Stripe vs PayPal: Complete Comparison (2025)
Side-by-side analysis from payment processing experts
At a Glance
| Feature | Stripe | PayPal |
|---|---|---|
| Online Pricing | 2.9% + $0.30 | 2.9% + $0.30 |
| Venmo Payments | Not available | 1.9% + $0.10 |
| Monthly Fee | None | None |
| Contract | None | None |
| Setup Time | < 24 hours | < 24 hours |
| Best For | Developers, SaaS, E-commerce | E-commerce, Small Business |
| API Quality | Excellent | Good |
| Brand Recognition | Good | Excellent |
| Customization | Full control | Limited |
| Account Holds | Rare | Common |
Detailed Comparison
Pricing
Stripe
Stripe charges 2.9% + $0.30 for online payments, with no monthly fees or contracts. International cards cost 3.9% + $0.30. They offer volume discounts for high-volume merchants.
Best for: Businesses that want transparent pricing without hidden fees.
PayPal
PayPal charges 2.9% + $0.30 for standard online payments, matching Stripe. However, they offer Venmo payments at 1.9% + $0.10, which can be cheaper for certain demographics. International payments cost 4.4% + fixed fee.
Best for: Businesses targeting customers who prefer PayPal or Venmo.
Developer Experience
Stripe
Stripe is widely considered to have the best API in the payment processing industry. Their documentation is comprehensive, they offer SDKs for every major programming language, and their developer tools are excellent.
- ✓ Excellent documentation and tutorials
- ✓ Webhooks and real-time events
- ✓ Test mode with detailed logging
PayPal
PayPal's API is functional but not as developer-friendly as Stripe's. Documentation can be harder to navigate, and the API structure is less intuitive. However, PayPal offers easy integration with major e-commerce platforms.
- ✓ Easy platform integrations
- ⚠ More complex API structure
- ⚠ Less flexible than Stripe
Brand Recognition & Trust
Stripe
Stripe has strong brand recognition among developers and tech-savvy businesses. While not as widely recognized by consumers as PayPal, Stripe's checkout is trusted and can be customized to match your brand.
PayPal
PayPal has exceptional brand recognition. Many customers prefer PayPal checkout because they trust the brand and already have accounts. This can significantly increase conversion rates, especially for international customers.
Account Management & Holds
Stripe
Stripe can place holds on accounts, but it's less common than with PayPal. They're generally more transparent about why holds occur and how to resolve them. Stripe's risk management is sophisticated and automated.
PayPal
PayPal is notorious for account holds and freezes, especially for new businesses or unusual transaction patterns. Resolving holds can be difficult, and customer service can be challenging to reach. This is one of PayPal's biggest weaknesses.
Which Should You Choose?
Choose Stripe if:
- • You're building a SaaS product or custom application
- • You need subscription billing
- • You want full control over payment flows
- • You have technical resources
- • You want to avoid account holds
Choose PayPal if:
- • You want maximum brand recognition
- • You're targeting customers who prefer PayPal
- • You want Venmo payment option
- • You need simple integration with e-commerce platforms
- • You don't need custom payment flows