Stripe vs PayPal for Business [2025]: Features, Fees, Security & Support

Founded in 2010, Stripe is an American fintech company based in San Francisco. It offers payment gateway services designed to help businesses efficiently manage online transactions. Stripe is fully regulated by the financial authorities where it operates, including the Financial Conduct Authority (FCA) in the UK.

Stripe’s services include payment gateways, subscription billing, invoicing, and fraud prevention. Stripe has worked with over 35,000 companies, from small businesses to S&P 500 corporations, and processes more than USD 1 billion transactions each year.

Launched in 1998, PayPal is a well-known payment service provider that allows individuals and businesses to send and receive money online. As one of the largest and most widely used payment services, PayPal facilitates a broad range of transactions.

In addition to making person-to-person payments, PayPal offers business payments, merchant accounts, payment processing, and payment gateway services. It is regulated by financial authorities in several countries, including the US, UK, EU, Canada, and Australia.

In 2023, PayPal has processed 25 billion transactions and has more than 400 million active personal and merchant accounts worldwide.

Stripe’s Supported Payment Methods

• Credit and debit cards - Visa, Mastercard®, American Express, JCB, Diners Club, UnionPay.
• Digital wallet - Apple Pay, Google Pay, Alipay, WeChat Pay, PayPal, and more.
• Buy Now Pay Later - Affirm, Afterpay, Klarna, Grab PayLater, Zip, and more.
• Local payment methods - SEPA payments, PayNow, iDEAL, and more.
• Bank debit - ACH direct debit, BACS direct debit, SEPA direct debit, and more.

For up-to-date information, please refer to Stripe’s Payment Methods page.

PayPal’s Supported Payment Methods

• Credit and debit cards - Visa, Mastercard®, Maestro, American Express, and JCB.
• Digital wallet - Apple Pay, Google Pay, and Venmo.
• PayPal payments - PayPal, PayPal Credit, and Pay-in-3 (Buy Now Pay Later option)

While Stripe and PayPal offer essential features for payment processing, they cater to different business needs.

If your business requires flexibility in payment methods, international transactions, or customisable billing solutions, Stripe is a strong choice. It supports over 100 payment methods, including Buy Now Pay Later options and local payment methods for international customers. Its customisable checkout experience and advanced subscription billing give businesses more control. However, it may require developer support for full integration.

In contrast, if cards or PayPal payments are already working well for your business, PayPal could be the simpler choice. It supports all major cards, PayPal payments, Apple Pay, and Google Pay, making it easy to get started without much technical knowledge. It’s a great option if you want a simple solution for accepting payments globally, especially if you're a small business owner or freelancer who doesn’t need complex integrations.

In summary, if you need advanced customisation, a wider range of payment methods, or is growing globally, Stripe is the way to go. But if you're looking for a simple, easy-to-use solution with familiar payment options, PayPal may fit your business better.

Fees Comparison

Both Stripe and PayPal are transaction-fee-based platforms, meaning that businesses only pay for what they use.

Below are some of PayPal and Stripe’s fees for the most common payment types.

While both payment platforms offer competitive transaction fee structures, Stripe generally offers lower rates to process business payments. 

For businesses that want to save on transaction costs, Stripe is often the better option, particularly if you deal with a lot of international payments or offer multiple payment methods. However, despite the higher fees, PayPal might still be a good choice for businesses that primarily focus on the UK market.

Please note that both platforms charge different fees depending on the country. For accurate information, ensure to check the pricing relevant to your business location.

Security Comparison

Both Stripe and PayPal are fully PCI DSS Level 1 compliant, meaning that they handle credit card information securely and in line with global standards.

They also utilise strong encryption technologies—SSL for PayPal and end-to-end encryption for Stripe—ensuring secure transactions. Additionally, both platforms provide two-factor authentication (2FA) for account protection, adding an extra layer of security.

In addition, Stripe and PayPal leverage advanced technologies like machine learning to detect and combat fraud.

They constantly update and improve their security features to stay ahead of new threats, keeping their customers protected and secured.

Stripe provides 24/7 customer support for existing customers. This ensures businesses can get help at any time, regardless of their time zone.

In comparison, PayPal offers more limited support, available only from 8:00 a.m. to 6:30 p.m. GMT, Monday to Sunday. This restricted timeframe can pose challenges for businesses operating across different global regions or those needing immediate assistance outside standard business hours.

Conclusion

Stripe and PayPal are both solid choices for businesses looking to process payments online. Stripe is well-suited for businesses that need extensive control and scalability, whereas PayPal’s ease of use and global presence make it an appealing option for many entrepreneurs.

For businesses registered in Hong Kong, Singapore and the BVI, Statrys offers multi-currency business accounts that integrate seamlessly with top payment gateways like Stripe and PayPal. This integration simplifies payment management across major currencies, with low currency conversion fees and rates based on the mid-market rate.