PayPal and Stripe are two giants in the online payment industry. Considering the present situation where maintaining social distancing is very important, everyone is giving importance to the contactless transaction. However, small merchants are also making changes in their business strategies in order to cope up with the situation.
When it comes to accepting online payment, you must have access to an online payment gateway. Otherwise, it is very difficult to cope up with the situation. If you are new to online business, you must have proper knowledge about the online payment processors. It will help you to choose the right merchant processor for your business. Therefore, keeping this point in mind we have made a brief comparison between PayPal and Stripe. So, don’t miss to go through the following points:
PCI Compliance And Reporting
Both company offer PCI compliance and reporting. Still, there are some changes in their offerings.
If you go with Stripe, you don’t have to pay anything extra for the PCI compliance. Stripe handles the entire thing for their merchants. If we talk about PayPal, you also don’t need to pay extra fees. But, PayPal has a special service plan otherwise known as PayPal Payments Pro Plan consisting of has additional features that you will not find in other PayPal plans. Now, if you go with this premium plan, you have to pay extra to ensure PCI compliance. However, the monthly cost will still have a pocket-friendly touch. If we talk about the reporting, both Stripe and PayPal offer comprehensive reporting.
PayPal billing and invoicing has its own set of developer tools and therefore, if you want to make changes in your website’s payment checkout page, you can easily do it. Moreover, PayPal developer tools allow you to create your own online marketplace as well as digital platforms. On the other side, if we talk about Stripe, it is on a different level. It is a kind of advanced payment processing platform. If you want premium services for you, you can go with Stripe.
Fees And Rates
In the case of PayPal, you have to pay different charges for different payment processing methods. We have added them below:
- POS/mPOS (PayPal Here) Transactions: 2.7%
- Online Transactions: 2.9% + $0.30
- Keyed Entry Transactions: 3.5% + $0.15
- Online Invoices: 2.9% + $0.30
Stripe has its own fees and rates. We have added them in order to give you a concrete idea:
- Stripe Terminal (POS) Transactions: 2.7% + $0.5
- ACH Transactions: 0.8% (capped at $5)
- Online Credit Card Transactions: 2.9% + $0.30
So, this is a comparison between Stripe and PayPal. We hope that this article would be helpful for you.