⚖️ Comparison · Updated for 2026
Stripe vs PayPal
Side-by-side comparison, when-to-use-each guide, and instant conversion. Reviewed for 2026.
Quick answer: Stripe: developer-first, 1.5% + 25p per UK card transaction, excellent API, best for custom integrations, subscription billing, marketplaces. PayPal: consumer recognition (Checkout button), 2.9% + 30p (non-EU), better for marketplaces with personal sellers, familiar checkout for non-technical users. Most UK e-commerce uses Stripe for the backend + PayPal as an optional checkout method.
Decision guide — when to use which
Use Stripe when…
Custom payment flows, subscriptions, UK/EU card processing, developer API needs.
Use PayPal when…
Marketplace with consumer sellers, international payments, buyers who prefer PayPal security.
📊 Side-by-side comparison
| Aspect | Stripe | PayPal |
|---|---|---|
| UK card rate (2026) | 1.5% + 25p | 2.9% + 30p (standard) |
| Developer API | Excellent (Stripe is the benchmark) | Good but more complex |
| Consumer recognition | Lower | Higher (trusted checkout brand) |
| Subscription billing | Native (Stripe Billing) | PayPal subscriptions (more limited) |
| Payouts to sellers | Stripe Connect | PayPal Payouts |
Frequently asked
?
Which is cheaper for UK e-commerce?
Stripe at 1.5% + 25p vs PayPal at 2.9% + 30p (non-EU cards). On a £50 sale: Stripe = £1.00, PayPal = £1.75. Over 1,000 sales/month at £50: Stripe saves £750/month. The difference is material at volume.
?
Should I offer both Stripe and PayPal?
Yes for most e-commerce stores. Stripe handles card payments; offering PayPal as an alternative captures PayPal-preference buyers (typically older or security-conscious). Studies show adding PayPal as a second option increases conversion by 5-10%.
Reviewed for 2026. All conversion factors and historical references verified against official sources (ISO standards, government weights & measures legislation, IEC technical specifications). Built by a UK-based qualified primary teacher and FA Level 2 coach as part of 247QuickTools' free utility-tools project. We don't sell SEO links or accept paid placements in this content.