Difference Between Paypal And Stripe: Which One Is Better?

Running transactions online has never been easier than now with the help of online payment platforms and gateways.

These payment platforms are so excellent and sophisticated that you can practically use them to receive and send out funds to anyone and anywhere in the world.

If you research the best platforms to send out and receive payments internationally, two platforms must pop up amongst others. These two platforms are PayPal and Stripe.  Regardless of what you might have seen or heard about these platforms, it’s almost impossible to receive payments internationally without them.

In this article, we will be comparing the two best payment platforms for merchants. Let’s take a brief review of each platform.


PayPal is one of the leading online payment platforms in the world. Everyone knows about PayPal, and I don’t mean everyone in the world but everyone that makes transactions and receives payments online.


PayPal makes it easy for you to receive and make payments to anyone from anywhere In the world once you know how to create a verified PayPal account. When it comes to online payments, PayPal is seen as the king. With over 380 million active users , PayPal has a presence in over 200 countries and has executed over 4 billion payments in a quarter of 2020 only.  PayPal has been around since 1998, giving people alternative ways to send and receive money online, and after so many years, it remains the top choice for many people. Though it is unsupported in some countries, you can learn more on How to Create Verified PayPal Account


Stripe is another powerful payment platform that gives people access to make payments across various countries. Stripe is perfect for low-risk small businesses, and they pride themselves to be the most secure online payment platform in the world.


This might not be wrong totally because Stripe takes a lot of measures to ensure that its customers are protected when they make transactions online. Stripes support over 135 currencies And payment methods globally and have a presence in over 35 countries.  over 90% of adult males in the US have used strive to make a payment or purchase since the inception of the Tech giant.

Now let’s see the difference between these two essential payment platforms.

The Difference Between Paypal And Stripe

Are you deciding on which of these payment platforms you should use for your business or service? If you are, then this section of this article is dedicated to you.  I hope by the time you get through with this article, your doubts will have been cleared on which payment platform will be suitable for you and your type of business. Paypal is the most popular payment platform, which is relatively easy to use while, on the other hand, Stripe offers a more sophisticated interface and features.

Our comparison will be based on some factors such as the ease-of-use security features, credit card integration, refunds policy and fees.

Difference Between Paypal And Stripe


The good thing about both Stripe and PayPal is that they let you set up your account, Create invoices and transfer money into your bank account, all for free.  However, on the other hand, You will pay a fee for every transaction that occurs on your website regardless of which platform you use. Here is a comparison of fee payments on PayPal and stripe.

  Paypal Stripe
Non-profit discount 2.2% + $0.30 2.2% + $0.30
International transactions 4.4% of any currency 1% for international cards and currency conversion
Recurring Bill N/A 0.5%
Transaction Fees 2.9% +$0.30 2.9% +$0.30
Invoicing No charges No charges
POS card processing 2.7% per swipe in U.S., 4.2% per swipe outside U.S., 3.5% + $0.15 for manual transactions, 1.5% for cross-border transfers 2.7% + $0.05 per swipe + 1% for international cards + 1% for currency conversion
Pre-certified card  readers Free to $79.99 $59 to $299
Fraud protection charges N/A $0.07 depending on the transaction
Instant payouts 1% up to $10.00 1% with a $0.50 minimum
Chargeback fees $20 for the US, fixed  per currency $15 for the US, fixed  per currency
Chargeback protection N/A 0.04%
ACH direct debit, credit, or wire transfers for large transactions N/A 0.03 up to 5%
Micropayment fees 5.0% to 6.5% + fixed currency fee 2.9% + $0.30

Prices might change at any time. You must visit either PayPal or stripe to confirm prices when you need them.


When it comes to security, both platforms meet the requirements of the payment card industry, which ensures that customers’ transactions and details are handled with a high level of fragility and security. However, stripe goes one step further in ensuring top-notch security through its stripe fraud detection service known as stripe radar. Strawberry uses machine learning and artificial intelligence to predict and intercept fraudulent activities on the platform.  Also, stripe has a lower fee on its comeback security than Paypal. So when it comes to security, we give it to Stripe.


Both platforms take enough time to set up customer support sections to enable prompt and swift response if an issue arises. They both have social media presence on all media platforms, including live chat and phone support.  However, Stripe offers 24/7 phone support while Paypal has limited hours of 6 am to 6 pm pacific time. So for support, we will give to Stripe.


Refunds and chargebacks happen when someone contacts the platform with a complaint on a transaction they disapproved of they are not comfortable with. This feature is present in both PayPal and stripe platforms. They are present just to protect customers, but sometimes they are misused And at such a fee is mandatory if you want to access the chargeback and refunds features.  Stripe has a refund fee of $15, while PayPal has its own at $20. Also, there will be no refunds of the processing fees for both platforms.

Credit Cards

Both platforms have credit cards they issue to merchants and customers. With a PayPal credit card, you can shop on any online platform and withdraw from over 33,000 ATMs nationwide without any extra cost. There is the PayPal cash card and the PayPal cash back Mastercard. Stripe also has its Virtual card, which you can demand if you have an active Stripe account. On a general note, PayPal cards offer more features and usage than stripe cards, so we give this one to PayPal.

Which Big Companies Use Stripe?

A lot of renowned companies use Stripe. Here is a shortlist of them: Udemy., Instacart., Reddit., Lyft., Stack., KAVAK., Accenture., CircleCI.

Which Big Companies Use Paypal?

Paypal is widely used all over the world, even more than Stripe. Most of them are found in the US, and they belong to the retail industry. Here are some big names that use Paypal.

Zendesk incorporated MSL Group, Lorven Technologies, QA limited.

Final Words

I believe by now you have a clear idea Of what to expect on the PayPal platform and stripe platform as well. In summary,  PayPal is best for smaller merchants because of how to use it and its user-friendly interface. However, for bigger corporations with a team of developers, you can subscribe to the stripe payment platform and enjoy its customization options.