Online payment processors – PayPal vs Stripe vs Square

On-line fee processors are dynamic and evolve quick courtesy of ever-changing funds developments, and firms are pressured to regulate rapidly to stay aggressive.

Fortunately, international eCommerce gross sales are on a steep upward pattern and are anticipated to surpass $4.8 trillion in 2021, so there’s sufficient cake to go round.

Not all fee processors are price your consideration, however PayPal, Sq., and Stripe are on the high of their video games. As on-line fee platforms, they’re related in some ways, however we will nonetheless level out some main variations.


PayPal via its Braintree subsidiary is a fee service supplier that connects eCommerce platforms to completely different fee networks on cellular and internet units. Some companies that use PayPal embody; Pandora, Expedia, and eBay.


Stripe is a collection of fee APIs that helps customers handle their on-line companies by accepting funds and sending payouts. Prospects use it to pay for providers or merchandise by way of bank cards or different on-line fee choices.

Stripe works as a fee processor and a fee gateway. Some high firms utilizing it embody Amazon, Dribble, Slack, Foursquare, and Shopify.


Sq. is a cellular service provider providers fee platform. It presents an array of enterprise software program, together with fee {hardware}, Sq. Money, and different providers for small companies. It’s hottest for its cellular software that permits customers to course of funds via smartphones. Some firms utilizing it embody Acuity Scheduling, Fuzz, and La Colombe Espresso Roasters.

How do they examine?

Availability and strategies of fee

PayPal is obtainable in 200+ nations and helps 25 currencies, permitting companies to develop their buyer attain. However, Stripe helps 135+ currencies however is simply accessible in 39 nations.

Sq. is obtainable within the UK, USA, Australia, Canada, and Japan and solely accepts funds in currencies from these nations. Prospects paying in a unique forex incur forex conversion prices from the banks. Sq. customers can course of internationally issued playing cards, however solely use Sq. when they’re within the nation they setup their Sq. account.


Cost gateways have wonderful safety protocols and instruments for customers. Stripe, PayPal, and Sq. use end-to-end encryption to safe your knowledge and adjust to PCI laws. Furthermore, they every have an additional layer of privateness, inner safety, and fraud safety instruments to stop unauthorized entry and cut back chargebacks.

Refunds and chargebacks

Chargebacks can cripple a enterprise, so it’s vital to have a transparent understanding of how they’re dealt with and tips on how to forestall them. In the event you need assistance dealing with chargebacks, go to the Acrocharge website.

Other than the fee reversed, PayPal and Stripe cost refundable $20 and $15 dispute charges, respectively. PayPal has a Vendor Safety Coverage that protects eligible transactions towards reversals, chargebacks, and related charges. Regardless of the safety coverage, retailers nonetheless have to be cautious of PayPal chargeback scams.

In distinction, Stripe has Stripe Radar, a real-time fraud safety service based mostly on machine studying expertise that helps cut back chargebacks as a result of fraud. Nevertheless, it doesn’t deal with service-based chargebacks.

Sq. doesn’t cost further charges for disputes, they usually have a chargeback safety program that covers retailers for as much as $250 of eligible gross sales each month.

eCommerce and web site integration

PayPal works nicely with WordPress, Google, eBay, and Shopify integrations. The combination and set-up course of is pretty straightforward for app and internet builders with detailed guides, plugins, instruments, references, and a developer neighborhood accessible for help.

Stripe outshines for its developer friendliness. It’s evident it was designed with app and internet builders in thoughts. Like PayPal, it has intensive references, documentation, plugins, extensions, and developer instruments accessible. Nevertheless, it has an edge because it offers builders with extra customization choices than PayPal or Sq..

Sq. presents companies POS programs and a straightforward method to full on-line transactions. However they’ve taken a easy strategy on the expense of developer customization skills. It has interactive APIs, instruments, documentation, a developer dashboard, and plugins however not as intensive as Stripe’s or PayPal’s.

Buyer assist

Stripe, Sq., and PayPal aren’t all identified for having the most effective buyer assist. However they partially redeem themselves by providing a variety of assist choices, together with electronic mail and telephone assist, developer assist, reside chat assist, neighborhood boards, and social media.

Which is the most effective?

Basically, fee processors allow companies to simply accept funds, and provide comfort, knowledge safety, a bigger buyer base and assist saving time. Over time, PayPal, Stripe, and Sq. have differentiated their services and products and now serve completely different market segments. As such, your alternative comes all the way down to your corporation wants and buyer base.

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