Stripe (2.2% + $0.30) vs PayPal (2.2% + $0.30 + monthly fees) — see which payment processor is cheaper for your business.
| Processor | Transaction Fee | Monthly Fee | Minimum Volume |
|---|---|---|---|
| Stripe | 2.2% + $0.30 | $0 | None |
| PayPal | 2.2% + $0.30 | $0–$30/mo | Varies |
Pricing current as of April 2026. Stripe has no monthly fees or minimums. PayPal offers both free and monthly-fee tiers with varying feature access.
| Service | Rate | When It Applies |
|---|---|---|
| Standard payments (web) | 2.2% + $0.30 | Card transactions |
| International payments | 3.2% + $0.30 | Non-US cards (Jan 2026 change) |
| ACH bank transfers | 0.8% (max $5) | US bank transfers |
| Instant payouts | 1.75% | Faster withdrawal (was 1.5%, increased Jan 2026) |
| Monthly/annual | $0 | No subscription required |
| Plan | Monthly Fee | Transaction Rate | Best For |
|---|---|---|---|
| PayPal Free | $0 | 2.2% + $0.30 | Sellers, invoicing only |
| PayPal Essentials | $9.99/mo | 2.2% + $0.30 | Small businesses, invoicing |
| PayPal Plus | $29.99/mo | 2.0% + $0.30 | Growing businesses (0.2% discount) |
| Enterprise | Custom | Custom rates | High-volume businesses |
Note: Stripe raised international transaction fees in January 2026 from 2.2% to 3.2%. PayPal's Plus plan offers a 0.2% discount vs the base rate.
| Feature | Stripe | PayPal |
|---|---|---|
| No monthly fee | ✓ | ~ (Free tier available) |
| Subscription billing | ✓ (Native) | ✓ (Limited) |
| API/developer-friendly | ✓ (Best-in-class) | ~ (Less modern) |
| Payout speed | ✓ (1-2 days standard, 1 hour instant) | ~ (1-3 days standard) |
| International support | ✓ (135+ countries) | ✓ (190+ countries) |
| Fraud protection | ✓ (Advanced) | ✓ (Good) |
| Dispute handling | ✓ | ✓ (Known for buyer protection) |
| Free tier/trial | ✓ (Pay as you go) | ✓ (Free tier available) |
Assuming average transaction value: $50
Base fee: 10,000 × (2.2% × $50 + $0.30) = 10,000 × $1.30 = $13,000
No additional monthly fees. Total: $13,000/month
Same 10,000 transactions at $50 average
Transaction fees: $13,000 + Monthly fee: $0 = $13,000/month
At high volume, no advantage over Stripe unless you pay monthly fee.
Transaction fees: 10,000 × (2.0% × $50 + $0.30) = $12,500
Plus membership: $30
Total: $12,530/month
PayPal Plus saves only $470/month vs Stripe. Break-even: ~13,000+ transactions/month where the 0.2% discount adds up.
Choose Stripe if: You're building a SaaS or marketplace. You need modern APIs and webhooks. You want developer flexibility. You prefer no monthly minimums. You want simplicity (one-tier pricing).
Choose PayPal if: You're selling physical goods (higher buyer familiarity). You need global payment methods. You want established brand trust. You're already integrated with eBay or PayPal ecosystem. You prefer flat-rate alternatives (Plus tier at high volume).
Key insight: For most businesses, Stripe and PayPal have identical transaction fees (2.2% + $0.30). The difference is whether you pay a monthly fee. Stripe wins for developers and SaaS; PayPal wins for ecommerce and buyer familiarity. Your choice should be based on features (API quality, subscriptions, integrations) rather than fees.
Payment processors update fees regularly. Stripe raised international fees in January 2026. Get instant alerts when either changes so you can evaluate impact on your margins.
Set up price alerts — free View full pricing trackerFor standard transactions under $50, they're effectively the same. Both charge 2.2% + $0.30. PayPal's Plus tier ($30/mo) can save money at very high volume (13,000+ transactions/month), but Stripe has no monthly fees. For most businesses, cost is a tie — choose based on features instead.
Yes. In January 2026, Stripe increased international transaction fees from 2.2% to 3.2%, a 10-percentage-point increase. This only affects non-US card transactions. Domestic US card rates (2.2%) remain unchanged.
PayPal's fee structure is simpler than it used to be, but the company still charges for extras like faster payouts, currency conversion, and chargebacks. Base transaction rates are transparent. Stripe generally has fewer surprise fees.
Stripe has native subscription support and is purpose-built for SaaS. PayPal supports subscriptions but it's less elegant. For recurring billing, Stripe is the clear winner.
Stripe. The API is modern, documentation is excellent, and webhooks are reliable. PayPal's API is older and less developer-friendly. If you're building custom integrations, Stripe is significantly easier.