Choosing between Stripe and PayPal can be challenging when launching a WordPress online store. Deciphering transaction fee tables and various payment methods can feel overwhelming.
Hearing stories of customers abandoning carts due to checkout process issues can make it feel like a high-stakes decision, as every lost sale impacts business growth.
The good news is that deciding doesn’t have to be stressful!
We utilize both Stripe and PayPal across our stores, ensuring customer satisfaction. This hands-on experience has shown us the strengths of each payment processor.
Consider us your guides in the world of payment processing!
We’ve thoroughly researched fees, tested functionalities, and analyzed customer preferences to determine platform advantages.
And in this guide, we’ll help you pick the perfect payment solution for your WordPress store.
Stripe vs. PayPal Overview: Which Is the Superior Choice for Your Website?
For a quick decision, consult our comparison table for Stripe and PayPal:
| 🥇 Stripe | 🥈 PayPal | |
| Best For | Website owners requiring a customizable, scalable, and developer-centric option | New users seeking a globally recognized and user-friendly solution |
| Ease of Use | User-friendly dashboard complemented by numerous guides and resources | Simple dashboard interface suitable for beginners |
| Transaction Fees | 2.9% + $0.30, with the potential for added charges | Starting at 2.99% + a fixed fee |
| Worldwide Availability | Operates in more than 45 nations and handles 135 different currencies. | Functions in 200 countries and accommodates 25 currencies. |
| Supported Payment Types | Handles credit cards, debit cards, e-wallets, and global payment solutions. | Processes payments from PayPal accounts, credit/debit cards, and linked bank details. |
| WordPress Compatibility | WordPress integration is straightforward. | WordPress integration is straightforward. |
| Security | Employs advanced security measures, featuring an AI-driven system to detect fraudulent activities. | Robust security protocols are in place, including safeguards for both buyers and sellers. |
Understanding Stripe and PayPal
Stripe is a highly adaptable payment gateway used by over 1.5 million websites.
It’s ideal for providing customers with numerous payment choices. Stripe supports credit cards, digital wallets, and subscriptions, making it suitable for subscription-based services or online stores.
That’s why we use it to accept payments on several of our eCommerce sites built with WordPress.
We appreciate the platform’s facilitation of global transactions. However, its extensive customization possibilities might be daunting for beginners.
Conversely, PayPal is a widely recognized brand that customers often trust.
In fact, it has long been the leader in the online payment industry, with a significant market share.
We also offer PayPal as a payment option on our eCommerce websites for this reason.
The payment gateway streamlines accepting payments from credit and debit cards, as well as PayPal.
In our assessment, PayPal’s primary advantage is its straightforward setup and user-friendly interface. It’s ideal for those starting to sell online who prefer minimal configuration.
However, some businesses may find the transaction costs higher than those of alternative services.
Ultimately, both Stripe and PayPal are robust solutions that integrate smoothly with WordPress; the optimal choice hinges on your specific business requirements.
To aid in your decision-making, we provide a comprehensive comparison of Stripe and PayPal, evaluating them against these criteria:
- User Experience
- Transaction Fees
- Fees for Invoicing and Recurring Billing
- International Availability and Currency Support
- Supported Payment Methods
- WordPress Integration
- Security
- Stripe vs. PayPal: Which Is Better for Your WordPress Site?
- Common Questions About Stripe and PayPal
Use the provided links to navigate to specific sections of this guide.
📣 Why Trust CanadaCreate?
CanadaCreate’s team comprises professionals with expertise in WordPress, eCommerce, SEO, digital marketing, web hosting, and related fields.
Regarding payment solutions, we’ve utilized both Stripe and PayPal extensively to process customer payments securely on a global scale.
We’ve rigorously evaluated both platforms regarding ease of use, global transaction capabilities, payment method diversity, and fee structures.
Our direct experience using these payment processors has given us insight into how they streamline the checkout experience. Consult our editorial process for further details.
Let’s begin!
Ease of Use
A user-friendly payment processor streamlines business operations; an intuitive platform enables payment setup/management without specialized knowledge, letting you prioritize business expansion.
Here’s a comparison of Stripe and PayPal regarding ease of use.
Ease of Use – PayPal
PayPal’s ease of setup and use makes it a favorite for beginners and small business owners.
You can create an account, connect your financial accounts, and immediately start receiving payments online.
Moreover, because most consumers already know PayPal, they’re more likely to use it, potentially increasing sales.
In our tests, PayPal’s dashboard proved exceptionally user-friendly, with a clean, simple, navigable interface suitable even for non-technical users.
You can manage all payments, view transactions, send invoices, process refunds, and resolve disputes from the central dashboard.
The dashboard also offers useful insights, such as breakdowns of recent sales and payment activity, allowing simple business performance monitoring without additional tools.
In summary, PayPal is an excellent starting point because accepting payments through it does not demand technical expertise.
Ease of Use – Stripe
Despite its reputation for sophisticated features and extensive customization options, Stripe is often quite user-friendly.
Simply sign up for an account, then input your company and financial institution details to begin processing payments.
Stripe provides comprehensive documentation, including numerous tutorials and guides, to assist you in the setup process.
Stripe’s dashboard is designed to provide you with total command over your payments, maintaining simplicity and ease of use.
Upon logging in, you’ll encounter a streamlined, contemporary interface displaying a summary of recent transactions, earnings, and payment patterns.
The dashboard features an intuitive navigation system, enabling quick access to necessary functions like processing refunds or administering client subscriptions.
It also incorporates detailed reporting capabilities, allowing you to analyze sales performance, monitor customer payment activity, and track transfers to your bank.
For businesses using subscriptions, the Stripe dashboard enables you to oversee plans, define pricing levels, and analyze metrics, for example, churn rate and revenue.
Directly from the dashboard, you’re able to configure automated email receipts, oversee saved payment methods, and generate customized invoices.
We particularly appreciate the integrated tools for identifying and preventing fraudulent transactions, providing enhanced security for your business.
Whether you are just starting to handle online payments or are an experienced business owner, Stripe provides both fundamental resources and advanced tools accessible to everyone.
Winner – Tie
In terms of user-friendliness, both PayPal and Stripe offer distinct advantages, leading us to consider this category a draw.
PayPal boasts an intuitive dashboard layout, making it exceptionally accessible for new users. Navigating essential functions such as reviewing transactions, generating invoices, and processing refunds is simple and not intimidating.
Conversely, Stripe is designed for users interested in utilizing its extensive features. Although its dashboard might appear more intricate due to the availability of advanced tools, Stripe compensates with comprehensive tutorials, instructions, and frequently asked questions.
Transaction Fees
Understanding transaction fees is crucial when selecting a payment processor. The following section provides clarity on the fee structures of both Stripe and PayPal.
Transaction Fees – PayPal
When comparing transaction fees, PayPal appears to be somewhat more expensive.
Furthermore, PayPal’s fees fluctuate based on various elements, rendering the actual cost of usage less predictable.
For starters, the standard domestic transaction fee in the United States starts at 2.99% + a fixed fee per transaction.
However, this figure can rise when handling international payments or currency exchanges.
For sales to international clients, PayPal levies an additional charge of approximately 1.5% in addition to the standard transaction rate.
Furthermore, if currency conversion is necessary, PayPal imposes a substantial conversion fee, potentially varying from 2.5% to 4%.
These additional fees can accumulate rapidly, particularly for businesses that serve international clientele.
To understand your potential costs, examine this detailed overview of PayPal’s transaction fees:
- Standard transaction fee within the United States:2.99% plus a fixed charge per transaction (applicable to both businesses and individuals)
- International payments:An extra 1.5% fee is applied
- Currency conversions:Expect an additional fee of 2.5% to 4%
Now that PayPal’s transaction fees are clear, let’s compare them to Stripe’s fees.
Transaction Fees – Stripe
Stripe’s online card payment rate is slightly more favorable at 2.9% + $0.30 per transaction. This rate applies to both business and personal transactions.
Additionally, many businesses see Stripe as more economical due to its reduced fees for currency conversions and wider payment option support.
Stripe’s international transaction, currency conversion, and refund fees are lower than PayPal’s substantial charges.
Stripe also has no setup or monthly fees. Keep in mind, however, that Stripe doesn’t refund the original processing fee when you issue a refund.
This provides a considerable advantage for companies aiming for global expansion. 🌎
Furthermore, it supports ACH Direct Debit for a mere 0.8%, with a $5 ceiling, ideal for substantial transactions and premium products.
Below is a more precise breakdown of Stripe’s fee structure:
- Online payments with cards: 2.9% + $0.30 per transaction
- Cards issued outside the U.S.:A supplementary 1.5% fee
- Converting currencies:A further 1% fee
- ACH Direct Debit:A fee of 0.8% is applied, with a maximum charge of $5.
Just keep in mind that for international sales, the international card fee and currency conversion fee are added on top of the standard rate. This means your total fee could be higher for those transactions.
Winner – Stripe
Stripe wins regarding transaction fees, offering a straightforward 2.9% + $0.30 per transaction. Its lower charges for currency conversions and lack of refund fees make it more affordable than PayPal.
💥 Bonus Tip: Discover methods to further reduce Stripe transaction fees within WordPress!
Invoice & Billing Fees
The approaches payment processors take with invoicing, recurring payments, and related costs influence your total expenses. Our evaluation of Stripe versus PayPal follows:
Invoice & Billing Fees – PayPal
PayPal simplifies invoice sending, but be mindful of associated fees. Invoice creation and sending are free; however, upon payment, PayPal considers it a commercial transaction.
Fees range from 2.99% to 3.49% (plus a fixed fee), varying based on the payment method utilized.
Although sending invoices incurs no cost, you will pay a higher merchant fee once payment is received.
If you are dealing with international clients, additional fees for cross-border transactions and currency conversions can make invoicing even more expensive.
However, PayPal’s invoicing tool is remarkably user-friendly.
You can create professional invoices, set due dates, and even allow partial payments, all from the dashboard.
Still, for businesses that send a high volume of invoices, the transaction fees can add up quickly, making PayPal a pricey option for billing.
So, to summarize it, here are PayPal’s invoicing fees:
- Creating invoices: Free
- Sending invoices: Up to 3.49% + $0.49 per transaction
- Additional fees for cross-border transactions and currency conversions
Invoice & Billing Fees – Stripe
Stripe Invoicing provides flexible options with two plans: Starter and Plus.
The Starter plan includes 25 free invoices each month, with a 0.4% fee for every paid invoice after that.
On the other hand, the Plus plan comes with more advanced features and charges 0.5% per paid invoice. This makes it a great choice if you want more control over your billing process.
For businesses managing recurring charges, Stripe Billing is a fantastic feature. Its standard plan offers a 0.5% fee per recurring charge, with a Scale plan available at 0.8%.
The Scale option integrates with tools like NetSuite and provides customers with upfront quotes before subscriptions begin. For high-volume businesses, Stripe also offers custom pricing, which can help reduce costs further.
Whether you need simple invoicing or advanced subscription management, Stripe’s pricing structure and custom pricing make it a great option for efficient billing.
In short, Stripe charges:
- Starter plan: 25 free invoices/month, 0.4% fee per paid invoice afterward
- Plus plan: 0.5% fee per paid invoice
- Recurring charges: 0.5% fee (Scale plan: 0.8%)
- For businesses processing significant transaction volumes, custom pricing options are available.
Stripe: The Superior Choice
Based on our detailed comparison, Stripe appears to be the leading choice for managing billing and invoicing costs.
The Starter plan from Stripe includes 25 complimentary invoices monthly, with a modest 0.4% fee for each subsequent paid invoice. This is more economical than PayPal, which charges a percentage plus a fixed fee for every transaction.
Global Availability and Currency Support
A payment processor’s breadth of international reach and its capacity to handle numerous currencies can significantly impact your online store’s performance. Let’s examine the global availability of PayPal and Stripe.
PayPal’s Global Availability and Currency Support
PayPal boasts substantial worldwide coverage, which makes it a common selection among businesses seeking to connect with a global customer base.
Operating in over 200 countries and accommodating 25 currencies, PayPal facilitates effortless international payment processing.
We believe PayPal’s established brand recognition is a significant benefit. The widespread trust and usage of PayPal can enhance customer confidence during transactions.
While PayPal has broad country support, its currency selections are not as extensive as those of some competitors. Businesses in regions using less common currencies might encounter limitations or incur extra charges from currency conversions.
Stripe’s Global Availability and Currency Support
For businesses targeting a global market, Stripe presents another compelling option. It currently operates in over 45 countries and accepts payments in over 135 currencies.
This wide currency support makes it easier for businesses to accept payments from customers around the world in their local currencies, providing a smoother checkout experience.
This is an important distinction: while your business must be located in one of Stripe’s supported countries, your customers can be located almost anywhere.
What’s great about Stripe is how it automatically handles currency conversion. If you sell globally, this can save you time and effort while keeping things simple for your customers.
Stripe also allows you to display prices in local currencies, which can build trust and make customers more likely to complete their purchases.
For businesses in supported countries, Stripe’s extensive currency options and seamless international payment tools make it a fantastic choice for selling to a global audience.
Winner – Tie
In this category, we’ve decided it’s a tie between PayPal and Stripe.
This is because PayPal takes the lead in availability, operating in over 200 countries, but it only supports 25 currencies, limiting flexibility for businesses.
On the other hand, Stripe supports over 135 currencies, giving businesses the ability to accept payments in nearly any local currency. However, it is only available in over 45 countries, so its reach is more limited compared to
Ultimately, the best option depends on your business needs. If you are prioritizing widespread availability, PayPal is the better choice. But if handling diverse currencies is more important to you, then Stripe has the edge.
Accepted Payment Options
Providing diverse payment methods is key to meeting customer needs and improving conversion rates. Here’s a comparison of Stripe and PayPal in this area:
Payment Choices – PayPal
PayPal provides a dependable set of payment methods, making it a reliable choice for many businesses.
Clients can use PayPal balances, credit cards, debit cards, and connected bank accounts for payments. It also includes well-known services such as PayPal Credit, Venmo (in the U.S.), and a ‘Pay in 4’ buy now, pay later option, offering greater customer flexibility.
However, PayPal’s variety doesn’t quite match Stripe’s. It lacks support for certain alternative payment options, like Google Pay or Apple Pay, in some areas.
This can be a disadvantage if your business operates in locations where those payment options are common.
Payment Choices – Stripe
Stripe stands out when it comes to offering a wide variety of payment options. In addition to accepting all major credit and debit cards, Stripe supports digital wallets like Apple Pay, Google Pay, and Microsoft Pay.
It also integrates with popular international payment methods, including Alipay, Cash App, Bancontact, and Klarna, making it ideal for businesses that sell globally.
One of Stripe’s most impressive features is its ability to handle bank-based payment options like ACH transfers, SEPA Direct Debit, and even buy now, pay later (BNPL) services.
This degree of adaptability enables your business to serve a wide customer base, whether they favor standard payment methods or well-known regional choices.
Winner – Stripe
Stripe is the obvious winner for payment options.
While PayPal offers the basics like credit cards, PayPal Credit, and Venmo, Stripe goes above and beyond with support for Apple Pay, Google Pay, ACH transfers, BNPL, and even international options like Alipay and Klarna.
Integration With WordPress
If you are deciding between Stripe and PayPal for your WordPress site, then seamless integration between your payment processor and website is a must.
In this next section, we’ll talk about how PayPal and Stripe compare when it comes to integrating with WordPress.
Integration With WordPress – PayPal
PayPal integrates easily with WordPress, thanks to its compatibility with popular plugins like WPForms, Easy Digital Downloads, and WooCommerce.
Many of these plugins come with built-in PayPal support, allowing you to set up payment options quickly without any extra hassle.
For example, WPForms lets you add PayPal as a payment option for donation or order forms, while WooCommerce allows you to accept PayPal payments during checkout.
We’ve used PayPal on our WordPress sites to accept payments, and the integration process has always been smooth.
Its ease of use makes it a convenient choice for WordPress users who want a simple, reliable payment solution. For details, see our tutorial on how to add PayPal payment forms in WordPress.
Integration With WordPress – Stripe
Stripe also integrates seamlessly with WordPress, which is a huge plus.
It comes with built-in integration for WPForms, Easy Digital Downloads (EDD), and WooCommerce, so you can accept payments effortlessly.
We use EDD on several of our WordPress sites and have integrated it with Stripe. The process was quick, hassle-free, and works perfectly for selling digital products.
We also recommend checking out WP Simple Pay if you want to accept Stripe payments using WordPress payment forms.
This powerful Stripe plugin helps you quickly create payment forms and gives you access to a variety of payment options, including Klarna, Alipay, and SEPA Direct Debit.
🔎 Related Post: For more details, see our detailed WP Simple Pay review.
This makes it an excellent choice for businesses that want to offer more payment methods without extra plugins or coding.
Whether you are running a small online store or a subscription service, Stripe’s compatibility with WordPress plugins ensures easy integration and a smooth payment experience.
For details, see our guide on how to accept Stripe payments in WordPress.
Winner – Tie
PayPal and Stripe offer seamless integration with WordPress and its plugins.
For example, popular WordPress eCommerce solutions like WooCommerce, WPForms, and Easy Digital Downloads all support PayPal and Stripe, allowing you to add these payment processors to your WordPress site with minimal setup.
Security
When it comes to handling payments online, security is a top priority. You’ll need to protect your customers’ sensitive information throughout the transaction process.
Now, let’s explore PayPal vs. Stripe in terms of security features.
Security – PayPal
PayPal is known for its strong security features, which make it a trusted payment processor for many businesses. It uses advanced encryption technologies, including SSL, to protect sensitive customer data during transactions.
Additionally, it offers fraud protection tools, such as 24/7 monitoring, to detect and prevent unauthorized transactions.
PayPal’s Seller Protection is also pretty impressive. It helps cover eligible transactions in case of disputes or chargebacks. This can give you peace of mind, especially when dealing with international customers or high-value transactions.
PayPal also supports two-factor authentication (2FA) for added account security.
Overall, PayPal’s security measures are reliable, making it a solid choice for businesses looking to protect both themselves and their customers.
Security – Stripe
On the other hand, Stripe also offers top-notch security features, ensuring both merchants and customers are well protected.
It uses advanced encryption protocols and complies with the highest security standards, including PCI-DSS Level 1. This means that sensitive customer information, like credit card details, is securely handled at all times.
We also really like Stripe’s built-in machine learning tools. These smart programs learn from millions of transactions to help them spot and stop fake payments in real time.
It also offers advanced features like tokenization. We know this sounds fancy (and it is).
But it also just means it replaces sensitive card details with secure ‘tokens’, so customer data is never saved on your servers.
Additionally, it comes with two-factor authentication (2FA) and regular security updates to keep your account safe from potential threats.
All in all, Stripe provides a secure environment that helps protect both businesses and customers from fraud and data breaches.
Winner – Tie
Both Stripe and PayPal are highly secure payment options, giving businesses and their customers peace of mind. They follow strict industry standards like PCI-DSS compliance to protect sensitive payment information.
Each platform has unique features. PayPal offers built-in buyer and seller protections, which are great for resolving disputes. Meanwhile, Stripe excels with its AI-powered fraud detection system, Stripe Radar, which stops suspicious activity.
No matter which platform you choose, both Stripe and PayPal prioritize security at every step, making them trusted solutions for businesses of all sizes.
Stripe vs. PayPal: Which Is Better for Your WordPress Site?
In our opinion, Stripe is the better payment option for your WordPress site. It offers lower transaction fees, supports a wider variety of payment options, and integrates seamlessly with plugins like WP Simple Pay to add payment methods such as Klarna and SEPA.
Plus, Stripe’s powerful security features and detailed analytics make it a favorite for businesses looking for scalability and customization.
That said, PayPal is still a solid option. It is a great choice if your audience prefers using PayPal accounts for payments, especially since it’s widely recognized and trusted globally.
It’s also an ideal fit for businesses that rely on PayPal’s built-in invoicing tools or frequently handle dispute resolution.
Ultimately, Stripe is ideal for businesses looking for flexibility, lower fees, and advanced features, while PayPal shines for its simplicity and global familiarity.
Plus, you don’t have to choose just one or the other. Many online stores offer both Stripe and PayPal payments, which is worth considering. Offering more payment methods can help you appeal to more customers and increase your sales.
💡 Expert Tip: Running a global online store? A fast, optimized site is key to keeping customers happy and boosting sales. Our Site Speed Optimization Services can help improve your store’s performance for shoppers around the world. To learn more, see our CanadaCreate Pro Services page.
Frequently Asked Questions About Stripe vs. PayPal
Here are some questions that are frequently asked by our readers about Stripe and PayPal.
Can I use both Stripe and PayPal on my WordPress site?
Yes, many businesses use both Stripe and PayPal on their WordPress sites to provide customers with more payment options.
Both payment processors integrate seamlessly with popular eCommerce plugins, ensuring secure and convenient transactions.
Offering multiple payment methods can also help reduce cart abandonment rates. If customers can’t pay using their preferred method, they may leave without completing their purchase.
By providing both Stripe and PayPal, you eliminate that friction and improve conversion rates.
That is why we use both Stripe and PayPal across several of our partner brands, including All in One SEO and MonsterInsights.
Between Stripe and PayPal, which one supports more payment options?
Stripe supports a wider range of payment options, including credit cards, ACH payments, Apple Pay, Google Pay, and even digital wallets like Alipay.
PayPal primarily supports payments through PayPal accounts and credit cards, but Stripe offers more flexibility, especially for global transactions.
Is PayPal better for international payments?
While PayPal is available in over 200 countries and supports 25+ currencies, Stripe operates in 45+ countries and supports over 135 currencies.
Stripe may be the better choice for businesses with a large international customer base because of its competitive transaction fees and global support for different currencies.
Is Stripe or PayPal safer for handling payments?
Both payment processors are very secure, offering top-notch protection against fraud.
PayPal has powerful buyer and seller protections, while Stripe uses AI-powered fraud detection and tokenization to ensure secure transactions.
Either option provides strong security for your WordPress site, so you don’t need to worry about customer data breaches.
We hope this article helped you decide whether Stripe or PayPal is the better choice for your WordPress site. You may also want to see our beginner’s guide on how to accept deposit payments in WordPress and our list of important online payment statistics, data, and trends.
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