Head-to-head
Stripe vs PayPal: which one in 2026?
Stripe is a developer-first payments platform that sells cards, billing, tax and fraud tools through one API, and PayPal is a wallet-based payments service from PayPal Holdings whose draw is buyers who already hold an account. The difference comes down to who the checkout is built around: your developers, or your customers' existing wallets.
Verdict
Stripe sits at sixth and PayPal at eleventh in the category ranking. Stripe earns the higher place on breadth, published add-on prices and documented security, while PayPal's value is the wallet that buyers already trust. Most online sellers can run both, since a wallet button and a card form solve different problems. Stripe's figures come from its Dutch page in euros, PayPal's from its US page in dollars, so compare quotes for your own country.
Stripe and PayPal side by side
| Stripe | PayPal | |
|---|---|---|
| Price entry | 1.5% + €0.25 per standard EEA card payment | 2.89% + $0.29 per Expanded Checkout card payment |
| Where the checkout lives | Payment Links and Checkout come with standard Payments pricing, and the rest of the stack is reached through the API. | Buyers pay with a PayPal or Venmo wallet, which is the reason a seller adds it, with card checkout listed beside it. |
| Card rate on the pricing page | 1.5% + EUR 0.25 for standard EEA cards and 2.5% + EUR 0.25 for UK cards, per the Dutch page. | 2.89% + $0.29 for Expanded Checkout card payments, as printed on the US business pricing page. |
| Wallet and pay-later cost | Klarna, iDEAL and Link are listed as supported methods; this comparison did not check what each one costs. | PayPal and Venmo wallet payments are 3.49% + $0.49, and pay-later is 4.99% + $0.49 on the US page. |
| Chargebacks and recovery | EUR 20 per dispute received, and Smart Disputes keeps 30% of the amount on each dispute it wins. | The pricing page mentions fraud tools and seller protection; no dispute fee was checked here. |
| Add-on products | Billing from EUR 500 a month, Tax Complete from EUR 80 a month, Radar from EUR 10 a month, each with a published price. | Invoice and in-person payment rates are printed, with readers starting at $29; no tax or billing add-ons appeared. |
| AI training on personal data | The privacy policy lists training AI models to support its services as a use of personal data. | The privacy statement says personal data may train AI models behind its services and that automated decisions are used. |
| Records after you leave | Data is kept while services run, and longer where legal, fraud or tax duties apply; no fixed period is stated. | The privacy statement sets retention at the relationship plus 10 years, or the local legal period. |
| Security evidence | Security docs list PCI DSS Level 1, SOC 1 and SOC 2 Type II reports, a public SOC 3 and AES-256 for stored card data. | The security page returned a 403 error, so PCI and SOC status was not confirmed in this review. |
Where each one wins
Stripe wins on
- Fees for cards, terminals, billing, tax and fraud screening are all on one page, which makes a budget possible before any sales call
- Security documentation names PCI DSS Level 1 and SOC reports, which PayPal's pages could not confirm here
- A lower listed card rate than PayPal's, though the currencies and regions differ
PayPal wins on
- Buyers who already hold PayPal or Venmo wallets can pay in a few taps without typing card details
- Custom or interchange-plus pricing is offered to high-volume merchants, so the printed rates are a starting point
- Rates for invoices and in-person readers are printed next to online checkout on one pricing page
Which to pick
Pick Stripe if
You have developers, sell subscriptions or in several currencies, and want card, billing, tax and fraud tools priced in public on one stack.
Pick PayPal if
Your customers expect a PayPal or Venmo button at checkout and you care more about conversion at that step than the lowest card fee.
Each tool in context: Stripe profile, PayPal, and the full Best AI Payment Processing Software in 2026.
Frequently asked questions
Is PayPal more expensive than Stripe per transaction?
On the pages checked, yes for cards: PayPal lists 2.89% + $0.29 for Expanded Checkout, while Stripe lists 1.5% + EUR 0.25 for standard EEA cards. The regions and currencies differ, and PayPal wallet payments run 3.49% + $0.49, so price your own country and mix.
Can one shop offer both Stripe and PayPal at checkout?
Nothing on the pages opened prevents it, and the two solve different problems: Stripe handles cards and local methods through its API, PayPal gives buyers a wallet button. Check your shop platform's documentation for how it connects each, and confirm payout timing for both.
How long does PayPal keep my customers' data compared with Stripe?
PayPal's privacy statement says data is kept for the relationship plus 10 years, or the period local law sets. Stripe says it keeps data while services are provided, and longer where legal, fraud or tax duties apply, without naming a period. Ask each for a written schedule.
Do Stripe and PayPal train AI models on my data?
Both privacy documents list AI training as a use of personal data. Stripe says it trains models to support its services, and PayPal says it may train models that power its services. Neither excerpt states whether merchant data is excluded, so request that answer in writing.