PayPal vs Stripe

Fees, tax handling, payouts and coverage side by side, plus how many verified RevMRR startups use each.

The short version

Neither is a merchant of record, so with either one you register for and remit sales tax and VAT yourself.
On the standard published rate, PayPal (2.89% + $0.29) is cheaper per transaction than Stripe (2.9% + $0.30).
Pick PayPal for: international merchants and businesses that want maximum buyer reach — the PayPal and Venmo buttons convert buyers who will not type in a card number, and the platform covers invoicing, BNPL, and POS without extra vendors..
Pick Stripe for: online-first businesses — SaaS, ecommerce, subscriptions, marketplaces — with access to developer talent, and any company selling internationally that needs multi-currency support and rich analytics..

RevMRR Score	B72	B74
Type	Payment Processor	Payment Processor
Standard fee	2.89% + $0.29	2.9% + $0.30
Monthly fee	$0	None
Merchant of record	No	No
Sales tax / VAT	You handle it	Paid add-on
Subscriptions	Supported	Supported
Payouts	1-3 business days (standard bank transfer)	First payout 7-14 days; then a rolling schedule…
Who can sign up	Founded in 1998, based in 2211 North First Street, San Jose, CA 95131, USA	Founded in 2010, based in San Francisco, CA
Payment methods	Cards, Apple Pay, Google Pay, Local Payment Methods	Cards, Apple Pay, Google Pay, Local Payment Methods
Best for	International merchants and businesses that want maximum buyer reach — the PayPal and Venmo buttons convert buyers who will not type in a card number, and the platform covers invoicing, BNPL, and POS without extra vendors.	Online-first businesses — SaaS, ecommerce, subscriptions, marketplaces — with access to developer talent, and any company selling internationally that needs multi-currency support and rich analytics.
Used on RevMRR	0 verified startups	0 verified startups

PayPal

PayPal is the reach play: a globally trusted checkout button, an enormous feature set, and pay-as-you-go terms with no monthly fee. It earns its A- because the platform genuinely delivers for merchants — but pricing transparency is middling, the fee table takes real effort to decode, and the volume of complaints about holds and dispute handling is too consistent to dismiss. Use it for the conversion lift; keep a second processor if a balance freeze would hurt.

+ Global reach and a brand buyers already trust, which measurably helps checkout conversion
+ Very wide feature set: checkout, BNPL, invoicing, payouts, POS, and multi-currency in one account
+ No monthly fee, setup fee, or contract for standard pay-as-you-go accounts
+ Strong developer tools and integrations across Shopify, WooCommerce, BigCommerce, and most major platforms
+ Instant transfers available in up to 30 minutes when you need funds fast
– Account holds, limitations, and dispute outcomes are the dominant complaint themes across BBB and Trustpilot
– Fee structure is genuinely confusing — rates differ by product, region, wallet vs. card, and currency
– A 1.50% cross-border fee and a 4.00% currency conversion spread make international volume pricier than the headline rate
– Wallet checkout at 3.49% plus a fixed fee is expensive relative to direct card processing

PayPal pricing ↗

Stripe

Stripe earns its A grade: transparent flat-rate pricing with no fixed fees, an unmatched developer platform, and product breadth that covers everything from subscriptions to marketplace payouts. The honest caveats are the 7-14 day first payout, the possibility of holds while underwriting catches up with instant onboarding, and pricing that stops being a bargain at serious volume until you negotiate custom rates.

+ Best-in-class developer experience: clean APIs, SDKs, and documentation that set the industry standard
+ Transparent flat-rate pricing with no monthly, setup, PCI, or statement fees
+ Global reach with broad payment-method and multi-currency support
+ Deep feature set — subscriptions, invoicing, marketplace tools, virtual terminal — on one platform
+ No contract or early-termination fee on standard pay-as-you-go service
– First payout takes 7-14 days, and new or unusual accounts can face holds and verification friction
– Flat-rate 2.9% + $0.30 gets expensive at volume compared with negotiated interchange-plus pricing
– Complex for non-technical users — much of the value assumes you will build on the API
– Prohibits many high-risk categories and is not available in every country

Stripe pricing ↗