PayPal vs Stripe
PayPal and Stripe are both payments & billing tools. PayPal is aimed at small businesses and freelancers, while Stripe is aimed at developers and small businesses. Only PayPal has a free plan.
| Pricing | Free | Paid |
| Starting price | Not published | Not published |
| Free plan | Yes | No |
| Free trial | — | — |
| Built for | Small businesses, Freelancers | Developers, Small businesses, Enterprise |
| Platforms | web, ios, android | web |
| Country | US · 1998 | US · 2010 |
| Rating | — | — |
Choose PayPal if
Merchants wanting trusted checkout options.
- Trusted brand increases conversion
- Global reach
- Easy setup
Look elsewhere if: Sole processor for high-volume SaaS.
Choose Stripe if
Developers and companies in supported countries who want full control over payments and billing.
- Best-in-class API and documentation
- Covers payments, billing, tax, fraud and marketplaces
- Reliable at scale with strong uptime
Look elsewhere if: Founders in unsupported countries or small sellers who prefer a merchant of record to avoid tax administration.
PayPal vs Stripe pricing
PayPal
- Business account$0Free to open; fees per transaction
- Checkout3.49% + fixed fee/per transactionUS domestic; cards 2.99% + fixed fee; +1.50% international
Stripe
- Payments (standard)2.9% + 30¢/per card transactionUS domestic cards; +1.5% international, +1% currency conversion
- Billing0.7%/of billing volumePay-as-you-go; excludes one-off invoices
- Tax0.5%/per transactionTax Basic no-code; $0.50/txn via API; Tax Complete from $90/mo
- Custom pricingCustomLarge payment volume or unique business models
PayPal · Key features
- PayPal and Venmo checkout
- Card processing
- Pay Later options
- Invoices and payment links
- Buyer and seller protection
- Multi-currency
Cons
- High fees
- Account holds and disputes
- Developer experience behind Stripe
Stripe · Key features
- Checkout, Payment Links and Elements for custom forms
- Billing: subscriptions, usage-based pricing, invoicing, dunning
- Connect for marketplaces and platforms with payouts
- Radar fraud prevention and 3DS
- Tax calculation and Terminal for in-person
- Webhooks, test mode, Sigma analytics and extensive SDKs
Cons
- Not available to sellers in all countries
- You own tax compliance unless you add Stripe Tax and filings
- Fees add up: Billing, Tax, Radar are each priced
PayPal vs Stripe: FAQ
Do PayPal and Stripe have a free plan?
PayPal has a free plan. Stripe has no free plan.