Stripe vs PayPal: the ultimate 2025 comparison guide for online payments

The payment platform you use shapes how customers experience your business and how easily you can grow. With online transactions now central to most operations, finding the right tool matters more than ever.

Stripe and PayPal are two of the most recognisable options on the market. Stripe appeals to fast-scaling businesses that need flexibility and control. PayPal is trusted by millions for its ease of use and global recognition, especially among freelancers and small sellers.

This guide compares Stripe vs Paypal in-depth, covering fees, features, setup, and suitability. It also explores how Airwallex stacks up as a modern, international-ready alternative.

What is Stripe?

Stripe is a payment platform built for developers and fast-growing digital businesses. Launched in 2010, it provides highly customisable tools for processing online payments, managing subscriptions, and scaling global operations. Stripe supports over 135 currencies and integrates with hundreds of platforms.

Key features include:

• Developer-first APIs for custom payment workflows

• No-code checkout options

• Multi-currency and local payment method support

• Settlements in AUD, USD or NZD

• Subscription billing and invoicing tools

• Fraud protection via Stripe Radar

• Integrations with Shopify, WooCommerce, NetSuite, and more

Stripe is ideal for online businesses that require full control over the payment experience and have access to development resources.

What is PayPal?

PayPal is one of the most widely recognised online payment platforms globally. Founded in 1998, it allows users to pay and get paid using a PayPal account, debit or credit cards, or bank transfers. PayPal is popular among small businesses, freelancers, and consumers thanks to its simplicity and brand trust.

Key features include:

• Instant payment acceptance via PayPal accounts

• Checkout buttons and hosted payment pages

• Seller protection and dispute resolution

• One-touch payments and PayPal Pay in 4

• Integrations with eBay, Etsy, BigCommerce, and more

PayPal is widely adopted by individuals and businesses looking for an out-of-the-box, ready-to-use payment system with minimal setup.

Stripe vs PayPal: a head-to-head comparison

Data current as of July 2025

Stripe fees explained

Stripe charges Australian businesses 1.7% + A$0.30 per domestic card transaction and 3.5% + A$0.30 per international card transaction. If currency conversion is required, Stripe adds a 2% FX fee. Add-ons such as Billing, Connect, and advanced fraud protection may also attract extra charges.

Examples:

• A$100 domestic card: 1.7% + A$0.30 = A$2.00 fee

• A$100 international card: 3.5% + A$0.30 = A$3.80 fee (plus FX if applicable)

PayPal fees explained

PayPal uses a more layered fee structure. For Australian merchants:

• 2.9% + A$0.30 per domestic card or PayPal payment

• 4% + fixed fee for international payments (varies by country)

• 3% above the base exchange rate for currency conversion

PayPal also charges for chargebacks, disputes, and in some cases, withdrawal fees depending on the account type and region.

Stripe vs PayPal fees compared

Who is Stripe best for?

Stripe is best for:

• Digital-first businesses and startups

• SaaS platforms and subscription models

• Companies with global customers

• Teams with developers building custom workflows

• Businesses using no-code tools like Payment Links or hosted Checkout

• Sellers with in-person POS needs using Stripe Terminal (e.g. small shops, markets, mobile services)

Stripe combines powerful developer tools with ready-to-go solutions. Businesses can build complex flows like recurring billing or marketplace payouts or get started quickly with tools like hosted Checkout. Stripe Terminal also supports in-person payments with Tap to Pay and card readers, making it easy to manage both online and offline sales in one place.

Who is PayPal best for?

PayPal suits:

• Online-only businesses

• Freelancers and sole traders

• Nonprofits and casual online sellers

• eBay, Etsy, or marketplace users

• Businesses prioritising ease of setup over deep customisation

Its strong buyer and seller protections make PayPal popular among lower-volume sellers and small businesses. Unlike Stripe, PayPal does not offer its own physical POS terminal, so it’s best suited to businesses operating entirely online.

Beyond the basics: key differences between Stripe and PayPal

The core differences between Stripe vs PayPal become clearer when comparing flexibility, fees, and how customers interact with your checkout flow. Apart from Stripe's pre-built payment forms and Payment Links, Stripe is built for developers and companies that want to customise every step of the transaction. PayPal is more plug-and-play, making it faster to get started but less adaptable in the long term.

Customisation vs convenience: Stripe allows full control over branding and checkout logic. It supports headless checkout flows and deep integration across platforms. PayPal offers faster setup with hosted buttons and preset forms, but has less control over the user experience.

Fees and FX: Stripe is more consistent with its pricing. PayPal often charges higher transaction and conversion fees, especially for cross-border payments. For businesses that operate globally, these small percentage differences can add up quickly.

Customer experience: Stripe enables on-site checkout that keeps customers on your domain throughout. PayPal may redirect users to log in or complete their payment off-site, which can interrupt the flow and lower conversion rates.

Use cases: Stripe is ideal for SaaS companies, marketplaces, and businesses managing subscriptions or platform payments. PayPal is better suited for casual or one-time payment needs, such as peer-to-peer transfers, infrequent retail transactions, or low-volume sales. It's also commonly used by sellers who prioritise buyer protection.

Safety: Both Stripe and PayPal are PCI DSS Level 1 certified and use encryption, tokenisation, and real-time fraud tools. Stripe offers Radar for custom fraud protection, while PayPal includes 24/7 monitoring and buyer/seller protection.

Customer support: Stripe offers 24/7 email, phone, and chat support for all users, with priority access available for premium customers. PayPal provides support via phone and chat, but response times may vary. PayPal also has a large self-help knowledge base and community forums, which are helpful but less direct than Stripe’s developer-focused support.

Online/Remote Payment options: Stripe supports a wide range of online and remote payment options, including one-time payments, subscriptions, payment links, and invoicing via integrations. PayPal enables online checkouts through buttons, PayPal.me links, and peer-to-peer transfers. Both platforms support major debit/credit cards and local payment methods, with PayPal offering direct account-to-account options as well.

Understanding these differences can help clarify which platform aligns best with your growth strategy and day-to-day operations.

Why Airwallex is a powerful alternative (and how we compare)

Airwallex is a global financial platform built to support businesses with international reach. While Stripe and PayPal are widely used for online payments, Airwallex goes further by offering an integrated suite of tools that make managing global payments, foreign exchange, multi-currency accounts, and expenses simpler and more cost-effective.

Key benefits of using Airwallex:

• Like-for-like settlement in 14+ currencies: Accept and hold payments in the same currency your customers use – without forced conversions or hidden FX fees. Funds are deposited directly into your multi-currency wallet, removing the need for multiple foreign currency bank accounts.

• Fast global account setup: Open domestic and international currency accounts in minutes and accept payments in 60+ currencies.

• Local account details in 70+ countries: Operate as a local business across international markets with unique local bank details.

• Real-time FX rates: Access interbank rates for 90+ currencies and live pricing on 100+ currencies through the spot market.

• Lower FX costs: Businesses can save up to 80% on foreign exchange fees compared to traditional banks and legacy platforms.

• Efficient global payouts: Send money to over 200 countries. Over 90% of transactions use local rails (instead of SWIFT), with 95% settling on the same day or faster, and around 52% processed instantly.

• Complete global finance platform: Manage everything in one place – from multi-currency accounts and FX to virtual cards and expense controls.

Airwallex is a great fit if:

• You want to eliminate double currency conversions and reduce FX fees

• You need to receive and hold multiple currencies in one place

• Your business sells internationally and depends on fast, low-cost cross-border payments

• You're looking for a unified platform to manage your global financial operations

Final verdict: choosing the right solution for your business

Stripe and PayPal are both trusted platforms with distinct strengths. Stripe is highly customisable and well-suited to global businesses needing advanced developer tools. PayPal offers speed and brand familiarity, which can be invaluable for sole traders and lower-volume sellers.

But if you're a business looking to lower FX costs, access multi-currency accounts, and bring your financial tools under one roof, Airwallex offers a purpose-built alternative. It's built for scale, transparency, and international reach.

Stripe vs PayPal: frequently asked questions

Is Stripe better than PayPal?

Stripe is better suited for businesses with development teams, complex billing needs, or global operations. PayPal is simpler to set up and trusted by consumers, but less customisable. Stripe typically offers better transparency and lower international fees.

Does Stripe work in Australia?

Yes, Stripe works in Australia and is widely used for online payments, subscriptions, and platform-based commerce. It supports AUD and integrates with local banks and payment systems. If you’re comparing PayPal vs Stripe in Australia, Stripe offers more developer flexibility and modern checkout flows.

What are the disadvantages of Stripe?

Some of Stripe’s advanced features can be complex for non-technical teams to implement. While Stripe offers no-code invoicing tools, it may still feel less accessible for businesses that need simple, plug-and-play options. It also doesn’t support peer-to-peer transfers, and businesses processing small volumes or seeking buyer protection may find PayPal a better fit.

Does Stripe hold your money like PayPal?

No, Stripe typically releases funds to your bank on a rolling schedule between 2 to 7 days. Unlike PayPal, it rarely holds funds unless there is a dispute or risk issue. This makes Stripe more predictable for cash flow management when weighing up PayPal vs Stripe fees.

Sources

https://stripe.com/au/pricing

https://www.paypal.com/au/digital-wallet/paypal-consumer-fees