Paypal vs. Stripe. Which Do I Prefer For Myself and My Clients

payment collector


When it comes to business management especially accepting payments and managing payouts, you typically want to stick with a commonly known and well-experienced company. Everyone uses something different for a different reason, but here is my experience about two of the biggest names in payment forms, Paypal and Stripe! 

First, we will start with Paypal. Paypal has "...  quickly become a global leader in online payment solutions with more than 325 million accounts worldwide. Available in 202 countries and 25 currencies worldwide, PayPal enables global eCommerce by making payments possible across different locations, currencies, and languages." 

Starting positive here! - 

  • Instant deposits into your PayPal account
  • PayPal business accounts can receive payments from almost anyone. 
  • Invoicing Features 
  • Compatible with over 26 currencies (including crypto & Venmo) 
  • Extensive online and in-person payment solutions

Then we have the not so great parts of Paypal Business - 

  • Small transactions can have large fees.
  • It can take up to 3 business days to access your cash.
  • Your account can be suspended at any time.
  • The protection policies do not cover digital items.

Then to compare, we have Stripe. Stripe was founded in 2010 in San Francisco and focused more on ways to help online and internet-driven companies secure payments from consumers. According to their website, they are used by "Millions of companies of all sizes—from startups to Fortune 500s—use Stripe's software and APIs to accept payments, send payouts, and manage their businesses online."

Starting positive again! - 

  • Flat-rate, transparent pricing with no setup, cancellation, or monthly fees.
  • Supports a wide variety of payment methods and currencies.
  • Highly customizable checkout flow for consumers.
  • Easy and quick to set up.
  • Funds deposited directly to your bank account

Then we have the not so great parts of Stripe - 

  • Open API and certain tools could be difficult to understand right away
  • Functionality for in-person retail businesses and restaurants is limited.
  • In the U.S., funds can be paid out two business days after a transaction. 

In my opinion, I choose Stripe solely because it is directed more for the business owner, as it doesn't hold any funds within the company and is overall more secure & easy to manage from my experiences.

What do you use?

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