PayPal Vs Stripe – Which Payment Gateway is perfect for Your E-commerce Store?

June 24, 2020 | Author: Ashley Brown

It is not difficult to say that the E-commerce store is considered the most successful business in today’s modern era. Thus, it is important to integrate a secure payment gateway with the E-commerce store to perform online transactions. Making the right selection between PayPal Vs Stripe is a challenge for several online sellers, but it is an important decision to make. So before investing in Magento 2 payment gateway take your time to consider the features of these two payment solutions and get ready to take your business to the next level.

PayPal and Stripe both have established themselves as a reputed payment service provider for E-commerce development. There can be a long discussion on which one is better, and in this blog post, we have talked about their major point of differences. This will help you to make the right choice among the two payment solutions for your online selling store. There are pros and cons in both platforms, that’s why the final decision mostly depends on business requirements.

Before we discuss which is better it is important to have a small introduction of both Gateways.

PayPal Vs Stripe

Introduction to Stripe

Stripe is a popular online payment service provider allowing people to accept and send money over the web. Stripe is usually preferred by code-savvy people or online stores having in-house programmers because of its remarkable development tools. It is mostly used in small businesses but renowned brands like Pinterest, Lyft, Blue Apron, and TaskRabbit also use it.

Introduction to PayPal

PayPal is a well-known payment solution allowing users to make and receive payments online. PayPal claims to have more than 300 million customer accounts, comprising over 21 million merchants. Nearly everyone has a PayPal account and it’s one of the most admired names in the E-commerce payments industry.

You can also read: Short Guide about Magento 2 Payment Gateway

We have discussed the most significant points of difference to help you make a wise decision while selecting an E-commerce payment gateway for your brand.

PayPal vs Stripe

1. Products & Services

Both Stripe and PayPal give the facility of using a credit card, the most popular means of buying goods online. However, Stripe supports ACH payments while PayPal supports an online funded account.

Some customers like to check out without entering details with PayPal but others may just want to use a funded account instead of putting the charges on a credit card. Both of the E-commerce payment gateways offer receipts, invoices, and detailed purchase reports to the buyers. There is no major difference between the two service providers mainly because customers don’t want anything complex. They just want to pay without facing any trouble.

2. Fees & Rates

Fees and rates of integrating these two popular payment gateways can rack up and quickly. But an interesting point to understand is that there is no difference between them regarding the transaction costs. Both make charges above the amount paid if your own merchant account is opened with the bank but that would require another 3rd party payment gateway. The only noticeable difference that every user investing in Magento eCommerce development must know is that PayPal charges $20 for a chargeback while Stripe charges $15 per chargeback.

3. Ease of Use

Stripe and PayPal offer ease of use feature both to customer and seller. The only difference from the customer point of view is that Stripe allows the customer to checkout via the seller’s webpage while PayPal redirects the customer to the PayPal page. The other difference from the perspective of the seller is that PayPal is significantly easier to incorporate into a Magento based website.

There are extensions particularly developed for this process. The experts at AgentoSupport have great Magento Extensions that help to incorporate payments into your site or you can hire Magento 2 developers simply and efficiently. Stripe is a bit difficult to integrate and built for large corporate developers.

4. Customer Service

Customer service has its own importance to make an E-commerce store a successful venture. PayPal directs the user to a knowledge desk and asks to send an email that seldom gets answered. This whole process is complicated and makes it very difficult to find actual support. On the other hand, Stripe offers a helpline to chat with a live person round-the-clock. That is pretty great. The real-time support service is highly useful at some point in business. Get to know how to reach out to customer service representatives.

So these are some major points on which you can select a better payment service for your business.

Frequently Asked Questions

Frequently Asked Questions
What is the PayPal payment gateway?

PayPal is a well-known payment solution allowing users to make and receive payments online. PayPal claims to have more than 300 million customer accounts, comprising over 21 million merchants.

How do I set up a PayPal payment gateway?

The steps to integrate PayPal are:

  • Log in to create an account.
  • Click “Shop” from the Top Menu.
  • Click “Shop Settings” on the left-hand menu.
  • Click on “Payment Gateways”.
  • Select the “Add New Gateway” button.
  • Click on the “PayPal” logo.

How do I use the Stripe payment gateway?

The steps to integrate the Stripe are:

  • Create a Stripe account and login to get the API keys.
  • Create a payment form to get the user’s card details.
  • Include the Stripe JavaScript library to validate card details and to send to the Stripe server in a secure way.

Is stripe better than PayPal?

Both charge an online payment processing fee from vendors. However, PayPal is a better choice for small businesses, seeing its simple setup and ease of use. Stripe is perfect for larger businesses, as they offer more customization and additional features to the store owners.


It seems that both services are actually quite similar. Branding and customer service varies greatly. But at the end of the day, both are a popular choice for Magento 2 payment gateway offering the same purpose and solution. A popular choice here is to use both for Magento E-commerce development. A number of eCommerce stores offer numerous methods to check out, sometimes more than two. This helps customers to buy products from any location of the world. So, go ahead and integrate both. Give flexibility to your customers and let them make payment as per requirement. The only extra work you need to do is that you have to manage two accounts from which funds are received.