In March 2022, PayPal and Stripe’s market shares in the e-payments market were 30.93% and 15.51%, respectively. With such dominant market share, they are the top three “giants” among international payment gateways.
How do you decide which plan is best for your online e-commerce store? With Global Link Asia Consulting, let’s have a look at and compare these two payment gateways. Stripe (founded in 2011) and PayPal (founded in 1998) are both globally recognized, professional payment service providers, which means they have established a reputation as one of the world’s most recognizable intermediaries authorized to process seller (Merchant) transactions by international credit card networks (Visa, MasterCard, etc.).
1. Similarities between PayPal and Stripe
PayPal (established in 1998) and Stripe (established in 2011) are both worldwide payment service providers, respectable intermediaries authorized to process seller (merchant) transactions by international credit card networks and financial institutions.
The key similarities between these 2 payment service providers are:
2. Differences between PayPal and Stripe
While PayPal is known for its large client base, Stripe has a lot of developer-friendly features. What’s the difference between PayPal and Stripe?.
In addition to having been in the market 13 years longer than Stripe, PayPal offers a wider range of products and services. Stripe, on the other hand, is more focused on providing developer tools and APIs. Stripe’s payment gateway is more akin to Braintree, a PayPal subsidiary, than to PayPal in general.
The most noticeable distinction between these two service providers is the Wallet function. Using this new Wallet function, PayPal can now accept high-risk merchants such as certain e-commerce and software sellers. Stripe frequently closes or limits the accounts of high-risk merchants since it does not (or cannot) support these types of businesses.
2.2. Fee differences
Despite the fact that each payment solution has its own set of advantages and disadvantages, PayPal and Stripe continue to lead the way in the electronic payment sector because they are highly trusted by buyers/ consumers. PayPal and Stripe continue to maintain their leadership positions in Singapore, the Southeast Asian country with the greatest e-payment growth, with PayPal controlling 30.93 percent of the market and Stripe 15.31 percent.
To register for a Stripe and PayPal Business account, you will first need a company in supported countries such as Singapore, Hong Kong, and the USA. If you’re still undecided, consider the following:
- How do you decide whether to use Stripe, PayPal, or another payment gateway for your company?
- Are your PayPal or Stripe accounts being closed or limited on a regular basis?
- How can you manage a business that generates hundreds of thousands of dollars each month without being shut down by Stripe or PayPal?
- The above questions can be completely answered by a team of highly skilled consultants who are ready to assist businesses in working directly with PayPal and Stripe.