Stripe vs PayPal for Online Payments: Comparison for Merchants

Note that the information about Stripe and PayPal found in this article was taken from their respective websites on 13 September 2024. This information is subject to change.

Running a business online means finding the right tools to accept payments quickly and securely. Choosing the best payment processor is key—after all, it’s how your customers complete their purchases and how you ensure smooth, reliable transactions.

When it comes to payment giants like Stripe and PayPal, the choice might seem tough. Both offer powerful solutions, but which one really fits your business best?

Here, we compare Stripe and Paypal, their standout features, fees, and more. Whether you’re after ease of use, customisation, or lower costs, we’ll help you decide which platform will keep your business growing.

Stripe versus Paypal for Online Payments

Stripe for Online Payments

In its online payments suite, Stripe offers API integration, user interfaces (UIs), no code payments and much more.

Stripe Checkout is a pre-built payment gateway, which merchants can embed into their website via APIs or direct customers to a Stripe-hosted page to accept one-time payments or subscriptions.

Checkout supports 30+ languages, 135+ currencies, and dynamically shows the payment methods most likely to improve conversion. Meanwhile, Stripe’s native Link is its own one-click checkout experience.

Merchants can also use Stripe Elements, which offer UI components to build a customised payment flow. Meanwhile, Stripe Connect offers integration with e-commerce platforms and marketplaces, including Shopify, DoorDash and more, to embed payments into their products.

Stripe’s no-code payment options include payment links, which allow e-commerce merchants to sell without a website. Merchants can create a full payment page and share the link with their customers without any code.

In terms of payment security, Stripe uses a ML-based fraud prevention system Stripe Radar.

Additionally, Stripe offers Acceptance Optimisation to improve network acceptance rates.

The global payment giant offers over 100 of global payment methods, including bank transfers, real-time payments, buy now pay later (BNLP), cards, digital wallets, cash-based vouchers, bank debits and bank redirects.

Paypal for Online Payments

PayPal’s payment gateway offers custom code for online checkout experience. Developers can use their ur REST APIs and JavaScript SDK (software development kits) to code a scalable checkout solution for an e-commerce website.

If you are using an e-commerce platform to base your shop on, PayPal is already integrated with most major ecommerce platforms. For example, it offers integration with BigCommerce, Woo, OpenCart, Visualsoft, Cubecart, Mal’s, Bluepark and Shopify.

Like Stripe, PayPal also offers no-code checkout via payment links and QR codes. This feature is particularly helpful for small businesses that want to accept payments without coding knowledge and teams of developers.

The provider offers merchants and their customers its own BNLP solution - PayPal Pay in 3. Merchants get paid in full at checkout, while customers can pay in instalments over time. That’s at no additional cost to the merchant.

In terms’ of PayPal security suite, the provider offers seller protection (limits apply); fraud protection via ML algorithms, and chargeback protection tool where PayPal covers the disputed amount and waives dispute fees on eligible fraudulent or item not received disputes (conditions apply).

PayPal offers only nine payment methods, plus global alternative payment methods covering 13 payment options. All together, PayPal offers 22 payment methods, including its own BNLP, credit and debit cards, digital wallets and global payment methods.

Paypal vs Stripe Pricing for Online Payments

Stripe vs PayPal fees in GBP, as of 13 September 2024

Both PayPal and Stripe offer transparent pricing per transaction. PayPal offers different fixed fees depending on the transaction's currency.  The disputes fee increases with the volume of disputes. See the providers' websites for complete and up-to-date pricing breakdown.

Stripe vs PayPal: Other Features

Both providers offer in-person payments via terminals and POS systems.

Stripe offers embedded payments and finance via physical and virtual cards issuing, and payments for platforms (Connect). Stripe offers a comprehensive revenue and finance automation suite with billing, revenue recognition, tax automation, online invoicing, custom reports and data warehouse sync.

Meanwhile, PayPal also offers card issuing via its PayPal business debit card. The provider also offers business funding via PayPal Working Capital.  In terms of business operations, PayPal offers risk management & reporting tools; shipping support and dispute management support.

Key Difference between Stripe and PayPal

Stripe offers highly customisable payment solutions through APIs and UI components. Businesses using Stripe can build highly tailored payment flows and handle complex integrations. This means more technical knowledge is required. Stripe also offers a wider range of payment methods, and a global approach to its payment gateway.

PayPal, on the other hand, is focused on out-of-the-box solutions with products such as e-commerce platform plugins. Plus, PayPal gives more choice in terms of no-code payments links and QR codes, making it easy for smaller businesses to accept payments.

Stripe vs PayPal for Small Businesses

Considering the above points, PayPal is better suited for small to medium-sized businesses as a lot of its products don’t require complex technical integration and developer resources. Plus, they offer a chargeback protection which can be helpful for small businesses.

Alternatives to Stripe and PayPal

Looking for a simpler, smarter way to process payments? Noda is a great alternative to Stripe or PayPal, especially for small and medium-sized businesses. Our platform offers everything you need for smooth, secure payments and easy integration.

Why Choose Noda?

Noda does more than process payments. With Noda’s Open Banking API, you can offer direct bank payments with better user experience, lower fees and no chargebacks. That means a smoother, more secure payment flow for your customers and more savings for your business.

With payment plugins for popular e-commerce platforms like OpenCart, WooCommerce, Magento, and PrestaShop, Noda is easy to set up and use. Whether you’re starting out or scaling, we’ve got flexible plans to fit your needs.

Reach More Customers

We partner with over 16,500 banks in 27 countries, supporting many currencies. You can expand globally while offering a local feel to your customers.

Grow Your Business

From helping with customer verification (KYC) to improving the user experience and providing customer insights, Noda’s tools are designed to grow your business. We help you make payments easier and forecast long-term value.