Choosing between PayPal and Stripe is one of the most important payment decisions for any small business. Both processors handle billions in payments annually, but they serve different needs and charge different fees. This comprehensive comparison breaks down everything you need to know to make the right choice in 2026.
PayPal vs Stripe at a Glance
Before diving into the details, here's the fundamental difference: PayPal is a consumer-facing payment ecosystem with 400+ million active accounts, while Stripe is a developer-friendly infrastructure platform powering businesses from startups to Fortune 500 companies.
PayPal works best for businesses selling to consumers who already have PayPal accounts. If your customers are shopping on marketplace platforms, purchasing digital products, or making international purchases, PayPal's brand recognition reduces checkout friction significantly.
Stripe excels for businesses that want lower fees, more payment method options, and professional checkout experiences. European businesses particularly benefit from Stripe's competitive EU card rates and native support for iDEAL, Bancontact, and SEPA Direct Debit.
Fee Comparison: PayPal vs Stripe 2026
Understanding the true cost difference is essential for making the right decision. Payment fees directly impact your margins, especially as transaction volume grows.
Stripe's European pricing is straightforward and competitive. For standard European card payments, you'll pay 1.5% + €0.25 per transaction. UK cards cost 2.5% + €0.25, and international cards are charged at 3.25% + €0.25. The real savings come with local payment methods — iDEAL transactions cost just €0.29 flat, and SEPA Direct Debit is only 0.35% (capped at €5).
For a business processing €10,000 monthly through European cards, Stripe fees would total approximately €175. The same volume through iDEAL would cost just €29 — a dramatic difference that makes local payment methods extremely attractive.
PayPal's fee structure is less favorable for European businesses. Standard online payments cost 2.99% + €0.35 per transaction. PayPal.me links and QR code payments follow the same pricing. International payments add an additional 1.5% cross-border fee plus currency conversion costs.
Processing that same €10,000 monthly through PayPal costs approximately €334 — nearly double what Stripe charges. Over a year, that's almost €2,000 in additional fees.
| Payment Type | Stripe | PayPal | Savings with Stripe |
|---|---|---|---|
| EU Card (€100) | €1.75 | €3.34 | 48% cheaper |
| iDEAL (€100) | €0.29 | N/A | PayPal doesn't support iDEAL |
| International Card (€100) | €3.50 | €4.84 | 28% cheaper |
| SEPA Direct Debit (€100) | €0.35 | N/A | PayPal doesn't support SEPA DD |
| Monthly (€10K) | ~€175 | ~€334 | ~€1,908/year savings |
Payment Methods Compared
The payment methods your customers can use directly impacts conversion rates. Offering familiar, local payment methods is crucial for European businesses.
Stripe supports 135+ currencies and an extensive range of payment methods across Europe. This includes all major credit and debit cards (Visa, Mastercard, Amex), iDEAL for Dutch customers, Bancontact for Belgian customers, SEPA Direct Debit for recurring payments, Klarna for buy-now-pay-later, Apple Pay and Google Pay for mobile wallets, and Giropay and Sofort for German customers.
PayPal focuses on its own ecosystem. Customers can pay with their PayPal balance, linked bank accounts, credit and debit cards through PayPal Checkout, Venmo (US only), and Pay Later installment options. The key limitation is that PayPal doesn't natively support popular European methods like iDEAL, Bancontact, or SEPA Direct Debit.
In the Netherlands, 73% of online payments use iDEAL. In Belgium, Bancontact dominates. If you only offer PayPal, you're excluding the majority of potential customers in these markets. Stripe's support for local payment methods is a decisive advantage for European businesses.
Checkout Experience
How customers experience your checkout directly affects conversion rates. A smooth, trustworthy checkout page means more completed payments.
Stripe provides clean, professionally designed checkout pages that you can customize with your branding. The checkout is optimized for mobile devices, supports 47+ languages, and remembers returning customers through Link (Stripe's one-click checkout). Customers don't need a Stripe account to pay — they simply enter their payment details.
PayPal redirects customers to PayPal's website to complete payment. While this is familiar to PayPal users, it adds friction for customers who don't have a PayPal account. They can still pay with a card through PayPal's guest checkout, but the extra redirect step typically reduces conversion rates by 5-10%.
When to Use Both: The Smart Approach
The best strategy for many businesses isn't choosing between PayPal and Stripe — it's offering both. This maximizes your customer reach by letting PayPal users pay the way they prefer while also supporting local payment methods through Stripe.
PayRequest connects to both Stripe and PayPal (plus Mollie for additional European payment methods). When you create a payment link, invoice, or store, customers see all available payment methods on a single checkout page. They choose their preferred option — you get paid regardless of which they pick.
This approach typically increases payment conversion by 15-25% compared to offering just one payment processor. The platform charges 0% on top of the processor fees, so you only pay what Stripe or PayPal charges.
Payouts and Cash Flow
Getting your money quickly matters for small business cash flow. Both processors have different payout schedules.
Stripe processes payouts on a rolling basis. In most European countries, you'll receive funds within 2-7 business days after the payment. Stripe offers Express Payouts (within 30 minutes) for an additional fee. You can configure automatic payouts daily, weekly, or monthly.
PayPal makes funds available in your PayPal balance immediately. However, transferring to your bank account takes 1-3 business days. New accounts or high-volume transactions may trigger holds of up to 21 days for seller protection.
The Verdict: Which Should You Choose?
- You're based in Europe and want the lowest fees
- Your customers prefer local payment methods (iDEAL, Bancontact, SEPA)
- You want professional, customizable checkout pages
- You process €5,000+ monthly (savings add up quickly)
- Your customers already use PayPal extensively
- You sell internationally to consumer markets
- You need instant access to funds in your PayPal balance
- You want the simplest possible setup
- You want to maximize payment conversion
- You serve both European and international customers
- You want a single dashboard for all payment providers
- You want 0% platform fees on top of processor costs
Start Accepting Payments Today
Whether you choose Stripe, PayPal, or both, PayRequest makes it simple. Create your first payment link in 60 seconds, connect your preferred payment providers, and start getting paid with 20+ payment methods worldwide.