PayPal vs Stripe – Choosing the Payment Platform that Suits Your Business

Back to Accountless Magazine

PayPal vs Stripe – Choosing the Payment Platform that Suits Your Business

When online payments were introduced to e-commerce businesses, very few of them embraced the concept. There were doubts about the benefits for businesses, fraud, and the security implications for customers. Retailers were scared that their customers’ information was unsafe and orders could get lost in the delivery process. These reservations slowed the adoption of online payments, but with results, it became mainstream. The ease that came with the payments, and the confidence it built over the years helped merchants accept the technology and many shoppers now pay without any stress.

How Easing Payments Benefits Your Business

Over the years, online payment services have grown tremendously. More platforms are being created and both small and large scale businesses use them to process tons of payments daily. Easing payments for business have brought about a lot of benefits, and some of them include;

  1. E-Commerce Growth: The introduction of online payment platforms has helped to make online shopping easier. Customers can make a transfer from their account to a merchant’s account to pay for a product or service. Because of online platforms, human errors have been reduced to their barest minimum. Also, it takes a faster time to process transactions because the system is automated. Online payment platforms present the opportunity for businesses to learn about their customers’ preferences. Information from this data can be used to develop insights. These insights can be used to make critical decisions that will ensure business success. Online payments help save money, make customers happy, and provide entrepreneurs with the metrics to expand.
  1. Improved Customer Experience: The development of online payment platforms has not been helpful to only business owners. Customers have also enjoyed the benefits of these platforms. As of 2016, over 14% of every business transaction was done through an online payment platform. The more payment options that a business has, the more customers that the business will get. Customers want to be given an option. They want to be made to believe that you consider their convenience. Not all your customers will enjoy using a particular payment platform. For whatever reason that is, it is important to have multiple payment platforms for your online business. Giving customers a choice to pick between any of the various payment methods gives them flexibility. It also makes purchases faster so buyers it takes less time.
  1. Security: One of the cons of online payment platforms is that they can be used for online theft. Fraudsters can get the details of a buyer during a transaction and use it to steal from the buyer. However, online payment platforms are aware of this and are not keeping idle. There are a lot of technologies being used to provide security for customers. The chip technology develops a code for every transaction. The token technology hides customers’ details until the transaction gets to their bank. The encryption technology uses an internal network to send information and prevent thieves from gaining access.

PayPal vs Stripe

If you own an eCommerce website, PayPal and Stripe are two major payment platforms for your site. You can decide to choose from either of them or take both. The two platforms generally provide the same services but the service delivery on each platform is different. We’ll look at the peculiarities of each platform below;


Paypal is a platform for sending money across the world online.  Many PayPal users do not own an eCommerce business. However, PayPal has more to offer eCommerce websites than its other customers.

With PayPal, you can accept payments from other PayPal users like yourself. You can also accept payment from credit cards, debit cards, and other payment platforms. PayPal allows businesses to customize their online shopping cart.

Three features of PayPal makes it distinct;

  1. The Checkout Process: PayPal can be easily integrated with any eCommerce platform. This ensures that your customers can purchase your product with just a few clicks. PayPal charges 2.9% of the total + $0.30 as fees for every transaction.
  2. The Payment Standard: If you are not using PayPal as a Payment Service Provider (PSP),  you can use it as a payment gateway. This means that PayPal can be used to process your Visa, Mastercard, Discover, and other card payments. Transaction fees are the same as the checkout process above.
  3. The PayPal Pro: As you would expect, the PayPal Pro provides extra features which include a fully customizable checkout experience. Retailers who use PayPal Pro can accept payment from their eCommerce websites. The checkout process is well optimized to work smoothly on mobile devices. This service costs $30 monthly subscription fee and the regular 2.9% + $0.30 per transaction.

The Stripe platform is quite different from PayPal. It is easy to integrate with your eCommerce website and the payment processing is the same. Stripe allows you to develop your checkout process, prepare invoices, and set up subscription payments. Like PayPal, Stripe has specific tools, each with its distinct features that you will have to pay for. Some of these tools include;

  1. Stripe Connect: The Stripe Connect tool allows e-commerce merchants to accept payment from any part of the world. It cannot only be used for eCommerce but also crowdfunding, travel, event planning, and other types of funding.
  2. Sigma: Sigma uses SQL programming language to assist businesses in data analysis. It provides insights from customer data and helps to improve efficiency.
  3. Atlas: Atlas is Stripe’s guide to launching your business if you are starting up from scratch.
  4. Radar: The main purpose of the Radar tool is to detect, prevent, and manage fraudulent activities. This is Stripe’s way of assuring it’s users of their commitment to safety using their platform to process payments.
  5. Issuing and Terminal: Issuing provides physical and virtual cards for businesses that need them for online and offline use. Terminal is a Point of Sale (POS) system for domestic payments. Stripe provides these tools to help your business run effectively both online and in the physical store.

Key Similarities and Differences Between Stripe and PayPal

The tools that platforms provide for their customers make it clear enough that they have a lot of differences. Some of the key differences between them are;

  1. Cost: Both PayPal and Stripe charge 2.9% + $0.30 on every transaction. However, Stripe has pricing packages for each of the tools that they provide.
  2. Usability: Both platforms are user-friendly. However, Stripe is designed to resonate well with developers—for API integration. Hence, a bit tough for beginners to navigate the platform. However, the PayPal platform is very easy to use even if you are a beginner.
  3. Subscriptions: Your subscription for any service on PayPal and Stripe can be deactivated at any time.
  4. Reputation: PayPal and Stripe both possess the tools that you need to effectively run an eCommerce store. Whether you are using them as a payment gateway or a payment service provider, they both function properly. They both have an outstanding reputation among their customers. However, PayPal is unarguably the more popular platform between the two of them.

Final Notes

Like all decisions about your e-commerce store, the ball remains in your court on which service to choose. Also, why choose when you can have both of them. Without conflict or overlapping functions, PayPal and Stripe can both serve together on your site, providing more options for your customers to pay you!

Share this post

Back to Accountless Magazine

Special Offers from Our Partners