Stripe vs PayPal (2025): Which Is Better for Your eCommerce Store?

Stripe vs PayPal…is Stripe better than PayPal? Which is the better payment processor for your WooCommerce store? If these questions have been keeping you up at night, don’t worry! Here, we’ll break down everything under the Stripe vs PayPal debate.

When it comes to accepting payments online, Stripe and PayPal are often the first two names eCommerce store owners consider. Both offer secure, reliable, and widely accepted solutions—but choosing between them isn’t that easy.

Here, we’ll break down the key differences in fees, features, ease of use, recurring payments, and more to help you choose the right payment service for your WooCommerce store. Whether it’s startup or scaling your WooCommerce store, this comparison of Stripe vs PayPal will help you choose the right one.

If you’re short on time, this quick overview covers the essentials. We’ll answer the most searched questions: Is Stripe free? What are the Stripe transaction fees? Is Stripe better than PayPal?…to help you decide which payment processor for your eCommerce store.

	Stripe	PayPal
Founding Year	2009	1998
Reputation	Developer-friendly, scalable	Pioneering, widely recognized and trusted
Market Share	17.15%	45.52%
Cost and Transaction Fee	Offers a straightforward pricing structure that combines a percentage with a fixed fee, with add-on costs for features. 2.9% + 30¢ (US)	Uses a complex pricing model where each transaction type carries a different percentage and fixed fee. 2.89% + 49¢ (US)
Ease of Setup	More complex setup	Simpler
Payment Methods	Accepts all major credit and debit cards, digital wallets like Apple Pay and Google Pay, ACH and wire transfers, Buy Now Pay Later options, and supports local payment methods.	Accepts PayPal balance, all major credit and debit cards, PayPal Credit, Buy Now Pay Later options, and local methods like Venmo and QR code payments. Also supports cryptocurrencies, and other third-party wallets.
Recurring Payments	Recurring payments are available by default with no setup cost.	PayPal Business allows recurring billing without any monthly subscription fees, but its per-transaction charges tend to be higher compared to Stripe.
Buy Now Pay Later	Available	Available
Supported Countries	47 countries, including UK, US, and Canada	More than 200 countries
Supported Currencies	More than 135 currencies	25 currencies
Chargeback Fee	$15	$20
Software Integration	WooCommerce, BigCommerce, Magento, GoDaddy, Wix, and more	WordPress, WooCommerce, Magento, Shopware, Drupal, PrestaShop, and more

Founded in 2009 by Irish entrepreneurs John and Patrick Collison, Stripe has rapidly ascended the ranks to become one of the leading payment processors globally. Known for its developer-friendly approach, Stripe has a reputation for providing a robust and scalable platform for online businesses.

It offers a comprehensive suite of payment processing services, including online payments, subscription billing, and mobile commerce solutions. Its Application Programming Interface (API) allows developers to integrate payment functionality into websites and applications. Additionally, Stripe has expanded its services to include fraud prevention, business analytics, and optimized checkout experiences.

Stripe is popular among businesses of all sizes, from startups to large enterprises. Its emphasis on customization and scalability makes it appealing to developers and businesses looking for a flexible and agile payment solution. Its diverse range of services caters to a broad spectrum of industries, including e-commerce, subscription services, and on-demand marketplaces.

Established in 1998, PayPal has been a pioneer in the online payment industry, playing a pivotal role in the evolution of digital transactions. With an extensive user base, PayPal has cemented its status as one of the most recognized and trusted payment platforms globally.

PayPal provides a variety of services, including online payments, money transfers, and a digital wallet. Its services extend beyond eCommerce, facilitating person-to-person transactions and acting as a payment method for various online platforms. PayPal has also embraced innovations like One Touch, allowing users to make seamless and quick transactions across different websites and apps.

PayPal’s broad user base spans consumers, small businesses, and enterprises. Its user-friendly interface makes it accessible to individuals looking for a straightforward payment solution, while its extensive features cater to the diverse needs of merchants, from small businesses to large corporations. PayPal’s adaptability positions it as a go-to choice for a wide array of online transactions.

Now, let’s look at different aspects of PayPal vs Stripe in detail and see which one works better for your eCommerce store.

1. Pricing

Stripe primarily operates on a pay-as-you-go model for its standard integrated payment processing suite. This means businesses using the standard offering face no setup fees, mandatory monthly fees, or other hidden charges for basic online payment acceptance.

While Stripe offers optional services, such as advanced features within Stripe Billing, which may involve monthly subscriptions or usage-based fees, the core payment processing functionality avoids fixed monthly costs. Custom pricing packages are also available for businesses with large payment volumes or unique models.

PayPal also offers standard payment processing without a base monthly fee, but gates some of its more advanced functionalities behind monthly subscriptions. Specifically, PayPal Payments Pro, which enables fully customized on-site checkout experiences and includes the Virtual Terminal, carries a $30 per month fee.

Stripe Transaction Fees vs PayPal Fees Comparison

Transaction fees represent the primary cost for most merchants. Comparing these rates requires careful attention to the specific type of transaction and, particularly with PayPal, the specific product or checkout flow used.

Feature	Stripe	PayPal
Standard Online Domestic (PayPal Checkout)	2.9% + 30 cents	3.49% + 49 cents
Standard Online Domestic (Card/Wallet)	2.9% + 30 cents	2.99% + 49 cents
International Card Fee	1.5%	1.5%
Standard Dispute Fee	$15	$15
High-Volume Dispute Fee	$15	$30

Cross-Border and Currency Conversion Costs

Stripe charges an additional 1% fee if currency conversion is required. This brings the potential total cost for a cross-border transaction requiring currency conversion to 5.4% + $0.30.

PayPal’s currency conversion involves 3%-4% above the base exchange rate, depending on the transaction type. This means the potential total cost for a cross-border transaction with PayPal could range from approximately 7.49% to 8.49% + $0.49 (using the standard card rate as a base).

For a comprehensive overview of additional fees, including chargeback fees and mobile card reader fees, you can refer to PayPal’s merchant fees page for detailed information on costs associated with various services.

2. Ease of Integration

Both Stripe and PayPal integrate with major eCommerce platforms like Shopify, WooCommerce, Magento, and BigCommerce.

Stripe is often perceived as having a moderate-high learning curve. Achieving its full potential, especially regarding customization, typically requires some technical knowledge or developer assistance. While Stripe offers no-code solutions like Payment Links and the pre-built Stripe Checkout page, to simplify setup, its core strength lies in its adaptability for those with technical expertise.

On the other hand, PayPal is widely recognized for its ease of integration. It provides built-in integrations and numerous plugins for popular platforms. The setup process is straightforward, often involving simple API credential entry or an authorization flow within the eCommerce platform’s dashboard, leading to a shorter learning curve.

Both platforms offer plugins and extensions to enhance functionality within the eCommerce environment. The choice may depend on the specific requirements of your business, developer resources, and the level of customization needed. Merchants with coding expertise may appreciate the flexibility of Stripe’s API, while those seeking a straightforward setup may find PayPal’s integration process more accessible.

3. Payment Processing Time

The speed at which transactions are processed and funds become available in a business’s bank account is crucial for managing cash flow and operations.

Stripe

In the case of Stripe, transactions generally take around two business days to complete. Once processed, Stripe initiates a payment to the business’s bank account. The payout timing with Stripe can be influenced by several factors, such as the country where the business or consumer is located, the industry type, the account status, and the payout schedule set for the account.

While businesses can manage their payout timing schedule to some extent, factors like industry or country location may impact payout speed. In certain conditions, these factors can influence both the payout timing and the ability to use Stripe’s services efficiently.

PayPal

The speed of transferring money with PayPal varies depending on the chosen transfer method. For Instant Transfer, funds typically appear in your bank account within minutes, although the exact timeframe may vary by the bank. If the transfer doesn’t reflect in your account after 30 minutes, it is advisable to contact your bank for clarification, as PayPal’s team cannot alter the transfer status.

Standard bank transfers are usually complete within one business day, but the total processing time may extend to 3-5 business days due to your bank’s clearing process. Holidays are not considered business days in this calculation. Standard transfers to eligible debit cards take approximately 48 hours, while checks sent through mail typically arrive within ten business days.

4. Security and Compliance

Robust security measures and adherence to compliance standards are non-negotiable for payment processors, protecting both merchants and their customers from fraud and data breaches.

Both Stripe and PayPal place a strong emphasis on security to safeguard user transactions. Stripe employs advanced features, including industry-standard SSL encryption and fraud prevention tools powered by machine learning algorithms. Compliant with Payment Card Industry Data Security Standard (PCI DSS) requirements, Stripe ensures secure handling of payment information.

Its primary fraud prevention tool is Stripe Radar, which provides real-time transaction scoring and risk insights. Basic Radar capabilities are often included in standard pricing, while Radar for Fraud Teams allows for more granular control at an additional cost.

Similarly, PayPal is renowned for its commitment to security, utilizing SSL encryption and sophisticated fraud prevention tools. Compliant with PCI DSS, PayPal prioritizes the secure handling of payment data. It also offers optional Advanced Fraud Protection Services for a monthly and per-transaction fee.

5. Recurring Payments

For businesses operating on subscription models, the features, flexibility, and cost associated with managing recurring payments are critical considerations.

Stripe provides Stripe Billing, a comprehensive and integrated suite for subscription management. It supports a wide array of scenarios, including multiple products and pricing tiers, various currencies, customizable trial periods, and coupon application. Stripe assists merchants in migrating their customers’ stored card data securely if they choose to switch to another payment processor.

On the other hand, PayPal offers recurring payments, but features are fragmented across APIs and tools. Often requires a monthly fee ($10) for the recurring payments tool or Payments Pro ($30) for deeper API access. Also, PayPal does not allow merchants to migrate their subscribers’ stored payment details to another payment processor.

6. Scalability and Customization

Both Stripe and PayPal offer scalability, allowing eCommerce businesses to expand seamlessly. Stripe excels in customization, providing extensive flexibility through its developer-centric approach and versatile API. Businesses with specific technical requirements and a focus on customization may find Stripe particularly well-suited to their needs.

On the other hand, PayPal, with its widespread acceptance and user-friendly features, provides a scalable solution with a more straightforward approach to customization, making it a solid choice for businesses of varying sizes and technical expertise.

7. Customer Experience and Trust

PayPal possesses extremely high global brand recognition due to its long history and massive user base (over 430 million active accounts). This familiarity often translates into significant consumer trust; seeing the PayPal logo can reassure buyers, particularly those less familiar with the merchant’s own brand, potentially boosting conversion rates.

Stripe, while growing rapidly and highly regarded within the tech and business communities, has lesser direct brand recognition among the average consumer compared to PayPal. It often operates more “behind the scenes,” powering the merchant’s own branded checkout. Trust in Stripe transactions is typically derived from the merchant’s credibility and the security of the payment process itself, rather than explicit recognition of the Stripe brand by the end-user.

	Pros	Cons
Stripe	– Potentially lower costs – Highly customizable – Better for subscriptions – Advanced fraud tools	– More technical setup – Less consumer recognition – Initial payout delay
PayPal	– Easy setup – High brand trust – Buyer/Seller protection	– Complex & higher fees – Extra monthly costs – Limited customization – Subscription lock-in

When deciding between Stripe and PayPal, eCommerce stores must consider their individual needs and priorities. If customization, developer control, and scalability are paramount, Stripe may be the preferred choice. For those prioritizing user-friendly features, widespread acceptance, and a straightforward setup, PayPal offers a reliable solution.

The comparison between Stripe and PayPal reveals that both platforms offer robust solutions for online payments, each with its unique strengths.

Stripe stands out for its developer-friendly approach, extensive customization options, and scalability, making it a choice for businesses with specific technical requirements and a focus on flexibility.

On the other hand, PayPal, with its widespread recognition, user-friendly interface, and established reputation, provides a solid and accessible option for businesses of varying sizes.

That’s it, folks! We’ve reached the end of our Stripe vs PayPal comparison guide to help you choose the better payment processor for your eCommerce store. We hope you found it helpful. Let us know your thoughts in the comments below.