Ecommerce business is considered as the most successful business in the time of COVID-19 pandemic. People are staying at home with complete lockdown is implemented. They are buying stuff like groceries from their home to stay safe. Brands that are operating physical stores are moving to an online selling platform. Thus, to build an e-commerce store it is important to integrate a secure payment gateway to perform online transactions. Making the right selection between PayPal Vs Stripe is a challenge for sellers, but it is an important decision to make. So before investing in Magento development services have a look at the features of these two payment solutions and get ready to take your business to the next level.
PayPal and Stripe both are popular in the world of ecommerce development having millions of subscribers. There can be a long discussion on which one is better, and in this blog post, we have discussed major points of differences. This will help in making the right choice among the two payment solutions. Both platforms have their own set of pros and cons, that’s why the main decision mostly relies on business requirements.
Before we discuss which is better it is crucial to have a small introduction of both Gateways.
PayPal is a highly-popular payment solution allowing users to make and receive online payments. As per reports PayPal claims to have more than 500 million customer accounts, comprising over 50 million merchants across the globe. Nearly everyone has a PayPal account and it’s the most admired names in the Ecommerce payments.
Stripe is a renowned online payment service provider helping people to accept and send money over the web. This gateway is usually preferred by code-savvy people or online stores having in-house programmers all because of its remarkable development tools. It is mostly used in small businesses but popular brands including Pinterest, Lyft, Blue Apron, and TaskRabbit also use it.
We have mentioned the most important points of difference to help you make a smart decision while selecting a payment gateway for your Ecommerce brand.
1. Payment Modes
PayPal offers different modes of payments including:
• PayPal Credit
• Credit cards
• Debit cards
• Pay by telephone
A few modes are accessible only when a specific value is selected, so be cautious before you join.
On the other hand, Stripe has a wide array of the installment structures comprising:
• Credit cards
• Debit cards
• International cards
• AmEx Checkout
• Masterpass by MasterCard
• Visa Checkout
• WeChat Pay
• Apple Pay
• Google Pay
• ACH credit and charge
2. Global Reach
Make sure when you hire Magento 2 developers for the integration of Payment Gateway they have knowledge of the globally recommended gateway. Having a global reach helps to acquire buyers from around the world. PayPal can accept user payments in more than 200 countries while Stripe accepts payments in 25 countries. PayPal can handle only 25 currencies while Stripe can handle more than 135.
3. Customer Service
Customer service plays a vital role to make an ecommerce store a successful venture in a competitive world. PayPal directs the user to a knowledge desk and asks them to send an email that very often gets a proper reply. This whole process is time-consuming and makes it very challenging to find actual support. But Stripe offers a helpline to interact with a live person 24/7. That is pretty great and makes it a better choice. The real-time support service is highly useful when facing any payment delay or failure.
4. Ease of Use
Stripe and PayPal’s success depends on the features it offers to both customer and seller. The only difference which is observed from the customer end is that Stripe allows the customer to checkout through the seller’s webpage while PayPal redirects to the PayPal page. Another difference from the seller perspective is that PayPal is significantly easier to incorporate into an E-commerce website. There are extensions particularly developed for this process. The experts at Magento India can help you avail extensions from Magento Marketplace that help to incorporate payments into your site in an efficient manner. Stripe is tough to integrate and built for large corporate developers.
Fees needed to integrate these two popular payment gateways can grow up instantly. But an important point is that there is no difference between the two gateways regarding the transaction costs. Both charge above the amount paid if the merchant account is opened with the bank but it needs 3rd party payment gateway. The major difference that every user investing in Magento development must know is that PayPal has a fee of $20 for a chargeback while Stripe has a fee of $15 per chargeback.
So these are some major points on which you can select a better payment service for your business.
Frequently Asked Questions
1. Is Stripe the best payment gateway?
Stripe is one of the most used & powerful payment gateway solutions for the store merchants. Unlike Paypal, Stripe is not a payment method in itself, but acts as a solution to replace the traditional POS. It works as a backend solution allowing you to make the collections and payments in the online stores.
2. How do I setup a PayPal payment gateway?
The steps to integrate PayPal are:
• Log in to Create account.
• Click “Shop” from the Top Menu.
• Click “Shop Settings” on the left-hand menu.
• Click on “Payment Gateways”.
• Select the “Add New Gateway” button.
• Click on the “PayPal” logo.
3. How do I use Stripe payment gateway?
The steps to integrate the Stripe are:
• Create a Stripe account and login to get the API keys.
• Create a payment form to get the user’s card details.
4. Is PayPal the safest way to pay online?
PayPal is a safe payment gateway when used to send money. Nothing is actually risk-free and data breaches are possible anywhere. But PayPal has a high-standard of security and is a reputable company with focus on consumer protection to keep them relatively safe online.
It seems that both payment gateways are actually quite similar. Branding and customer service varies greatly. Many brands have moved to these payment gateways as a part of the Magento Upgradation service. Many stores integrate both for Magento Ecommerce development. A number of Ecommerce stores offer different methods to check out, sometimes more than two. This helps the customers to buy products from any part of the world. Give flexibility to your customers and let them make payment as per the need. The only extra work needs to be done is to perform the management of two accounts from which funds are received.