Stripe vs PayPal UK: Which Payment Gateway Is Better?

Are you currently using a payment gateway that isn’t quite doing what you need it to do? Or are you just starting your business and trying to decide on an online payment processor? There’s a lot to consider.

Stripe and PayPal UK are two of the most popular online payment solutions that you can implement with your business. But which platform is going to offer the right tools and features for your business? Let’s take a look at Stripe vs PayPal UK and see which payment gateway would be the best choice.

Here’s What We’ll Cover:

What Is Stripe?

What Is PayPal UK?

Key Takeaways

What Is Stripe?

Stripe is one of the most popular online payment processors for people to accept and send money. It’s continuing to gain momentum in the eCommerce world and it offers a simple-to-use interface. Code-savvy workers and in-house programmers like Stripe because of its customizable development tools.

It can be a perfect option for small businesses and it’s used by companies such as Lyft, Pinterest, TaskRabbit and Blue Apron, to name a few.

According to Stripe, they offer the best software platform for running an internet business. And they handle billions of dollars each year for forward-thinking businesses all around the world.

What Is PayPal UK?

Similar to Stripe, PayPal UK is another payment solution where you can make and receive payments online or through their app. You can create a business account and link it directly with your bank account to easily transfer funds. When it comes to the eCommerce payments industry, PayPal UK is one of the most recognizable names.

PayPal states that whether you’re looking for a payment gateway or want to add PayPal as a secure payment method on your website, they can help you get set up. PayPal also offers currency conversion, a virtual terminal and international transactions.

Stripe vs PayPal UK: Which Is Easiest to Use?

It’s important to consider the type of payments you process and how frequently they happen. As some of these differences could affect your decision between Stripe or PayPal UK.

PayPal offers services in 190 different markets and also offers 24 foreign currencies that can get used. Keep in mind that there might be currency conversion fees. It’s really easy to set up an account and its easy-to-use interface makes it so that anyone can use the platform.

Stripe, on the other hand, is targeted towards the developer market. It’s a little more complicated to use compared to PayPal UK, as it has a larger technical side. That said, it offers fully customizable developer tools to get the most out of the platform.

Basically, if you’re looking for a payment service that’s easy to use and doesn’t require much setup, then PayPal UK would be a great option for your business.

If you have more technical skills, then Stripe could be a better choice as it provides additional options for bespoke services. It might depend on your business model or the payment types you accept.

Stripe vs PayPal UK: Which Is the Most Flexible to Use?

Not all payments are going to be the same. Stripe was designed and built on the concept that companies need a functional and flexible payment processor. It has an API that’s known to allow for easy navigation and it offers an extensive library of programming languages. These include the likes of Java, Node.Js, PHP, Python and Ruby, to name a few.

The extensive library makes Stripe a great option for simple, or even complex, web projects.

PayPal UK is also very flexible when it comes to accepting payments online. However, it’s on a much smaller scale compared to Stripe. PayPal UK doesn’t offer the same level of functionality or customization that Stripe offers.

Stripe vs PayPal UK: Which Is the Most Secure to Use?

Both Stripe and PayPal take customer data security seriously as an online payment service. Since they are handling personal details and payment information, they have security systems in place. This helps to reduce the possibility of things like fraud.

Stripe, however, has taken their security to another level with Stripe.js. Basically, if you run Stripe.js on your website it means that when a customer enters their information, that data goes directly to Stripe’s system. It won’t get held by or become accessible to a merchant.

So, Stripe and PayPal UK both offer great levels of security, but Stripe takes it up a notch with their innovative system. Which is designed to help take any responsibility of handling data out of your hands.

Stripe vs PayPal UK: Which Costs More to Use?

Keeping operating costs as low as possible as a small business is critical. And one of the ways you can help do this is by paying fewer fees. So which payment gateway is going to be the most cost-efficient for your business?

PayPal offers users the option to open either a personal account or a business account. A personal account is free to use, and a business account has some monthly fees and transaction fees. You can accept debit card payments and credit cards.

Stripe actually offers a baseline package, with no monthly or setup fee, that has the same capabilities as the PayPal business account. So, Stripe might be a little more cost-effective for the choices and customization options that you get.

Which Payment Gateway Is Better? Stripe vs PayPal UK

There really isn’t a way of determining which payment processor will work best for you without knowing exactly what you need. You’re the only one who can make the right decision for your business. That said, there are a few things that can help you make a decision that are outlined in this article.

If you are going to base your decision on overall cost, then Stripe would be the best option. There’s no monthly charge and it offers the same functionality that PayPal does. There is so much variation from business to business that it’s entirely up to you which payment gateway will work best.

Key Takeaways

Stripe and PayPal both offer great features and a ton of flexibility. But at the end of the day, the payment processor you decide to go with will depend on the unique needs of your business. Both offer the ability to easily collect payments and donations directly on your website.

One of the most popular payment gateways, Stripe lets you send and accept money and has a ton of development tools. They specialize in helping you operate your online business and there is no monthly fee to join.

PayPal UK also makes it incredibly easy to send and receive money. You can create a personal account and send money to family and friends. Or you can set up a business account to accept different types of payments from your customers.

Both platforms have security features in place to make sure financial and personal information is secure. They’re both very flexible to use, however, a key difference is that Stripe has a bit more of a learning curve.

Stripe might be better for those who are more code-savvy, like in-house programmers, since there can be a bit more of a learning curve to get started. PayPal UK is a great option for any business since it has a simple to use interface.

One thing you can do to help you come to a decision is to take a look at the volume of sales that you process online. Since there is a variation in the fees that Stripe and PayPal UK have, how much you sell could make a huge difference. For example, the more transactions you have, the lower your overall fees could be.

Take a look at Stripe and PayPal websites to see a full breakdown of their transaction fees and to see the additional features they offer. Then, you can make an informed decision on which one to go with for processing payments as a business owner.

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