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Stripe vs PayPal: Which is the Better Payment Gateway? Pricing and Fees Comparison (Hong Kong & US)

Stripe and PayPal are popular gateways for online businesses to accept payment online. We compare their transaction fees and other factors to help you choose the right payment gateway.

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Stripe and PayPal both follow a model of acting as a gateway between you and the bank through which you accept payments. Both payment gateways support all the major payment modes, including credit cards and debit cards; however, they differ in a host of other ways, such as transaction costs and software integrations. 

How do these two stack up against each other? Which one should you choose as your payment gateway?

Without further ado, let’s get into the nitty-gritty of the things they have in common, as well as their differences. 

Stripe vs PayPal: Customer Payment Options

Perhaps the most critical aspect of having an international payment gateway is supporting popular payment methods that your customers love. Stripe and PayPal both have a large base of merchants who use their gateways to accept payments in various options.

PayPal: Payment Options

  • Credit Cards
  • Debit Cards
  • PayPal Balance
  • PayPal Credit
  • Rewards Balance
  • Bank Account
  • Cryptocurrencies

Stripe: Payment Options

Global

  • Credit & Debit Cards
  • Apple Pay
  • Google Pay
  • Microsoft Pay
  • After Pay

Specific for Asia Pacific Customers

  • China UnionPay
  • JCB
  • Alipay
  • WeChat Pay
  • FPX
  • GrabPay

Stripe vs PayPal: Geography Covered

Both Stripe and PayPal cater to customers across the globe and offer support for many currencies. We’ve included links to the official webpages for the full list of supported countries and currencies: 

PayPal

Stripe

Stripe vs PayPal: Software Integrations

Software integrations are the backbone of the eCommerce business. So, it’s important to have a gateway that works with the various software applications essential for a business.

PayPal Software Integrations

  • For Setting Up Stores: Wix, Shopify, GoDaddy, etc.
  • Custom Online Stores: WooCommerce, Salesforce Commerce Cloud, Adobe Commerce, etc.
  • Web Design: Weebly, Blue Acorn, ShopSite, etc.
  • Financial Management: Intuit Quickbooks, Xero, Zoho, etc. 
  • Marketing: Constant Contact, Eventbrite, Infusionsoft, etc. 

Stripe Software Integrations

  • For Setting Up Stores: Shopify, GoDaddy GoCentral Online Store, Wix
  • Custom Online Stores: AmeriCommerce, UltraCart, Big Cartel (POS), etc.
  • Web Design: Webflow, DotGo, etc.
  • Financial Management: Avalara Returns, FreshBooks (Accounting), Zoho Books, etc.
  • Marketing: Webflow, WooCommerce, Mailchimp, etc.

Stripe vs PayPal: Pricing, Transaction Costs, and Fees 

The transaction fee is the cost charged by the payment gateway for processing a transaction. In general, these fees vary from one payment gateway to the other. Let’s look at how Stripe and PayPal transaction costs stack up against each other.

PayPal Transaction Costs and Other Fees

Merchant Fees for Receiving Domestic Payments

Payment TypeRate – Hong KongRate – USA
Commercial Transactions4.40% + HK$ 2.353.49% + USD 0.49
QR Code Transactions #11.20% + HK$ 0.80 (for HK$ 80.01 or more)1.90% + USD 0.10 (for USD 10.01 or more)
QR Code Transactions #2 1.70% + HK$ 0.39 (for HK$ 80.00 or less)2.40% + USD 0.05 (for USD 10.00 or below)

Merchant Fees for Receiving International Payments

Payment TypeRate – Hong KongRate – USA
Commercial Transactions4.40% + HK$ 2.353.49% + USD 0.49 + 1.50% for non American Express payments
QR Code Transactions #11.70% + HK$ 0.80 (for HK$ 80.01 or more)1.90% + USD 0.10 (for USD 10.01 or more) + 1.50% for non American Express payments
QR Code Transactions #2 1.70% + HK$ 0.39 (for HK$ 80.00 or less)2.40% + USD 0.05 (for USD 10.00 or below) + 1.50% for non American Express payments

Merchant Fees for Sending Payments

For Hong Kong:

  • Domestic Payments: 2% of the total amount (not exceeding max fee cap of HK$ 7)
  • International Payments: 2% of the total amount (not exceeding max fee cap of HK$ 7)

For the United States:

  • Domestic Payments: 2% of the total amount (not exceeding max fee cap of USD 1)
  • International Payments: 2% of the total amount (not exceeding max fee cap of USD 20)

Other Fees for Consideration 

Payment TypeRate – Hong KongRate – USA
Credit / Debit Cards2.99% + USD 0.49
Domestic Micropayments5.00% + HK$ 0.394.99% + USD 0.09
International Micropayments6.00% + HK$ 0.394.99% + USD 0.09 + 1.50%
Chargeback FeesHK$ 75.00USD 20.00
Standard Dispute FeesHK$ 65.00USD 15.00
High Volume Dispute FeesHK$ 130.00USD 30.00
Currency Conversion3.00% or 4.00%3.00% or 4.00%

You may refer to the official website here for the full PayPal fees details. 

Stripe Transaction Costs and Other Fees

Stripe is a bit cheaper than PayPal when it comes to commercial transactions, both with regard to the transactions made from and into Hong Kong and the US. 

Payment TypeRate – Hong KongRate – USA
Commercial Transactions3.40% + HK$ 2.352.9% + 30 cents

Other Fees for Consideration

Payment TypeRate – Hong KongRate – USA
Credit / Debit Cards3.4% + HK$ 2.352.9% + 30 cents
Chinese Wallets like Alipay and WeChat Pay2.2% + HK$ 2.002.9% + 30 cents
Micropayments5% + 10 cents
Dispute FeeHK$ 70.00USD 15.00

You may refer to the official website here for full Stripe fees details. 

Stripe vs PayPal: Pros and Cons

The Stripe vs PayPal comparison is, at best, a tough call. Both are fantastic payment gateways that cater to merchants of all sizes and cater to customers from every corner of the globe. However, there are some aspects of each gateway that stand out when compared with the other. To understand these differences better, let’s take a closer look at their pros and cons.

Stripe Pros

  • Stripe facilitates a host of currencies, supports a tremendous number of merchant accounts, and has robust architecture, supporting merchants from every corner of the globe.
  • Stripe’s pricing makes it an attractive payment gateway compared to PayPal. For large corporations, in particular, this pays off in spades.
  • Stripe can be integrated with a range of software applications, making it easy to bank with your choice of application and keep your business running.

Stripe Cons

  • You might need a developer to integrate certain customization of Stripe payments with certain eCommerce platforms or your websites.
  • Unlike Paypal, Stripe doesn’t refund the service fee for transactions This means that you may have to bear the brunt of the losses in the event of fraudulent payment.

PayPal Pros

  • Paypal supports a wide range of payment modes. This enables you to accept payments in the channels that most merchants want to use.
  • PayPal can be integrated with pretty much every software application, given its customer base and network. It supports almost all popular eCommerce platforms – without the need for developers to integrate. Also, it provides an automated button builder to generate code. 
  • PayPal is quite easy to start with, making it an attractive option for individuals and small businesses just starting.

PayPal Cons

  • The relatively high merchant fee that PayPal charges may not be practical for corporations looking to transact heavily. 
  • PayPal’s customer service isn’t the best and may take longer to resolve in the event of an account suspension. 

Conclusion

The competition between Stripe and PayPal is intense, but both are good choices as payment gateways. In this article, we have seen that Stripe and PayPal are focused on more or less the same market. Both are backed by big businesses, have a large customer base, and offer a wide range of products. Not to mention that both Stripe and PayPal have a similar focus on worldwide coverage, with their transaction fees and pricing varying minimally. However, when operating on a relatively massive scale, one would wonder how the costs would stack up even if they are marginally different.

Looking strictly from the perspective of pricing and transaction costs, you would be better off choosing Stripe for your business if you expect high transaction volume. PayPal’s commercial transactions would be best for you if you have low transaction volume.

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