PayPal VS Stripe, 2 large payment processors that although do fundamentally the same thing, go about it in two different ways. We’re gonna put Paypal vs Stripe into context and figure out which one is better for your business. We’ll break down products and services, fees and rates, ease of use, and much more. Now, a more accurate comparison would probably be Stripe versus PayPal subsidiary called Braintree, which does almost exactly the same thing that stripe does.
Customizable payment integration
And so, beginning with PayPal as we all know, they’re in the business of allowing average everyday users to integrate payments into their websites very easily with several product and service offerings, like PayPal checkout, PayPal payments, and PayPal Payments Pro. They recently got into the traditional point-of-sale space with a mobile payments app and several integrations with larger, more in-depth point-of-sale solutions like the retail solution fend.
And looking at Stripe, although they offer very similar products and services… But they really focus on Customizability and creating code for developers to allow them to implement various types of checkout processes within their applications and on their websites. So we’re talking support for credit cards ACH and localized payments. We’re talking about support for online and in-app checkouts. And they also provide pre-built embeddable checkout forms plus the ability to build a form from scratch. And now, they’ve recently created a software developer kit for what they call Square terminal, which is essentially the ability to integrate stripe with a traditional over-the-counter point-of-sale map.
Paypal or Stripe as usability
it’s important to point out that PayPal is the more user-friendly, easier, non-tech savvy option. And Stripe is for developers and anyone that really wants to be able to customize and code into their app. And so it’s difficult to pick a winner in this category just because their offerings are targeted to different audiences. But if we had to choose I would have to say that PayPal wins simply because not only do they have the user-friendly option but they also with their acquisition of a company called Braintree have a very similar offering to stripe. So not only do they have the user-friendly option, but they also have a web developer-friendly option.
Fee and transaction Charge
on to fees and rates, both PayPal and stripe offer very transparently, no commitment, no early cancellation fee types of fees and rates. The cost for online transactions is exactly the same for both Stripe and PayPal: 2.9 percent plus 30 cents a transaction. If you want to process mobile point-of-sale or over-the-counter in-person transactions, with PayPal it’s going to cost you two point seven percent, but with Stripe, with their terminal offering, it’s gonna cost two point seven percent plus five cents a transaction. A slight advantage for Stripe here is that they also offer ACH transactions at 0.8 percent and cap at five dollars. ACH is something that PayPal does not offer.
So there you have it, a very similar price offering between Paypal and Stripe. I would say that it’s really a tie unless you have a need for ACH transactions within your app and you have a developer that can code it, then Stripe would edge it out a little bit here. But overall it’s a tie. Moving on to ease of use. PayPal makes it extremely easy for the traditional regular business owner to implement online payments or to accept payments on a mobile phone, or a traditional point of sale. So for our audience, which comprises mostly Small business owners,
PayPal is the clear winner in the ease of use Department. But if you’re a developer and you are familiar with code and you need that customizability, then Stripe might be the easier option for you. Just because they’ve made the integration of payments much easier for developers. But for our audience and our sake, PayPal wins in the ease-of-use department.
When it comes to contract lengths and early termination fees, both of these guys are excellent. Neither of them locks you into a committed contract with any type of early termination fee. You can use them, you can walk away without any penalties. Both of them win in this department. Moving on to sales and advertising. Transparency again. Both of these are very upfront. They list all of their fees on their websites. There are no hidden fees. Everything that you see on the website on the pricing page is what you’re going to end up paying. Both PayPal and stripe win in that department.
When it comes to customer service and technical support both PayPal and Stripe offer a whole host of options like a knowledge base, Help Center, Live Chat phone support, email support, social media support. But as is to be expected, from really large companies like these It’s usually hit or miss. You might get a great support agent or You might get a horrible support agent. It really depends on the day. But it’s helpful to know that you have multiple options for support. If one area doesn’t work then you can chase down another support agent in another area. So if you email them and you don’t get a response, you can always hit them up on Twitter. So my suggestion is, try every single option at your disposal. And so I have to say that in the customer support department both PayPal and Stripe are evenly tied.
And so, moving on to user reviews of actual people that have used PayPal and Stripe. The two major complaints that we’re seeing are withheld funds and freezing of accounts, and inconsistent or unresponsive support. In addressing the first complaint of withheld funds and freezing and termination of accounts, both PayPal and Stripe make it really easy for any business to sign up and begin accepting payment immediately.
So if your business falls within the high-risk category and something in your payment processing pattern they don’t like. It triggers a red flag and they immediately start to hold your funds or they might even terminate your account.
Although you can find documentation on both of their websites that will tell you what types of businesses they’re unable to accept. It still makes sense for them to do a little bit more vetting and to prevent you from signing up for an account If they don’t think that you fall within their guidelines. But of course, if they change their policy, they would make it much more difficult to accept online payments that quickly. It’s kind of a double-edged sword. It’s going to happen. I mean, you have probably dealt with your bank before or your cell phone provider
So, in looking at the positives PayPal customers are Happier than Stripe. Paypal provides very easy setup and the widely accepted multiple product services. Stripe customers like the quick and easy setup, the great API or software developer kit.
So in taking the pros and cons, the pluses and the minuses, when it comes to user reviews, both of these are head-to-head. It’s a tie. And so it’s time for a final verdict. fundamentally They do the same things, but they do them differently. So it’s really hard for me to pick a clear and overall winner.
If you are a nontech savvy business owner that just easily wants to implement online payments. PayPal is the right choice that widely accepted, well known, and simple and transparent.
If you’re a developer and you want to do some more heavy lifting, Stripe is the way to go. They have great software developer kits, great documentation, and great support for developers.
So it really depends on what your specific situation is. So there you have it, PayPal VS Stripe.
Also read:Best payment gateway in India