Stripe and PayPal are the two most popular payment processors in the world — but they have very different fee structures. Choosing the wrong one could cost you hundreds of dollars per year. In this guide, we compare every fee side by side so you can make the right decision for your business.
✅ Bottom line upfront: Stripe is cheaper than PayPal for most online transactions. On a $100 sale, Stripe costs $3.20 vs PayPal's $3.98 — a difference of $0.78. At $5,000/month in sales, that's $39/month or $468/year in savings.
1. Quick Comparison Overview
Feature
Stripe
PayPal
Online card rate
2.9% + $0.30
3.49% + $0.49
In-person rate
2.7% + $0.05
1.9% + $0.10 (QR only)
International
4.4% + $0.30
4.99% + $0.49
Monthly fee
None
None
Payout speed
2 days (instant for fee)
Instant (1.75% fee)
Countries
46+
200+
Buyer recognition
Low
Very high
Setup difficulty
Requires developer
Easy for anyone
2. Fee-by-Fee Comparison
Online Card Payments
This is where most businesses process the majority of their sales:
Stripe: 2.9% + $0.30 per transaction
PayPal: 3.49% + $0.49 per transaction
Stripe is clearly cheaper here. The difference grows with higher transaction volumes.
In-Person Payments
Stripe Terminal: 2.7% + $0.05 per swipe/tap
PayPal QR Code: 1.9% + $0.10 per transaction
For in-person payments, PayPal QR code wins — it's significantly cheaper at 1.9% vs Stripe's 2.7%.
Stripe is cheaper for international payments, especially given PayPal's higher currency conversion spread.
3. Real Money Examples
Sale Amount
Stripe Fee
PayPal Fee
You Save with Stripe
$50
$1.75
$2.24
$0.49
$100
$3.20
$3.98
$0.78
$500
$14.80
$17.94
$3.14
$1,000
$29.30
$35.39
$6.09
$5,000/month
$145+
$174+
~$29/month
$10,000/month
$290+
$349+
~$59/month
4. Features Beyond Fees
PayPal Advantages
Brand recognition: 435 million active users trust PayPal — many buyers specifically look for the PayPal button
Global reach: Available in 200+ countries vs Stripe's 46
Easy setup: Anyone can set up PayPal in minutes with no technical knowledge
Buyer protection: Strong dispute resolution that builds buyer confidence
Pay Later: Built-in Buy Now Pay Later option increases conversion rates
Stripe Advantages
Lower fees: Saves money on every domestic online transaction
Developer-friendly: Powerful API for custom payment flows
Subscription billing: Superior recurring payment management
Radar fraud protection: Industry-leading AI fraud detection
Faster payouts: Standard 2-day payouts vs PayPal's hold policies for new accounts
5. Which Should You Choose?
Choose Stripe if:
You run an online store or SaaS, process $2,000+ per month, have developer resources, and want the lowest possible fees on card payments.
Choose PayPal if:
Your customers specifically ask for PayPal, you sell internationally in many countries, you're a beginner who needs easy setup, or you do significant in-person sales with QR codes.
💡 Best approach: Use both. Offer Stripe as your primary payment method and add PayPal as a secondary option. This maximizes conversions while keeping fees low for the majority of your transactions.
Frequently Asked Questions
Is Stripe safer than PayPal?
Both are highly secure and PCI-compliant. Stripe has an edge in fraud prevention technology with its Radar system. PayPal has an edge in buyer dispute resolution from the buyer's perspective, which can actually be a disadvantage for sellers.
Can I use both Stripe and PayPal on my website?
Yes, absolutely. Most e-commerce platforms (Shopify, WooCommerce, etc.) allow you to add both as payment options. Offering both increases your conversion rate as different customers prefer different payment methods.
Does Stripe have a monthly fee?
No. Stripe charges only per transaction with no monthly fees. PayPal also has no monthly fee on its standard plan. Both are pay-as-you-go services.
✍️
CalcFees Editorial Team
Verified against Stripe and PayPal official pricing · June 2026