Is Stripe better than PayPal? Discover the key differences between Stripe and PayPal in this comparison. Learn which payment processor is better for business.
So, you're the proud owner of a WordPress website, and you want to start accepting online payments. But you have a tough decision to make. Which payment processor should you use?
And so you start researching. There are too many options: Stripe, Braintree, Square, Authorize.net, and PayPal + Braintree... too many! But the odds are good you'll eventually whittle it down to the big two.
Let the showdown of Stripe versus PayPal begin!
Today, we're comparing eight different aspects of each platform to see which comes out ahead.
Ready for the ultimate Stripe and PayPal comparison? Let's do this!
User experience
Up first, we have PayPal. The OG of online payments. It's been around since the internet was all AOL, Napster, and MSN Messenger โ ah, good memories! ๐ PayPal offers a familiar user experience, making it easy for customers to complete transactions.
Stripe may be the new(er) kid on the block, but it isn't slacking off in this department either.
Stripe offers a sleek, modern interface that's user-friendly and intuitive. Plus, you can customize the checkout experience to streamline it further. The whole system is easy to use whether you're on the merchant account side or a customer.
๐ Winner: Tie. Both Stripe and PayPal offer a smooth user experience.
WordPress integration
Younger, tech-savvy contender Stripe integrates seamlessly with WordPress thanks to a wide range of Stripe plugins. Just a few clicks and some copy-pasting, you'll be accepting Stripe payments on WordPress in no time!
But the old-timer PayPal also plays well with WordPress.
There's a dedicated PayPal plugin that makes integration a breeze. It might not be as trendy as Stripe, but it does the job.
๐ Winner: Stripe, by a smidge
International transactions
This question is crucial if you have global ambitions for your online business.
PayPal is like the United Nations of payment processors; it's available in 200+ countries and supports 100+ currencies. That's like having a passport to the world of online payments.
Stripe is pretty well-traveled too. It's currently supported in 46 countries but is noticeably absent from the entire continent of Africa.
This is one of the biggest disadvantages of Stripe compared to PayPal, especially if you're trying to go worldwide.
๐ Winner: PayPal
Supported payment methods
Both PayPal and Stripe support several payment methods, including:
- Debit/credit cards,
- Digital wallets like Apple Pay and Google Pay,
- And bank transfers.
But Stripe pulls ahead slightly by offering a few additional payment options like Klarna and Alipay.
It's worth digging into all the available payment methods for Stripe and PayPal, particularly if you want to do business in Asia, Africa, or Europe.
๐ Winner: Stripe
Fees and pricing
Let's talk transaction fees. Fun, right?!
PayPal is notorious for its fees. Their transaction fees vary based on many factors, including location, currency conversion, international cards, and transaction amount.
And these fees can hurt your bottom line, especially for small businesses.
Stripe is better than PayPal when it comes to prices. Stripe charges a flat rate per transaction with no hidden fees. This simplicity is like a breath of fresh air for small business owners who don't want to spend hours deciphering complex fee schedules.
Are you trying to decide on Stripe vs. PayPal for a nonprofit? While both platforms offer reduced charity transaction fees, Stripe's fees are significantly lower.
Transaction Fees | Stripe | PayPal |
---|---|---|
Card Transaction Fees (US) | 2.9% + $0.30 | From 2.99% + $0.40* |
Card Transaction Fees (EEA) | 1.5% + โฌ0.25 | From 2.99% + โฌ0.39* |
Nonprofit Card Transaction Fees (US) | 2.2% + $0.30 | 1.99% + $0.40 |
Chargeback Fees (US) | $15 | $20 |
๐ Winner: Stripe
Security
Security is non-negotiable when it comes to online payments. So it's important to know, is Stripe or PayPal safer? Both PayPal and Stripe are Payment Card Industry(PCI) compliant, so you get peace of mind with either payment gateway.
PayPal does have a solid (and longer) track record for security, using industry-standard encryption and fraud prevention measures. But Stripe takes security seriously, too. They comply with the strictest industry standards and have robust security features.
๐ Winner: Tie. Both Stripe and PayPal offer top-notch security.
Customer support
What happens if your WordPress website goes haywire, and you can't figure out why customers can't complete their payments? This is when good customer support matters!
PayPal offers various channels for customer support, including phone, email, and a knowledge base. They've been around for so long that they've got customer support down to a science.
While known for its user-friendliness, Stripe falls short in the customer support department. They offer email and chat support, and you can send a message requesting a callback. But they don't have the immediate phone support that PayPal provides.
๐ Winner: PayPal
Developer-friendly
Fellow developers, this one's for you!
Stripe is renowned for its developer-friendly APIs and documentation. If you've got some coding chops or a developer on your team, Stripe can be a dream come true for customizing your payment flow. There's also a Stripe Developers Discord live chat to get advice from other pros.
PayPal isn't far behind, either. They offer robust developer tools and a developer community to help you navigate coding conundrums.
๐ Winner: Stripe
Don't want to deal with coding? Opt for a time-saving payment plugin like Formidable Forms instead to take all the hassle out of adding payment gateways to your website.
Final verdict: Stripe versus PayPal
So, is Stripe better than PayPal? Well, it really boils down to your specific needs.
To sum it all up, here's the major differences between PayPal and Stripe:
- Pick Stripe if you value a slick interface, easy integration, and cost-effectiveness.
- Pick PayPal if your priorities are international reach, customer support, and reputation.
Ultimately, choosing between Stripe and PayPal is like deciding between two tasty ice cream flavors. There's no wrong option; you may even switch back and forth as your business grows.
Still aren't sure which is right for you? You can always flip a coin. (Just kidding! Don't do that!)
Picking a payment gateway is an important decision. And here at Formidable Forms, we understand this better than anyone.
That's why our WordPress form builder offers both Stripe and PayPal integrations. And why choose when you can have it all? So, if you want to start accepting payments and making money online ASAP, pick up our payment plugin, create your payment form, and watch the revenue roll in!
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