Stripe payment guide: How Hong Kong online stores can collect payments with Stripe

To run a successful eCommerce business, an online payment gateway is essential for accepting payments from customers. Stripe offers a payment gateway that plugs into your eCommerce store. How does Stripe perform in terms of its features and fee structure, especially when compared to alternatives like Airwallex? Continue reading for a comprehensive guide to Stripe, its associated fees, and a direct comparison with Airwallex to help you determine the best fit for your business.

What is Stripe?

Stripe is an online payment platform adopted by eCommerce stores, SaaS companies, and startups. With its flexible APIs, merchants can integrate payment processing, manage subscriptions and billing, and streamline cash flow in multiple markets. 

Currently, Stripe is available in 46 countries and regions, supports over 135 currencies, and offers multiple local and international payment methods, including credit cards, debit cards, Apple Pay, Google Pay, Klarna, and digital wallets.

Is Stripe suitable for Hong Kong businesses?

Stripe offers several payment processing features. First, Stripe supports a number of payment methods and currencies, enabling merchants to accept international payments while displaying the appropriate currency and language based on the user’s location. 

Second, Stripe’s built-in subscription and auto-billing features make it suitable for businesses offering membership services or monthly products. 

On the operations side, Stripe’s API structure supports major eCommerce platforms like Shopify and Wix, and is also suitable for custom-built websites.

Stripe’s pricing model

Stripe uses a pay-per-transaction model with no setup or monthly fees, making it a flexible option for startups and agile eCommerce businesses. Below is an overview of Stripe’s main transaction fees in Hong Kong:

Businesses should note that if a customer requests a refund, Stripe does not charge an additional fee, however, the original transaction fee will not be refunded. 

Hidden fees and cost-saving tips for Hong Kong merchants

For Hong Kong merchants, currency conversion fees are one of the most common but easily overlooked cross-border costs. When a customer pays in a non-HKD currency and the business chooses to settle in HKD, Stripe automatically performs the conversion and charges a 2% FX fee. If your business serves overseas customers, consider setting up settlement accounts in their local currencies to avoid unnecessary conversion charges. Online merchants should also be aware of international card surcharges. Stripe applies an additional 0.5% fee on payments made with cards issued outside Hong Kong. 

What payment methods does Stripe support?

• Credit and debit cards: Stripe supports credit and debit cards, including major networks like Visa, Mastercard, American Express, and JCB. It also enables 3D Secure authentication (e.g. Visa Secure, Mastercard Identity Check) to help ensure transaction security. 

• Digital wallets (Apple Pay, Google Pay, etc): Digital wallets have become a go-to payment method for some. Stripe supports popular options like Apple Pay and Google Pay, helping to streamline the checkout experience and reduce drop-off. 

• Other international payment methods: Stripe also offers support for regional payment solutions such as Giropay (Germany), SEPA Direct Debit (EU), and ACH (US bank transfers).

Alternatives to Stripe: A comparison of payment platforms

Depending on your business needs, customer regions, and settlement preferences, platforms like PayPal and Airwallex each offer distinct advantages worth comparing in detail.

Airwallex: The all-in-one financial payment solution for eCommerce

As an alternative to Stripe, Airwallex offers an all-in-one financial and payments platform for eCommerce to effectively boost conversion rates.

• Multi-currency, and multiple payment methods supported: With support for 130+ currencies and 160+ major payment methods like credit cards, bank transfers, and Buy Now, Pay Later, businesses can offer a localised checkout experience that improves conversion rates and customer satisfaction.

• Flexible integrations: Airwallex gives businesses the flexibility to choose how they collect payments, whether by embedding the checkout directly into their website or generating one-click Payment Links within minutes to share with customers.

• Like-for-like settlement supported: Airwallex supports like-for-like settlement in 11+ currencies. eCommerce merchants can effectively avoid forced conversions and the associated fees when collecting overseas payments.

• Competitive FX rates and transparent pricing: With Airwallex, Hong Kong merchants can receive payments in multiple currencies just like a local business, without needing to open overseas bank accounts.  Airwallex offers competitive rates, with FX fees starting from just 0.2% above the interbank rate, helping businesses save up to 80% on foreign exchange.

• Global payment rails and integrated financial workflows: Airwallex’s international payout network spans 200+ countries, with over 90% of payments processed via local rails and around 95% arriving within hours or the same day. Businesses can manage payouts to suppliers, overseas staff, and platforms through a single dashboard, with batch scheduling and reconciliation tools.

Sign up for Airwallex Payments today to expand globally with confidence.

Frequently asked questions

1. Is Stripe secure?

Yes. Stripe uses bank-level encryption and complies with PCI DSS Level 1 security standards. It also comes with built-in fraud detection tools (Radar) to help safeguard transactions and customer data.

2. What are some potential limitations Hong Kong merchants might face when using Stripe?

Hong Kong-based merchants may encounter several challenges when using Stripe:

• Technical complexity: Stripe’s flexible API structure may be difficult to navigate for users without a technical background.

• Payout delays: Withdrawals can take up to seven business days, which may affect cash flow.

• Limited local payment options: Stripe currently does not support some popular local methods like FPS, so merchants may need to integrate additional tools to cater to domestic customers.

Sources: 

Information on Stripe was retrieved as of July 2024, from the sources below. Information provided is for reference only. Please refer to the official website of Stripe for the most up-to-date details

1. https://stripe.com/zh-hk/pricing

2. https://docs.stripe.com/payments

3. https://www.paypal.com/hk/business/paypal-business-fees?locale.x=zh_HK#additional-percentage

4. https://wise.com/hk/send-money/

5. https://docs.stripe.com/security?locale=zh-CN

Disclaimer: The information was based on our own online research and we were not able to manually test each tool or provider. The information is provided for educational purposes only and a reader should consider the specific requirements of their business when evaluating providers. This research is reviewed every 6 months. If you would like to request an update, feel free to contact us at [email protected].