Stripe Vs Paypal - Which Is Better? 

S tripe V Paypal- At A Glance 

Stripe and Paypal are both online payment services that allow individuals to send and accept money digitally. Both apps have a well-established presence in the eCommerce world, with many businesses using them as the preferred mode of payment. They both offer similar services, and it’s straightforward to set up an account and get your payments going in no time. 

Stripe is more up-and-coming in the eCommerce world, used by small businesses and well-known names such as Lyft, TaskRabbit, Blue Apron, and Pinterest. Paypal is one of the most popular payment processing platforms, claiming to have about 267 million customer accounts and over 21 million merchants. 

The main difference between the two is that Paypal is a preferred option amongst small businesses, while Stripe has excellent options for payment customizations that large-scale organizations prefer. Below, we’ve compared the ratings, features, and pros and cons of both apps to help you decide which you should pick. 

Stripe V Paypal- In-Depth Comparison 

When choosing which payment processing platform you should use, there are several factors that you should take into account. We’ve broken down some important considerations you’ll have to take for Stripe and Paypal to help you decide. 

Cost 

Naturally, the most important concern is how much each platform will cost you. Both Stripe and Paypal have a similar and transparent payment plan. The US fees for each transaction are 2.9% + 30 cents, and there are no monthly costs, setup fees, or contracts with either platform. 

Both also offer lower pricing if your business reaches a particular digit in monthly sales. Stripe reduces their costs if you hit $80,000 per month, while for Paypal, the number is much lower at $3000 a month. This is why, although the transaction fee is the same for both, Stripe is more well-suited for larger businesses, as $80,000 is a reachable goal. 

Refunds & Chargebacks 

If your customer gets a refund from their bank because of a payment they suspect is a fraud, you will have to pay a chargeback fee. This is done to protect cardholders but can be frustrating for the business owner. Paypal’s chargeback fee is $20, while Stripe’s is lower at $15. 

Micropayments

For payments less than $10, the transaction rate is different. For both Stripe and Paypal, micropayment charges are 5% + .05 cents per transaction. 

RADAR Fees

At Stripe, there is an additional RADAR fee of .05 cents charged for every attempted transaction, meaning this is charged even if the transaction fails. So every time your customer’s transaction fails or they retry, you will be charged a RADAR fee. This is waived for Standard accounts but is applied to all others. 

Security 

The services of both apps are PCI Compliant, which means they are certified to meet rigorous standards of card security, and your data is well-protected. 

Ratings & Reviews 

Both Stripe and Paypal have received high reviews on multiple platforms. They are both ranked among the top 10 best POS systems on Forbes Advisor. Stripe has a 4.2-star rating on Forbes Advisor, while Paypal has 3.5. 

Availability 

Stripe is currently available in 47 countries, while Paypal has a much more extensive global reach of over 200 countries. Paypal supports 25 currencies, while Stripe supports over 135 currencies. 

Ease of Use 

Both platforms perform a simple, clean user interface that customers find no difficulty navigating. However, as Stripe offers a handy customization option, making use of the additional offerings can be a bit tricky to learn at first. 

Customizability 

The greatest difference between Stripe and Paypal is that Stripe offers much more customizability. It allows businesses to create a customizable checkout flow, meaning you can integrate the shopping cart to fit your brand’s outlook, offering your customers a better experience. However, this setup requires a bit of developer expertise, which is why larger companies can take better advantage of this feature. 

Payment Handling 

Stripe allows you to handle payments without leaving the website. With Paypal, you will have to first leave the page and sign in to your account.

The Bottom Line 

While both apps have considerable offerings, they have different target markets. If you’re a small business that is just getting started, Paypal is your best option as it has easy setup and use. For larger businesses with the necessary developer expertise who want to customize the payment experience for their customers, Stripe’s flexible and powerful customizing options can come in handy.