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.
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.
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.
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:
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.
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.
For Hong Kong:
For the United States:
You may refer to the official website here for the full PayPal fees details.
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.
You may refer to the official website here for full Stripe fees details.
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.
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.