⚖️ 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% + 20p per UK card transaction, excellent API, best for custom integrations, subscription billing, marketplaces. PayPal: consumer recognition (Checkout button), 2.9% + 30p (domestic), 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% + 20p 2.9% + 30p (standard, domestic)
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

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Which is cheaper for UK e-commerce?

Stripe at 1.5% + 20p vs PayPal at 2.9% + 30p (UK domestic). On a £50 sale: Stripe = £0.95, PayPal = £1.75. Over 1,000 sales/month at £50: Stripe saves £800/month. The difference is material at volume.

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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). Offering PayPal as a second option can help conversion for some stores, so it is worth testing.

Reviewed for 2026. This comparison is general guidance based on publicly available information. Prices, rates, rules and specifications change, so check current details with the provider or an official source before making a decision. 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.

Frequently asked questions

Which is cheaper for UK e-commerce?

Stripe at 1.5% + 20p vs PayPal at 2.9% + 30p (UK domestic). On a £50 sale: Stripe = £0.95, PayPal = £1.75. Over 1,000 sales/month at £50: Stripe saves £800/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). Offering PayPal as a second option can help conversion for some stores, so it is worth testing.