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.
- Difficulty
- Beginner
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 embedded on your site, or a Stripe-hosted page you redirect to | Customer is redirected to PayPal (or card fields on-site) |
| Setup complexity | Requires developer integration | Easier to add to most platforms |
| Standard US online rate | One published card rate — check current rate at stripe.com/pricing | Several rates by payment type; PayPal wallet checkout costs more than a plain card payment, and both are above Stripe's card rate |
| Payout schedule | Automatic — daily by default where Stripe supports it, or weekly, monthly or manual | 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. Stripe has an embedded payment form, so customers can enter their card details without ever leaving your website — no redirect, no login prompt, no pop-up. (Stripe also offers a hosted checkout page you redirect to, if you would rather not embed one; we will tell you which your site uses.) The embedded route 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 would rather not type card details into a checkout form they do not recognise, and will look for PayPal instead.
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 works in a wide range of countries and is well recognised internationally.
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 side by side on WooCommerce, Webflow Ecommerce, Squarespace, and most other platforms. Webflow Ecommerce supports Stripe and PayPal as its two payment providers and lets you connect both to the same store. Squarespace lists Stripe and PayPal among its payment processors and lets you connect them at the same time.
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
Do Stripe and PayPal charge the same fees?
No. Both publish a headline percentage plus a fixed amount, and both add extra charges in certain scenarios (international cards, currency conversion, and so on) — but the numbers differ, and PayPal's depend on how the customer chose to pay. Compare the current fee schedules on each company's website to get an accurate comparison for your specific situation.
Can I switch from PayPal to Stripe later?
Yes. We can add Stripe to your site and either run both or retire PayPal. Existing customers with saved PayPal details will not be affected — they simply will not see PayPal as an option at future checkouts if you remove it.
Which is better for subscriptions?
Stripe. Its subscription tools are more flexible and better documented. If recurring billing is a core part of your business, Stripe is the stronger choice.
Which is better for international customers?
Both work internationally, but PayPal is better recognised in some markets than others. If you have significant international sales, offering both is the safest approach.
Will having two payment options confuse customers?
No — it is the industry norm. Customers at checkout are used to seeing a card form plus a PayPal button. Most sites present them clearly labeled, so it is obvious which is which.
Related guides
- Stripe basics for business owners
- PayPal basics for business owners
- Payment processors explained
- Payment fees explained
- Recurring payments & subscriptions
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