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Choosing the best payment gateway for your ecommerce business

Paypal versus Stripe

Choosing the best payment gateway for your ecommerce business

Currently, Paypal and Stripe are the leading payment gateways for ecommerce websites. Both integrate very well with our ecommerce websites, but which one is better? This post will explore the advantages and disadvantages or both Paypal and Stripe so that you can work out which one will work best for your business.


With over 277 million active accounts and 7 million Australian accounts, Paypal is the market leader in digital payment platforms. The biggest downside to Paypal is that it has higher fees but with its advantages and convenience it can still be a good fit for your business:

  • Trusted by consumers & high brand recognition: everyone who shops online knows about Paypal and / or has a Paypal account to make purchases online.
  • Flat rate pricing: Domestic 2.6% + $0.30, International 3.6% + fixed fee
  • Ideal for low-volume merchants
  • All-in-one payments system
  • User friendly: everything is easy to find and there are a lot of options / functionality which you can use.
  • Extensive integrations

Some Paypal disadvantages are:

  • Some customers have had bad experiences with Paypal and so will refuse to use it.
  • Customer support can be inconsistent
  • Manual funds transfer into your bank account
  • Higher fees


Stripe has been growing in popularity exponentially over the last couple of years. With its lower fees it is a no-brainer for most businesses. Stripe simply uses your credit card with no account required so it is nice and simple for customers to use.

  • Flat rate pricing: Domestic 1.75% + $0.30, International 2.9% + $0.30 (+2% conversion fee)
  • Advanced reporting tools
  • Excellent marketplace tools
  • Excellent subscription tools
  • Funds are automatically deposited into your bank account
  • Multi-currency support

Some Stripe disadvantages are:

  • Not as user friendly as Paypal
  • Not as much brand recognition as Paypal

Comparison: Paypal versus Stripe


  • 2.6% + $0.30 per domestic sale
  • No set-up or cancellation fees
  • Works with recurring subscriptions
  • Payment Card Industry (PCI) compliant security standards
  • Protected sales (Seller Protection policy)
  • Accept MasterCard, Visa and American Express cards and PayPal Payments
  • Customer Service & Technical Support
  • Partial or full refund functionality
  • User friendly

Sign up now for Paypal


  • 1.75% + $0.30 for domestic cards
  • No setup fees, monthly fees, or hidden fees
  • Works with recurring subscriptions
  • Payment Card Industry (PCI) compliant security standards
  • 24×7 phone, chat, and email support
  • Built in machine learning fraud prevention
  • Partial or full refund functionality
  • Multi-currency support

Sign up now for Stripe

Ideally, the more options you offer your customers the better. But in terms of choosing the most optimal payment gateway for your business, you need to decide on what is most important; lower fees, convenience, support?

I hope this post will give you a better insight into what payment gateway will work best for you and your business.

Picture of Carly Murray
Carly Murray
Don’t let her quiet persona fool you! Carly is the creative assassin of digital design. Leaving no div open, she executes her coding with deadly accuracy, giving her designs bulletproof functionality. Having worked in agencies around the globe Carly has brought her talent and expertise to the front-line of the Mediamojo web and graphic design team Noosa. We’re just glad she’s on our side!

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