PayPal vs Stripe: Top WooCommerce Payment Gateway for 2025

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Table of Contents

• PayPal vs Stripe: A Quick Comparison
• 1. Pricing & Transaction Fees
• 2. User Experience
• 3. WooCommerce Integration
• 4. API Flexibility
• 5. Recurring Payments
• 6. Security
• 7. Marketplace Support
• 8. Brand Recognition
• Verdict: Stripe is The Way To Go
• Create a High-Performing WooCommerce Store with Our Expertise

High transaction fees, abandoned carts, and clunky payment flows.

Sound familiar?

Add hidden fees, checkout friction, and complex integrations to the mix, and suddenly, choosing a payment gateway feels like an eCommerce nightmare.

So, do you go with PayPal for its global recognition or Stripe for its flexibility and lower fees? It’s a decision that marketing managers, business owners, and eCommerce entrepreneurs wrestle with.

In this guide, we’ll compare Stripe vs PayPal to help you determine which is superior because, trust us, there is one!

PayPal vs Stripe: A Quick Comparison

1. Pricing & Transaction Fees

Both PayPal and Stripe charge 2.9% + $0.30 per transaction for domestic payments, but international payments and currency conversions can make a big difference.

• PayPal: While it has the same base rate, it adds additional fees for international commercial transactions (usually around 4.5%) and currency conversions, making it expensive for global businesses.
• Stripe: Charges lower international processing fees, and businesses dealing with multi-currency payments pay less in conversion fees compared to PayPal.

Winner: Stripe 🔥

It is the more cost-effective option for international transactions due to its lower processing and monthly fees.

2. User Experience

A great checkout experience means fewer abandoned carts and more happy customers. Here’s how PayPal and Stripe stack up when it comes to usability and flow:

PayPal

• Easy setup: Quick to integrate with WooCommerce.
• Redirects customers to PayPal’s site instead of an on-site checkout option.
• Limited branding: PayPal controls the checkout page, which reduces the customisation options.
• Strong BNPL options: PayPal Credit and Pay Later can increase sales for big purchases.
• Extra steps for new users: Non-PayPal users may need to create a PayPal account.

Stripe

• On-site checkout: No redirects, making payments faster and easier.
• More payment options: Supports Apple Pay, Google Pay, Samsung Pay, Klarna, and Afterpay.
• Fully customisable: Checkout can match your brand for a more professional look.
• Requires setup: More technical compared to PayPal but offers greater flexibility.
• Fewer cart abandonment: A frictionless payment flow improves conversions.

Winner: Stripe 🥇

Stripe wins because of a frictionless, professional checkout.

3. WooCommerce Integration

When it comes to WooCommerce, the right payment processor can make quite a difference. While both Stripe and PayPal offer official WooCommerce plugins, they differ in ease of setup, customisation, and overall performance.

Paypal

PayPal is one of the easiest payment gateways to integrate with WooCommerce, so much so that it installs seamlessly with a free plugin.

• WooCommerce PayPal Payments makes the integration extremely easy
• Connects in minutes. Simply enter your PayPal email and API credentials.
• Supports basic transactions. Works well for one-time payments.
• Redirects customers away from your site as the checkout happens on PayPal’s website.
• Limited customisation. The checkout page is PayPal-branded with little control over design.

Stripe

Stripe provides a deeper WooCommerce integration and keeps the checkout process fully on-site. While it requires a separate plugin, the result is a faster and more seamless checkout.

• Requires the official WooCommerce Stripe plugin, but it is free and easy to install.
• On-site checkout is available. Customers complete their payment details directly on your WooCommerce store.
• Supports multiple payment methods. Works with credit cards payments, Apple Pay, Google Pay, and more.
• Works with WooCommerce Subscriptions & Marketplaces and no extra plugins needed for recurring payments or multi-vendor setups.

Winner: Stripe 🌟

Stripe offers a cleaner, more efficient integration with WooCommerce.

4. API Flexibility

The Stripe API was built for developers from day one. That’s why it still sets the standard for API flexibility. The API allows:

• Seamless checkout on-site
• Built-in automation for instant refunds and smart invoicing
• Works for any business model

PayPal’s API has improved massively over the years. It is far better than before with some of the structure and documentation style borrowed from Stripe. However, it still comes with some limitations:

• Rigid checkout flow
• More workarounds needed for advanced features like subscriptions and multi-vendor payments
• Less developer-friendly

Winner: Stripe 💡

Stripe gives businesses complete control over their checkout options.

5. Recurring Payments

Subscriptions and recurring billing are big business. Whether you’re running a membership site, SaaS product, or subscription box, you need a payment system that works seamlessly in the background.

PayPal does the job, but it’s far from perfect. Customers paying with PayPal often get taken off your site to manage their subscription, which disrupts the experience. Similarly, while you can set up subscriptions, modifying them later (like changing plans or offering discounts) is clunky.

Stripe, on the other hand, is built for subscriptions and recurring revenue models. It gives businesses total control over billing cycles, pricing adjustments, and automation. It offers free trials, prorated charges, upgrades, and downgrades without needing extra plugins. It even automates failed payment retries so as to keep your subscribers active.

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Winner: Stripe 👑

This one’s a no brainer. Stripe is obviously better as it makes recurring payments seamless, automated, and customisable.

6. Security

As more people turn to online platforms to shop, pay bills, and send money, they increasingly rely on digital payment systems to protect sensitive data from fraud and cyberattacks.

To ensure trust and security, both of these payment platforms adhere to strict regulatory guidelines, encryption methods, and implement fraud detection systems.

PayPal

PayPal, a globally recognised payment service, has invested heavily in securing online transactions and protecting user information.

By complying with Australian guidelines such as the Payment Card Industry Data Security Standard (PCI DSS), PayPal ensures that financial data is encrypted, safeguarded, and processed in line with the security requirements.

Other security features of Paypal include:

• SSL encryption to securely transmit user and payment data
• PCI DSS standards and AUSTRAC requirements for secure financial transactions
• Buyer Protection Program that reimburses customers for unauthorised transactions or undelivered items
• Two-factor authentication (2FA) for sensitive actions

Stripe

In a similar way to PayPal, Stripe also implements advanced security measures to protect WooCommerce stores from fraud and data breaches.

Stripe has a specific security feature called Radar which provides real-time fraud protection without any additional development time. Radar scans payment using thousands of signals before the fraud even hits the business.

Security features of Stripe are:

• Stripe is PCI-DSS Level 1 certified, ensuring the highest security standards for processing payments.
• 3D Secure Authentication (3DS 2.0) adds an extra layer of authentication for transactions to prevent unauthorised Stripe payments.
• Restricts access to sensitive payment data based on user roles
• Ensures compliance with PSD2 regulations by requiring two-factor authentication for payments.

• Stripe is PCI-DSS Level 1 certified, ensuring the highest security standards for processing payments.

Winner: Stripe 🎉

AI-powered Stripe Radar lifts it just above PayPal by providing real-life fraud protection before it even reaches the website.

7. Marketplace Support

If you’re running a marketplace where multiple vendors sell products or services, choosing the payment gateway that supports multiple vendors is essential. Factors like payout options, customisation and flat and transparent fees are important while making the decision.

PayPal

PayPal offers PayPal Commerce Platform, which is designed for marketplaces, platforms, and multi-vendor stores. It comes with the following features:

• Managed Payouts: PayPal allows you to split payments between multiple sellers easily.
• Seller Onboarding: Sellers can link their PayPal business accounts for direct payouts.
• Global Reach: Supports multiple currencies and is widely accepted.
• Transaction Fees: Fees vary by country but are generally higher than Stripe.
• Regulatory Compliance: Built-in compliance with financial regulations.

Stripe

Stripe also has a platform called Stripe Connect which is superior to PayPal Commerce Platform because it is API-based and has advanced customisation options. Other important features include:

• Customisable Payouts: Choose when and how to pay vendors.
• Seamless Onboarding: Fully integrated onboarding for vendors without requiring a separate Stripe account.
• Lower Fees: More competitive pricing than PayPal.
• Instant or Delayed Payouts: Schedule payments based on business needs.
• Strong Compliance: Handles tax reporting, KYC (Know Your Customer), and global regulations.

Winner: Stripe 💎

With advanced customisation options and lower fees, Stripe wins over PayPal here as well.

8. Brand Recognition

When it comes to online payments, trust is everything. Customers are more likely to complete a purchase if they recognise and trust the payment provider.

In the case of PayPal, it is a household name and one of the most recognised payment platforms worldwide.

PayPal Brand Awareness & User Base

Stripe, in turn, is a developer-focused powerhouse that is highly regarded among businesses and startups.

Stripe Brand Awareness & User Base

Winner: PayPal 🏆

PayPal wins this one thanks to its branding as a consumer-trusted payment option over a longer period of time. Since people trust PayPal, it increases their confidence at checkout.

Verdict: Stripe is The Way To Go

When it comes down to flexibility, cost-effectiveness, and user experience, Stripe outshines PayPal in almost every way.

While PayPal is a trusted name with broad consumer recognition, Stripe delivers better pricing, smoother checkout flows, deeper WooCommerce integration, and superior customisation.

That said, PayPal still makes sense if your audience strongly prefers it or if you rely on its brand trust to boost conversions. For businesses that cater to casual shoppers or those who prefer Buy Now, Pay Later (BNPL) options, PayPal’s familiarity can be an advantage.

But if you’re building a streamlined, high-converting, and future-proof WooCommerce store, Stripe is the way to go.

Create a High-Performing WooCommerce Store with Our Expertise

At WP Creative, we don’t just build WooCommerce stores, we craft high-performing, conversion-focused eCommerce experiences that drive results. With over a decade of expertise in WordPress development, we have helped countless businesses across Australia scale their online stores.

Our team consists of expert WooCommerce developers, recognised among the leading WordPress specialists in Australia. Whether you need a fully customised WooCommerce solution, better payment integrations, or ongoing support, we tailor our approach to meet your unique business needs.

Let’s build a WooCommerce store that works as hard as you do. Get in touch with us today.

Get Your Free Website Audit

($3,000 Value)

• Uncover performance issues
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