Stripe vs Mastercard: Comparative Guide for Merchants

Note that the information about Stripe and Mastercard found in this article was taken from their respective websites on 8 April 2024. This information is subject to change.

In 2024, businesses across the board are increasingly adopting online payment solutions. Stripe and Mastercard Gateway emerge as leading services, providing various features to cater to different business requirements. In this article, we compare Stripe and Mastercard to help you decide which provider to choose.

Stripe versus Mastercard: Key Differences

Stripe, a global payment platform, was established in 2009 by American brothers John and Patrick Collison. Initial investors included Elon Musk, Peter Thiel, and Andreessen Horowitz, with the latter still being a major stakeholder. Over more than ten years, Stripe has become a top name in the payment processing industry.

Mastercard, meanwhile, is a true legacy player and the second largest payment company in the world after Visa. It was founded in 1967, originally named as Interbank. The company was founded by an alliance of several banks and regional bankcard associations.

The key difference between Stripe and Mastercard is that apart from its payments services for merchants, Mastercard offers a variety of products such as its flagship banking card. For the reasons of scope, in this article we will focus on Stripe Payments vs Mastercard Payment Gateway, the company’s payments solution for merchants.

Stripe vs Mastercard for Online Payments

Stripe Payments allows users to easily accept payments, receive payouts, and manage accounts. Users can design a tailored checkout process using pre-made Stripe Elements for web and mobile via user interfaces (UIs) or Stripe Checkout.

Stripe Payment Links enable users to receive payments or offer subscriptions through clickable links. Users can distribute unlimited links across social media, emails, and other platforms.

Mastercard Gateway allows merchants to accept payments online and from a mobile device, offering a comprehensive set of application programming interfaces (APIs), mobile software development kits (SDKs) and integrations with many common shopping cart plugins. Its offers more than 200 acquirers around the world and a hosted checkout.

Mastercard Click to Pay enables consumers to store all their cards in a portable profile they can use whenever they see the Click to Pay icon. It’s a password-free check-out option for consumers.

In-Person Payments

Stripe Terminal enables companies to process payments in person and incorporate Stripe into their point of sale (PoS). It's important to note that the terminal requires setup and is not an out-of-the-box PoS solution.

Mastercard Gateway allows merchants to accept payments in person, too. Mastercard Contactless Reader SDKs can help developers turn any off-the-shelf eligible NFC-enabled device into an acceptance device.

Mastercard Tap on Phone allows businesses to accept contactless payments using their smartphone, without terminal required. Merchants can use a mobile application on any NFC-enabled Android device.

Payment Methods

Stripe offers over 100 payment options, including card payments, digital wallets, bank debits, transfers, and more, with the convenience of one-click checkouts. Its Payment Methods API lets businesses integrate multiple payment methods using just one product.

Mastercard’s gateway, meanwhile, connects to international and domestic networks and schemes, powering diverse payment methods like cards, apps, eWallets, and more. The provider offers 35+ payment methods.

Payment Security

Stripe Radar offers instant fraud monitoring and prevention without needing extra development effort. Additionally, fraud experts can use Radar for Fraud Teams to tailor security measures and gain more detailed insights.

Transaction Risk Management by Bridgerton is an anti-fraud integration launched by Mastercard that leverages artificial intelligence (AI) and machine learning to provide real-time transaction analysis.

Other Payment Features

Stripe Connect facilitates payments and payouts to and from multiple parties. In its Standard Connect version, Stripe completely oversees the user interface for dashboards. Stripe acts as the main contact for merchants regarding any payment issues.

Stripe Billing allows companies to bill and manage customers using recurring, usage-based, and contract-based billing. Stripe Invoicing, on the other hand, helps users generate and handle invoices for single payments. Stripe also offers other financial automation tools, such as tax calculation, revenue recognition, data management, and tailored reporting.

Meanwhile, Mastercard Gateway also comes with reporting options for merchants and white label partners. Merchants can access transactions, analyse trends for an entire portfolio and get real-time visibility. This is available through online portals, reporting APIs or file transfer.

Stripe vs Mastercard: Other Solutions

Stripe Financial Connections enables secure financial data sharing between users and businesses. This feature helps businesses verify bank accounts for ACH payments, lower underwriting risks using balance information, prevent fraud by confirming account ownership, and develop innovative fintech products using transaction data.

Stripe Identity offers worldwide identity verification to combat fraud, optimise risk management, and enhance trust and security.

Stripe Banking as a Service (BaaS) provides a range of tools for card issuance (Stripe Issuing) and integrating financial services into products (Stripe Treasury). Additionally, US businesses have the option to secure a loan through Stripe Capital.

Stripe Climate allows clients to allocate a portion of their earnings towards supporting carbon removal efforts.

Mastercard Fintech Express program helps all fintech companies issue cards and credentials. The company provides adaptable licensing frameworks through a single point of contact.

Mastercard Installments is the provider’s new Buy Now Pay Later (BNLP) program offered at scale across the Mastercard network.

Stripe and Mastercard: Integration & Coverage

Stripe operates worldwide, available in 46 countries such as Australia, the US, Europe, India, Japan, and the UAE. It supports cross-border payments in multiple currencies to over 195 countries.

For third-party integrations, Stripe's App Marketplace links with software for accounting, compliance, data analysis, and beyond. Stripe also provides a partnership ecosystem, offering integration chances that enhance how businesses can use Stripe's features.

Mastercard’s gateway connects to 200+ global acquirers in 170+ countries. In terms of third-party integrations, the provider states that the gateway integrates with “many common shopping cart plugins”.

Stripe vs Mastercard: Fees

In terms of Stripe vs Mastercard pricing, the two providers adopt distinct approaches. Stripe's pricing includes various fees for its services, all of which are clearly displayed on its website.

Additional charges apply for using different currencies, managing chargeback disputes, customising checkout domains, and services such as billing, invoicing, taxing, payment links, revenue recognition, fraud prevention, identity verification, and card issuance. It's important to thoroughly review Stripe's full fee structure before committing to their services.

Mastercard, on the other hand, does not reveal its pricing structure on its website. To learn about Mastercard’s fees, a merchant would have to contact the provider’s sales team directly.

Alternatives to Stripe and Mastercard: Noda

​​Noda is a worldwide payment and open banking provider for seamless business transactions. From payment facilitation to financial analytics, Noda has got you covered. Our platform uses cutting-edge AI and machine-learning technologies.

Operating in the EU and Canada, 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.