Gumroad vs Stripe: Difference and Comparison

E-commerce platforms have been on the rise for the past few years. The availability of goods at our doorsteps is a convenient option and easily accessible to the public now. The marketplace offers a diverse range of commodities and services that can be useful in our daily lives.

The payment modes for these commodities are available in many forms, such as paying online (with credit cards, debit cards, and online banking methods) or paying offline (cash on delivery, card payment, etc.). 

Key Takeaways

  1. Gumroad is a platform that allows creators to sell digital products directly to their audience, while Stripe is a payment gateway that enables businesses to accept online payments.
  2. Gumroad provides a seamless experience for creators to monetize their content, while Stripe focuses on facilitating secure and reliable payments for businesses.
  3. Gumroad is a platform for selling digital products, and Stripe is a payment gateway for accepting online payments—the key difference lies in their primary function. 

Gumroad vs Stripe

The difference between Gumroad and Stripe is that Gumroad is an e-commerce platform, while Stripe is a company offering payment processing software. Gumroad offers to buy and selling of products, and Stripe offers software used in online payment mode.

Gumroad vs Stripe

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LED stands for:

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A process that is repeated, evaluated, and refined is called __________

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Gumroad is an e-commerce website allowing customers to buy products directly from sellers. They do not include wholesalers or retailers; you can buy the product directly from the business owner.

The shipping of the product is carried out by gumroad. The payment made by gumroad to the business owner is made every Friday via PayPal. Stripe is an Irish –American company offering services in the financial and payment processing division.

The company has dual headquarters located in San Francisco, U.S., and Dublin, Ireland. Stripe offers services in the fields of billing, payments, fraud detection, atlas, etc. While using Stripe software, one can use any credit or debit card as it accepts all.

Comparison Table

Parameters of ComparisonGumroadStripe
MeaningAn online platform used for buying and selling physical products as well as digital products.A company providing financial services, payment processing software, and application programming interface.
CategorySelf-publishing, music, film, e-commerce, digital distribution.Financial services, a payment processor.
FounderSachin Khanna and Sahil LavingiaPatrick and John Collison
HeadquartersLocated in San Francisco, California, U.S.It has dual headquarters located in San Francisco, California, U.S., and Dublin, Ireland.
Area servedWorldwideAustralia, Hong Kong, Mexico, India, European Union, Canada, Malaysia, Japan, Malta, Norway, New Zealand, UK, Singapore, US, Brazil, Switzerland.

What is Gumroad?

Gumroad is a selling platform where established or small businesses can sell their products directly to customers without difficulty. The business owner can upload a picture of the product along with the product description and prices.

Then the customer can buy according to their needs and wants. After buying the product, gumroad transfers the money to sellers every Friday after calculating all the fees and taxes, if included. 

One can sell both physical products and digital products to the customer directly. It motivates artists such as painters, authors, musicians, and software developers to engage in their activities and products more and meet potential buyers.

One unique feature of gumroad is that the customer can place future orders. Gumroad links your website and the social media platform or gumroad platform, so customers can have a hassle-free purchasing experience.

Small businesses are more upfront with their business on gumroad as its features support the small business in various ways ranging from cost reduction to low rate of conversion.

The delivery of products is done by gumroad itself. The gumroad platform enables people to sell and buy products, gain insights into sales and marketing, and help interact with customers.

What is Stripe?

Stripe is a company that offers financial services and software services. It is an Irish–American company that has headquarters in San Francisco, California, U.S., and Dublin, Ireland.

The company provides payment processing software for e-commerce websites. Stripe offers application programming interfaces, one of the major services required for different e-commerce websites and other mobile applications.

Stripe was founded by Patrick Collison and John Collison in 2009 in Palo Alto, CA. The company offers services to European, American, and Asian countries.

The company works with an average of 4000 employees, based on data obtained in May 2021. Some of the services provided by the companies are payments, billing, fraud prevention, atlas, issuing, etc.

Stripe offers a simple and easy medium of payment and does not include any other extra charges or fees. As of 2020, the stripe is being operated in more than 40 countries, supporting more than 135 currencies, and the software accepts all kinds of credit cards, debit cards, and other local payment methods.

Stripe also supports SCA (Strong Customer Authentication). Stripe has a feature called Stripe Radar which helps detect and prevent fraudulent activities.

Main Differences Between Gumroad and Stripe

  1. Gumroad is an e-commerce website used to buy and sell products, while Stripe is a company offering safe payment processing software used by e-commerce websites.
  2. Gumroad offers direct interaction of customers with the products, while there is no such thing in Stripe.
  3. Gumroad charges a small number of fees for their services. Customers do not have to pay extra for using Stripe payment methods.
  4. Gumroad offers customers to buy directly from the sellers, while Stripe is a payment software provider and has no interaction with the customer.
  5. Gumroad offers its services worldwide, while Stripe is only used in approximately 40 countries (as of 2020).
Difference Between Gumroad and Stripe

Last Updated : 06 July, 2023

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