Image of a graphic of a card and payment machine with text overlay saying Choosing the Right Payment Gateway for Your Small Business: PayPal vs. Stripe

In the fast-paced world of e-commerce, selecting the right payment gateway is crucial for the success of any small business. Two giants in the payment processing industry, PayPal and Stripe, often stand out as top contenders for businesses of all sizes. In this blog post, we will compare and contrast these two platforms to help you make an informed decision about which one may be best suited for your small business.

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PayPal: Known for its widespread recognition and user-friendly interface, PayPal has been a go-to solution for online payments since its inception. Its easy integration and familiar checkout experience make it a popular choice among consumers and businesses alike.

Stripe: Stripe is also praised for its developer-friendly approach. With a well-documented API and a sleek user interface, Stripe offers a smooth onboarding process. While it may be perceived as slightly more complex for non-developers, its flexibility allows for customisation and scalability.

Transaction Fees:

PayPal: PayPal’s fee structure is straightforward. Merchants are charged a percentage of the transaction value, along with a fixed fee. The rate may vary depending on factors like transaction volume, currency, and whether it’s a domestic or international transaction.

Stripe: Stripe’s fee structure is competitive, with similar percentage-based charges. However, it’s worth noting that Stripe doesn’t charge an additional fixed fee, making it an appealing option for smaller transactions.

Payment Options:

PayPal: PayPal supports a wide range of payment options, including credit and debit cards, bank transfers, and the use of PayPal balances. Its versatility ensures that customers can choose their preferred method of payment. It also now offers a “Pay in 3” option for transactions of up to £2,000.

Stripe: Similar to PayPal, Stripe supports various payment methods, but it also enables businesses to accept payments in Bitcoin and other emerging cryptocurrencies. This forward-thinking approach may appeal to businesses looking to stay ahead of the curve.


PayPal: Renowned for its commitment to security, PayPal employs robust encryption and anti-fraud measures to protect both merchants and customers. It also offers a secure checkout process, reducing the risk of data breaches. As someone who was the victim of fraud (my Facebook Ad account got hacked) and thankfully it was attached to a PayPal account.  Paypal were amazing and got everything sorted for me in just a couple of hours.

Stripe: Stripe is PCI DSS compliant and adheres to industry-standard security protocols. With a focus on data protection, Stripe provides businesses with the tools they need to maintain a secure payment environment.


In conclusion, both PayPal and Stripe offer reliable and secure payment solutions for small businesses. The choice between the two ultimately depends on your specific needs and preferences.

Choose PayPal if:

  • You prioritise a widely recognised and trusted brand.
  • Your business relies on international transactions.
  • A simple and user-friendly interface is crucial for your customers.

Choose Stripe if:

  • You value customisation and scalability, especially if you have a development team.
  • Your business is looking to accept emerging payment methods like cryptocurrencies.
  • Predictable and competitive pricing without additional fixed fees is a priority.

Ultimately, both platforms have their strengths, and the best choice for your small business will depend on factors such as your target market, technical requirements, and long-term goals. Whichever you choose, both PayPal and Stripe can provide the payment processing foundation your business needs to thrive in the digital landscape.


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