PayPal vs. Stripe for Small Business
Today using ChargeStripe
Choosing between PayPal and Stripe depends on how your business gets paid. You might sell through a website, take deposits, send payment links or accept a card in person. Some businesses use both.
This guide compares their main features and gives current fee examples for the US and UK. Payment fees depend on your country, payment method, card type and account setup, so check the provider’s pricing page before making a decision.
PayPal vs. Stripe at a glance
| PayPal | Stripe | |
|---|---|---|
| A good fit for | Businesses that want to offer PayPal at online checkout, plus PayPal’s own in-person tools | Businesses that want configurable online payments, integrations or a Stripe-based payment workflow |
| Online payments | PayPal payments and card checkout options | Card payments, wallets, payment links and other payment methods |
| In-person payments | PayPal Point of Sale app, Tap to Pay, card reader and terminal | Stripe Terminal and compatible readers; ChargeStripe can help Stripe users take payments on a phone |
| Pricing | Varies by checkout option, country and payment type | Varies by card type, country and whether the payment is online or in person |
What’s the difference between PayPal and Stripe?
PayPal is a payment service and a digital wallet. A business can offer PayPal at checkout, accept eligible card payments and use PayPal Point of Sale for in-person transactions.
Stripe is a payment platform that businesses can use for online and in-person payments. It also offers tools for subscriptions, payment links and integrations with ecommerce and accounting software.
The setup you choose matters. For example, a customer paying with their PayPal account may be charged at a different rate from a customer paying by card through a PayPal checkout. Stripe also has separate pricing for online card payments and in-person payments.
PayPal vs. Stripe fees in the US and UK
The figures below are standard examples, not a complete list of fees. They compare different payment types, so use them to understand the pricing structure rather than assume every transaction will cost the same.
| Payment type | PayPal | Stripe |
|---|---|---|
| US online card payment | PayPal lists card payments through PayPal Checkout at 2.99% + $0.49 and through Expanded Checkout at 2.89% + $0.29. Payments made with a PayPal account are listed at 3.49% + $0.49. | 2.9% + $0.30 for a domestic online card payment |
| UK online card payment | PayPal’s standard domestic commercial transaction rate is 2.9% + the fixed fee, which is £0.30 for GBP payments. The rate can vary by PayPal product and payment type. | 1.5% + £0.20 for a standard UK card. Premium UK and international cards have different rates. |
| US in-person card payment | PayPal Point of Sale lists 2.29% + $0.09 for card-present payments. | Stripe Terminal lists 2.7% + $0.05 for a domestic card. |
| UK in-person card payment | PayPal Point of Sale lists 1.75% for card and contactless payments. | Stripe Terminal lists 1.4% + £0.10 for EEA cards and 2.9% + £0.10 for non-EEA cards. |
International payments, currency conversion, manually entered cards, refunds and optional services can change the total cost. PayPal and Stripe also update their pricing, so confirm the rate for your account and payment method before publishing prices or estimating fees.
For current rates, see PayPal’s official US business fees, UK business fees, US Point of Sale fees and UK Point of Sale fees, plus Stripe’s US pricing and UK pricing.
Taking payments in person
PayPal’s current in-person option is PayPal Point of Sale, previously known as Zettle by PayPal. Businesses can use its app with Tap to Pay or add a card reader or terminal. Hardware is optional if the business uses a compatible phone for contactless payments.
Stripe offers in-person payments through Stripe Terminal and compatible hardware. Businesses that use Stripe and want to take a payment on a phone can also use ChargeStripe. It can be useful when a customer is away from the usual checkout, such as at a hotel service counter, a food truck or a tradesperson’s job site.
ChargeStripe charges an additional 1.3% on top of Stripe’s processing fees for payments taken through the app. That fee applies when processing payments through ChargeStripe.
Which one should a small business choose?
PayPal may suit your business if:
- Your customers ask to pay with PayPal.
- You want PayPal’s online checkout and in-person tools.
- You prefer an existing PayPal workflow for receiving and managing payments.
Stripe may suit your business if:
- Your website or business tools already connect with Stripe.
- You need options such as payment links or recurring payments.
- You want to build a payment flow around Stripe’s platform and integrations.
- You need to take payments in person through Stripe Terminal or an app that connects to Stripe.
A hotel, bed and breakfast, restaurant or trades business may take payments in more than one setting. Consider how staff will accept deposits, final balances and on-site payments. Check whether the payment method works with the devices and software your team already uses.
Can a business use PayPal and Stripe together?
Yes. A business can offer PayPal and Stripe as separate payment options, depending on its website and setup. Offering both can give customers more ways to pay. It also means managing separate accounts, reports, fees and payout schedules.
What happened to PayPal Here?
PayPal Here was discontinued. PayPal now offers its Point of Sale app, Tap to Pay, card readers and terminals for in-person payments. Businesses comparing mobile payment tools should review the current PayPal Point of Sale options instead of relying on older PayPal Here pricing or hardware information.
Final thoughts
PayPal and Stripe can both help a small business accept payments online and in person. The right choice depends on how customers pay, where transactions happen and which tools fit your business.
Compare the exact fees for your region and payment type. If you accept payments at a checkout, by phone, at a hotel counter or on a job site, make sure the setup works for each situation.
