Stripe vs PayPal
By Itai Varochik | Updated 2026
Quick Verdict
Overall Winner: Stripe (4.7/5)
We tested Stripe and PayPal side-by-side. Stripe comes out ahead overall, but PayPal may be better for specific use cases.
Score Breakdown
| Criteria | Stripe | PayPal |
|---|---|---|
| Features | 9.5/10 | 4.2/10 |
| Ease of Use | 7.5/10 | 4/10 |
| Value for Money | 8.5/10 | 3.2/10 |
| Customer Support | 7.5/10 | 2.8/10 |
| Overall | 9/10 | 3.8/10 |
Feature Comparison
| Feature | Stripe | PayPal |
|---|---|---|
| Payments | Yes | No |
| Billing | Yes | No |
| Connect | Yes | No |
| Radar | Yes | No |
| Atlas | Yes | No |
| Terminal | Yes | No |
| Send and Receive Payments | No | No |
| Buyer Protection | No | No |
| Seller Protection | No | No |
| Invoicing | No | No |
| Payment Gateway Integration | No | No |
Pricing Comparison
Stripe: 2.9% + $0.30 per transaction
PayPal: 3.49% + $0.49 per transaction
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
PayPal Pros & Cons
Pros
- Widespread acceptance by consumers and businesses globally
- Robust buyer and seller protection policies
- User friendly interface for sending and receiving payments
- Integration capabilities with numerous e-commerce platforms
- Established brand recognition fostering user trust
Cons
- Higher transaction fees compared to some competitors
- Potential for account freezes or limitations without clear explanation
- Customer service can be difficult to reach and resolve issues
- Funds can be held for extended periods for new or high volume sellers
Key Specifications
| Spec | Stripe | PayPal |
|---|---|---|
| Rating | 4.7/5 | 4.2/5 |
| Pricing | 2.9% + $0.30 per transaction | 3.49% + $0.49 per transaction |
| Year Founded | 2010 | 1998 |
| Headquarters | San Francisco, CA | San Jose, CA |
Our Verdict
Stripe wins overall. Choose Stripe if you value SaaS companies. Choose PayPal if you prioritize Individuals sending or receiving personal payments.
Frequently Asked Questions
Is Stripe better than PayPal?
Based on our testing, Stripe scores higher with a rating of 4.7/5 compared to PayPal's 4.2/5. However, the best choice depends on your specific needs.
What is the main difference between Stripe and PayPal?
Stripe is known for: The developer-first payment platform powering internet businesses worldwide.. PayPal is known for: The world's most recognized online payment platform with 430+ million users..
Which is cheaper, Stripe or PayPal?
Stripe pricing: 2.9% + $0.30 per transaction. PayPal pricing: 3.49% + $0.49 per transaction.
Can I use Stripe and PayPal 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 Stripe?
Best-in-class API and developer tools. 135+ currencies supported. Free fraud protection with Radar
What are the pros of PayPal?
Widespread acceptance by consumers and businesses globally. Robust buyer and seller protection policies. User friendly interface for sending and receiving payments
Which payment processing should I choose?
Choose Stripe if you value SaaS companies. Choose PayPal if you prioritize Individuals sending or receiving personal payments.