PayPal vs Stripe
A plain-English side-by-side comparison of PayPal and Stripe to help you choose the right payment processor — or decide to use both.
PayPal and Stripe are the two most common payment processors for websites. They do many of the same things, but they work differently and serve different purposes. This guide compares them so you can make an informed decision.
Quick summary
Stripe is generally the better choice for a smooth, on-site checkout experience. PayPal is widely recognized and trusted by shoppers. For most businesses, the best approach is to offer both — Stripe for card payments and PayPal as an additional option. We help you set up and manage both.
At a glance
| Feature | Stripe | PayPal |
|---|---|---|
| Customer recognition | Less recognizable as a brand | Highly recognizable — customers look for the logo |
| Checkout experience | Card form stays on your site | Customer is redirected to PayPal (or card fields on-site) |
| Setup complexity | Requires developer integration | Easier to add to most platforms |
| Standard US fee | ~2.9% + $0.30 per transaction | Similar — check current PayPal rates |
| Payout schedule | Automatic, every 2 business days (US) | Manual transfer or auto-transfer required |
| Recurring billing | Excellent built-in support | Available but more complex |
| Dispute handling | Credit card chargeback process | Own Resolution Center plus chargebacks |
| International | Strong multi-currency support | Widely accepted globally |
| Dashboard | Detailed, developer-friendly | Functional, more consumer-oriented |
Where Stripe wins
On-site checkout. With Stripe, customers enter their card details without ever leaving your website. There is no redirect, no PayPal login prompt, no pop-up. This creates a cleaner, more professional experience.
Subscriptions and recurring billing. Stripe's built-in subscription tools are mature and flexible. If you charge customers on a schedule, Stripe makes it straightforward.
Developer tools. Stripe's documentation and API are highly regarded. Our developers find it easier to build advanced features with Stripe.
Detailed reporting. The Stripe Dashboard offers clear breakdowns of revenue, refunds, disputes, and payouts — useful for bookkeeping and business reporting.
Where PayPal wins
Customer trust and recognition. Many shoppers actively look for the PayPal button and feel more comfortable using it. Some customers — especially older shoppers or those who distrust unfamiliar checkout forms — will only complete a purchase if PayPal is available.
No card required. Customers with a PayPal balance or a linked bank account can pay without entering a card. This lowers the barrier for some buyers.
Global reach. PayPal has very wide international acceptance and is the preferred payment method in some markets.
Quick setup. Adding a PayPal button to a website is often faster than a full Stripe integration, and many platforms have it as a one-click option.
The case for using both
For most e-commerce businesses, we recommend running both:
- Stripe handles card payments with a seamless, on-site checkout form
- PayPal appears as a second option for customers who prefer it
Offering both means you capture more customers. Someone who abandons your checkout because they do not want to enter their card details might complete the purchase via PayPal.
The setup is straightforward — both can run simultaneously on WooCommerce, Webflow Commerce, Squarespace, and most other platforms.
Which should you choose?
Our recommendation
Start with Stripe as your primary processor for cards, and add PayPal as a secondary option if your customer base is likely to prefer it (e.g. consumer-facing shops, international audiences, or customers who tend to be less tech-savvy). For B2B businesses and professional services, Stripe alone is usually sufficient.
If you are unsure what your customers prefer, you can always add PayPal later. It is not an either/or decision.
Common questions
Related guides
- Stripe basics for business owners
- PayPal basics for business owners
- Payment processors explained
- Payment fees explained
- Recurring payments & subscriptions
Need a hand?
Learn more
PayPal basics for business owners
What PayPal is, the different account types, how it fits into your website, and what to expect when using it as a payment option.
Payment fees explained
A plain-English breakdown of every type of payment processing fee — transaction fees, interchange, chargebacks, and more — so you know what you are paying and why.