PayPal vs Stripe for Small Business: Which Is Better?

PayPal and Stripe both accept credit card payments online, but they're built for different audiences. PayPal is the household name with 400M+ users. Stripe is the tech-forward platform with the better checkout experience. Here's how they compare for small business.

Fee Comparison

StripePayPal
Online payments2.9% + $0.302.99% + $0.49
Fee on $100$3.20$3.48
Fee on $500$14.80$15.44
International+1% (3.9% + $0.30)+1.5% (4.49% + $0.49)
Dispute fee$15$20
Refund feeFee not returned$0.49 not returned

Stripe is cheaper on every metric: lower percentage, lower flat fee, lower international surcharge, lower dispute fee.

Choose Stripe If:

  • You want the lowest card processing fees
  • You want a clean, professional checkout page
  • You need subscription billing
  • You value lower international fees
  • You don't need the PayPal brand recognition

Choose PayPal If:

  • Your clients trust and prefer PayPal
  • You work with international clients (PayPal's brand is global)
  • You need formal invoicing built in
  • You want clients to pay without entering card details (they pay from their PayPal balance)
  • You want PayPal's buyer protection reputation to close more sales

Why Not Both?

You don't have to pick one. Offer Stripe for card payments and PayPal for clients who prefer it. Add Venmo and Zelle for cheaper options.

Payable.at combines Stripe-powered card payments with PayPal, Venmo, Zelle, and more on a single payment page. You get the best of every platform without choosing sides.

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