Stripe vs PayPal Fees (2026)

In most countries, Stripe is cheaper for standard card transactions. In the USA, Stripe charges 2.9% + $0.30 vs PayPal's 3.49% + $0.49 — saving $0.79 per $100. The savings compound at higher volumes: $10k/month saves ~$1,137/year choosing Stripe.

PayPal is better when buyer recognition matters — PayPal's one-click checkout can increase conversion rates significantly for B2C goods. It's also better for person-to-person payments, and in some European countries like the UK and Germany where PayPal's percentage rate is lower.

Yes — and many successful e-commerce businesses do exactly this. Offer Stripe for card payments (cheaper) and PayPal as an alternative wallet option. This maximises conversion without sacrificing margin on the majority of transactions.

Stripe wins for subscription billing. Stripe Billing offers native proration, dunning, trial management, and cancellation flows. PayPal subscriptions are more basic. If recurring revenue is core to your business, Stripe is the clear choice.

Stripe Radar uses machine learning trained on billions of transactions to block fraud. PayPal's fraud protection is solid but less customisable. For high-risk categories or custom rules, Stripe Radar gives you more control.