Stripe vs. PayPal – Which is Best for your Business?

by Katie Sawyer, 11 minutes read
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Stripe vs. PayPal – Which is Best for your Business?

Years back, it used to be that only big name stores and brands would be able to offer their customers an avenue for paying with credit or debit cards. The technology to process these methods was still new and many smaller stores weren’t able to afford the technologies necessary to process payments from them. This left many small business owners at a large disadvantage as the big guys down the street were able to accept more forms of payment from customers, which was a large advantage.

Stripe vs. Paypal - Which is Best for your Business

Thanks to the vast improvements made in technology over the years, small business owners no longer have to worry about having to purchase and upkeep their own systems for processing alternative payment methods. Now, they can just use an online payment processing platform that allows them to accept all types of payment. The platform charges each month or as a “pay as you go” method for small business owners depending on the platform that they ultimately decide to go with. The arrival of online payment platforms couldn’t have come at a better time either. As you can see in the graph below, Credit and Debit cards have grown to be the main avenue for how most businesses accept their payment.

Stripe vs. Paypal - Which is Best for your Business

If the above graph wasn’t enough to sell you, take a look at some other benefits below:

  • Reduces human error

If you’re still asking employees to take payment information down on pen & paper, then you’re setting yourself up for failure and/or a very mad customer. Whether entries are duplicated more than they should be or the data is entered incorrectly, you’re going to have to deal with an employee (or yourself) sooner or later, best to ensure this never happens by sticking to a reliable online platform.

  • Saves you time

Imagine if you chose to continue with the method of having your employees write down the information for each and every customer that didn’t pay in cash. They would have to pull out a piece of paper & pen and take the time to write everything out, then management would have to sit down and go through all the payment information. It would likely take hours each week and would be another headache added to your already busy schedule.

  • Reduced labor costs

When you take payments down by hand, you more often than not will have to devote an employee to do a single task (inputting the information) or will have to hire an accountant to help organize all of the financial information. Thus costing you more in labor costs.

  • Increased cash flow

I know that the graph above touched on this, but it’s worth going more in-depth. When you have a fully integratable online payment processing system, you’re giving your customers more options for how they can pay. Which means that you won’t be losing any customers due to your systems not accepting their particular type of payment.

Stripe vs. Paypal - Which is Best for your Business

While online payment processors have gifted small business owners with an avenue for providing the best possible customer experience for their visitors, they still must work through the challenge of picking the right one for their business. After all, with so many choices, you want to be sure that you’re going with the most reliable platform for your business. For the sake of this blog, we’ll be taking a look at two of some of the most well-recognized online payment platforms out there, Stripe and PayPal, and the benefits and features of both so you can make a better decision regarding which platform would be best for your organization.

No matter which platform you end up going with, you’ll need a trusted team of employees working to provide a great experience to your customers so they keep on coming back. To make sure that your employees are happy, make sure that you’re providing them with an employee scheduling platform that makes it easy for them to receive their schedules as well as easy for your managers to create the schedules in the first place. To learn more on how Deputy can help solve your issues, click on the button below to begin your free trial.



First and foremost, we have to take a second to dive into the pricing aspect of each platform so you understand the financial commitment that accompanies each choice and are sure that your business can handle it.

Stripe fees

Stripe vs. Paypal - Which is Best for your Business

Stripe likes to pride themselves on their transparent pricing structure that makes it simple for business owners to understand what they’re getting themselves into in terms of the fees they’ll have to pay. Here’s a quick image that details their pay as you go pricing plan:

Stripe vs. Paypal - Which is Best for your Business

As you can see, Stripe offers customers the opportunity to pay 2.9% of each sale they make along with thirty cents on top of that, as well as no setup, monthly, or hidden fees. The real strong point of this fee system is that you’d only be paying for what you use. So if you didn’t make any sales for a period of time, you don’t have to worry about paying for the service for a period where you didn’t even use it. Along with the pay as you go service, Stripe also offers an enterprise choice that gives you the choice to get volume discounts as well as a dedicated support team. To learn more regarding how Stripe’s enterprise solutions can help you out, click here to get in touch with their sales team to learn more.

PayPal fees

Similar to Stripe, PayPal also offers very transparent pricing to their customers so they understand exactly what they can come to expect to pay for the service. The image below gives an idea of the merchant fees for PayPal.

Stripe vs. Paypal - Which is Best for your Business

As you can see above, they take 2.7% of each purchase that happens on mobile or in-store and 2.9% of each purchase plus a 30 cent charge for each purchase that occurs through an online payment or invoice. You also don’t have to worry about paying any: startup costs, termination fees, or any monthly fees. Another interesting feature of PayPal is that they offer discounted credit card processing fees for registered charities with a 501(c)(3) status, click here to learn a bit more on the discounts offered to charities. Also, if you have an online store that receives many orders from outside of the country or if you have multiple international locations and would prefer to use the same operating system for all of them, check out the image below that details the fixed fees for standard transactions for currencies all over the world.

Stripe vs. Paypal - Which is Best for your Business

Online payments

While we touched on this a bit earlier, the prominence and importance of online payments for businesses, especially in our day & age, should designate its own section of this blog. More and more businesses are choosing to add an online component of their business to supplement the income they’re bringing in from in-store sales, and the best part is that the internet allows businesses of all types to participate. For example, if you own a store that sells furniture along with other materials like bedding, pillows, etc. then you can open up an online store that provides another avenue for you to sell your inventory. Another example is if you own a coffee shop, while you aren’t able to mail a cup of coffee halfway across the world, you are able to mail bags of your coffee beans along with other shippable materials. Now that you’re better aware of the multitude of ways that businesses can bring in extra money through the internet, let’s get into the options that Stripe and PayPal offer in terms of online payment options.

Stripe and online payments

Stripe vs. Paypal - Which is Best for your Business

You can’t have a conversation regarding online payments without touching on what the platforms offer in terms of invoicing, because no matter how fluid the system may be in accepting payments, it must have a function to build and send invoices so your customers have a reference point for their purchase.

The most attractive aspect of Stripe’s invoicing is that it gives business owners the ability to personalize their invoice experience exactly to their liking. They do this by offering a number of optional components to their invoices, these components include:

  • One-time purchasing charges

This is best if your business requires you to charge clients for certain one-time fees. A perfect example is if you had to charge new customers an initial setup fee for getting everything up & running.

  • Recurring charges

If you’re running a company where you install cable in people’ homes, then you may need to include recurring charges for customers that want to install cable in any extra rooms in their homes.

  • Usage-based charges

These charges are best for companies that are service-based and calculate their billing based on their product usage. A perfect example is an internet provider that charges their customers extra if they go over their bandwidth.

  • Tiered pricing

Back to the internet provider example, you may decide to charge customers based on the number of Gigabytes of storage they’re using. With tiered pricing, you’re able to charge your customers accordingly and give them a great source of reference.

  • Promotions and trial periods

Many companies use promotions and trial periods as a means for expanding their brand awareness in new areas where people may be unaware of them. With Stripe’s invoicing features, you’re able to easily include any special promotions or discounts on all of your invoices.

  • Billing frequency

If you have a lot of recurring customers, it can get time-consuming having to constantly send and recreate invoices on a regular basis. Stripe includes a useful feature that allows business owners to automate their billing so that it sends the invoice all on its own.

Along with an in-depth invoicing system, Stripe also accepts credit card payments in 135 different currencies along with many different payment methods that include iDeal, ACH Debits, and SEPA Direct Debit.

PayPal and online payments

Stripe vs. Paypal - Which is Best for your Business

Stripe isn’t the only one that offers an extensive list of options for their customers, PayPal also does a great job of allowing people to easily and securely accept payments online. Here is a list of features that come pre-loaded with the invoicing aspect of PayPal:

  • Save invoice templates, items, as well as any contact details for quick entry.
  • Automatically sends reminders for any unpaid invoices.
  • Group send invoices to 1,000 customers all at once.
  • Schedule invoices to be sent on a specific date and on a specific time.
  • Allows you to view a complete history of each invoice.
  • Allows customers to make partial payments as well as allowing them to make a tip.
  • Lets you accept payments from 200+ markets from all around the world.
  • It builds a record of payments if the customer pays by check.

All in all, both PayPal and Stripe provide many invoicing features that their customers would enjoy. Go through the features of each to figure out which would be the best fit for your organization.

Customer Support

Stripe vs. Paypal - Which is Best for your Business

While customer support may not always necessarily be a selling point, it is for payment processors. This is because you’re trusting the success of your store on the ability of this software to perform. If it can’t perform for any reason, then your store won’t be able to get paid. Which will be a very big issue that you’ll want to get handled ASAP, so the last thing you’ll want is to be told that you must be put on hold and wait for the next available representative while you lose money. So you need to be assured that your chosen platform has a great customer support team behind it.

Stripe currently offers an online support page that you can find here and it provides users with an avenue of looking up their issues in different categories like charges & refunds, payouts, connection issues, billing & subscriptions, international issues, disputes & fraud, as well as accounting & taxes. Along with their support page, they also offer a 24/7 phone and chat support line that you can use whenever you come across any issues.

Similar to Stripe’s support page, PayPal offers a page to help new users set up their equipment as well as helping them work through any issues they may experience during their initial set up. Along with that, they also offer a help center that can guide customers through commonly asked questions and issues that they may be experiencing, the help center can be found here.

All in all, both Stripe & PayPal offer comprehensive customer support options for their customers. In order to really test their reliability, it’s suggested that you try calling and emailing both platforms to test their responsiveness for yourself.

Closing thoughts

In today’s day & age, not offering comprehensive payment solutions for your customers hurts no one but yourself. If you don’t accept credit cards, they’ll just head to one of your competitors that do. That’s why you need to be assured that you’re adopting an online payment processor for your business. As for choosing between Stripe or PayPal, they are both effective platforms that offer a number of solutions to their clients. To figure out which of the two would be best for your organization, go back over the offerings of both to determine which would be the best fit for you.

Speaking of best fit, how are your current employee scheduling procedures fitting in with your managers and employees?

Are your managers’ stuck spending hours each week building out the employee schedules?

Are your employees complaining that it’s a pain just trying to receive their schedules?

If you’re experiencing issues in any of the areas stated above, then you should take the time to check out Deputy. An employee scheduling platform built to make things easier for your employees as well as your managers. To learn more, click on the button below to begin your free trial.