Stripe vs PayPal Comparison for Merchants

Please note that the information about the companies in this article was sourced from their respective websites as of June 2025. This information may be subject to change.

Choosing a payment provider can feel confusing. At first glance, Stripe and PayPal may seem like they are similar providers—they both let merchants take payments online. But once you look closer, key differences appear.

This guide breaks down how Stripe versus PayPal stack up, so you can decide what fits your business best. We’ll also introduce a third option: pay-by-bank by Noda, which offers a simpler way to get paid. For clarity, we’ll focus on online payments for UK businesses.

Stripe vs PayPal for Online Payments

Stripe for Online Payments

Stripe is a giant provider that offers a wide range of payment and finance features—both online and in person. You’ll also find tools for billing, money management, and automation within their tool kit.

For online payments, Stripe’s Optimised Checkout Suite offers a hosted checkout page, customisable payment flows, support for 100+ payment methods, and Link—its one-click checkout feature. You can also create and share simple payment links.

Stripe also enables merchants to send payouts. You can set up recipients, manage single or recurring payouts, and monitor payout success. It’s a strong option for marketplaces, fintechs, online shops, and insurance providers.

Stripe Fees

Stripe’s pricing isn’t always straightforward, mainly because it offers a wide range of online payment features. There’s no charge for using Stripe Checkout itself, but you will pay transaction and service fees depending on what you use.

Stripe’s Transaction Fees

Read: How to Reduce Card Processing Fees

Stripe’s Other Fees

Stripe also applies extra charges for things like payouts, chargebacks, disputes, and more. Here’s a quick overview of those fees.

PayPal for Online Payments

While most people know PayPal as a digital wallet, it also offers tools for businesses to accept payments. In this section, we’ll focus on its business payment features—not the personal wallet.

PayPal Checkout lets customers pay online using cards, Apple Pay, Google Pay, Pay in 3 (its buy-now-pay-later option), and other region-specific methods. It also supports recurring payments for subscriptions.

You can integrate PayPal in different ways—either with plug-ins for major e-commerce platforms or by building a custom checkout using its APIs and JavaScript SDK.

PayPal Fees

PayPal has the following monthly fees for some of its business tools:

• Website Payment Pro plan is £20 per month
• Virtual terminal comes at £20 per month 
• Recurring payments cost £20 per month

On top of these, you’ll also pay transaction fees for each payment you receive. For example:

It needs to be noted that PayPal also charges significant currency conversion fees, which may be a problem for merchants selling internationally. There are fees for services like payouts, disputes, chargebacks:

Read: Full Breakdown of  PayPal Fees

Smart Alternative to Stripe and PayPal

Stripe and PayPal are popular providers, but businesses that use them often face high fees, slow payouts, and tricky setups. That’s because both systems are built mainly for card payments, which can lead to extra charges, chargebacks, and a less smooth experience for users.

Noda takes a different approach. We offer a payment system that doesn’t use card networks at all. Instead, we focus on pay-by-bank—a quicker, more cost-efficient, and safer way to accept payments through Open Banking.

We don’t depend on third-party tools for open banking like Stripe or PayPal, and we’re fully focused on online payments. That means no card fees, no chargebacks, instant payouts as standard (with no added costs), and a smoother checkout that helps increase conversions.

How Pay-by-Bank Works

1. Your customer selects pay-by-bank at checkout
2. They choose their bank (Noda connects to 2,000+ banks across Europe and the UK)
3. They approve the payment in their banking app (Face ID, fingerprint, passcode)
4. You get paid—immediately

Why Merchants Are Choosing to Noda

• Fully regulated under PSD2 and built with secure, bank-grade APIs
• Open banking payments are already trusted by 14 million active UK users, especially by Gen Z and Millennials
• Simple setup: e-commerce plugins, payment links, QR codes, or full Open Banking API
• If you still want card support, we also offer card payments with smart routing and fraud monitoring 

Stripe vs Paypal: Fees

Both Stripe and PayPal charge transaction fees, but the details—and the costs—are quite different.

Stripe gives you flexibility and many features, but the pricing can get complicated. Expect extra fees for things like international cards, currency conversion, chargebacks, or fast payouts.

PayPal’s per-transaction fees are higher overall, especially for cards like Amex. On top of that, you’ll pay monthly fees for features like subscriptions or using a virtual terminal.

Trying to cut down on fees? With pay-by-bank, there are no card fees, no chargebacks—just a faster, most efficient way to get paid.

PayPal vs Stripe: Which One’s Right for You?

So what’s the key difference between Stripe and PayPal, and which one would fit you best?

It depends on how your business runs—how you sell, how much you process, and how hands-on you want to be with tech. Each one is built with different users in mind.

• PayPal is great for quick setup and trusted branding. It’s user-friendly but comes with high fees (especially for international businesses), and limited customisation.
• Stripe is ideal for tech-driven businesses that need global reach and flexible features. But charges extra for many add-ons and may have a complicated setup if you’re building a complex product.
• Noda is your perfect provider if your business is digital-first and you’re tired of card fees, delays, and complex systems. It skips the cards, pays you instantly, and keeps your costs down. It’s especially fitting for businesses selling in Europe, where open banking adoption is high.

Stripe vs PayPal for Small Business

Should you choose Stripe or PayPal as a small business? As mentioned above, if you need something quick and easy to set up, PayPal is a solid option. But the fees add up fast, which may hurt small businesses. Stripe gives you more flexibility and features, especially if you’re selling online or internationally—but it has a fairly difficult setup and can get pricey.

Noda is the best option for modern small businesses. It reduces processing fees and chargebacks, offering instant payments and a smooth checkout that helps you earn more, and grow faster. Noda is your partner in growth.