Stripe vs Checkout: Payment Providers Compared

Note that the information about Stripe and Checkout found in this article was taken from their respective websites on 10 April 2024. This information is subject to change.

In 2024, more businesses are embracing online payment systems, with Stripe and Checkout leading the way. Each service offers diverse features to meet various business needs. In this article, we compare Stripe and Checkout, including their product range, pricing, coverage and integration capabilities.

Stripe, launched in 2009 by the Collison brothers in the US, attracted early funding from high-profile names like Elon Musk and Peter Thiel, with Andreessen Horowitz remaining a key investor. Over the years, it has risen to prominence in the payment processing sector.

In comparison, Checkout was founded as a cloud-based payment platform in 2012 by Guillaume Pousaz. It soon became a member of Visa, Mastercard, Union Pay, Diner and Discover. In the last decade, the provider has grown to over 1,700 employees in 19 global offices.

Stripe vs Checkout for Online Payments

Stripe Payments enables merchants to accept payments, process payouts, and handle account management. It offers the flexibility to create custom checkout experiences through Stripe Elements with both web and mobile user interfaces (UIs) or utilise the ready-made Stripe Checkout solution.

Stripe Payment Links allow users to accept payments or offer subscriptions using links that can be shared across social media, emails, or other channels, with unlimited distribution.

Checkout equally offers a wide range of online payment solutions. Checkout Hosted Payments Page allows users to execute payments via a Checkout payment gateway hosted on their webpage.

Meanwhile, users can also choose Checkout Payment Frames, an iframe solution that handles payment information via a merchant’s website. Customers input their details directly into Checkout’s iframes, then the provider sends a merchant a token representing these details for a payment request.

Checkout Payment Components are pre-built payment UIs which merchants can embed directly within their website to manage the end-to-end payment experience.

Checkout Payment Links allows merchant to send payment links via email, social media, live chat, text messages. The link takes a customer to a hosted payment page. Payment links can also easily integrate with Checkout’s Unified Payment API.

In-Person Payments

Stripe Terminal allows businesses to accept in-person payments by integrating Stripe with their point of sale (PoS) systems. Note that th terminal isn't a straight out-of-the-box solution and requires integration.

As of April 2024, Checkout does not provide solutions for accepting in-person payments.

Payment Methods

Stripe supports more than 100 payment methods, including credit cards, digital wallets, bank debits, and transfers. With its Payment Methods API, businesses can incorporate various payment options into their platforms, offering one-click checkouts.

Checkout payment methods directory offers a range of 30 options, including a variety of cards, digital wallets and alternative payment methods. Merchants can integrate the payment methods via a single integration with Checkout’s Unified Payments API.

Payment Security

Stripe Radar provides real-time fraud protection. It also allows experts to customise security settings through Radar for Fraud Teams and gain in-depth insights to enhance safety measures without the need for additional coding.

Checkout Fraud Detection is a feature that assesses the risk of each payment against specific rules set by merchants themselves. The provider also offers Adress Verification Service (AVS) and Risk Software Development Kit (SDK).

Other Payment Features

Stripe Connect streamlines multi-channel transactions, including payments and payouts. Its Standard Connect version gives Stripe full control over the dashboard UI, making it the primary contact for merchants with payment queries.

Stripe Issuing allows merchants to build physical and virtual card programmes, with customised card design and spending limits.

Stripe Billing enables companies to manage customer payments through various billing methods, including recurring, usage-based, and contracts. Meanwhile, Stripe Invoicing facilitates the creation and management of invoices for one-time payments. Additionally, Stripe offers financial tools for tax calculations, revenue recognition, data management, and customised reports.

Checkout Payouts allows merchants to make payouts to their customers’ bank accounts or cards globally though the provider’s local routing.

Meanwhile, Checkout Card Issuing enables merchants to build their own card programs and issue cards for their customers.  Checkout Platforms provides an integrated solution for independent software vendors (ISVs), marketplaces, and payment facilitators.

For payment acceptance, Checkout Intelligent Acceptance leverages artificial intelligence (AI) models to optimise payments. Meanwhile,  Checkout Real-Time Account Updater (currently in beta) enables automatic updating of payment card details when they change.

Stripe vs Checkout: More Features

Stripe Financial Connections offers a secure way for users and businesses to share financial data. It allows companies to verify bank accounts for ACH payments, assess financial risk more accurately, prevent fraud by verifying who owns the account, and use transaction data to create new fintech products.

Stripe Identity provides global identity verification services. This helps fight fraud, improve risk management, and boost trust and security across transactions.

Stripe Banking as a Service (BaaS) offers card issuance (Stripe Issuing) and financial services integration (Stripe Treasury). It also allows US businesses to obtain loans through Stripe Capital.

Stripe Climate lets businesses contribute a part of their income to carbon removal projects.

Checkout Identity Verification enables merchants to verify their customers’ identities to meet compliance requirements and reduce the risk of fraud.

Meanwhile, Checkout provides Network Tokens, unique digital identifiers merchants can use to supply a tokenised value instead of the primary account number within the payment flow. Checkout automatically provides network tokens on merchants’ behalf with Visa and Mastercard whenever the provider sees a new card used in a payment transaction.

Stripe and Checkout: Integration & Coverage

Stripe is a global payment platform available in 46 countries, including Australia, the US, Europe, India, Japan, and the UAE. It facilitates cross-border payments in multiple currencies, serving over 195 countries.

In terms of third-party integration, Stripe's App Marketplace connects with software across various fields, such as accounting, compliance, and data analytics. Additionally, Stripe offers a partnership ecosystem to improve business use of its features.

Checkout provides 150+ processing currencies with domestic processing in around 50 countries. Plus, the provider offers 20 settlement currencies. Meanwhile, Checkout Partners offers an impressive range of partners across different business operations.

Stripe vs Checkout: Fees

In terms of Stripe vs Checkout pricing, the providers employ different strategies, with Stripe openly listing its various service fees on its website.

Extra fees arise for processing different currencies, managing chargeback disputes, customising checkout domains, and for services like billing, invoicing, taxation, payment links, revenue recognition, fraud prevention, identity verification, and card issuing. It is essential to carefully examine Stripe's comprehensive fee structure before choosing their services.

Meanwhile, Checkout charges tailored pricing plans based on business needs. Merchants should contact the provider to create a plan. Checkout states that it offers a fully flat rate with clear costs based on the business profile and risk category. Payment processing is free for registered charities, and there are simple interchange fees.

Stripe and Checkout Alternatives: Noda

​​Noda is a global open banking provider that assists online merchants with end-user KYC, payment processing, LTV forecasting and UX optimisation. We partner with 2,000 banks across 28 countries, spanning over 30,000 bank branches. Noda supports a wide range of currencies for globally-minded clients. We offer scalable plans to fuel your business growth and e-commerce plugins for easy integration.

With Noda's advanced Open Banking API, online businesses can easily integrate direct bank payments, offering their customers a seamless and secure payment experience with lower fees. Whether you're looking to enhance customer verification processes, optimise payment systems, forecast long-term value, or refine user experience, Noda is your partner in growth.