Plaid vs Stripe vs Noda: A Comparative Guide for UK and EU Businesses

Please note that the information about the payment providers in this article was taken from their respective websites on 19 February 2025. This information is subject to change.

Businesses and merchants must choose the right and affordable payment platform, considering various aspects such as pricing, ease of integration, security, API features, and effective customer support. In this guide, we will compare Plaid and Stripe's features, pricing and API integrations, helping you choose the best online payment platform for your specific business needs. 

Overview

Plaid, founded in 2013 by Willaim Hockey and Zack Perret, is an American financial technology company based in San Francisco, California. It simplifies digital finance by providing a secure platform that connects consumers’ financial accounts to fintech services. Plaid supports over 12,000 financial institutions and more than 8,000 digital financial services.

Stripe, founded in 2010 by Patrick and John Collison, is a payment processing platform that offers a suite of financial services products. It enables companies to accept payments, send payouts, and manage their businesses online. Stripe has dual headquarters in Dublin, Ireland, and South San Francisco, California, and is widely used by e-commerce and SaaS companies.

Supported Markets and Customer Base (Stripe vs Plaid)

Plaid vs Stripe- Payment Methods and Features Comparison

Plaid primarily focuses on open banking and direct bank payments, while Stripe is a comprehensive payment processor supporting multiple payment types.

Plaid-Supported Bank Payment Methods

• Plaid Transfer (US only) enables bank-to-bank transfers for payroll, online transactions and bill payments.
• It also supports real-time settlements through FedNow, the Federal Reserve’s instant payment network and instant bank transfers via The Clearing House’s RTP network in the US.
• It facilitates SEPA Direct Debit for Euro payments and Bacs Direct Debit for UK bank transfers.
• Plaid’s Payment Initiation product enables real-time bank payments in the UK and Europe.

Stripe Payment Methods

Stripe offers a wide range of global payment methods, including:

• Credit and Debit Cards - Visa, Mastercard, American Express, JCB, Discover, Diners Club, and more globally.
• Digital Wallets - Apple Pay, Google Pay, Alipay, WeChat Pay, Revolut Pay for UK and EEA customers, and more.
• Direct Debit - ACH, SEPA, Bacs, BECS, and other bank transfers globally.
• BNPL - Integrates with Afterpay, Affirm, Klarna, and other BNPL providers. (UK- Clearpay and Klarna).
• Bank Redirect/Pay-by-Bank - iDEAL (Netherlands), Bancontact (Belgium), TrueLayer for UK Customers, and others. Pay-by-bank is currently available for UK customers and will be launched in Germany in 2025.
• In-Person Payments - Stripe Terminal.
• Cryptocurrency Payments - Supports crypto payments via third-party integrations.

Recurring billing and Subscription Management

Plaid does not offer built-in recurring billing features, but businesses can use the Plaid Balance API to track transactions and ensure sufficient funds for recurring payments. However, it does support Variable Recurring Payments (VRPs) and standing orders for fixed-amount recurring payments in the UK. On the other hand, Stripe Billing product offers a fully managed recurring billing solution for automated invoicing and subscription management through flexible models such as Usage-based billing and Tiered pricing.

Additional Unique Features

Plaid’s unique features include Plaid Auth, Plaid Identity and Balance APIs. Plaid Auth enables instant account authentication for setting up pay-by-bank payments, while Plaid Identity and Balance APIs help verify users and check available funds before initiating transactions. Additional features like Plaid Transactions, Enrich, and Signal provide real-time spending insights, enhanced transaction categorisation, and ACH fraud risk assessment, respectively.

Stripe, a Plaid competitor, offers various additional unique features such as Stripe Connect for multi-party payments, Stripe Radar for fraud detection and Stripe Checkout for seamless online transactions.

Security & Compliance

The top-rated payment platforms are usually known for their secure online payment solutions.  Plaid and Stripe both prioritise security and compliance across various regions. Plaid focuses on secure open banking with OAuth authentication, AES 256-bit encryption, and SOC 2 Type II & ISO 27001 compliance. It is registered as a Money Service Business (MSB) with FinCEN in the US and operates under PSD2 as an Account Information Service Provider (AISP) in the UK and EU.

Stripe, a global payment processor, provides PCI DSS Level 1 compliance, tokenisation, 3D Secure (SCA) and AI-powered fraud detection through Stripe Radar. It holds a Money Transmitter license in multiple US  states and is authorised as an electronic money institution in Europe under the Central Bank of Ireland.

Integration

Plaid and Stripe differ significantly in their integration capabilities. Plaid does not offer ready-made e-commerce plugins but provides APIs for financial data access and integrates with services like Stripe for ACH payments. Its collaboration with partners like Dwolla, Sila, Finix, and others enhances its ability to provide seamless financial data connectivity and payment integration across various platforms.

Stripe offers ready-made plugins for e-commerce platforms such as WooCommerce, Shopify, Wix, and others. It also offers robust APIs and SDKs for custom payment solutions and integrates with business tools such as Salesforce, Xero and QuickBooks. Its Stripe Elements feature provides seamless UI integration and webhooks for automation. The Stripe App Marketplace offers 289 apps and 262 ISVs to enhance its functionality.

Merchant Dashboard Usability

Plaid is designed for developers, offering a dashboard that provides access to Plaid API keys, integration settings, and usage statistics. Stripe company, on the other hand, features a user-friendly payment integration dashboard that offers transaction monitoring, detailed analytics, and customisable reporting tools. It caters to both technical and non-technical users.

Plaid Pricing and Stripe Costs

Plaid offers flexible pricing tailored to various business needs, with specifics depending upon the chosen plan and usage. Plaid offers three pricing models:

• Pay as You Go - No minimum spend or commitment.
• Growth - Minimum spend of $100/month with an annual commitment, offering lower per-use costs than the Pay as You Go plan.
• Custom (Scale): The Minimum spend is typically $500/month, and there is an annual commitment, which results in lower per-use costs. Only custom plans are offered to customers in the UK and EU.

Stripe offers transparent, flat-rate pricing with additional fees for specific services, such as international transactions and chargebacks. There are no setup or monthly fees, and the charges vary depending on the payment method.

• Transaction Fees - 
  UK Cards: 1.5% + £0.20 for standard UK Cards and 1.9% + £0.20 for premium UK Cards.
  EEA Cards: 2.5% + £0.20 per transaction + 2% if currency conversion is required.
  Non-EEA Cards: 3.25% + £0.20 per transaction + 2% if currency conversion is required.
• Currency Conversion - 2% and Chargebacks: £20 per dispute.
• In-Person Payments - EEA Cards: 1.4%+10p and Non-EEA Cards: 2.9%+10p +10p per Tap to Pay authorisation.
• Stripe link one-click checkout- 1.2% +20p for UK cards.
• Bacs Direct Debit - 1% ( 20p up to £4).
• Instant payouts - 1% of volume, minimum 40p.
• Invoicing & Billing - 0.4% per paid invoice and for billing- 0.7% of billing volume or £450 per month, 1-year contract.
• Multi-currency settlement - 1% of payout volume or a minimum fee.

Settlement Times- Plaid vs Stripe

Plaid facilitates real-time settlement through its Transfer product, supporting Real-Time Payments (RTP®) for instant fund settlement. However, standard ACH Plaid banking transfers take several business days, depending on the receiving bank.

Stripe processes payouts on the T+3 schedule in the UK, Canada, Mexico, and European regions after the transaction date. It also offers instant payouts in countries like the US, Singapore, Canada, the UK, Australia, and the EU region on any day or time, including weekends and holidays.

Plaid vs Stripe Customer Support

Plaid provides support mainly through its online Plaid Help Center and developer dashboard but does not prominently offer live chat or phone support. The Plaid review has a low rating of 1.3 on Trustpilot, with users reporting issues related to connectivity and customer service responsiveness. The integration assistance and premium support features are available only for the Custom pricing plan.

Stripe provides 24/7 live chat and email support, a comprehensive Help Centre, and developer support on Discord. Paid plans offer real-time API health updates and dedicated account management. Despite its extensive support tools, a Trustpilot rating of 2.1 highlights users' concerns about account holds and delayed responses.

Plaid vs Stripe- Is Stripe Better than Plaid?

Plaid focuses on open banking and bank payments, while Stripe is a full payment processor that supports cards, wallets, and subscriptions. Stripe has better e-commerce integrations, whereas Plaid excels in financial data connectivity. Hence, Stripe is better suited for online businesses and merchants requiring a full-fledged payment processing solution, while Plaid is better for companies needing seamless open banking connections, pay-by-bank transactions, and financial data aggregation.

Plaid and Stripe Alternatives- Noda’s Open Banking Platform

The shift towards direct bank-to-bank payments is accelerating, with 70% of consumers now linking their financial accounts to digital tools and 75% of businesses integrating open banking solutions. Noda stands out as a great alternative online payment solution to Stripe and Plaid. It offers a cutting-edge Pay-by-Bank solution that allows low-cost processing fees, reduces fraud risks, and ensures instant settlements. With an up to 94% acceptance rate, real-time bank-to-bank transfers, and integrations with major e-commerce platforms like WooCommerce, Magento and others, Noda is ideal for businesses looking for a low-cost, high-speed alternative to traditional payment methods.

What Makes Noda’s Pay-by-Bank Solution Stand Out?

Noda is an advanced open-banking payment platform designed to help businesses reduce payment costs, enhance security, and increase transaction success rates. Unlike Stripe, which relies on traditional card payments, and Plaid, which focuses on financial data connectivity, Noda harnesses open banking to provide a seamless, cost-effective, and secure payment experience, offering significant advantages:

• Up to 94% Payment Acceptance Rate - Noda’s Pay-by-Bank solution significantly reduces payment failures and ensures high transaction approval rates.
• Lower Transaction Fees - Noda provides cost-efficient payment processing by cutting out intermediaries for merchants with high transaction volumes.
• Wide Range of Payment Methods - Offers diverse payment methods such as cards, open banking, payment links, and QR codes.
• Instant Settlements - Noda ensures real-time fund transfers, improving cash flow for merchants.
• No Chargebacks or Fraud Risks - No risk of chargebacks or fraudulent disputes as payments are directly authenticated by the customer’s bank, thereby reducing operational risks for businesses.
• API Ease of Integration - Noda offers seamless API and plugin integrations for major platforms like WooCommerce, Magento and others, allowing businesses to implement Pay-by-bank with minimal technical effort.

Why Choose Noda?

Noda is an excellent solution for businesses in the e-commerce, gaming, travel, SaaS and other industries that require fast, low-cost, secure payment solutions. With its seamless onboarding and prominent features such as “Noda Buffett” for LTV prediction, local bank customisation, and document-free identity verification, Noda is particularly beneficial for merchants conducting cross-border transactions in the UK and EU.

Serving over 2,000 banks in 28 countries, including the EU, UK, Canada, and Brazil, Noda’s Pay-by-Bank technology is the ideal choice- offering unmatched advantages in cost, payment speed, and reliability.

Let’s explore your specific business needs and find the perfect payment processing solution. Contact us now for a free consultation—we’re happy to help!