PayPal vs Stripe is one of the most common payment-processor decisions an online business makes. Both are widely used, but they no longer charge the same fees or support the same countries.
This article compares them on fees, payouts, countries and currencies, security, and support, to help decide which one fits an eCommerce or non-profit website best.
The importance of the right payment processor
A payment processor handles the transaction details of every customer, in an encrypted and secured way. Getting this choice wrong risks a customer’s banking data and their trust in the business.
Beyond safety, cost-to-business, per-transaction fees, and payout speed all shape the checkout experience. That’s why picking between PayPal and Stripe deserves more than a coin flip.
An introduction to Stripe and PayPal
What is Stripe?
Stripe lets a business send and receive money online. eCommerce sites use it heavily, and freelancers and service providers rely on it to collect payments from clients too. Small businesses and tech-oriented ventures tend to prefer Stripe because it integrates into a website cleanly and customizes well.
What is PayPal?
PayPal is also an online payment service, letting customers pay and businesses accept money for products, services, and donation purposes. Millions of customers and roughly 35 million merchants use it worldwide. PayPal carries strong trust for eCommerce transactions as well as service-sector businesses.
Key comparisons between Stripe and PayPal
With the basics covered, here’s how Stripe versus PayPal actually stacks up on the factors that affect a business day to day.
Stripe vs PayPal fees
PayPal and Stripe used to charge nearly identical fees. That’s no longer the case: PayPal now carries a meaningfully higher fixed fee than Stripe.
| Fee type | Stripe | PayPal |
|---|---|---|
| Standard rate | 2.9% + $0.30 | 2.99% + $0.49 (card), 3.49% + $0.49 (PayPal balance or Venmo) |
| Non-profit rate (approved orgs) | 2.2% + $0.30 | 1.99% + $0.49 (verified 501(c)(3)) |
| Micropayments (under $10) | 5% + $0.05 | 4.99% + $0.09 |
| Chargeback fee | $15 | $20 |
Every rate above applies per transaction. Both non-profit rates require an approved application; neither is automatic.
On a refund, the two gateways don’t handle the original processing fee the same way. Stripe keeps its entire processing fee even after a refund. PayPal returns the percentage portion of its fee but keeps the fixed fee.
Stripe vs PayPal payouts and transfers
Stripe deposits received funds to a linked bank account within about 2 business days on average, though the exact timeline varies by country.
PayPal’s standard bank transfer is free and typically takes 1 to 3 business days. PayPal also offers an optional instant transfer, usually landing within minutes, for a fee of around 1.5% (capped per transaction).
PayPal additionally lets a business deposit funds directly to a debit card, for a small transaction fee. Stripe supports weekly or monthly payout scheduling for merchant accounts; PayPal’s payout scheduling options vary depending on which of its checkout products a business uses.
Accepted payment types: PayPal vs Stripe
PayPal accepts credit cards, debit cards, bank transfers, PayPal balance, rewards balance, and PayPal-branded credit and debit cards.
Stripe accepts credit cards, debit cards, Google Pay, Apple Pay, other mobile wallets, bank debits, bank transfers, cash-based vouchers, and in-person card readers.
Countries and currencies: Stripe vs PayPal
PayPal is available in 200+ countries worldwide, the broadest reach of the two. Stripe supports around 46 countries and continues to expand its coverage.
PayPal supports 25+ currencies. Stripe supports 135+ currencies, a much wider range. Either way, withdrawals settle in a single currency tied to the account’s location, regardless of which gateway is in use.
Advanced billing options: Stripe vs PayPal
Both gateways cover the basics: invoicing, subscription billing, and recurring payments.
Stripe’s invoicing supports full brand customization, including a logo, brand colors, and a custom domain on the hosted payment page. PayPal also lets a business customize its invoices with a logo and business details.
Stripe leans toward eCommerce and SaaS-style billing out of the box. PayPal spreads its billing tools across more channels, including in-person, mobile app, and phone-based payment collection.
For multi-party payments, such as a marketplace splitting funds between several sellers, Stripe Connect is the more widely adopted developer-first option. PayPal for Platforms covers similar ground and can be the stronger pick where PayPal’s much broader country coverage (200+ vs Stripe’s ~46) matters more than developer flexibility.
Third-party integrations: PayPal vs Stripe
For simple payment processing, both PayPal and Stripe integrate easily with most website builders and e-commerce platforms.
Stripe’s integration library goes deeper: CRMs, customer support tools, fundraising portals, referral platforms, email marketing tools, and inventory management systems all connect to it. That depth suits developers building custom or high-end setups.
Hosting and plans: PayPal vs Stripe
Stripe’s checkout runs on a business’s own website by default, with the look and feel customizable to match the brand.
PayPal has consolidated its older plans (Website Payments Standard, PayPal Payments Pro) into a single current option, PayPal Checkout, part of its broader PayPal Complete Payments platform. The basic version redirects customers to a PayPal-hosted page to complete payment. A more advanced, customizable on-site checkout is also available, letting customers pay without leaving the business’s site, similar to Stripe’s default experience.
Security and PCI compliance: PayPal vs Stripe
Stripe and PayPal are both PCI-compliant by default on their standard checkout options.
For a fully custom, on-site PayPal checkout, merchants still need to maintain PCI compliance, which may carry an additional monthly cost depending on the plan. Either way, both gateways guide merchants through what’s needed to stay compliant.
On the question of which is “safer,” the honest answer is that both meet the same industry security standard. Stripe’s setup tends to be easier to reason about for developers, which is a usability difference, not a security one.
Customer service and technical support: Stripe vs PayPal
Support quality on both gateways is inconsistent by most accounts, better for routine questions than for complex, high-stakes issues.
Stripe doesn’t offer a dedicated inbound phone line but provides 24/7 live chat, email, and a callback option. PayPal offers email, live chat, phone support, and social media channels.
Both maintain a substantial knowledge base, user guides, and third-party integration documentation on top of human support.
PayPal vs Stripe: similarities
On paper, a PayPal versus Stripe comparison might suggest the two are interchangeable. In practice, the similarities below matter less than where they diverge.
- Support options and knowledge bases are strong for both PayPal and Stripe.
- Neither gateway returns its full processing fee on a refund.
- Both are PCI-compliant on their standard checkout options.
- Both integrate cleanly with WordPress and WooCommerce.
- Both support online invoicing, recurring payments, and subscription billing.
PayPal or Stripe: a quick way to decide
The fastest path to a Stripe or PayPal decision comes down to two questions: who’s checking out, and who’s building the integration.
Stripe fits better when a developer is involved and the checkout needs custom logic, subscriptions, or marketplace-style payment splitting. PayPal fits better when speed of setup matters more than customization, or when a large share of customers already have PayPal accounts and trust the brand at checkout.
For a business running in a country Stripe doesn’t yet support, PayPal’s broader reach settles the question outright.
Who uses Stripe and PayPal?
Who uses Stripe?
Service-based apps and online stores make up most of Stripe’s customer base, in the countries where it’s available. Pinterest, Lyft, DocuSign, Udemy, and Coursera all run payments through Stripe.
Who uses PayPal?
Major online stores and marketplaces widely accept PayPal. Barnes & Noble, Ikea, and Walmart are a few examples. Freelancers and development agencies rely on it heavily too.
Takeaway: where each one wins
Where Stripe does better
- Deeper third-party integrations, across CRMs, support tools, fundraising platforms, and inventory systems
- Full control over a custom, on-site checkout experience
- Flexible payout scheduling, including weekly or monthly options
- A lower fixed fee per transaction (30 cents vs PayPal’s 49 cents)
- Developer-first tools for marketplaces and multi-party payments, through Stripe Connect
Where PayPal does better
- Broader country availability (200+ countries vs Stripe’s roughly 46)
- Faster setup with less customization work required
- Direct phone support as a contact option
- Higher brand recognition, which can reduce checkout hesitation for unfamiliar buyers
- The only real option when a business operates somewhere Stripe doesn’t yet support
PayPal vs Stripe: user reviews
Stripe review
Source: TrustPilot
PayPal review
Source: Capterra
Stripe vs PayPal alternatives
Plenty of businesses skip the Stripe PayPal debate entirely and use one of these instead.
- Payoneer
- Wise
- Instamojo
- Skrill
- Braintree
- Square
- Amazon Pay
- Authorize.Net
Each of these alternatives brings its own strengths, and some fit certain business models better than others. Checking one against actual needs beats picking from a list alone.
Frequently asked questions
Can a business use both Stripe and PayPal?
Yes. Running both is common, but it adds overhead: reconciling records across two systems, and potentially extra fees depending on how they’re combined at checkout.
Is Stripe safer than PayPal?
Both are PCI-compliant and meet the same industry security standards for storing cardholder data. Neither has a meaningful safety edge over the other; the real difference is usability, not security.
Is Stripe cheaper than PayPal?
For standard online transactions, yes. Stripe charges 2.9% + $0.30, while PayPal charges 2.99% + $0.49 for card payments (3.49% + $0.49 for PayPal balance or Venmo). The gap comes almost entirely from PayPal’s higher fixed fee. Both offer volume-based custom pricing for high-volume merchants, though neither publishes an official threshold for when that kicks in.
Which gateway works better for subscription-based businesses?
Both handle recurring billing well, but Stripe offers more developer-friendly tools for complex subscription logic. PayPal shines when customers already have PayPal accounts, since it reduces friction during signup. For a deeper dive, see how to manage PayPal subscriptions effectively.
How do I track and analyze payments from these gateways?
Native dashboards in both Stripe and PayPal provide basic transaction data but fall short for deeper business insights. Third-party tools like Putler consolidate data from both gateways, giving a unified view of PayPal analytics and Stripe reporting in one place.
Can a business switch from one gateway to another without losing data?
Switching is possible, but historical transaction data stays with the original gateway. That’s one reason to use an external analytics tool from the start: it keeps reporting intact regardless of which gateway is active, or whether a switch happens later.
Final thoughts
Every website selling digital or physical goods needs a payment processor, whether it’s collecting course fees, in-app payments, or donations. The choice isn’t optional; only which gateway is.
Stripe and PayPal both hold up on security, and the sections above cover where each one actually wins: fees, countries, hosting, and integrations. Running both at once is also a legitimate option, not just a fallback.
What happens after choosing a gateway
Whichever gateway (or gateways) a business settles on, the sales data still needs analyzing, and Stripe’s and PayPal’s own dashboards only ever show their own transactions. A business running both sees two separate, disconnected views of its own revenue.
That’s a narrower problem than “which gateway is better,” and Putler exists to solve exactly that. Putler is a multi-channel analytics tool that pulls transactions from both PayPal and Stripe (including multiple PayPal accounts, if needed) into a single dashboard, so a business running Stripe, PayPal, or both gets one consistent set of reports instead of stitching two together by hand.
Putler’s PayPal and Stripe reporting includes:
- Unified reports across every connected PayPal and Stripe account
- Product, order, and customer-level detail beyond what either gateway shows natively
- SaaS metrics like MRR, churn, and LTV, calculated across both gateways together
- Quick CSV exports and fast, filtered search
- Real-time reporting as transactions come in