Stripe Vs. Paypal

December 19, 2021

Stripe and Paypal currently take the lead as the most popular online economic infrastructures. When deciding which online processing payment platform to use, there are certain features that set them apart. Paypal is better suited for smaller or up and coming businesses, whilst Stripe is better suited for larger corporations as it provides flexibility and customisation options to cater for the needs of the business. At the end of the day the platform you select will depend on your business’ needs and capabilities.  

Point #1 

At the core of both platforms they share many similarities. They both offer:

  •  a reasonably priced service to make management of online businesses easier;
  • neither require a contract to be made so you can cancel whenever;
  • easy account set up accounts; and  
  • Compliance with PCI standards to ensure secure data storage.

It is at the point of customisation that Stripe excels, leaving Paypal behind. What Paypal offers in contrast to this is ease of use. It comes down to what works best for your business. 

Point #2

Both platforms are much more than just payment processing platforms. They allow for innovative growth by including economic infrastructure for internet users. Following an integrated style means that users can easily track payments among many other perks. Each has there pros and cons as can be seen below: 

Paypal

ProsCons
Better suited for smaller businesses Technologically easy to set up High quality customer service 20+ years of operation Familiar and trusted payment processorFunds arrive in your PayPal account immediately Easy Available in 200+ countries Additional fees for international credit cards Lack POS features $15 chargeback fee Customer service quality can vary 

Stripe 

ProsCons
More advanced features Allows for easy customisation International payment options available Customizable checkout process integrated with your bandSupport processing charges in 135+ countries 24/7 Customer Support via phone or chatFunds take around 2 days to arrive Not designed for ease of use Likely that a developer will be required for certain features and integrations Available in 46 countries 

Pricing

To make a fully informed decision regarding which payment gateway you want to use for your business should include a comparison of pricing and fees that are associated with each provider.

PayPalStripe
Additional Costs i.e set up and monthly feesNoneNone
Integrated, per transaction rate3.4% + $0.45 (fixed fee)2.9% + $0.30 
Chargeback Fees $15$25 
Refund Fees No fees to make a refund, but the fees originally paid to receive the payment are not returned. No fees to make a refund, but the fees originally paid to receive the payment are not returned. 
International transaction fee4.40% +$0.45 (fixed fee)1.5% fee + 2% for currency conversion
Payment Options (Customer)All major credit cards, Venmo, pay later options and cryptocurrencies.  All major credit cards, pay later options. 
Invoicing FeeNo charge per invoice0.4% per paid invoice, first 25 free
Software Integrations Magneto, WooCommerce, Wix, GoDaddy, BigCommerce, Divi, Shopify and more  Drupal, PrestaShop, Magneto, Shopware. WooCommerce, WorkPress, Squarespace and more 
Currency Conversion Fee 4%2%

* all monetary values are represented in New Zealand currency 

Final Statement 

Both platforms keep payments flowing seamlessly. With neither coming with any ongoing costs it is at the users discretion as to when they want to cancel, noting it will come with no further obligations. At the end of the day businesses want to maximize cash flow and working capital, doing so without the burden of heavy fees attached.