Stripe vs Square vs PayPal for Merchants: Which Provider Is Best for Your Business?

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

If you’re trying to choose the right payment provider, it’s easy to feel overwhelmed. On the surface, PayPal, Stripe, Square all let you accept online payments—but dig a little deeper, and the differences start to show.

Here, we compare Stripe, Paypal and Square, so you can pick what works best for your business. We also offer a smarter alternative of pay-by-bank. For the purposes of scope, we will focus our comparison on online payments for UK-based merchants.

Square vs Stripe vs PayPal for Online Payments

Square for Online Payments

Square does a lot more than just payments. In fact, Square’s flagship product is its point-of-sale and ordering systems for in-person businesses.

But Square is a versatile provider, which offers a range of tools. You can build an online store, run marketing campaigns, set up loyalty programmes, manage team communications, borrow money, and even get a Square-issued card.

With Square Online, you can take payments by setting up an e-commerce website, selling through social media, or linking Square to your existing site. Developers also get access to Square’s APIs and SDKs.

Merchants can also send digital invoices, accept card payments, and track when money comes in. Or send a checkout link by text or email—when opened, it leads to a simple page where customers can pay with Apple Pay, Google Pay, Clearpay (BNPL), or a card.

Square sends payouts for merchants the next day. If you need money right away, you can get it instantly, but for a 1.5% fee.

Square Fees

Square uses a freemium model offering merchants a free plan (excluding processing fees), and then a premium plan at £29 per month (excluding processing fees).

As Square is mostly focussed on offline ordering systems and doesn’t offer too many payment methods, its processing fees are fairly straightforward. The fees below apply when a customer makes a purchase through Square’s Online Store, Online Checkout, or eCommerce API products.

Stripe for Online Payments

Stripe, on the other hand, is all about payments. It doesn’t offer order management tools, but it covers a lot else—online and in-person payments, money management, finance tools, and billing automation.

In terms of online payment gateway, Stripe’s Optimised Checkout Suite includes a Stripe-hosted checkout, flexible payment UIs, over 100 payment methods, and Link—Stripe’s one-click checkout. Merchants can also send simple, shareable payment links.

Stripe also lets businesses send money globally. Merchants can create recipients, send one-time or recurring payouts, and track payout success rates. It’s a useful tool for marketplaces, fintech platforms, e-commerce sites, and insurers.

Stripe Fees

Stripe’s pricing can be complex because it offers many online payment services. While there’s no fee for using Stripe’s checkout, merchants do pay various transaction and service fees.

Stripe’s Transaction Fees

Stripe offers more local payment options, and the fees for these can vary a lot. For a full list of fees, check Stripe’s website.

Read: How to Reduce Card Processing Fees

Stripe’s Other Fees

Stripe also charges fees for services like payouts, chargebacks, disputes, and other. Below is the breakdown.

PayPal for Online Payments

PayPal is best known as a digital wallet, but it also provides payment services for businesses. Here, we focus on PayPal’s business payment tools—not the digital wallet.

PayPal Checkout is an online payment gateway that supports various digital payment methods—like card payments, Apple Pay, Google Pay, Pay in 3 (its BNPL option), and other local methods depending on the region. It also handles recurring payments for subscription.

PayPal offers several integration options. Merchants can use e-commerce plugins for major platforms or build a custom checkout using APIs and the JavaScript SDK.

PayPal Fees

For its payment processing services, PayPal charges the following monthly fees:

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

Below are also transaction fees that'd be added on top of the monthly fee.

Read: Full Breakdown of PayPal Fees

Smart Alternative to Stripe, PayPal, Square: Noda

Tired of high processing fees, delayed payouts, and complex setups from Stripe, Square, or PayPal? These platforms were built predominantly around card networks—bringing hidden costs, chargebacks, and clunky user flows.

Noda changes the game. We’ve built a payment solution that skips card networks entirely. Instead, we specialise in pay-by-bank checkout—a faster, cheaper, and more secure way to get paid using Open Banking.

Unlike Stripe and PayPal, we don’t rely on third-party integrations for open banking. And unlike Square, we’re laser-focused on online payments. That means: no card network fees (transaction fees as low as 0.1-1%) , no chargebacks, instant payouts by default (no extra fees or delays) and smoother user experience that boosts conversion.

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 Switching to Noda

• Fully regulated under PSD2 and built with secure, bank-grade APIs
• Pay-by-bank is already trusted by 14 million active UK users, especially 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

At Noda, you get more than tech support — you also get a dedicated personal manager to guide you every step of the way, during onboarding and after. Need help? They’re just a call, message, or email away, whenever you need them.

Noda closes the gaps traditional providers leave wide open with.

Which Is Better: PayPal, Square or Stripe?

This really comes down to your business needs—how you sell, how much you process, and how tech-savvy your setup is. Here’s a quick breakdown to help you decide what fits best.

Difference Between Paypal, Square and Stripe

The key difference lies in who they’re built for and how they operate.

For example PayPal is best for quick setup and brand recognition. It’s easy to use but comes with high fees and limited flexibility.

Square is designed around in-person selling, with strong point-of-sale tools and simple pricing—but fewer options for online-only businesses.

Meanwhile, Stripe is built for developers and online businesses needing custom setups, global reach, and lots of payment methods—but it’s complex and charges for many extras.

If you're a digital-first business looking to cut card fees, simplify setup, and get paid instantly, Noda offers a smarter, more cost-efficient alternative.

Stripe vs Paypal vs Square: Fees

All three charge transaction fees, but how they do it—and what they charge for—varies a lot:

Stripe is flexible and developer-friendly, but its pricing is complex. You’ll pay more for international cards, currency conversions, and services like chargebacks or instant payouts.

PayPal adds monthly charges for things like subscriptions or virtual terminals, and per-transaction fees are on the higher side—especially for American Express.

Square keeps things simpler, but its focus is mostly on in-person sales. Instant payouts come with a 1.5% fee, and there are fewer online payment options.

Looking to cut fees? All three still rely predominantly on card networks, which means added costs. Noda, on the other hand, specialises in pay-by-bank checkout with no card fees or chargebacks.

PayPal vs Stripe vs Square for Small Business

For small businesses, the choice comes down to how you sell and what matters most to you.

PayPal is quick to set up and trusted by customers, but can get expensive fast.

Square is great if you sell in-person and want bundled tools like POS and marketing.

Stripe offers advanced customisation but requires developer time—and the fees add up if you’re selling internationally.

If you're a digital-first small business that wants simple setup, lower fees, and instant payments, Noda could be the smarter choice. It removes card networks, speeds up cash flow, and improves user experience.

Got questions? Let's talk. Book a free, no-pressure chat with one of our experts—we’ll take a look at your business and help you find the right solution.