PayPal VS Stripe Which one to choose?

Providing payment solutions to customers has been an important issue around ecommerce, it is well known that PayPal has been present in payment methods of countless stores and online service, however this is limited to users in their alterntives of payment for years.

The dilemma between PayPal and Stripe.

Providing payment solutions to customers has been an important issue around e-commerce because of the variations that exist in payment methods, in any online business there are not many options, It is well known that PayPal has been present in the payment methods of countless shops and online service, however, this has been limited to users in their payment alternatives over time.

It is undeniable that PayPal is the online payment method par excellence, and that using this means is very attractive for most users, however, many buyers do not find it comfortable to open an account on PayPal, to be able to make your payments and it is also true that the owners of online stores lack competitiveness the commissions that Paypal applies. That is why other alternatives already exist. 

One of the options that best competes with Paypal is Stripe, a payment platform that works perfectly, is flexible, simple, and allows you to pay with Amazon Pay, Apple, cryptocurrencies, and more.

If you are doubting between these two payment platforms, this blog will be of great use to you, you will have a clearer picture of which payment platform is best for your trade.

Person simulating an online purchase by PayPal or Stripe

What is a payment gateway and what are payment services?

Payment gateways are a kind of intermediary between online trade and a payment service provider and, through these, payment transactions are made quickly and easily.

In the case of PayPal or Stripe, both are payment service providers and function as payment gateways.

Payment services also have a responsibility to provide each trade with the means and technology necessary for them to execute their transactions and make payments where they should.

There are traditional banks that have their own payment gateways, with which they facilitate the online purchases of their customers and any type of payment they wish to make.

Person simulating a purchase with his credit card with PayPal or Stripe

PayPal, what is it, and when to choose it?

PayPal is a very popular payment gateway worldwide. Its simplicity, efficiency, and reliability make it one of the best options for electronic commerce, especially for entrepreneurs, because this payment service company is a multinational operating since 1998, with multiple subsidiaries.

PayPal works with the PayPal balance, a debit card, or credit card and, to start using it in your online trade, you must use PayFlow, the PayPal payment gateway. Once you integrate PayFlow with your website you will be able to start processing the payments and, each payment made by your web customers will be available in your PayPal business account in just 48 hours.

PayPal logo

Advantages of PayPal

PayPal is present in more than 200 countries and accepts about 25 different currencies, making it a phenomenal payment option worldwide.

It is a secure payment platform, with the opportunity to make claims or request refunds in cases of fraud or non-compliance with payment terms by either party.

It is very easy to use; it will be enough for each customer to have an active account in PayPal to start paying using this gateway.

Disadvantages of PayPal

To make a payment with PayPal you must have an account on this platform, and it may happen that some customers do not want to open an account just to execute a payment, and prefer payment by debit or credit card.

When you click on the PayPal payment button, the user is redirected to the PayPal platform; there, you must log in to your account and make the payment. The user is then redirected back to e-commerce. These redirections can be a problem for some, as it does not optimize the user experience.

Stripe, what is it and when to choose it?

Stripe is a multifunctional, versatile and modern payment gateway. Due to the breadth of its services, it is widely used today by major brands, but it has also become an efficient alternative for those who are not very friends of PayPal and its commissions, and want to undertake an eCommerce.

Integrating your website with the Stripe platform is very simple, and it also allows you to integrate with online store platforms like Shopify, for example. It consists of a kind of default templates that can be installed to configure your trade and start processing payments almost immediately, although this requires some typical technical knowledge from a web programmer.

Stripe payments are flexible, as the gateway supports more than 100 types of currencies, as well as payment options with cryptocurrencies and most credit cards in the world.

Its services are not limited to buying and selling online, but it processes payments, settles them and even reconciles them. Making Stripe a safe and reliable payment service.

In addition, not only are payments made electronically, but Stripe supports payments from Apps and in physical stores and a multitude of added and really interesting options.

There are many service alternatives to improve your transactions and provide a pleasant user experience to your customers.

Stripe logo

Advantages of Stripe

Payment flexibility; supports most credit and debit cards out there, accepts Bitcoin, Amazon Pay, Android Pay, Apple payments and more than 100 foreign currencies.

Large companies, such as Facebook, have surrendered before Stripe, and use it as their main form of payment, because this gateway has some complements of great help for electronic commerce and to manage payments quickly and safely.

In fact, if your website works with WordPress, Stripe has specific add-ons for this CMS. In addition, Stripe has an official API from which it is possible to manage some aspects of your trade and download data and import it to various types of software.

Another advantage to bear in mind is that the commissions in Stripe are 2% lower than the commissions in Paypal, something that, depending on the turnover volume of your company, is a noticeable difference.

Disadvantages of Stripe

Although, in theory, Stripe is easy to integrate and configure with your online commerce, it requires some programming skills to achieve it. This does not take long, but not everyone can realize it. In the case of Stripe for businesses in WordPress, the process is simplified a little thanks to the existing plugins for it.

When to choose Stripe instead of PayPal?

If you want to innovate and create a trade based on new technologies, by supporting professionals in this area, Stripe is your option to achieve your goals and improve the experience of your users.

Another point in Stripe’s favor is its simplicity to make the charges and recharges for it; Stripe has a lower commission and if your business usually receives customers within Europe, they will find it cheaper to pay with Stripe than with PayPal.

Stripe only has extra charges for international payments with credit cards outside the European Union, currency conversion, billing and payment disputes.

When is PayPal better than Stripe for your website?

If you need a quick payment solution, don’t waste time setting up Stripe, rather don’t think twice about using PayPal, as this gateway is already known worldwide and your customers will feel confident and secure to use it.

Person making a purchase with his credit card on his computer

PayPal VS Stripe, what if you use both?

When analyzing the advantages and disadvantages of both payment gateways, it is remarkable that the services of both, seen in a general way, meet the requirements of any e-commerce: simplicity, speed and security.

You don’t have to face an eternal dilemma about how to pay your users, especially if you are new to this online world.

It’s best to use both linked services, PayPal and Stripe, and let your customers decide which one suits them best.

Any online commerce that wants to emerge and provide innovative options to its audience cannot be infatuated with a single payment service, because diversity is well conceived in these times. I recommend not pigeonholing you with PayPal or Stripe, but having an open mind for both to evaluate how your customers respond to them, and decide which one is best over time.

Happy person using PayPal and Stripe

The purpose of this blog is to inform you about the features, advantages and disadvantages of two of the most important payment gateways to date.

If you want to continue reading and researching about the benefits of PayPal and Stripe I recommend you to read the following articles.

Stripe vs PayPal – Which One Is Better? (Pros and Cons)

PayPal vs. Stripe, comparison in 2021

If you want to know more about web development or how to improve your online sites, I recommend you read the following articles.

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Full-stack developer with a good understanding of business challenges. Not only am I an expert in my field, I know what business needs in a competitive digital world. I am eager to work on all kinds of projects.

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