Stripe and PayPal both let you take card payments online. The differences are in the fees, what your customers see when they pay, and how much setup you are willing to do. Here is how they compare for a small business, using US fees as of October 2026.
The short verdict
- Pick Stripe if you sell on your own website, want lower fees on typed-in cards, or plan to add subscriptions, invoices and in-person payments in one account.
- Pick PayPal if your customers already use PayPal or Venmo, you want a familiar button at checkout, or you want to start with very little setup.
Many businesses offer both. If you sell to the public, a PayPal button next to a card form can help people who do not want to type in a card.
Fees, as of October 2026
These are US fees for US businesses, from each company's own page. Fees differ by country, card type and currency, so check the page for your country before you choose.
- Online card payment: 2.9% + 30¢.
- Manually entered card: 0.5% more.
- International card: 1.5% more, plus 1% if a currency conversion is needed.
- ACH Direct Debit (bank payment): 0.8%, capped at $5.
- In-person card payment with Stripe Terminal: 2.7% + 5¢.
- Dispute: $15, plus another $15 if you counter it. The second fee is refunded if you win.
- PayPal Checkout (customer pays with PayPal): 3.49% + 49¢.
- Standard card payment: 2.99% + 49¢.
- Pay with Venmo: 3.49% + 49¢.
- Pay Later: 4.99% + 49¢.
- Payment from a customer in another country: 1.5% more.
- Currency conversion: a spread of 3% or 4% on the exchange rate, depending on the transaction.
- Dispute: $15 standard fee, or $30 for high-volume sellers.
On a $100 card sale in the US, that is $3.20 with Stripe and $3.48 with PayPal's card rate. If the customer pays with their PayPal balance, PayPal's fee is $3.98. On small sales the fixed part matters more. On a $10 sale, the fixed fee alone is 30¢ with Stripe and 49¢ with PayPal.
The differences that matter
What your customer sees
PayPal's main strength is the button. People who already have a PayPal or Venmo account can pay without typing a card number. Stripe shows a card form or a hosted checkout page, and it can also take bank payments. If your customers are mostly businesses paying large invoices, a bank payment option such as Stripe's ACH Direct Debit can cost much less than a card.
Setup and tools
Stripe is built for businesses that want to connect payments to a website or app. It works without code through Payment Links and hosted checkout, and it goes much further if you or a developer use its tools. Stripe Invoicing adds 0.4% per paid invoice on its Starter plan, on top of the payment fee, as of October 2026.
PayPal is simple to start with. You can send an invoice straight from your PayPal business account. Its invoice payments use the same rates as above, and bank payments on invoices cost 1%, capped at $10.
Getting your money
Stripe's payout guide says the first payout usually takes 7 to 14 days. After that, US payments settle in about 2 business days. Instant payouts cost 1.5%, with a 50¢ minimum, and new accounts are not eligible straight away.
PayPal keeps money in your PayPal balance. A standard transfer to a linked bank account is free when no currency conversion is involved. An instant transfer costs 1.5% of the amount.
Where you can use them
Stripe's list of supported countries does not include every country, so check yours first. PayPal's fees and features also change by country. If you are outside the US, read the fee page for your own country, not the US one.
How to decide
- Look at how your customers pay today. If many ask for PayPal, offer it.
- Work out your average sale. On small sales, the fixed fee matters most.
- Check if you take payments from abroad. Add the cross-border and conversion fees.
- Decide how much setup you want. PayPal is simpler to start. Stripe gives you more to build on.
- Check both providers support your country and your type of business.
Whichever you pick, clear invoices and payment terms do more for cash flow than a small fee difference. See how to write an invoice and payment terms examples. If you also take payments in person, read Stripe vs Square. Fees and tax treatment vary by country, so ask your accountant how to record them.