Sometimes it is only necessary to improve what already exists, fulfilling the role of satisfying the needs of the audience.
Stripe has become a multi-million dollar company in which large entrepreneurs have already invested, thanks to its market acceptance, which is really great.
Is it possible that Stripe is a threat to PayPal? Stripe was founded in 2010 and its growth in the market has been remarkably strong. Its main objective was to be able to enter the big markets and in the middle of the Paypal analysis it appears as a reference.
What Stripe really did was take Paypal and improve everything that users complained and complained about. Issues such as lower commissions, legal problems and online invoicing for small businesses were key to knowing that this was what they had to offer.
Stripe focused on taking advantage of the advancement of technology to be able to advance its project, that's how Stripe took all the good that Paypal was doing and added it to its project with improvements.
Issues such as easy handling, friendly platforms and simplification of the business model were part of the reasons why Stripe managed to succeed in the payment gateway market.
Paypal, like other payment gateways, would keep the payment commissions plus the monthly subscription, Stripe, on the contrary, would only keep the payment commission. Thus making it easier for entrepreneurs and small businesses to access easy, secure payment gateways with no subscription cost. In this way, small businesses would only have to worry about a payment when their business will really start to work.
On more technical issues, Stripe managed to develop its software by entering programmers and developers with an interface capable of being included in any website, this would mean that payment with Stripe would be faster, safer and easier, generating in the customers of each business a sense of security, since they do not have to leave the website where they are making their purchases.
This turns out to be one of the most relevant differences with Paypal, since the customer does not finish his purchase on the merchant's website, but must exit and complete the process in a new interface, possibly affecting his sales experience and even reaching not finalize your purchase.
Stripe made it so that customers did not even realize that they were paying with another company, reaching the point of using Stripe without even knowing it. Here there is a double entry for Stripe, since it is presented in the background to customers and is not disclosed, but for small, medium and even large companies it is a priority due to the facilities it allows them.
Stripe has 24/7 support and also makes it clear that if the customer decides to switch to another payment gateway, it will not hinder or make things difficult so that they can do it calmly.
Normally, for security reasons, most payment gateways save all the data of their users, including credit card data. However, Stripe has managed to find other ways to provide security both to businesses, thus taking care of their reputation, and to users who are going to place their trust in the payment method.
Its form of protection against this data is called anti-fraud due to the low probability that something like this could happen. This is why companies like UBER, FACEBOOK AND SHOPYFY have integrated Stripe as a payment gateway.
Thanks to its simplicity, low cost, and support, Stripe has become an indispensable platform for many businesses.
Now, choosing between using Paypal or Styripe is a bit complex, since they offer similar services and both are strong in the market. Let's go with some reasons, why use one or the other.
STRIPE | PAYPAL |
Founded in 2011 | Founded in 1998 |
​micropayments $1.00: 2.9% of $1 = 2.9¢ and 2.9¢ + 30¢ = 32.9¢ $5.00: 2.9% of $5 = 14.5¢ and 14.5¢ +30¢ = 44.5¢ | micropayments $1.00: 5% of $1 = 5¢ and 5¢ + 5¢ = 10¢ $5.00: 5% of $5 = 25¢ and 25¢ +5¢ = 30¢ |
2.9% + $0.30 por transacción. | |
​Refund Fee 15.00 | ​Refund Fee 20.00 |
It is available in 47 countries and accepts more than 135 different currencies. However, for greater reach Stripe offers an alternative; Easily incorporate a company in the USA. Later, open a US bank account and start accepting payments with Stripe. | ​ It is currently available in more than 200 countries/regions (Africa, America, Asia Pacific, and Europe) and supports 25 currencies. |
One-click payment process | ​Pass process with more channels outside the interface |
In conclusion
Both platforms offer merchants various opportunities to expand, as well as constant guidance and attention. In all the subjects Stripe turns out to be much better than Paypal there are only a couple of cases that you should think about before selecting.
If your payments are, to a large extent, micropayments, it is best to choose Paypal, since the cost is lower
If payment plans are more important than other matters, then you should choose paypal
If the above two cases are irrelevant, then we suggest using Stripe for one of the following options:
24/7 technical support
Quick and easy integrations
Build more confidence
easier payments
Payment options in more currencies
There are multiple payment gateway options, some of the most recognized are Authorize. Net, 2Checkout, Braintree, though Stripe y PayPal they are still two of the simplest to use.
At KIG we believe in growth and new markets, that's why we accompany your process in different business issues. Visit our website in detail and find out more about what we do.