PayPal vs Stripe for online stores: fees, checkout and when to use both

By the Payly team · October 12, 2026 · 4 min read

PayPal and Stripe are the two most common ways small stores take payments online. Both are reliable, and neither is simply better. They differ in fees, in how checkout looks to the customer, and in how you are paid. This guide compares them side by side and explains why many stores offer both.

Fees side by side

These are the standard US rates for online sales. Each company charges a percentage of the order plus a fixed amount.

Stripe is cheaper on a typical card payment. The gap is widest on small orders because PayPal's fixed part is $0.49 against Stripe's $0.30. On a $20 order, PayPal Checkout costs about $1.19 (5.9%) and Stripe about $0.88 (4.4%). On a $200 order, it is about $7.47 (3.7%) against $6.10 (3.05%).

Stripe also lists extra charges: 1.5% more for international cards and 1% more when a currency conversion is needed. PayPal's rates vary by currency received. For the full lists, see PayPal's business fees page and Stripe's pricing page.

What the difference adds up to

Take 100 orders averaging $40 in a month. Paid entirely with PayPal Checkout, they cost about $188.60 in fees. Paid entirely by card through Stripe, they cost $146.00. The gap is $42.60 a month, or about $511 a year, on $4,000 of sales a month. That is real money for a small store, but it is also a reason not to push customers away from PayPal if they prefer it, since a lost sale costs more than a higher fee. Treat fees as one cost among several, next to shipping, materials and your time.

What customers see

PayPal. The customer clicks the PayPal button and approves the payment in a PayPal window that opens over your store. People who already have a PayPal account can pay with it, and many shoppers like that. Depending on the customer, PayPal may also show Pay Later, Venmo or PayPal Credit, and it can show a card button for people with no PayPal account.

Stripe. The customer chooses to pay by card, and a card form opens on the same page. Stripe's secure fields take the card number, so card details never pass through your store.

Neither is harder for the shopper. The point is that some customers trust PayPal and some simply want to type a card, and giving them both removes a reason to leave.

How you get paid

With Stripe, the money lands in your Stripe balance and is paid out to your bank on the schedule you set in Stripe. A new Stripe account may wait longer for its first payout. With PayPal, payments arrive in your PayPal balance, where you can leave them or transfer them to your bank. Timing belongs to the processor in both cases.

Disputes, also called chargebacks, are handled in each company's own dashboard, because that is where the evidence goes to the bank. Refunds work the same way on Payly for both: the money comes out of your balance and returns to the customer's original payment method.

Subscriptions

If you sell subscriptions, there is one practical difference. Stripe can take several subscriptions in one checkout. PayPal allows one subscription per order, so a customer who buys two pays in two separate orders. Each processor handles the billing and renewals.

When to offer both

Offer both when you can. A shopper who does not like the first option can use the second, and you do not lose the sale. The cost of this is small: you pay each company's fee only on the payments that go through it.

On Payly you can connect your own PayPal account, your own Stripe account, or both, and customers pay you directly. Payly is free, with no monthly fee, no transaction fee and no commission, so the only fee on a sale is PayPal's or Stripe's standard processing fee. See Connect PayPal and Connect Stripe. Payly takes payments only through PayPal and Stripe, so if you need another processor, it is not the right fit.

A simple way to decide

• Sell low-priced items? Stripe's lower fixed fee saves you money on each order.
• Sell to international buyers? Check Stripe's international and conversion add-ons first, and confirm which currencies each account supports.
• Want the widest reach? Connect both.
• Just starting? Connect either one, test it, and add the second later.

Questions

Can I use PayPal and Stripe on the same store?

Yes. On Payly, connect both from the Payments tab in your settings, and checkout offers both.

Which is safer for my customers?

Both are established payment companies and handle the card data themselves. Your store never sees full card numbers.

Can I try them without real money?

Yes. Test mode uses sandbox and test accounts at each company so you can place practice orders. Create a free Payly account to try it.

Prices as published by each company for the US in October 2026. Prices can change; check PayPal's and Stripe's own pricing pages.