PayPal vs Stripe: Which Should You Choose in 2026?
Stripe and PayPal are the two payment giants, but they serve different masters. Stripe is developer-first, built for businesses integrating payments into apps and websites. PayPal is consumer-first, built on the trust of 400 million accounts who already have PayPal. Many businesses use both—Stripe for core processing, PayPal as a checkout option customers want.
By Toolradar Team · Last updated February 28, 2026 · Methodology
Short on time? Here's the quick answer
We've tested both tools. Here's who should pick what:
PayPal
The original online payment system, still everywhere
Best for you if:
- • You want to try before committing
- • You need invoicing features specifically
- • PayPal is a global payment platform for online transactions
- • It enables payments, invoicing, and checkout for businesses worldwide
Stripe
Payment infrastructure for the internet
Best for you if:
- • You want the higher-rated option (9.4/10 vs 8.0/10)
- • You need api tools features specifically
- • Payment processing for internet businesses
- • Subscription and billing tools
| At a Glance |  PayPal |  Stripe |
|---|---|---|
Price | Free + Paid | Paid |
Best For | Invoicing | API Tools |
Rating | 80/100 | 94/100 |
| Feature | PayPal | Stripe |
|---|---|---|
| Pricing Model | Freemium | Paid |
| Editorial Score | 80 | 94 |
| Community Rating | No ratings yet | No ratings yet |
| Total Reviews | 0 | 0 |
| Community Upvotes | 0 | 0 |
| Categories | InvoicingPayment Processing | API ToolsPayment Processing |
In-Depth Analysis
PayPal
Strengths
- +400M+ consumer accounts ready to pay
- +Trusted consumer brand
- +Easier no-code integration options
- +Better buyer protection reputation
- +Works without sharing card details
Weaknesses
- -Developer experience is inferior
- -Higher effective fees in some cases
- -Account holds and freezes are common complaints
- -APIs are older and less elegant
Best For
Businesses where offering PayPal as a payment option increases conversion. E-commerce stores, marketplaces, and any business where customers actively want PayPal checkout.
PayPal's power is its user base. 'Pay with PayPal' converts well because customers trust it and don't need to enter card details. Even businesses using Stripe for processing often add PayPal as a checkout option for this reason.
Stripe
Strengths
- +Best-in-class developer experience
- +Superior APIs and documentation
- +Better for subscriptions and SaaS
- +More customizable checkout
- +Excellent fraud prevention
Weaknesses
- -Customers must enter card details
- -Less consumer brand recognition
- -Requires more technical implementation
- -Support can be slow for small businesses
Best For
Online businesses, SaaS companies, marketplaces, and any company where payment integration quality matters. Developers building payment flows strongly prefer Stripe.
Stripe is the payment infrastructure companies want to build on. The APIs are a joy to use, documentation is excellent, and it handles complex scenarios (subscriptions, marketplaces, connect) better than PayPal. If you're technical enough to integrate it, Stripe is usually the better foundation.
Head-to-Head Comparison
Developer Experience
Stripe winsStripe's APIs, documentation, and developer tools are industry-leading. PayPal has improved but still feels dated. Developers strongly prefer Stripe.
Consumer Trust
PayPal winsPayPal's brand recognition and buyer protection build consumer trust. Many shoppers specifically look for PayPal checkout. Stripe is invisible to end users.
Subscription Billing
Stripe winsStripe Billing handles complex subscription scenarios elegantly—trials, metered billing, upgrades/downgrades. PayPal subscriptions work but are less flexible.
International Payments
TieBoth handle international payments well. PayPal has wider consumer adoption in some regions; Stripe has more payment method support. Evaluate for your specific markets.
Ease of Setup
PayPal winsPayPal's buttons and hosted checkout are easier to add without code. Stripe requires more technical implementation but offers more control. For non-developers, PayPal is simpler.
Fees
TieStandard fees are similar (~2.9% + $0.30). Actual costs depend on transaction types, volumes, chargebacks. Compare for your specific payment mix—neither is consistently cheaper.
Migration Considerations
Switching primary processors is straightforward for one-time payments—integrate new processor, route new transactions. Migrating subscriptions is complex—stored cards don't transfer. Most businesses don't fully switch; they use Stripe as primary processor while keeping PayPal as a payment option.
Who Should Use What?
On a budget?
PayPal has a free tier. Stripe is paid only.
Go with: PayPal
Want the highest-rated option?
PayPal: 80/100. Stripe: 94/100.
Go with: Stripe
Value user reviews?
Neither has user reviews yet.
Go with: Stripe
3 Questions to Help You Decide
What's your budget?
PayPal is freemium. Stripe is paid. PayPal lets you start free.
What's your use case?
PayPal is a invoicing tool. Stripe is in api tools. Pick the category that matches your needs.
How important are ratings?
Stripe scores higher: 94/100 vs 80/100.
Key Takeaways
Stripe
- Higher score: 94/100 vs 80
- Our pick for this comparison
PayPal
- Has a free tier
- Better fit for invoicing
The Bottom Line
The best answer is often both. Use Stripe as your primary payment infrastructure—it's better for building on. Offer PayPal as a checkout option to capture customers who prefer it. This combination maximizes conversion while building on solid infrastructure. If you must choose one: Stripe for SaaS and subscription businesses, PayPal if your customers specifically want it (common in e-commerce).
Frequently Asked Questions
Which has lower fees?
Standard rates are nearly identical (2.9% + 30 cents). Actual costs vary: Stripe has volume discounts for large businesses; PayPal charges more for international and currency conversion. Calculate based on your transaction mix.
Can I use both Stripe and PayPal?
Yes, and many businesses do. Stripe as primary processor, PayPal as a checkout option. This maximizes conversion by giving customers choice while building on Stripe's superior infrastructure.
Which is better for subscriptions?
Stripe, clearly. Stripe Billing handles complex subscription scenarios that PayPal struggles with—trials, usage-based billing, proration, revenue recognition. For SaaS businesses, Stripe is the standard choice.
Why do some businesses avoid PayPal?
PayPal is known for account holds and freezes that can lock up funds—especially for new or high-growth businesses. Stripe's approach to risk management is generally seen as more predictable. This reputation matters for cash-flow-sensitive businesses.