Stripe vs Paypal

It used to be that for new small businesses, PayPal was the go-to choice. It it easy to set up, widely recognized, and gives new business owners a way to start accepting online payments quickly.

But in the last few years, several new payment processors have entered the scene, offering lower fees, more flexibility, and better integration with modern websites. One of the most talked-about options is Stripe, which has earned strong reviews for being developer-friendly and cost-effective.

Stripe and PayPal both offer a variety of features and benefits. They also have key differences that could make one a better fit than the other depending on your business model.

So how does Stripe compare to PayPal?

Fees

PayPal recently raised their fees:

• 3.49 percent plus a 49-cent processing fee
  On a $10 transaction, PayPal fees come out to 85¢, leaving you with a net of $9.15.

Stripe, on the other hand, keeps their standard rate at:

• 2.9% + 30¢ per transaction
  On a $10 transaction, Stripe will charge 59¢, leaving you with a net of $9.41.

Features

PayPal:

• Recognized by almost everyone — customers trust the PayPal name. A LOT of people already have a PayPal account.
• Many e-commerce platforms have built-in integrations or plugins for PayPal – WooCommerce, Shopify, Wix, Weebly, Squarespace, and others.
• Offers “PayPal Checkout” (customers can pay with their PayPal balance, linked bank, or cards).
• Great for eBay sellers, side hustlers, or businesses that don’t need much customization.
• Quick to setup without technical knowledge.

Stripe:

• Designed for modern websites and apps — integrates seamlessly with Shopify, WooCommerce, Squarespace, and custom-built sites.
• Accepts all major credit cards, debit cards, Apple Pay, Google Pay, and other digital wallets.
• Advanced reporting and analytics built in.
• Subscription billing and recurring payments are easier to set up.
• Supports over 135 currencies for businesses that want to sell internationally.
• Better developer tools if you want to build a customized checkout or integrate payments into your own app.

Ease of Use

• PayPal is simple and beginner-friendly. You can open an account and start taking payments in minutes with little to no setup. But the downside is less flexibility — your checkout experience will look and feel like PayPal, not your brand.
• Stripe takes a little more effort to set up, but it creates a smoother, branded checkout experience that feels like part of your website. Customers never feel like they’re leaving your store to pay, which can increase conversions.

Trust & Customer Perception

Some customers prefer PayPal because they don’t have to enter card details — they can just log into their account. It is familiar and feels safer for them.

Stripe works invisibly in the background. Customers may not know they’re using Stripe, but they’ll appreciate the smooth checkout flow.

Payouts

• PayPal deposits money into your PayPal balance almost instantly, but transferring to your bank can take 1–3 business days (unless you pay extra for instant transfers).
• Stripe deposits directly to your bank account, usually within 2 business days.

Bottom Line for Small Business Owners

If you want quick setup, name recognition, and don’t mind slightly higher fees, PayPal is still a solid option. It’s especially useful if you sell through eBay or want to give customers the choice to pay with their PayPal balance.

But if you want lower fees, more customization, and a checkout experience that feels like part of your brand, Stripe is often the smarter long-term choice. Many small businesses start with PayPal for convenience, then add or switch to Stripe as they grow.

Overall Winner for most small businesses today: Stripe