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PayPal vs Stripe

  • 27.03.2018
  • Web Development

PayPal vs Stripe

Does your Online Business use PayPal or Stripe?

PayPal and payment gateway is synonymous with each other. We would even go as far as saying PayPal is a household name. Each online business uses it, and if they do not, they most certainly know what it is.

Let us start by evaluating what a payment gateway is from an ecommerce perspective. Wikipedia says it perfectly; “A payment gateway is a merchant service provided by an e-commerce application service provider that authorizes credit card or direct payments processing for e-businesses, online retailers, bricks, and clicks, or traditional brick and mortar stores.” In short, when you have an online store and you would like to process customer payments without having a merchant account, you want to invest in such a service.

So we have established that PayPal and Stripe are tools that handle payment processing for ecommerce websites used by various web development companies. But there is so much more. Both solutions provide simplified setup and integration into a startup or existing online business across many different platforms. Additionally, they both also offer a myriad of ecommerce features unique to the ecommerce shopping and payment processing experience of consumers today. So we all know Paypal. Let us ask the next question.


What and Who is Stripe?

Founded in 2010 by the young Collison brothers, Stripe’s colorful headlines include the fact that they are backed and funded by PayPal cofounders Peter Thiel and Elon Musk. In 2016, Stripe was ranked number four on the Forbes magazine Cloud 100, a list of companies that engage in cloud computing.

“ In November 2016, online payment gateway Stripe closed a $150 million funding round, which ultimately valued the firm at $9.2 billion.” (Source:

Stripe Products and Services

  • Debit and credit card processing
  • Simple checkout buttons
  • Mobile app integration
  • Custom coupons
  • Recurring billing
  • Multi-currency support

And then there is always PayPal


PayPal is one of the most recognized and trusted payment solutions for web and mobile. Popular among online businesses because PayPal accepts payments via desktop, mobile, and tablet. “As of 2017, PayPal operates in 202 markets and has 197 million active, registered accounts. PayPal allows customers to send, receive and hold funds in 25 currencies worldwide. “ ` Wikipedia

One of the biggest advantages of using PayPal is that it is so well known and offers an array of services including shopping cart integration, “buy now” buttons, and donation buttons. Additionally, PayPal is built into most e-commerce solutions such as Shopify and is, therefore, the top choice for most online businesses.

The primary concern however among merchants on the internet today is the volume of complaints about PayPal. As these mostly centralize around disabled merchant accounts and poor customer service, many people are asking whether PayPal is truly the best solution.

In conclusion

In our opinion, the ultimate decision of choose PayPal or Stripe depends on the needs of your online business. By comparison, transaction fees are relatively similar. In the United States, both PayPal and Stripe charge the same basic fee: 2.9% + 30c per successful transaction. (sources: PayPalStripe) These fees vary by which country you’re trading in.

But the good news is that these are not our only two options for your online business. With the emergence of other electronic financial service providers such as Apple Pay, Amazon Pay, choices have improved, and hopefully electronic business to follow.