PayPal or Stripe for Your WooCommerce Store?

When it comes to payment gateways for WooCommerce, there are 95 options available, including PayPal, Stripe, Square, Amazon Pay,, and First Data. However, the two most popular options are PayPal and Stripe. Both are popular due to their reasonable rates, seamless transactions, and reputable business practices. But which one is better? Let’s take a look at the pros and cons of each.

Benefits of PayPal for Online Business

PayPal is a well-known and respected company that is accepted almost everywhere in the world. It offers easy integration with WooCommerce, making it simple to set up and start accepting payments. PayPal is also transparent about its pricing, making it easy to understand. Its fees cover most transactions, and there are no cancellation or setup fees.

PayPal offers a wide range of services and products, including recurring billing, micropayments, virtual terminals, payment forms, payment gateways, and invoicing. It also pays out quickly, putting money in your account almost immediately after a transaction is made.

Benefits of Stripe for Online Business

Stripe offers a large feature-set that includes payment processing, PCI compliance, subscriptions, marketplace tools, coupons, free trials, Buy buttons, and more. Stripe also offers a wide range of additional products and services, including buy buttons for mobile apps, amazing reporting tools, marketplace options, a customizable checkout, a hosted payment page, subscriptions, free trials, and coupons.

Stripe is known for its quick integration with WooCommerce and offers a free Stripe Payment Gateway extension for WooCommerce. It also offers free developer tools that allow developers to quickly integrate the Stripe payment system into other apps, programs, and websites.

Stripe charges a flat fee of 2.9% +30¢ for all transactions and does not charge extra for anything like the authorization of a card or charging cards from your site. Stripe also accepts Apple Pay payments for free.

Downsides of PayPal for Online Business

PayPal has been known to freeze or shut down accounts, even for legitimate accounts. This is typically due to suspected fraud, but it can be frustrating for users. PayPal also charges extra fees depending on what happens with your account, such as chargebacks, recurring billing, advanced fraud protection, and fees for international cards.

PayPal’s seller protection is not as effective as its buyer protection, which can be a concern for some merchants.

Downsides of Stripe for Online Business

Stripe can be challenging to set up, especially for those without development skills. It also includes fraud tools that can be difficult to find and activate, leaving merchants vulnerable to fraud and chargebacks.

Which Should You Choose?

In conclusion, Stripe is better for developers, while PayPal is usually better for newcomers who want a plug and play solution. PayPal has better rates for non-profits, while Stripe has fewer fees for things like recurring billing, micropayments, and chargebacks. Stripe is popular, but PayPal has much stronger brand recognition.

Ultimately, the choice between PayPal and Stripe depends on your specific business needs and preferences. Consider the pros and cons of each and choose the one that best fits your business.

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