Stripe and PayPal are payment service providers that help small businesses accept payments. Both offer free monthly subscriptions. Their biggest differences are their in-person hardware options and payment processing rates.
PayPal is an ideal fit for brick-and-mortar businesses that need a full POS system setup. Stripe is better for online businesses that sell globally. Each is among NerdWallet’s picks for the best payment processing companies overall.
Stripe is better for:
✔️ More foreign currency support.
✔️ Online businesses.
✔️ 24/7 support.
PayPal is better for:
✔️ Accepting PayPal and Venmo payments.
✔️ Brand recognition.
✔️ Brick-and-mortar businesses.
Stripe pros and cons at a glance
Pros
Highly customizable.
Supports more international currencies than PayPal.
24/7 customer support.
Cons
Doesn’t sell full POS systems for brick-and-mortar businesses.
» MORE: Read our full Stripe review
PayPal pros and cons at a glance
Pros
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.
Cons
Online fees are difficult to navigate.
» MORE: Read our full PayPal review
Stripe vs. PayPal: Head-to-head comparison
| Stripe | PayPal |
|---|---|
| Monthly POS software costs | |
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Optional add-ons:
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| Payment processing fees | |
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| Hardware costs | |
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| Customer support | |
| 24/7 live chat. Phone and email support only available as add-ons. | Phone support every day from 8 a.m. to 8 p.m. CST. Chat support from 7 a.m. to 10 p.m. CST on weekdays and from 8 a.m. to 8 p.m. CST on weekends. |
More details on Stripe's plans and pricing
Monthly POS software costs:
- $0 for standard services.
Payment processing fees:
- 2.7% plus 5 cents for in-person transactions.
- 2.9% plus 30 cents for online transactions.
- 3.4% plus 30 cents for manually keyed transactions.
- 4.4% plus 30 cents for international card transactions.
Hardware costs:
- $59 for Stripe Reader M2.
- $249 for BBPOS WisePOS E card reader.
- $349 for Stripe Reader S700.
More details on PayPal's plans and pricing
Monthly POS software costs:
- $0 for standard service.
Optional add-ons:
- $5 for PayPal Payments Advanced.
- $10 for Advanced Fraud Protection service, buyer authentication service or recurring billing service.
- $19.95 for account monitoring service.
- $30 for Payments Pro, Payments Pro Payflow or recurring payment tool.
Payment processing fees:
- 2.29% plus 9 cents for in-person card payments and QR code transactions.
- 2.89% plus 29 cents for online card payments through PayPal Expanded Checkout.
- 2.99% plus 49 cents for online card payments through PayPal Checkout.
- 3.49% plus 9 cents for manual-entry card transactions.
- 3.49% plus 49 cents for PayPal and Venmo payments.
- 3.39% plus 29 cents per virtual terminal transaction.
Hardware costs:
- $29 for first card reader; additional readers cost $79. Price includes USB cable.
- $199 for terminal only.
- $239 for terminal with barcode scanner built in.
- $229 for Store Kit Mini (tablet stand with card reader and dock).
- $339 for Store Kit Portable kit with mobile card reader and printer.
- $479 for Store Kit Standard (tablet stand, card reader, dock and printer).
- $699 for Store Kit Plus (adds barcode scanner).
Where Stripe stands out
Supports more than 135 currencies
Stripe can process payments in more than 135 currencies. This 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 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 chat whenever you need to. That way, you can quickly address problems and avoid losing sales.
» MORE: Stripe fees
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Where PayPal stands out
POS hardware options
PayPal POS, one of PayPal’s many payments solutions, is made specifically for in-person sales. It offers a range of hardware items. Those include countertop registers, 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 card readers. You can integrate Stripe’s services with full POS systems from other companies. But it will likely require coding.
Low in-person payment processing rates
PayPal POS charges 2.29% plus 9 cents per card-present transaction. This is less than the 2.6% plus 10-15 cents that’s common among other PayPal alternatives, like Shopify and Square. That lower rate can help brick-and-mortar retailers save money.
» MORE: PayPal fees
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 35 different payment methods in the U.S. But its U.S. accounts do not support PayPal or Venmo payments.
» MORE: Stripe vs. PayPal vs. Square
