Stripe vs PayPal: Best Payment Processor for Business in 2025?
Stripe and PayPal are the two most widely used payment processors. Here is how to choose for your business, subscription, or SaaS product in 2025.
Stripe vs PayPal: Best Payment Processor for Business in 2025?
Quick Answer
For developers and SaaS products: Stripe — best API, most flexible, industry standard for technical teams. For established businesses and marketplaces: PayPal — highest consumer trust, buyer protection, 400M+ active accounts that can pay in one click. For most new online businesses: Start with Stripe.
Stripe — Best for Developers and SaaS
Pricing: 2.9% + $0.30 per transaction (US cards), no monthly fees
Best for: SaaS subscriptions, marketplaces, platforms, any developer-built payment integration
Stripe’s API documentation is the gold standard in fintech. Subscription billing (Stripe Billing), connect (marketplace payments), and Radar (fraud detection) are best-in-class. Stripe has become the default choice for Y Combinator startups and most new SaaS companies. Processing in 135+ currencies.
PayPal — Best for Consumer Trust
Pricing: 3.49% + $0.49 for PayPal checkout, 2.99% + $0.49 for card payments (US)
Best for: E-commerce stores, service businesses, any business where consumer trust is critical
PayPal’s buyer protection program creates trust that can increase conversion rates — some studies show 40% higher checkout completion for PayPal vs card-only options. Venmo integration. Buy Now Pay Later through PayPal Pay Later. Higher fees than Stripe but may be offset by conversion rate improvements.
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