Stripe vs PayPal: Which Takes Less of Your Money
Both take a cut of every sale but in different ways. A plain comparison of Stripe's 2.9% + $0.30 vs PayPal's fees, plus when each wins.
Direct answer
Stripe charges 2.9% plus $0.30 per successful US card payment. PayPal charges 3.49% plus $0.49 for US goods and services. Stripe is cheaper per sale at typical amounts; PayPal wins on instant buyer familiarity and no setup. Pick Stripe if you sell through your own site, PayPal if buyers expect that button.
The problem
Owners add one payment processor without comparing. Then they realize a half-point difference on hundreds of sales adds up to real money. The right choice depends on where you sell, not on which name sounds familiar.
Why it happens
Both companies pay the same card networks, so their base rates sit close. Stripe's lower percentage reflects its focus on developers and direct integration. PayPal's higher flat fee reflects its consumer brand and buyer protection. Neither is 'wrong' — they're built for different checkout moments.
The solution
- 1
Know both base rates
Stripe: 2.9% + $0.30. PayPal: 3.49% + $0.49 (US goods & services). On a $100 sale, Stripe leaves you $96.80 and PayPal leaves $96.02 — a $0.78 gap that widens as volume grows.
- 2
Compare at your real average order
Run your own number. At a $40 average order, Stripe keeps $1.46 and PayPal keeps $1.88. At $500, Stripe keeps $14.80 and PayPal keeps $17.45. The gap is bigger on larger sales.
- 3
Match the processor to where you sell
Selling on your own website or app? Stripe integrates cleanly and costs less. Selling to buyers who already trust the PayPal button, or on marketplaces? PayPal reduces checkout friction. Many businesses offer both.
- 4
Watch the add-on fees
Neither base rate covers everything. International cards, currency conversion, chargebacks, and subscriptions each add cost on both platforms. Read the fee schedule for your specific use before committing.
Summary
- •Stripe: 2.9% + $0.30. PayPal: 3.49% + $0.49 (US).
- •Stripe is cheaper per sale at typical order sizes.
- •PayPal wins on buyer familiarity and fast setup.
- •Offer both if your buyers expect options.