Stripe vs PayPal
Stripe is payment processing platform with powerful APIs for online payments, subscriptions, and marketplaces, while PayPal is global payment platform for online and in-person payments, invoicing, and transfers. Stripe is built for developers wanting the best payment api, whereas PayPal targets businesses wanting universal payment acceptance.
| Feature | Stripe | PayPal |
|---|---|---|
| Free tier available | ✓ | ✓ |
| Open source | — | — |
| Checkout | — | ✓ |
| Connect | ✓ | — |
| Global | — | ✓ |
| Invoicing | ✓ | ✓ |
| Payments | — | ✓ |
| Payments API | ✓ | — |
| Subscriptions | ✓ | — |
Pricing: Both tools offer free tiers, so you can test each before committing. Stripe's free plan: No monthly fees. PayPal's free plan: No monthly fees.
Feature gaps: Stripe offers Connect, Payments API and Subscriptions that PayPal lacks. PayPal brings Checkout, Global and Payments that Stripe does not have. Both share Invoicing.
Team fit: Both tools target any size teams, so the decision hinges on features and workflow fit rather than scale.
Where each tool shines: Stripe's biggest strengths are: includes payments api as a core feature, purpose-built for payment processing workflows. includes subscriptions as a core feature, purpose-built for payment processing workflows. PayPal's biggest strengths are: includes payments as a core feature, purpose-built for payment processing workflows. includes invoicing as a core feature, purpose-built for payment processing workflows.
Watch out for: With Stripe, users commonly note that free plan exists but key features are locked behind the paid upgrade. With PayPal, the main complaint is that free plan exists but key features are locked behind the paid upgrade.
choose Stripe if
- Your profile matches its sweet spot: developers wanting the best payment api
- You specifically need Connect and Payments API
- You care about includes subscriptions as a core feature, purpose-built for payment processing workflows
- The free tier works for you: no monthly fees
choose PayPal if
- Your profile matches its sweet spot: businesses wanting universal payment acceptance
- You specifically need Checkout and Global
- You care about includes invoicing as a core feature, purpose-built for payment processing workflows
- The free tier works for you: no monthly fees
frequently asked
What is the difference between Stripe and PayPal?
Stripe is payment processing platform with powerful APIs for online payments, subscriptions, and marketplaces, while PayPal is global payment platform for online and in-person payments, invoicing, and transfers. Stripe is built for developers wanting the best payment api, whereas PayPal targets businesses wanting universal payment acceptance.
Should I use Stripe or PayPal?
Stripe is built for developers wanting the best payment api. PayPal is built for businesses wanting universal payment acceptance. Pick the one that fits.
When should I choose Stripe over PayPal?
Choose Stripe if Your profile matches its sweet spot: developers wanting the best payment api; You specifically need Connect and Payments API; You care about includes subscriptions as a core feature, purpose-built for payment processing workflows; The free tier works for you: no monthly fees.
When should I choose PayPal over Stripe?
Choose PayPal if Your profile matches its sweet spot: businesses wanting universal payment acceptance; You specifically need Checkout and Global; You care about includes invoicing as a core feature, purpose-built for payment processing workflows; The free tier works for you: no monthly fees.
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