Stripe vs Square vs PayPal: Which Payment Processor Is Best in 2022?

At the moment, there are three major players in online payment processing: Stripe, Square and PayPal. But which one is best?

The “stripe vs paypal vs square reddit” is a question that has been asked many times before. The answer to this question will be given in 2022.

If you’re weighing the pros and cons of Stripe, Square, and PayPal, you’re probably searching for the finest online payment processor for your company. These three well-known brands accept a variety of payment methods, provide developer-friendly solutions for customizing your checkout, and provide digital wallet and other one-click payment alternatives to enhance the consumer experience. Furthermore, all three are relatively simple to use and provide basic solutions with no commitments or monthly payments.

However, there are a few major distinctions that distinguish Stripe, Square, and PayPal as the best options for certain use cases:

• Stripe is ideal for online-only enterprises, such as tech-savvy startups, B2B firms, and multinational corporations.
• Square is the best online payment option for consumers and small companies since it is straightforward and low-maintenance.
• PayPal is the most user-friendly way to add a payment option to an existing website.

Quick comparison between Stripe, Square, and PayPal

Stripe is the best online payment processor overall.

Stripe

4.27 OUT OF 5 STARS FOR THE OVERALL PERFORMANCE

What We Enjoy

• Account with a free merchant
• 135 currencies are accepted for international payments.
• APIs that are well-documented
• Payment platform that is very adaptable and secure

What Isn’t There

• There isn’t a built-in POS or reporting capability.
• Only as a backup, the built-in virtual terminal is provided.
• It takes 7–14 days for the first payment to be made.

Pricing using Stripe

• No processing fee is charged on a monthly basis.
• 2.7 percent + 5 cents, or 2.9 percent + 30 cents for in-person processing (for touchless)
• 2.9 percent + 30 cents for online processing
• Processing invoices: 0.4 percent–0.5 percent, Invoice processing: 0.4%–0.5%, $0/mo. each month
• 0.5 percent–0.8 percent recurring payments, Recurring payments: 0.5%–0.8%, $0/mo./mo
• Fee for virtual terminal: 2.9 percent plus 30 cents (terminal not included)
• For international payments, there is a 1.5 percent tax and a 1% currency conversion gap.
• ACH processing costs $1 per payment (ACH debit), with a 0.8 percent fee ceiling of $5. (ACHcredit)
• Refundable chargeback cost of $15
• Card readers range in price from $59 to $299.

Because of its robust, secure, and developer-friendly technology, Stripe is the industry-leading online payment solution. Stripe’s user-friendly APIs or one of Stripe’s over 700 partner integrations may be integrated into any website, app, or checkout.

Stripe also outperforms Square and PayPal in terms of fraud prevention, invoicing and billing software, international payment options, and B2B interoperability, getting a 4.27 out of 5 rating in our review.

For taking online payments with Stripe, choose between a payment link that requires no coding or a hosted checkout page. (Image courtesy of Stripe)

Stripe reduces the hassle of receiving international payments by supporting over 135 currencies and over 25 languages. (Image courtesy of Stripe)

Stripe lets you personalize your invoice by including your logo, payment options, and a payment button. (Image courtesy of Stripe)

Stripe has a responsive checkout design that works on both desktop and mobile devices. (Image courtesy of Stripe)

Stripe’s robust payment security infrastructure includes 3D Secure client authentication, which sends your consumers to their bank’s authentication page throughout the checkout process. (Image courtesy of Stripe)

Stripe is more difficult to browse, implement, and manage than a plug-and-play solution like Square or PayPal because of its highly customized configuration. Stripe is utilized by big firms like Shopify, Instacart, and Slack, to name a few. Stripe may be more than you need if you just require a simple means to take basic payments online, particularly if you manage your firm yourself.

Stripe is also merely a payment processor that’s supposed to be integrated into third-party apps and websites. Square is a better alternative if you want an all-in-one solution for putting up a website or payment link to collect payments. PayPal is a better alternative if you need to add payments to your current site but prefer a simpler solution with a virtual terminal and mobile POS capabilities.

You won’t be disappointed if you require a strong processor or if you’re looking at a platform that utilizes Stripe as its payment processor—Stripe is the industry standard.

Square is the most user-friendly online payment processor.

Square

4.19 OUT OF 5 STARS FOR THE OVERALL PERFORMANCE

What We Enjoy

• Pricing is straightforward.
• Selling across all channels in a seamless manner
• Flexible point-of-sale system that grows with your company
• dependable and simple to use

What Isn’t There

• Large enterprises aren’t a good fit.
• Not recommended for high-risk enterprises.
• There have been reports of monies being blocked.

Pricing in Squares

• No processing fee is charged on a monthly basis.
• In-person processing costs 2.6 percent plus 10 cents each month, ranging from In-person processing: 2.6% + 10 cents, $0–$60/mo. to $60.
• 2.9 percent + 30 cents for online processing
• Processing invoices: 2.9 percent + 30 cents each month, Invoice processing: 2.9% + 30 cents, $0–$20/mo.–$20.
• Payments are recurring at 2.9 percent plus 30 cents each month, for a total of Recurring payments: 2.9% + 30 cents, $0/mo. every month.
• Virtual terminal fee: Virtual terminal fee: 2.6% + 10 cents (for swiped, or 3.5% + 15 cents (keyed-in), $0/mo. per month, 2.6 percent + 10 cents (swiped) or 3.5 percent + 15 cents (keyed-in).
• 2.9 percent + 30 cents for international payments
• Processing fees for ACH transactions are 1% of the total transaction amount, with a minimum of $1. (ACH)
• Fees for chargebacks are waived up to $250 each month.
• Card readers range in price from Card readers cost: $0–$49 to $49.

Square is lot simpler to set up than Stripe, which needs a developer on staff to get the most out of the platform. If you’re looking for an easy method to take payments online as an individual or a small company, Square is much easier to set up than Stripe. It’s low-maintenance and ideal for companies processing less than $10,000 per month; once you pass that threshold, you’ll need a more powerful solution.

Square’s credit card processing function is also perfect for stores or in-person providers that wish to accept payments online. This is great for monitoring curbside and pickup orders, as well as providing a contactless payment option.

Square is a well-known brand in the payments industry, thanks to its Square-shaped mobile card reader. In fact, Square is our recommendation for the finest small business merchant services and mobile payment processing.

Square’s built-in website builder allows you to construct a free ecommerce site and take payments through credit card, PayPal, Apple Pay, Google Pay, Square Pay, and Cash App Pay. (Image courtesy of Square)

You may send several estimates, request a deposit, establish partial payments, and take ACH payments using Square’s invoicing tool. (Image courtesy of Square)

Square allows you to generate payment links that can be embedded on any website, sent by email, QR code, text message, or Facebook. (Image courtesy of Square)

Square’s social media selling features, which include options for creating an online shop on Instagram, make it simple to broaden your reach. (Image courtesy of Square)

Square, on the other hand, isn’t the obvious victor when it comes to online payments. It received a 4.19 out of 5 rating in our review. Square’s developer tools isn’t as feature-rich or intuitive as Stripe’s. Square’s one-touch Square Pay system, although convenient, isn’t as widespread or user-friendly as PayPal’s.

Square’s simplicity of use and extensive range of plug-and-play payment alternatives make it stand out. Square is a website builder that includes an online shop, invoicing tools, a virtual terminal, payment links that take users to a hosted checkout page, purchase buttons that can be added to any website (similar to PayPal), and QR code payments.

PayPal is a popular payment method among customers.

PayPal

3.95 OUT OF 5 STARS FOR THE OVERALL PERFORMANCE

What We Enjoy

• Online checkout integration that works seamlessly
• Consumers recognize and trust the platform.
• Deposits into your PayPal account are made instantly.
• Accepts payments by PayPal, PayPal Credit, and Venmo.

What Isn’t There

• Accounts that have been frozen have a bad reputation.
• International payments are prohibitively expensive.
• Fee schedule is complicated.

Pricing for PayPal Business

• No processing fee is charged on a monthly basis.
• In-person processing costs 2.29 percent plus 9 cents each month, for a total of In-person processing: 2.29% + 9 cents, $0/mo. per month.
• 2.59 percent + 30 cents for online processing
• 3.49 percent + 49 cents every invoice, Invoice processing: 3.49% + 49 cents, $0/mo. per month
• Recurring payments range from $10 to $30 per month at 3.49 percent plus 49 cents.
• 3.09 percent + 49 cents, or 3.50 percent for AMEX, $30 per month for virtual terminal.
• For international payments, there is a 1.5 percent tax and a 4% currency conversion gap.
• 3.49 percent + 49 cents limited at $300 for e-check processing
• For guest transactions, there is a $20 chargeback fee.
• Card readers range in price from $29 to $79

With almost 48 percent of the market share, PayPal is the most popular online payment processor. Because many individuals already have PayPal accounts, PayPal is a reputable brand with a quick checkout experience that is popular among consumers. Adding a PayPal payment option to your checkout may help you increase sales and reduce cart abandonment.

Its price, however, is not as competitive as Stripe or Square’s. Using a different processor for the bulk of your transactions will likely cut your transaction and/or monthly costs. As a result, PayPal is best used as an add-on to your existing online payment system.

PayPal is a well-known corporate and peer-to-peer payment network. Customers may complete purchases using their PayPal accounts instead of typing in payment information when you add a PayPal checkout to your online shop, website, invoice, or contribution collection.

Despite the fact that there are now additional one-click checkout alternatives, such as Apple Pay and Google Pay (which PayPal, Stripe, and Square all provide), PayPal is still popular among buyers due to its purchase protection and security features.

You may copy prebuilt code from PayPal’s rapid payment button generator and paste it with the items or services you wish to sell on your website. (Image courtesy of PayPal)

Customers may access PayPal Exclusives, other payment options, and credit and debit cards using PayPal’s basic integration, which enables you to add a PayPal Checkout to your payment page. (Image courtesy of PayPal)

You may adjust the style, feel, and layout of debit and credit card payment fields on the regular checkout page using PayPal’s advanced checkout page integration. (Image courtesy of PayPal)

With a score of 3.95 out of 5, PayPal came in only behind Stripe and Square in our examination. PayPal’s Pro, Advanced, and virtual terminal accounts all have a monthly cost, and PayPal does not provide bespoke rates or volume reductions, with the exception of organizations. In general, PayPal’s price is more expensive and complicated than Square’s or Stripe’s.

When it comes to compatible Types of Payment, PayPal beats Square because of its international payment options. However, PayPal does not offer special solutions or pricing for B2B payments and requires a monthly fee for ACH and e-check payments, which Stripe offers with a free account.

PayPal Zettle, a smartphone app that enables you collect credit card, PayPal, and Venmo payments in person using a card reader or by manual input or QR code, is one area where PayPal differs from Stripe. PayPal Zettle offers basic product listings, employee logins and permissions, and sales monitoring, much like Square.

Alternatives to PayPal for Online Payments

Our top-recommended online payment processors include Stripe, Square, and PayPal. Other common alternatives include:

• PayPal’s more comprehensive online payment service with configurable pricing choices is called Braintree.
• Authorize.net is a widely used payment gateway that works with a wide range of websites and applications.
• Fattmerchant’s Stax is ideal for high-volume billing and invoicing.
• Payment Depot is the most cost-effective credit card processing option for established companies.
• PaymentCloud is the best option for high-risk companies.

How Did We Pick Online Payment Processors?

We looked at total costs, payment timings, and dependability to compare Stripe vs PayPal vs Square. We also looked at the simplicity of use, the quantity and kinds of platform connectors, and the customer service reputation of each payment processor.

25%

Sales & Account Features

25% of the overall score

Contracts, monthly, chargeback, and cancellation costs, transaction pricing, and the possibility of volume discounts were all taken into account. While all three services provide pay-as-you-go billing, Square came out on top due to its absence of chargeback costs. PayPal’s Pro accounts are subject to a monthly charge, which has forced it to fall behind.

25% of the overall score

We looked at how many types of transactions each processor can handle. Stripe pulled ahead with its international and multicurrency capabilities, ACH & e-check, and B2B payment options. All three offer invoicing, ecommerce, and card-on-file payments. Note that Square and PayPal have stable virtual terminals, while Stripe’s virtual terminal is not meant to be used as a primary payment solution.

25% of the overall score

Client service, deposit speed, fraud protection tools, mobile app, customer management, and developer tools were all very similarly evaluated. Square, on the other hand, stands out for its powerful POS mobile applications and customer management. Stripe’s fraud protection and developer tools are unrivaled.

25% of the overall score

We looked at overall price transparency and value, as well as ease of use factors such as account stability and user interface, popularity factors such as reputation and user reviews, and integrations such as ecommerce platforms, website builders, and CRM software. With free business management tools and bespoke volume discounts, Square and Stripe provide the greatest value. PayPal has an advantage because of its customer-friendly reputation and quick checkout. All three work with the most widely used small company software. Because they are aggregators rather than standard merchant accounts, all three have account stability difficulties.

*Percentages based on total score

Conclusion

It’s crucial to assess which features are most important for your company when comparing Stripe vs Square vs PayPal. If you want an easy method to take money safely online from the world’s most well-known business in this area, PayPal is the finest choice. Square is the ideal option if you need a straightforward method to take online payments or a system that can manage both online and in-person purchases.

Finally, Stripe is the ideal choice for you if you want a flexible online payment solution that can expand with your organization.

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