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Payment processing software · head to head

Stripe vs PayPal Business

Sebastiaan Smits Editor Sebastiaan Smits · Published October 19, 2026 · Updated October 19, 2026

Stripe is the better base for a business with developers, subscriptions or a marketplace, and its published card rate is far lower than PayPal's. PayPal Business is the better base for a small shop that wants shoppers to recognize the button at checkout and does not mind paying more per sale for it. Stripe wins four of the five rounds below, PayPal takes one.

Side by side

StripePayPal Business
What it isDeveloper-first payments, instant self-serve signupThe most recognized checkout button for buyers
Best forDeveloper-led SaaS, marketplaces and online storesSMBs prioritizing buyer trust at checkout
HeadquartersUnited StatesUnited States
Pricing modelUsage-basedUsage-based
Pricing1.5% + EUR0.25 for standard EEA cards, higher for UK and international cards, per Stripe's published Netherlands rate card; no monthly fee for core payments; add-ons such as Billing, Tax, Sigma and the Managed Payments merchant-of-record service are charged separately.3.49% + $0.49 standard PayPal Checkout rate in the US, per PayPal's published fee page; no monthly fee to start; optional Invoicing subscription at $14.99/month.
Free optionNoneNone
List price
as listed on October 19, 2026		1.5% + €0.25 for standard EEA cards and 2.5% + €0.25 for UK cards per successful charge, no setup or monthly fee (Stripe Netherlands pricing page)PayPal Checkout 3.49% + a fixed fee per transaction (0.39 EUR when received in euros), card payments 2.99% + fixed fee, plus 1.50% on international sales (PayPal US merchant fee page, last updated October 1, 2026)
Place in our payment processing software ranking#4 of 15#6 of 15
Websitestripe.compaypal.com

Both are reviewed in full in Best Payment Processing / Payment Gateway Software in 2026. Position in that ranking can be paid for; the wording of a review or of this comparison cannot. Placement disclosure.

Which one to choose

Choose Stripe if

someone will write or configure the payment flow, you sell subscriptions or run a platform, and you want a low published card rate with the fraud screening bundled in.

Stripe, #4 in the ranking · Visit Stripe →

Choose PayPal Business if

you sell to consumers who look for the PayPal button, you want a hosted checkout and a no-code payment link running today, and a higher fee per sale is an acceptable price for that familiarity.

PayPal Business, #6 in the ranking · Visit PayPal Business →

Where they differ

What a card payment costs

Stripe's Netherlands price list charges 1.5% plus EUR0.25 for standard cards from the European Economic Area and 2.5% plus EUR0.25 for UK cards, with no setup or monthly fee. PayPal's US fee table sets PayPal Checkout at 3.49% plus a fixed fee, card payments at 2.99% plus a fixed fee, Pay Later at 4.99%, and adds 1.50% for international sales. The lists cover different countries, but the gap in structure is large and favors Stripe.

Edge: Stripe

Building the checkout

Stripe offers Checkout as a prebuilt page, Elements as flexible interface components, and Payment Links for sales without code, all on one integration. PayPal also has choices: a hosted checkout, an Expanded Checkout you embed and style, and links or QR codes for sellers without a developer. Its developer site lists a REST API, a JavaScript SDK and a React SDK. Stripe's docs go further for billing, platforms and payouts, so teams that code pick it.

Edge: Stripe

Recognition at the till

PayPal's own checkout page says 74% of PayPal users prefer to pay with PayPal and 67% are more likely to buy from an unknown merchant when it is offered. Those are the vendor's figures and come from its footnoted surveys, so treat them as a pitch, but the point holds: the button is familiar to consumers. Stripe's strength sits behind the scenes, and its Link feature speeds up saved-card checkout rather than offering a brand shoppers already hold.

Edge: PayPal Business

When a customer disputes the charge

Stripe's documentation says it debits the disputed amount plus a dispute fee, then walks you through submitting evidence in the Dashboard, usually within 7 to 21 days depending on the card network. PayPal's fee page lists a standard dispute fee of 15 USD (30 USD for high-volume sellers) and a chargeback fee of 20 USD on card payments made outside a PayPal account or guest checkout. Its Seller Protection excludes payments without proof of shipment or delivery.

Edge: Stripe

Holds and reserves

PayPal's user agreement lets it place a reserve on a business account at any time if it sees high risk, making some or all of the balance unavailable for withdrawal, and it can hold a payment for review. It lists factors such as time in business and chargeback history. Stripe documents payout schedules (daily, weekly, monthly or manual) and says new users are not immediately eligible for Instant Payouts. Both can delay money, but PayPal's wording is broader.

Edge: Stripe

Tally: Stripe 4, PayPal Business 1, even 0.

When neither fits

A large, high-volume merchant that wants negotiated rates and acquiring across many countries has outgrown both and should look at Adyen. A European small business that wants simple per-method pricing and local payment methods should look at Mollie, and a shop with a physical counter should look at Square.

See Adyen, Mollie and Square among the 15 products in Best Payment Processing / Payment Gateway Software in 2026.

Questions and answers

Is Stripe cheaper than PayPal?

On published rates, yes. Stripe's Netherlands list shows 1.5% plus EUR0.25 for standard EEA cards, while PayPal's US table shows 3.49% plus a fixed fee for PayPal Checkout and 2.99% plus a fixed fee for cards. The two lists are for different countries, so check the rate card for your own country before comparing.

Can a small shop use Stripe and PayPal together?

Yes. Nothing in either vendor's pages stops a merchant from offering both, and many shops add PayPal beside cards so that shoppers who prefer it can use it. Stripe's pricing page lists more than 100 payment methods, so the usual setup is cards through Stripe and the PayPal button as an extra.

Does PayPal hold money from business accounts?

It can. The PayPal user agreement says it may place a reserve on a business account at any time if it sees a high level of risk, which can make part or all of the balance unavailable for withdrawal. It also places holds on individual payments it sends for review. Check the agreement for the factors it lists.

Which has the lower dispute fee, Stripe or PayPal?

PayPal publishes its fee: 15 USD standard for a dispute filed on a PayPal-account payment, with 20 USD for card chargebacks on payments made outside a PayPal account or guest checkout. The Stripe pages we fetched say a dispute fee is debited with the disputed amount but give no figure, so the amount is on Stripe's own country price list.

Does Stripe offer fraud screening?

Yes, its Netherlands pricing page lists integrated fraud prevention with machine learning among the features of its standard rate, and Radar has its own product page. PayPal sells Fraud Protection Lite, Fraud Protection Advanced and Chargeback Protection as options, and says Seller Protection is included on eligible transactions.

Sources

Prices, plan limits and product facts on this page were checked against the vendors' own pages on October 19, 2026. Vendors change both without notice, so treat the figures as of that date.