{"id":2100,"date":"2021-04-05T14:56:06","date_gmt":"2021-04-05T14:56:06","guid":{"rendered":"https:\/\/www.subbly.co\/blog\/?p=2100"},"modified":"2023-03-31T18:11:09","modified_gmt":"2023-03-31T18:11:09","slug":"stripe-vs-paypal-which-one-to-use","status":"publish","type":"post","link":"https:\/\/www.subbly.co\/blog\/stripe-vs-paypal-which-one-to-use\/","title":{"rendered":"Stripe vs PayPal: Which One to Use?"},"content":{"rendered":"\r\n<p>Stripe and Paypal are the two most common online payment solutions in the world. However, PayPal is not optimised for <a href=\"https:\/\/www.subbly.co\/recurring-payment-billing-explained\/\">recurring payments<\/a>. For a long time, Subbly chose Stripe as the only payment processor. It was not until <strong>February<\/strong><strong> 9th, 2020<\/strong> that Subbly <strong>began to support PayPal<\/strong><strong>. <\/strong><strong><br \/><\/strong><br \/>Most existing Subbly users are already accustomed to Stripe, yet since we launched our integration, more and more have become curious as to whether or not switching to PayPal might be worth considering. For new users, the choice is about starting off on the right foot as they begin their eCommerce journey.<\/p>\r\n\r\n\r\n\r\n<p>Whatever stage your subscription business is at, if you can\u2019t decide whether Stripe or PayPal is the right choice, this guide is here to help.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\" id=\"h-stripe-vs-paypal-comparison-table\"><strong>Stripe vs PayPal: Comparison Table<\/strong><\/h3>\r\n\r\n\r\n\r\n<table class=\"tg\" style=\"border-collapse: collapse; border-spacing: 0;\">\r\n<thead>\r\n<tr>\r\n<th style=\"font-family: Arial, sans-serif; font-size: 11px; font-weight: normal; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\"><span style=\"font-weight: bold;\">Service<\/span><\/th>\r\n<th style=\"font-family: Arial, sans-serif; font-size: 14px; font-weight: normal; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\"><span style=\"font-weight: bold;\">Stripe<\/span><\/th>\r\n<th style=\"font-family: Arial, sans-serif; font-size: 14px; font-weight: normal; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\"><span style=\"font-weight: bold;\">PayPal<\/span><\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">Fee per domestic transaction<\/td>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">2.9% + 30\u00a2\/20p<\/td>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">2.9% + 30\u00a2\/20p<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">Fee per international transaction<\/td>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">????3.9% + 30\u00a2<\/td>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">4.4% + 30\u00a2<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">Chargeback fee<\/td>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">????$15<\/td>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">$20<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">Micropayments (&lt;$10)<\/td>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">2.9% + 30\u00a2<\/td>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">????5% + 5\u00a2<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">Subbly service fee<\/td>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">????1%<\/td>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">1.25%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">Data portability<\/td>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">????Yes<\/td>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">No<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">Access to funds<\/td>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">2 days<\/td>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">????Instant<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">Account freeze risk<\/td>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">????No<\/td>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">Yes<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">User experience &amp; conversion<\/td>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">????Seamless experience<\/td>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">Separate page<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">Customer support<\/td>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">???? Email, help center, 24\/7 phone &amp; chat<\/td>\r\n<td style=\"font-family: Arial, sans-serif; font-size: 14px; overflow: hidden; padding: 10px 5px; text-align: left; vertical-align: top; word-break: normal; border: 1px solid inherit;\">Email, help center, phone &amp; chat<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><strong>Integration <\/strong><strong>E<\/strong><strong>ase<\/strong><\/h3>\r\n\r\n\r\n\r\n<p>Subbly handles the integration for both platforms, so you don\u2019t need to worry about technical documentation, plugins or APIs. You can set up both of them in the <a href=\"https:\/\/www.subbly.co\/admin\/shop\/billing_settings\" target=\"_blank\" rel=\"noreferrer noopener\">Settings tab of your Subbly admin page.<\/a> All you need is to have an account with either payment service and log into it directly.<\/p>\r\n\r\n\r\n\r\n<p>???? <strong>Winner:<\/strong> Subbly<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><strong>Tariffs<\/strong><\/h3>\r\n\r\n\r\n\r\n<p>There are no set up or service fees. Both services charge you for transactions.<\/p>\r\n\r\n\r\n\r\n<p>???? <strong>Winner:<\/strong> Draw<\/p>\r\n\r\n\r\n\r\n<h4 class=\"wp-block-heading\"><strong>Transaction <\/strong><strong>F<\/strong><strong>ee<\/strong><\/h4>\r\n\r\n\r\n\r\n<p>Transaction fees are the same for most countries, e.g. US, Canada or the UK, where fees are 2.9% + 30\u00a2 \/20p. However, in countries like Ireland, New Zealand or Spain, Stripe and PayPal collect 2.9% and 3.4% respectively.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>See detailed pricing for your country on <a href=\"https:\/\/stripe.com\/pricing\" target=\"_blank\" rel=\"noreferrer noopener\">Stripe <\/a>&amp; <a href=\"https:\/\/www.paypal.com\/us\/webapps\/mpp\/merchant-fees\" target=\"_blank\" rel=\"noreferrer noopener\">PayPal\u2019s<\/a> own pricing pages.<\/p>\r\n\r\n\r\n\r\n<p>???? <strong>Winner:<\/strong> Stripe<\/p>\r\n\r\n\r\n\r\n<h4 class=\"wp-block-heading\"><br \/>International Transactions<\/h4>\r\n\r\n\r\n\r\n<p>If your customer is from another country, or their card is issued by another country\u2019s bank, you will be charged extra. In the United States PayPal\u2019s fee is 1.5%, which makes the total per transaction 4.4% + 30\u00a2. Stripe is more friendly regarding international transactions and takes 1%, coming to a total of 3.9% + 30\u00a2.<\/p>\r\n\r\n\r\n\r\n<p>???? <strong>Winner:<\/strong> Stripe<\/p>\r\n\r\n\r\n\r\n<h4 class=\"wp-block-heading\">Refunds<\/h4>\r\n\r\n\r\n\r\n<p>Neither Stripe nor PayPal refunds the transaction fee when you are refunding your customers.<\/p>\r\n\r\n\r\n\r\n<p>???? <strong>Winner: <\/strong>Draw<\/p>\r\n\r\n\r\n\r\n<h4 class=\"wp-block-heading\"><strong><br \/><\/strong>Chargebacks<\/h4>\r\n\r\n\r\n\r\n<p>These are when a customer can dispute a transaction and cancel the payment with their bank. Chargebacks are a typical anti-fraud system present in most banks throughout the world. When a chargeback occurs, you will be charged with additional fees by the payment platform \u2014 $15 on Stripe and $20 on PayPal. Occasionally, chargebacks are falsely initiated by unscrupulous customers. To combat this, Stripe launched their amazing <a href=\"https:\/\/stripe.com\/radar\" target=\"_blank\" rel=\"noreferrer noopener\">Radar feature<\/a>, which helps to avoid 98% of scams for just 5\u00a2 per transaction.<\/p>\r\n\r\n\r\n\r\n<p>???? <strong>Winner:<\/strong> Stripe<\/p>\r\n\r\n\r\n\r\n<h4 class=\"wp-block-heading\">Micropayments<\/h4>\r\n\r\n\r\n\r\n<p>If the transaction amount is less than $10, PayPal\u2019s fee is 5% + 5\u00a2, though Stripe stays the same at 2.9% + 30\u00a2. While it might seem that PayPal\u2019s tariff is higher, if we do the math, we actually see that for a $10 transaction, you will be charged 55\u00a2 by PayPal and 59\u00a2 by Stripe. The smaller the transaction, the bigger the difference.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>???? <strong>Winner:<\/strong> PayPal<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><strong>Subbly <\/strong><strong>S<\/strong><strong>ervice <\/strong><strong>F<\/strong><strong>ee<\/strong><\/h3>\r\n\r\n\r\n\r\n<p>As Stripe is designed for recurring payments, it is more straightforward to support this integration compared to PayPal. Subbly\u2019s transaction fee is 1% for Stripe and 1.25% for PayPal.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>???? <strong>Winner:<\/strong> Stripe<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><strong><br \/><\/strong><strong>Access <\/strong><strong>T<\/strong><strong>o <\/strong><strong>F<\/strong><strong>unds<\/strong><\/h3>\r\n\r\n\r\n\r\n<p>Stripe offers two options to withdraw money to your bank account: you can either wait 2 days and pay nothing, or receive your money immediately for a 1% fee. The benefit of PayPal is that money from your sales arrives directly in your PayPal account and you can spend it as you wish. However, if you want to withdraw money to your bank account, it typically takes 2-4 days.<\/p>\r\n\r\n\r\n\r\n<p>???? <strong>Winner:<\/strong> PayPal\u00a0<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><strong>Security<\/strong><\/h3>\r\n\r\n\r\n\r\n<p>Both Stripe and PayPal provide top-notch security and are fully PCI compliant, meaning your card data is stored securely.<\/p>\r\n\r\n\r\n\r\n<p>???? <strong>Winner:<\/strong> Draw<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><strong>Data Portability<\/strong><\/h3>\r\n\r\n\r\n\r\n<p>Another important point is data portability. In the event that you decide to change your payment provider, you will be able to export all your customer data from Stripe. PayPal doesn\u2019t provide such an opportunity.<\/p>\r\n\r\n\r\n\r\n<p>???? <strong>Winner:<\/strong> Stripe<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><strong>Account Freeze Risk<\/strong><\/h3>\r\n\r\n\r\n\r\n<p>There are plenty of stories on the internet about how PayPal freezes accounts and transactions. Sometimes this occurs due to false positives triggering their anti-fraud protection, sometimes because of fluctuating amounts of income, but based on most negative feedback, this happens randomly. With bans lasting 180 days, it can be a real threat to a thriving business.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>However, over 7 years of integration with Stripe, not a single Subbly user has had a similar problem.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>???? <strong>Winner:<\/strong> Stripe<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><strong>User experience and conversion<\/strong><\/h3>\r\n\r\n\r\n\r\n<p>A customer\u2019s experience during the checkout process significantly affects your conversion rate, and in this context, there is one crucial difference between Stripe and PayPal. Stripe transactions are processed directly through Subbly&#8217;s secure checkout page, which features a seamlessly embedded form for payment card details. On the other hand, PayPal requires opening a separate webpage and login, which is clunkier and more time-consuming for a potential customer, with a higher probability of checkout dropoff.<\/p>\r\n\r\n\r\n\r\n<p>We have found that adding PayPal doesn&#8217;t actually increase conversions, on top of having a more difficult API framework, the ability to freeze funds, and a bias towards the customer, not the vendor. Some PayPal users have claimed otherwise, however upon further inspection, it was found that these extra conversions consisted of customers who were ready to buy anyway.<\/p>\r\n\r\n\r\n\r\n<p>???? <strong>Winner:<\/strong> Stripe<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><strong>Summary:<\/strong><\/h3>\r\n\r\n\r\n\r\n<p>Both Stripe and PayPal are the top online payment solutions on the market. They are secure and provide an easy way to sell online without worrying about transaction security and reliability. However, based on the overall results of our comparison, <strong>Stripe is the winner<\/strong>.\u00a0\u00a0<\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>Whatever stage your subscription business is at, if you can\u2019t decide whether Stripe or PayPal is the right choice, this guide is here to help.<\/p>\n","protected":false},"author":18,"featured_media":2117,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[571],"tags":[583],"article_type":[567],"class_list":["post-2100","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-operations","tag-integrated-business-model","article_type-article"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.2 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Stripe vs PayPal: Which One to Use? 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