Stripe vs PayPal - Detailed 2021 Review

Author: John Alson
Updated on March 31, 2021

With the growing age of the internet and more and more opportunities start pouring up, you might be looking for an online payment provider for your business or for the work you do as a freelancer or for some other purpose and there are two big online payment providers out there that give an excellent service, Stripe and PayPal. When you want to decide on one of these providers, it might be hard to do so because they all have their own unique features that you might want or not. That is why, when it comes down to choosing between the two, you must know very well about them in order to make a decision that will make you happy in the long run because having problems with your payment provider could be a problem for anything you do and lose some opportunities. In this article, Stripe and PayPal will be compared so that you can see which one fits your needs better than other providers.



Stripe is an online payment service that came into the market after PayPal but has its place within small businesses and other companies like Pinterest, Lyft, Blue Apron, and such. Stripe is a customizable online payment service and that is why it is mostly chosen by code-savvy people or a team of programmers. Stripe is becoming more and more common in the payment service and most of its features and fees are similar to PayPal and even charges less at some features than PayPal. Both PayPal and Stripe integrate with WPForms. When we look at the differences that Stripe has with PayPal, it is possible to see some good and bad things. First of all, Stripe only works with around 30 countries, and it takes an average of two days to access your funds in your account. For micropayments, its commission is 5%+10c which is a bit higher than PayPal. However, you can create recurring billings on Stripe which is something you can not do in PayPal. And every payment is handled on your website %100 on Stripe which is a huge benefit. In Stripe, there is a RADAR fee that is charged even if the payment fails. For example, if you write down a wrong number in the card number and the transaction did not go through, you will still get charged a RADAR fee (.05c) from your account/card. Stripe’s chargeback is 15$ and you can not get any of the processing fees if your customer gets a refund.


PayPal is on the market for a very long time and is known and used by many people without hesitation because they have proved their work, and it is amazing. They work in over 200+ countries which is way more than Stripe as we have mentioned above. PayPal says that there are around 260 million registered customer accounts with over 20 million merchants. Nearly everyone has a PayPal account that they use or used in the past for different reasons. The use of PayPal is easier and more available wherever you go. It is no secret that PayPal is one of the most recognized brands in this area. Different from Stripe, you can get your funds to your account immediately whereas it takes around 2 days of waiting in Stripe, and online invoicing is always free when compared to Stripe which only provides free online invoicing for the first $1M sales. However, when you are using PayPal on your website as a payment option, the payments are not handled on your website %100, you have to leave your website in order to make your payment or finish the transaction. Moreover, PayPal does not provide recurring billing services which could be a downside when compared to Stripe where you can provide recurring billing.


Most of the features are mentioned above about Stripe and PayPal and it is safe to say that both have their own advantages and disadvantages. But for many people, the biggest advantage with PayPal is that they provide service to more than 200 countries. That way, it is easier to know your way around the system while getting your money immediately to your account whenever it was transferred. But with Stripe, even though it takes two days to get your money into your account and it is not accessible to every country, it can provide you with different alternatives such as being a customizable portal. This feature alone makes the coders and programmers go with Stripe. More than this, Stripe has the feature to provide you with recurring billing and data portability while having a less chargeback fee than PayPal. However, setting up Stripe is a bit more complicated than PayPal and might require some knowledge about coding or other details.

What are our final thoughts?

To sum everything up that has been stated so far, both Stripe and PayPal are fast, durable, and secured online payment gateways that are being used by millions every day by online businesses and freelancers. However, depending on your needs, you can choose one over another. For example, if you need a customizable online payment platform for your website, you have to go with Stripe. Because it can provide you with that but if you need a more available system around the world, PayPal is your go-to. PayPal also gets your money to your account immediately whereas Stripe takes around two days to do that. So, if you have an e-commerce website with a dropshipping model, having PayPal as your payment provider is a better solution. That way, you can use the money you get from the payment to order the goods to ship it to your customer without having to spend your own money before. You would have to spend your own money if you were using Stripe. It all comes down to what you want from a payment provider and which one benefits your work or business better than the other. We have provided you with the necessary details of these two different payment services and even though they seem similar, small details will push you to make a decision over another.

Stripe vs PayPal - Detailed 2021 Review reviews: 4 out of 2
John Alson

About the Author: John Alson

John Alson is an experienced business consultant and a contributing editor at He has extensive experience in business strategy and planning, sales management, marketing, business development, and corporate communications. He has been involved in a variety of public and private sector roles including management consultant, project management and marketing manager, and is now focusing on sharing his knowledge and experience with the community through the