Stripe vs. PayPal: How To Choose the Right One for Your Needs

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Stripe and PayPal are two popular payment services. They both have web-based and app-based functionality and are used by both businesses and individuals.

But their greatest strengths lie in their processing of business payments. Although either can get the job done for many businesses, the way they operate is different enough that certain companies might prefer one over the other. Here’s a look at the ins and outs of Stripe vs. PayPal so that you can choose the option that makes the most sense for you.

Stripe vs. PayPal: Key Differences

Stripe and PayPal both process payments for businesses of all types and sizes, but they differ in important ways.

Payment Methods

• Stripe: Supports over 100 payment methods, including buy now, pay later and bank transfers. Bank redirect and cash-based vouchers are available for some international markets.
• PayPal: Supports 41 payment methods, although they cover all the same categories as Stripe’s. Unlike Stripe, PayPal accepts Venmo.

International Payments

• Stripe: Businesses can accept Stripe payments from 46 countries. Stripe supports over 135 international currencies.
• PayPal: Supports 25 currencies and is available in over 200 countries and regions.

Point of Sale Capabilities

• Stripe:
  • Gives business owners a choice between three mobile card readers and terminals, which range in price from $59 to $349.
  • You can customize Stripe to integrate with your existing point-of-sale system or third-party readers, but it’s a laborious process that requires some programming.
• PayPal:
  • Has an inexpensive mobile reader, and it has PayPal’s POS app built in.
  • It also has a much more robust POS system called PayPal Point of Sale — formerly PayPal Zettle. This system features an all-in-one terminal with the POS system installed and is customizable with optional receipt printers, barcode scanners and cash registers.

What Is PayPal?

PayPal originated as a person-to-person money transfer service, and it still excels in that capacity. It also functions as a digital wallet to make purchases easier for individuals. Plus, it offers cash back from various vendors if you use the app to make purchases.

As the company evolved, it got into merchant processing as well. In addition to processing online and point-of-sale payments, PayPal offers its own buy now, pay later service and a business credit card.

PayPal History and Background

PayPal was founded in 1998, making it one of the original companies in the online payment space. As PayPal describes things, in 1998, “money” meant “paper and coins,” and their mandate was to change that.

As of year-end 2023, the company had certainly succeeded, as it had:

• 426 million active consumer and merchant accounts
• $1.53 trillion in payment volume
• 25 billion payment transactions
• 27,200 employees

PayPal is also the owner of the popular payments company Venmo. The company trades on the New York Stock Exchange under the symbol PYPL and has a market capitalization of $70.18 billion.

Pros and Cons of PayPal

No payment solution is right for every business. PayPal’s strengths and weaknesses include the following:

Pros

• Easy to set up
• Available in more than 200 countries
• Offers free online invoicing
• Offers personal money transfers and acts as a digital wallet

Cons

• Can have higher fees than Stripe
• Not as merchant-friendly as Stripe

What Is Stripe?

Stripe helps businesses accept payments more easily. To that end, it tailors its products towards processing payments for merchants for both in-person and online transactions.

Its fees are competitive and in many cases more affordable than with PayPal, one of its prime competitors.

Stripe History and Background

Stripe is something of the “new kid on the block,” and it remains in private hands. Founded in 2010, the company is said to be among the largest private tech companies in existence, with a valuation of approximately $91 billion.

Founding brothers John and Patrick Collison said that the company reached $1.4 trillion in payment volume in 2024, up 38% over the prior year. That means the company is rapidly gaining on the payment volume of competitor PayPal.

Pros and Cons of Stripe

Here are Stripe’s main pros and cons:

Pros

• Simple to use and set up
• Wide variety of customizable options
• Accepts broad range of currencies
• Customizable
• Generally lower fees than PayPal

Cons

• Can require advanced coding to get the most out of it

Stripe vs. PayPal: Fees Comparison

Stipe and PayPal both charge merchants transaction fees consisting of a percentage of each transaction amount plus a flat fee. Fees vary according to how the transactions are entered and whether they’re domestic or international. Stripe costs less overall.

While transaction fees are the primary fees to consider, businesses that invoice clients should also pay attention to invoicing fees. Stripe is considerably less expensive in this regard, and its chargeback fees are lower, too. However, you’ll pay more for Stripe’s terminals and card readers.

Here’s a side-by-side comparison of the fees charged by both Stripe and PayPal:

Stripe vs. PayPal: Which One Should You Choose?

Which service is best for your business depends on the type of business you operate and the markets you serve.

Here are some factors to consider:

If you’re still deciding between Stipe vs. PayPal, here’s a quick summary of who each platform works best for:

Stripe might be the better choice for:

• Small online businesses
• International sellers whose markets Stripe serves

PayPal might work better for:

• Brick-and-mortar stores
• International sellers in markets not served by Stripe
• Freelancers

Final Take

Whether you’re already in business or are gearing up to launch a money-making business idea, how you get paid has a major impact on your company. PayPal and Stripe are both solid choices; base your decision on fees and ease in the type of business you have and the markets you serve.

John Csiszar contributed to the reporting for this article.

Data is accurate as of May 19, 2025, and is subject to change.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

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