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Software · head to head

Stripe vs PayPal

S

Stripe

Software

Financial infrastructure for the internet

From
Free
Rated
-
Full reviewWebsite
PayPal logo

PayPal

Software

The simpler, safer way to pay and get paid

From
$29/month
Rated
-
Full reviewWebsite

The short version

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

Where they differ

Only the attributes on which Stripe and PayPal actually diverge.

Attributes where Stripe and PayPal differ
AttributeStripePayPal
Starting priceFree$29/month
Pricing modelUnknownusage-based
Free tierYesNo
PlatformsWeb, iOS, AndroidWeb, Ios, Android, Api
Founded20101998

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 Stripe

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

Only in PayPal

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

Both cover

  • Payment processing
  • Invoicing
  • Shopify
  • WooCommerce

What people use each for

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

Stripe

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

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

Where each one falls short

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

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

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

Pricing, plan by plan

Stripe

Free

No published plan breakdown. See the Stripe review.

PayPal

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

Which should you pick?

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

Choose PayPal if

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

Questions people ask

Is Stripe or PayPal better?
Neither clearly leads. Stripe starts at Free and PayPal at $29/month, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Stripe or PayPal?
Stripe has a free tier; the other does not. Paid plans start at Free for Stripe and $29/month for PayPal.
Does Stripe or PayPal run on more platforms?
Stripe runs on Web, iOS, Android. PayPal runs on Web, Ios, Android, Api.
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 Stripe best used for?
Stripe is most often used for online payments, subscription management, marketplace payments, global expansion. Of those, online payments and subscription management are not what PayPal is typically brought in for.
What can Stripe do that PayPal cannot?
Stripe covers Subscription billing, Terminal (in-person payments), Fraud prevention, 3D Secure. PayPal covers PayPal Checkout, Business debit card, Working capital loans, BigCommerce. 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
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Related pages

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