Choosing the right payment gateway is one of the most important decisions for online businesses. Stripe, PayPal, and WooCommerce Payments dominate the market, but each has strengths and limitations.
In this guide, we’ll break down the differences in fees, features, global support, and ease of use so you can decide which works best for your store.
Stripe Overview
Stripe is a developer-friendly payment processor designed for online businesses and startups. It supports 135+ currencies, integrates with thousands of platforms, and offers advanced tools like subscriptions, invoicing, and fraud prevention.
Pros:
- Wide global reach (135+ currencies).
- Excellent API and customization.
- Supports recurring payments and subscriptions.
Cons:
- Requires technical setup for advanced features.
- Payout times may vary by region.
PayPal Overview
PayPal is one of the most recognized payment brands worldwide. With over 400 million users, it’s trusted by consumers, making it a powerful conversion tool.
Pros:
- Instant brand trust with buyers.
- One-click checkout with PayPal buttons.
- Buyer protection increases confidence.
Cons:
- Higher fees compared to Stripe and WooCommerce Payments.
- Funds may be held due to risk reviews.
- Less flexible for developers.
WooCommerce Payments Overview
WooCommerce Payments (powered by Stripe) is a payment gateway built directly into WooCommerce. It allows store owners to manage transactions without leaving WordPress.
Pros:
- Seamless integration with WooCommerce.
- Unified dashboard for orders and payments.
- Supports multi-currency and subscriptions.
Cons:
- Limited to WooCommerce stores.
- Available in fewer countries than Stripe or PayPal.
Fee Comparison
| Gateway | Transaction Fees (US) | International Fees | Payout Speed |
|---|---|---|---|
| Stripe | 2.9% + $0.30 per transaction | +1% for currency conversion | 2–7 days |
| PayPal | 3.49% + $0.49 per transaction | 4.99% cross-border + conversion | Instant (fees apply) |
| WooCommerce Payments | 2.9% + $0.30 per transaction | +1% for currency conversion | 2–5 days |
Global Availability
- Stripe → Available in 45+ countries.
- PayPal → Available in 200+ countries.
- WooCommerce Payments → Limited to select regions but expanding.
Ease of Use
- Stripe: Great for developers and businesses needing flexibility.
- PayPal: Best for instant trust and buyer confidence.
- WooCommerce Payments: Best for WooCommerce store owners who want simplicity.
Which One Should You Choose?
- Choose Stripe if you’re a tech-savvy business needing global flexibility and advanced features.
- Choose PayPal if you want brand trust and fast checkout.
- Choose WooCommerce Payments if you run a WooCommerce store and want a built-in solution.
For many businesses, the best strategy is using both Stripe and PayPal to maximize conversions and customer choice.
Frequently Asked Questions
Which is better: Stripe or PayPal?
Stripe is better for businesses that need flexibility, subscriptions, and developer tools, while PayPal is better for customer trust and quick checkout.
Does WooCommerce Payments use Stripe?
Yes, WooCommerce Payments is powered by Stripe but optimized for WooCommerce stores with a built-in dashboard.
Which payment gateway has the lowest fees?
WooCommerce Payments and Stripe generally have lower fees than PayPal, especially for domestic transactions.
Can I use Stripe and PayPal together?
Yes, many businesses use both Stripe and PayPal to give customers more payment options and improve conversion rates.