With increasing globalization, overseas online transactions have increased tremendously. When we think of overseas online transactions, we know for sure that Paypal and Stripe have got the lion’s share in this field. Both companies are an integral part of running businesses as there has been an ever-increasing online shopping phenomenon.
Paypal vs Stripe
The difference between PayPal and Stripe is that PayPal’s services are utilized in almost 200 countries, whereas Stripe is somewhat American-based and used in 30+ countries.
This exposure means that it would be easier to use PayPal than Stripe for overseas transactions or business dealings.
Comparison Table Between PayPal and Stripe
|Parameters of Comparison||PayPal||Stripe|
|Offline and Online Services||This option is available on PayPal. Transactions made using a credit card will be processed virtually over the internet and offline at physical retail stores.||Stripe, however, does not offer card processing offline at a physical store.|
|Cost||PayPal requests some amount of transaction fee per transaction. Apart from this, there are no monthly contracts to be signed.||Stripe also offers the same transaction fee. It again does not ask for any subscription fee, and so on. It has the same plan for nonprofit organizations as well.|
|The creation of the API offered by PayPal is by programmers that work for PayPal.|
Stripe has a straightforward API capable of undergoing customization as per the company’s requirements.
|Here API is created by programmer. Conducting business through PayPal will include the added fees of the programming.|
Due to a straight forward API, Stripe is an option that enjoys more favor by the companies that do possess developers.
|PayPal is not a very streamlined option when it comes to this, as it can prove to be a complicated process.|
Stripe does pose a more straightforward option when it comes to shifting a payment processor.
|Micropayments and RADAR fee||For any transaction below 10 dollars, PayPal charges a certain amount.||In addition to charges applied by PayPal, Stripe charges an additional RADAR fee.|
What is PayPal?
PayPal is probably one of the most famous e-commerce companies that can offer its services to both other companies and personal use.
PayPal has customers that hail from around 200+ countries, which gives it an edge over its competitors such as Stripe and Square, which are present in North America. PayPal has excellent customer service that can interact with its customers.
It also can be of great use to the companies that are not familiar with programming and require an API. This aspect may come with an added cost but does lessen a significant burden.
The PayPal Payments Pro is a plan created for businesses that allows a store or company to accept any credit or debit card. This integration is charged some amount per month along with a transaction fee per transaction, which can be pricey for some startups.
PayPal also allows its users to access the newly transferred funds almost immediately in their account.
The creation of the API offered by PayPal is by programmers that work for PayPal thus conducting business through PayPal will include the added fees of the programming.
PayPal answers your questions in various wa,ys, such as email, live chat, phone support, community forum, and help center.
What is Stripe?
Stripe is also an American e-commerce payment company that specializes in online credit card processing. This company does not possess the facilities to process payments offline. But they do have certain features that are better than their counterparts. The API creation process for a stripe user is highly profitable as it is cheaper than the other e-commerce payment options. In addition to this, they cause fewer glitches like double payments and such.
Stripe offers its services online and is very convenient when it comes to carrying out online transactions. Stripe, however, does not offer card processing offline at a physical store.
The chargeback rate, which is the fee that a company has to pay to a cardholder in case the transaction has been done without the card owner’s knowledge, is comparatively less than that charged by PayPal.
Stripe has a straightforward API capable of undergoing customization as per the company’s requirements. Due to a straight forward API, Stripe is an option that enjoys more favor by the companies that do possess developers.
Stripe denotes the transfer of new funds in one’s bank account in 2-4 days. The customer service provided by Stripe is said to be much better than PayPal in that it allows for 24/7 assistance.
Main Differences Between PayPal and Stripe
- PayPal has a greater reach and is a more common method of payment when compared to Stripe.
- Integration on PayPal can be costly when compared to Stripe, which is free.
- Customer service provided by PayPal is below par as it is only for a limited time in the day and can be challenging to reach in those hours. Stripe offers a wide range of options to obtain the help required as well as 24/7 support.
- PayPal does not require special knowledge about programming in order to develop an API, but it does factor in when it comes to price. Stripe offers a simple API that can be customized provided one has the required knowledge.
- PayPal does not charge a RADAR fee during Microtransactions. Stripe, on the other hand, adds RADAR charge.
In all truth, both Stripe, as well as PayPal have their fair share of pros and cons that make them the e-commerce giants that they are today in their magnitude. But PayPal probably wins this battle as it is the option that is more commonly used and hence would be easier to carry out business using this option. But when it comes to startups and smaller enterprises depending on various factors like cost, data-shifting customer support, and many more, it really is Sofie’s choice.
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