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Stripe Vs. PayPal-Which Payment Gateway Should You Use

When it comes to accepting payments for your business, there are many payment gateways and merchant processors to choose from. However, how do you decide which one is the best for your business?  For instance, two of the most common gateways among businesses today are Stripe and PayPal. Both serve an identical purpose, which is to allow business owners to accept payments securely and quickly. However, both are different when it comes to certain features and benefits.


Like PayPal, Stripe is a payment gateway that allows business owners to accept and send money online.  It has become increasingly popular over the last couple of years making them a strong competitor for PayPal.  Stripe offers some great features such as

  • 9% + .30 per card charge
  • Quick setup
  • Customizable features
  • No setup fees, monthly fees, or hidden fees
  • Global payments
  • 24/7 customer support
  • PCI Compliant
  • A robust developer platform

The list goes on and on.  Great features like these make it very attractive for eCommerce and service-based businesses alike.  Now, it is important to note that with any list of pros, there comes a list of cons like the ones below:

  • Slower payouts (up to 2-day turnaround)
  • Not very user friendly for initial setup
  • In fewer countries
  • Invoicing only free up to $1M in sales


PayPal has been a household name for many years. In fact, many businesses from brick and mortar, non-profits, eCommerce, and many other setups have integrated PayPal as a standard method of payment in their checkout process. PayPal’s early rise to fame came when the eBay platform made its debut. PayPal was and still is eBay’s most trusted source of payments for buyers and sellers. PayPal’s evolution has only grown since then. Now they have grown into multiple countries, businesses, and offer their card readers.  PayPal offers businesses both small and large many great features such as:

  • 9% + .30 per card transaction
  • Flat rates
  • No contracts
  • Easy setup
  • PCI Compliant
  • Can access funds immediately (Some restrictions may apply for newer account holders)
  • Great Customer support
  • Available in over 200 countries

Now let’s take a quick look at the downsides of PayPal when it comes to collecting payments.

  • No recurring billing
  • Redirection of the customer from the checkout page
  • Chargeback fees are notably higher than Stripe
  • Unable to move over customer data from another processor

The Best Choice

Now that we have looked at both platforms the question becomes, which one should you choose?

Well, ultimately the decision comes down to what will best serve your business better.  Both Stripe and PayPal serve small and large businesses and specific industries. How it will benefit your business really depends on varying factors. Both are great options, and the best part is you don’t have to choose one over the other because you can use them both by integrating them on your site.

Final Thoughts

At the end of the day, both payment gateways are notably great in their respective areas. Both offer a great deal of flexibility and features.  Now, if you are still unsure if either of these payment gateways will work for you, then we will be happy to answer any questions about the world of payment gateways and merchant accounts.

We offer great rates for many industries and flexibility. We also offer our business owners tons of perks just by signing up with us. If you want to learn more about how merchant processing can benefit your business, then call us today at 888-253-9692 or email [email protected]

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