services with full POS systems from other companies, but it may require coding.
Low in-person payment processing rates
PayPal’s fees for online payment processing can be steep with a 49 cent flat fee (plus variable percentage amounts), but the company’s in-person payment processing solution is relatively inexpensive. PayPal Zettle charges 2.29% plus 9 cents per card-present transaction, which is less than the 2.6% plus 10 cents that’s common among other PayPal alternatives like Shopify and Square. That lower rate can help brick-and-mortar retailers save money.
Brand recognition
PayPal was founded in 1998, and it’s a recognizable name in the digital payments space among both businesses and consumers. Brand ubiquity isn’t everything, but it’s easier to trust a company with a long standing reputation. Plus, the processor allows customers to pay using their PayPal or Venmo balance.
Stripe lets your business accept more than 100 different payment methods, but Stripe accounts created in the U.S. do not support PayPal or Venmo payments.
» MORE: Stripe and PayPal vs. Square
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