Stripe vs PayPal: Pros and Cons. Which One Should you Choose?

Jul 15, 2019 | eCommerce

Kevin Fouche

Stripe vs PayPal: Pros and Cons. Which One Should you Choose?

Posted by Kevin Fouche, Pixel Fish Director

Kevin handles the planning, design, launch and training of every website that Pixel Fish creates. He ensures that every website is highly engaging and aligned with our client’s goals. With over 20 years of design and web industry experience to draw upon, Kevin aims to pass on his knowledge to our clients and like-minded businesses wanting to grow their online presence.

Stripe and Paypal are the significant players in selecting a payment gateway for your business. Both offer similar benefits and have comparable fees, but there are some significant differences between the two. Let’s explore Stripe vs PayPal: Pros and Cons. Which One Should you Choose?

It is worth taking the time to consider all the factors when choosing how to accept online payments. After all, as an online merchant, the decision about how you will take payments is one of the most significant decisions you will have to make.

Let’s take a closer look at Stripe and Paypal to see what is right for your business:

Stripe vs PayPal: Pros and Cons. Which One Should you Choose?


Stripe Pros

  • Stripe is pretty uncomplicated – they are a payment gateway singularly focused on handling payments for you. They process credit card payments and also offer more payment options than PayPal, such as echecks, debit cards from all major companies, ECH and EFT transfers, Apple Pay, Android Pay and Bitcoin.
  • Stripe offers API integrations, so you need not rely on their internal reporting. They offer official plugins for WordPress, Joomla, Drupal, and Magento, among others and have dedicated libraries for platforms built on Laravel, Ruby, React Native, Vue, Angular and many more.
  • Many major corporations use Stripe, so while you may not know Stripe’s name as well as you do PayPal’s, Stripe is trusted by many big names you will recognise, such as UnderArmour and Facebook.

Stripe Cons

  • The set-up process for Stripe is not as easy as PayPal – not by a long shot. Firstly, Stripe requires your site is totally SSL protected – which, let’s face it, it should be anyway – and if you need help ensuring your site is locked down by SSL, click here so we can organise that for you. Next, there’s the fact Stripe involves some API key juggling. If you use WordPress, there are loads of plugins to help you with this. However, you will need to read carefully through the documentation and procedures.
  • Stripe is not available worldwide. Nevertheless, Stripe is expanding their network. As Australia is one of their supported countries, Australian businesses can take payments from anywhere.


PayPal Pros

  • One of the most recognised and trusted payment platforms on the internet, PayPal is also one of the oldest.
  • Customers with an existing PayPal account can press one button to pay, which makes it quick and easy at the customer’s end.
  • PayPal is the default payment method for more than just a few ecommerce solutions and many plugins (which makes it quick and easy on your end!).
  • PayPal has tried and tested dispute settlement processes and offers a myriad of buyer and seller protections.
  • PayPal’s analytics, reports and other useful tools are easy to find in the PayPal dashboard – and the data is easy to export, too.
  • PayPal is just about everywhere, accepting 25 different currencies and available in over 200 countries.

PayPal Cons

  • As we’ve said, PayPal is just about everywhere; however, a minority of people still resist it. Some want to make their purchase using a credit card – without being directed to another website- while others simply do not want to set up a PayPal account. If PayPal is your only payment option, you may lose these customers.
  • PayPal requires you link out to them so that the customer can pay on the PayPal platform and afterwards, the customer will be redirected back to your store. Sometimes these redirects will be interrupted, which puts the sale at risk while it’s in the all-important endzone.
  • PayPal is fantastic for payments made via credit cards and bank accounts. However, it does not allow for Apple Pay, Android Pay or cryptocurrency payments such as Bitcoin. If PayPal cannot secure it, it isn’t an option – which, while inconvenient for some, shows their unwillingness to compromise security.

Which is right for my business: Stripe or PayPal?

Your customers will have their preferences no matter which one you choose, so to provide your customers with as many payment options as you can, why not use both?

Now, if the thought of using two different platforms and managing the payments from both is already giving you a headache, you may opt for just one.

PayPal is your easy solution – it is simple, standard with most platforms, and you can get paid immediately. Stripe, on the other hand, is the answer if you require a fully-integrated payment system, and although more complicated to get going, runs dependably and silently in the background. If you are still uncertain, you can go ahead and compare the features of Stripe vs. PayPal at a glance here. Online merchants can also ask how PayPal stacks up against a Merchant Bank Account, you can read more about that here.

The type of businesses that generally opt just to use PayPal includes freelancers, startups, non-profits and smaller companies. Stripe is favoured by larger enterprises, growing medium-sized businesses and companies that sell only online. Generally speaking, companies that choose to use both are eCommerce businesses, marketplaces, and WordPress agencies.

Choosing to start with one doesn’t rule out adding the other at a later stage. For example, PayPal can be your quick solution for adding a payment gateway today, while Stripe integration can be added later if you choose to.

If you are looking for help with your ecommerce site or just want to meet for a chat to discuss how to grow your business, contact us today.

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