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Stripe vs PayPal UK 2026 — Which Is Cheaper?

Both are available in the UK but the fee winner depends entirely on transaction size. Here's the honest comparison.

1.5% + £0.20
Stripe UK rate
1.2% + £0.30
PayPal UK rate
£33
Break-even point

Fee Comparison by Transaction Size

AmountStripe (1.5%+£0.20)PayPal (1.2%+£0.30)CheaperSaving
£10£0.35£0.42✓ Stripe£0.07
£25£0.58£0.60✓ Stripe£0.02
£33£0.70£0.70🤝 Equal£0.00
£50£0.95£0.90✓ PayPal£0.05
£100£1.70£1.50✓ PayPal£0.20
£500£7.70£6.30✓ PayPal£1.40
£1,000£15.20£12.30✓ PayPal£2.90

⚠️ But PayPal keeps £0.30 on refunds

PayPal's lower % rate is offset by its refund policy — it keeps the £0.30 fixed fee on every refunded transaction. Stripe charges £0 for refunds. If your refund rate is above 2-3%, Stripe is cheaper overall despite the higher headline rate.

🇬🇧 UK Stripe Calculator → 🅿️ UK PayPal Calculator →
FAQ

Frequently Asked Questions

For most UK transactions above £33, PayPal (1.2% + £0.30) is cheaper than Stripe (1.5% + £0.20). Below £33, Stripe is cheaper. However, Stripe charges £0 for refunds while PayPal keeps the £0.30 fixed fee.
Stripe charges 1.5% + £0.20 per UK/EEA card. Non-European cards cost 3.25% + £0.20.
PayPal charges 1.2% + £0.30 per domestic UK transaction. International payments incur additional FX fees.
Stripe offers significantly better developer tools, API documentation, and webhook reliability. PayPal's API is functional but considered inferior by most UK developers.
Yes. Many UK businesses offer Stripe as primary checkout and PayPal as an alternative wallet option, maximising conversion.