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PayPal or Stripe - the 2 major giants in the international payment gateway arena, claiming 40.52% và 20.52% (2023) market share respectively - are among the top choices for the majority of businesses. Knowing what payment gateway is best for your business operation can pose some serious challenges, even for major corporations. 

In this article, you will learn about the similarities, differences, and sustainability of these two major payment institutions and how they can be great for your business models.

1. What are the similarities between PayPal and Stripe?

Both Stripe (founded in 2011) and PayPal (founded in 1998) are international payment service providers, acting as intermediaries for merchants to process transactions. 

In the table below, you will see their main similarities and how they help your business in your day-to-day operations

Similarities PayPal Stripe
Easy integration into E-commerce websites paypal-va-stripe
Fixed transaction fees that can be estimated by merchants paypal-va-stripe
Online payment acceptance paypal-va-stripe
Additional features like invoicing and support for recurring payments paypal-va-stripe
PCI compliance support, ensuring a secure environment for processing credit card information paypal-va-stripe
No long-term contracts (You can sign up for an account at any time and cancel without facing early termination fees, promoting flexibility paypal-va-stripe
Customer support through Help Centers and comprehensive user manuals on their websites paypal-va-stripe
Support for various payment methods paypal-va-stripe
Ease of use and integration with the ability for configuration  paypal-va-stripe
Advanced functions for merchants paypal-va-stripe
Cryptocurrency transaction support paypal-va-stripe

2. What are the differences between PayPal and Stripe?

Despite their similarities, PayPal and Stripe have specific differences tailored to the unique needs of businesses. The comparison tables below highlight the distinctions and unique features of these two popular payment gateways.

2.1. Differences in features

Differences PayPal Stripe
Store and move customer data paypal-hay-stripe paypal-va-stripe
Customers are not Redirected away during payment paypal-hay-stripe
(Note: PayPal Pro allows this)
paypal-va-stripe
Easy registration and account setup paypal-va-stripe paypal-hay-stripe
Integration with some POS systems paypal-va-stripe paypal-hay-stripe
Free online invoicing paypal-va-stripe paypal-hay-stripe
Free card reader paypal-va-stripe paypal-hay-stripe
Wallet feature  paypal-va-stripe paypal-hay-stripe
Cryptocurrency payment supports 

paypal-va-stripe

Supports crypto transfers between PayPal, Venmo, and others

paypal-va-stripe

Only USDC is supported

Despite their similarities, PayPal and Stripe have specific differences tailored to the unique needs of businesses. The comparison tables below highlight the distinctions and unique features of these two popular payment gateways.

2.2. Differences in fees

Differences

Paypal

Stripe
Chargeback fees $20 $15
Countries Availability 200+ 45+
Access to Funds Time Immediately 7 days (on average)

3. Final verdict: PayPal vs Stripe, which is the right solution for your business?

In the realm of online payment gateways, the competition is fierce, with PayPal and Stripe emerging as global titans. While both serve similar market segments, their distinct configurations and exclusive features cater to diverse business needs.

You should pick PayPal if:

  • You're launching a startup or managing a small enterprise;
  • You want to attract a large potential customer base as PayPal is dominant in the market share;
  • Cryptocurrency transactions are on your radar,
  • If you want to use the platform's ecosystem, comprising PayPal Pro, MassPay, and Reference Transactions, eliminates the need for recruiting specialized support.

You should pick Stripe if:

  • Your business demands a meticulously designed payment process with a high degree of customization;
  • Cost-effectiveness is a top priority in the long term;
  • You want to leverage ACH automatic transactions
  • Nhu cầu kinh doanh, giao dịch quốc tế

Important note

It's worth noting that regardless of your preference, registering a company in regions like Singapore, the US, or Hong Kong is a prerequisite for registering and utilizing these payment gateways effectively for your business.

As you embark on this decision-making journey, carefully align your business requirements with the unique features each gateway brings to the table.

4. How can we help you register your PayPal business or Stripe business account?

Global Link Asia Consulting, as your trusted one-stop corporate service provider helping hundreds of business owners start their businesses overseas and manage their companies with success, we can

  • Provide advisory services for international monetary transactions, optimizing business cash flow;
  • Do PayPal Underwriting to get access to PayPal Pro and advanced features;
  • Assist in registering and maintaining VIP accounts with international payment gateways, offering faster processing and lower fees.
  • Offer guidance on compliance with payment gateway User Agreements and help resolve disputes.
  • Help you create new PayPal Business accounts, crucial for those with prior account issues or high transaction volumes.
  • Advise on strategies for increasing transaction limits with PayPal and avoid PayPal limitations and restrictions.

In addition, we offer corporate services for entrepreneurs in PayPal, Stripe non-listed countries wanting to set up their PayPal Business Account:

5. FAQs about PayPal business or Stripe business account?

Yes, Stripe's credit card processing rates are generally more cost-effective than PayPal's. Stripe charges 2.9% plus $0.30 per transaction, whereas PayPal's fees range from 2.59% to 3.49% plus $0.49 per transaction (in USD). For merchants with smaller average transactions, PayPal's higher per-transaction fee of $0.49 can have a more noticeable impact.

Both Stripe and PayPal are solid options for small and medium-sized businesses, offering robust support and processing systems that cater to a wide range of transaction volumes.

You can indeed use both Stripe and PayPal simultaneously to process payments. This approach allows your company to reach a broader customer base with varying payment preferences. 

To maintain security and prevent potential issues, you should create and manage separate accounts for each gateway, ensuring that the activities of one account do not impact the other.

In terms of safety, both PayPal and Stripe are highly secure payment gateways. PayPal, with its global reputation, adheres to stringent privacy policies and conducts thorough checks for buyer and seller protection.

 While Stripe may not have the same level of global recognition, it has established itself as a secure payment solution with a growing presence in the market. Ultimately, the choice between PayPal and Stripe should be based on the specific needs and preferences of your business.

With over a decade of experience serving as a trusted partner to more than 750 business owners seeking professional development and breakthroughs in the international market, we are an  expert strategic corporate service provider helping you incorporate and operate successfully in 10 different countries

Our areas of expertise include:

With over 10 years of experience and a team of experts with 5 to 25 years of experience (international standard certifications) as well as direct partnerships with institutions such as OCBC, UOB, DBS, PayPal, and Stripe, we are proud to offer professional, legal, transparent, sustainable services with no hidden costs.

Over 700 valued customers
+700
Customers
Ten year experience
+10 years
Cross-disciplinary experience
Valued awards during the years
Top 10
Leading Asian Brand
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Global Link Asia Consulting Pte. Ltd. is pleased to announce the publication of the above insightful and informative article on our official website, Global Link Asia Consulting on ngày 31st March 2021. The copyright for this article is exclusively held by Global Link Asia Consulting Pte. Ltd. Any unauthorized reproduction or distribution of this content without our express written permission is strictly prohibited. We value the protection of our intellectual property and appreciate your cooperation in adhering to these guidelines. Thank you for your continued support of Global Link Asia Consulting Pte. Ltd.

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