Softwr

Software · head to head

PayPal vs Stripe

PayPal logo

PayPal

Software

The simpler, safer way to pay and get paid

From
$29/month
Rated
-
Full reviewWebsite
S

Stripe

Software

Financial infrastructure for the internet

From
Free
Rated
-
Full reviewWebsite

The short version

  • Only Stripe has a free tier, so it costs nothing to try first.
  • Each has a real cost: PayPal currency conversion on international purchases and sends carries a 4.00 percent fee, and 3.00 percent in other conversion scenarios; Stripe requires developer setup and API integration for most use cases
  • They diverge on capability: PayPal covers PayPal Checkout, Stripe covers Subscription billing.

Where they differ

Only the attributes on which PayPal and Stripe actually diverge.

Attributes where PayPal and Stripe differ
AttributePayPalStripe
Starting price$29/monthFree
Pricing modelusage-basedUnknown
Free tierNoYes
PlatformsWeb, Ios, Android, ApiWeb, iOS, Android
Founded19982010

Identical on both: user rating (Not yet rated), category (Unknown).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in PayPal

  • PayPal Checkout
  • Business debit card
  • Working capital loans
  • BigCommerce
  • PCI DSS
  • Buyer/Seller protection
  • Web support
  • Ios support

Only in Stripe

  • Subscription billing
  • Terminal (in-person payments)
  • Fraud prevention
  • 3D Secure
  • Global payouts
  • Financial reporting
  • Salesforce
  • NetSuite

Both cover

  • Payment processing
  • Invoicing
  • Shopify
  • WooCommerce

What people use each for

The jobs each tool is most often brought in to do.

PayPal

  • Paying online merchants without sharing card detailsnot Stripe
  • Sending money to friends and family domestically and internationallynot Stripe
  • Holding balances in multiple currencies for cross border purchasesnot Stripe

Stripe

  • Online paymentsnot PayPal
  • Subscription managementnot PayPal
  • Marketplace paymentsnot PayPal
  • Global expansionnot PayPal
  • Platform monetizationnot PayPal

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

PayPal

  • Currency conversion on international purchases and sends carries a 4.00 percent fee, and 3.00 percent in other conversion scenarios
  • Instant transfer to a bank or debit card costs 1.75 percent of the amount, with a minimum of 0.25 USD and a maximum of 25.00 USD
  • International personal transactions carry a 5.00 percent fee regardless of payment method, with a minimum of 0.99 USD and a maximum of 4.99 USD
  • Sending domestic personal payments funded by a credit card costs 2.90 percent plus a fixed fee of 0.49 USD
  • Instant transfers are capped at 25,000.00 USD per transaction

Stripe

  • Requires developer setup and API integration for most use cases
  • Dispute fee of $15 per chargeback is standard industry cost
  • Limited offline payment capabilities

Pricing, plan by plan

PayPal

$29/month
  • Standard$2.99/transaction
    • Card payments
    • PayPal checkout
    • Invoice payments

Stripe

Free

No published plan breakdown. See the Stripe review.

Which should you pick?

Choose PayPal if

  • You need paypal checkout.
  • You work on Web, Ios, Android, Api.
  • You also want business debit card.
PayPal review

Choose Stripe if

  • You need subscription billing.
  • You want to start without paying.
  • You work on Web, iOS, Android.
  • You also want terminal (in-person payments).
Stripe review

Questions people ask

Is PayPal or Stripe better?
Neither clearly leads. PayPal starts at $29/month and Stripe at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, PayPal or Stripe?
Stripe has a free tier; the other does not. Paid plans start at $29/month for PayPal and Free for Stripe.
Does PayPal or Stripe run on more platforms?
PayPal runs on Web, Ios, Android, Api. Stripe runs on Web, iOS, Android.
Can I use Stripe for free?
Yes. Stripe has a free tier, so you can try it without paying. PayPal starts at $29/month.
What is PayPal best used for?
PayPal is most often used for paying online merchants without sharing card details, sending money to friends and family domestically and internationally, holding balances in multiple currencies for cross border purchases. Of those, paying online merchants without sharing card details and sending money to friends and family domestically and internationally are not what Stripe is typically brought in for.
What can PayPal do that Stripe cannot?
PayPal covers PayPal Checkout, Business debit card, Working capital loans, BigCommerce. Stripe covers Subscription billing, Terminal (in-person payments), Fraud prevention, 3D Secure. Both handle Payment processing, Invoicing, Shopify, WooCommerce.

Answered from the vendors’ own pages

Stripe: What are Stripe's transaction fees?

Standard US rates are 2.9% plus 30 cents for online card payments, 2.7% plus 5 cents for in-person, 3.4% plus 30 cents for keyed/phone transactions, and 0.8% capped at $5 for ACH payments.

Source
Stripe: How many currencies and countries does it support?

Stripe accepts 135+ currencies and supports payment acceptance in 40+ countries through Stripe Connect, enabling sellers to onboard and receive payouts in minutes.

Source
Stripe: What payment methods are supported?

Stripe supports dozens of payment methods including credit/debit cards, ACH transfers, and local payment options, with additional support through partnerships with Meta and Google.

Source
Stripe: Are there monthly fees or contracts?

No. Stripe charges no monthly fees or contracts, only per-transaction fees and dispute fees, making costs fully transparent and variable.

Source
ShareXLinkedInRedditWhatsAppEmail

Related pages

More on PayPal

More on Stripe

Keep looking

Other head to heads