PayPal Business vs Stripe
By Itai Varochik | Updated 2026
Quick Verdict
Overall Winner: Stripe (4.7/5)
We tested PayPal Business and Stripe side-by-side. Stripe comes out ahead overall, but PayPal Business may be better for specific use cases.
Score Breakdown
| Criteria | PayPal Business | Stripe |
|---|---|---|
| Features | 8/10 | 9.5/10 |
| Ease of Use | 8.5/10 | 7.5/10 |
| Value for Money | 6.5/10 | 8.5/10 |
| Customer Support | 5.5/10 | 7.5/10 |
| Overall | 7.2/10 | 9/10 |
Feature Comparison
| Feature | PayPal Business | Stripe |
|---|---|---|
| Checkout | Yes | No |
| Invoicing | Yes | No |
| BNPL | Yes | No |
| International | Yes | No |
| Working Capital | Yes | No |
| Payments | No | Yes |
| Billing | No | Yes |
| Connect | No | Yes |
| Radar | No | Yes |
| Atlas | No | Yes |
| Terminal | No | Yes |
Pricing Comparison
PayPal Business: 2.99% + $0.49 per transaction
Stripe: 2.9% + $0.30 per transaction
PayPal Business Pros & Cons
Pros
- 435M+ active accounts
- Buy Now Pay Later included
- 100+ currencies
- Easy setup
Cons
- Higher fees than Stripe
- Account freezing reported
- Complex fee structure
Stripe Pros & Cons
Pros
- Best-in-class API and developer tools
- 135+ currencies supported
- Free fraud protection with Radar
- No monthly fees or setup costs
- Excellent documentation
Cons
- No phone support on standard plans
- Account freezes for sudden volume spikes
- Premium features add up in cost
- Not ideal for in-person retail
Key Specifications
| Spec | PayPal Business | Stripe |
|---|---|---|
| Rating | 4.1/5 | 4.7/5 |
| Pricing | 2.99% + $0.49 per transaction | 2.9% + $0.30 per transaction |
| Year Founded | 1998 | 2010 |
| Headquarters | San Jose, CA | San Francisco, CA |
Our Verdict
Stripe wins overall. Choose PayPal Business if you value International sellers. Choose Stripe if you prioritize SaaS companies.
Frequently Asked Questions
Is PayPal Business better than Stripe?
Based on our testing, Stripe scores higher with a rating of 4.7/5 compared to PayPal Business's 4.1/5. However, the best choice depends on your specific needs.
What is the main difference between PayPal Business and Stripe?
PayPal Business is known for: The world's most recognized online payment platform.. Stripe is known for: The developer-first payment platform powering internet businesses worldwide..
Which is cheaper, PayPal Business or Stripe?
PayPal Business pricing: 2.99% + $0.49 per transaction. Stripe pricing: 2.9% + $0.30 per transaction.
Can I use PayPal Business and Stripe together?
While both tools serve similar purposes in the Payment Processing category, some users do use complementary features from both platforms.
What are the pros of PayPal Business?
435M+ active accounts. Buy Now Pay Later included. 100+ currencies
What are the pros of Stripe?
Best-in-class API and developer tools. 135+ currencies supported. Free fraud protection with Radar
Which payment processing should I choose?
Choose PayPal Business if you value International sellers. Choose Stripe if you prioritize SaaS companies.