Software Alternatives, Accelerators & Startups

PayPal VS Stripe Connect

Compare PayPal VS Stripe Connect and see what are their differences

PayPal logo PayPal

PayPal is the faster, safer way to pay online without sharing financial details, send and receive money or accept credit and debit cards as a seller

Stripe Connect logo Stripe Connect

The payments platform for platforms
  • PayPal Landing page
    Landing page //
    2023-10-20
  • Stripe Connect Landing page
    Landing page //
    2023-07-10

PayPal features and specs

  • Widely Accepted
    PayPal is accepted by millions of merchants around the globe, making it easy to make transactions almost anywhere.
  • User-Friendly
    The platform has an intuitive and easy-to-navigate interface, simplifying the process of sending and receiving money.
  • Security Features
    PayPal offers robust security features such as encryption, fraud prevention, and two-factor authentication to protect users' financial information.
  • Buyer Protection
    PayPal offers buyer protection for eligible purchases, providing a safety net in case items are not as described or not received.
  • Global Transactions
    PayPal supports multiple currencies and allows for international transactions, which is beneficial for global business.
  • Integration with eBay
    PayPal integrates seamlessly with eBay, making it convenient for users who frequently buy and sell on the platform.

Possible disadvantages of PayPal

  • Fees
    PayPal charges fees for certain transactions, including receiving payments for goods and services, which can add up for frequent users.
  • Account Freezing
    PayPal has been known to freeze accounts if there is suspicious activity, which can be inconvenient and problematic for users.
  • Customer Service
    Some users report issues with PayPal's customer service, citing long response times and difficulty resolving disputes.
  • Exchange Rates
    PayPal's currency conversion rates are often less favorable compared to what you might get at a bank or through a dedicated currency exchange service.
  • Transaction Limits
    PayPal imposes limits on transaction amounts for unverified accounts, which can restrict the ability to send or receive large sums of money.
  • Privacy Concerns
    Some users have raised concerns about PayPal's data privacy practices and how their information is shared with third parties.

Stripe Connect features and specs

  • Ease of Integration
    Stripe Connect simplifies the integration process with well-documented APIs and SDKs, making it easier for developers to implement payment solutions.
  • Global Reach
    Stripe Connect supports a wide range of currencies and payment methods, enabling businesses to operate internationally and meet the needs of global customers.
  • Customizable Payouts
    Stripe Connect allows for flexible account and fund management, including features like instant payouts and control over payment schedules.
  • Scalable Solution
    Stripe Connect is designed to handle businesses of all sizes, from startups to large enterprises, offering scalability as businesses grow.
  • Comprehensive Reporting Tools
    The platform includes detailed analytics and reporting tools for tracking transactions, simplifying the financial management process.

Possible disadvantages of Stripe Connect

  • Complex Pricing Structure
    Stripe Connect's pricing can be complex, with various fees for different transaction types and countries, potentially leading to unexpected costs for businesses.
  • Limited Customer Support
    Some users have reported that Stripe's customer support can be lacking in responsiveness, which might create challenges when resolving issues quickly.
  • Geographical Restrictions
    While Stripe Connect operates in many countries, there are still geographical restrictions that might limit access for businesses in certain regions.
  • Technical Complexity for Advanced Features
    Implementing advanced features, particularly for customization, may require a high level of technical expertise, impacting ease of use for less technical users.
  • Compliance and Regulation Overhead
    Businesses need to navigate complex legal and regulatory requirements when using Stripe Connect, which might require additional resources and management.

Analysis of PayPal

Overall verdict

  • PayPal is generally considered a good option for online transactions due to its established reputation, security features, and ease of use. However, some users may experience issues related to customer service, account freezes, or fees, which can impact their experience.

Why this product is good

  • PayPal is a widely recognized and used online payment platform, offering a secure and convenient way to send and receive money. It provides numerous features such as buyer protection, fraud detection, and ease of integration for businesses. Its wide acceptance by online merchants and compatibility with numerous currencies enhance its appeal.

Recommended for

  • Individuals looking for a secure way to make online purchases.
  • Freelancers or small businesses needing a simple payment solution.
  • Online merchants who wish to offer their customers a popular and trusted payment method.
  • International users who need to transact in multiple currencies.

Analysis of Stripe Connect

Overall verdict

  • Stripe Connect is a highly recommended solution for businesses and developers seeking a reliable, scalable, and feature-rich payment processing service. Its ability to handle complex transactions and facilitate marketplace operations effectively makes it an excellent choice for both small startups and large enterprises.

Why this product is good

  • Stripe Connect is considered one of the leading payment processing platforms due to its robust API, ease of integration, and comprehensive suite of features tailored for businesses. It supports a wide range of payment methods and currencies, making it suitable for companies operating globally. Additionally, Stripe Connect offers advanced functionality for platforms and marketplaces, such as automated payouts, KYC (Know Your Customer) management, and flexible monetization strategies. The platform's reliability, security features, and excellent developer support also contribute to its strong reputation.

Recommended for

  • Marketplaces looking to manage multi-party payments efficiently
  • Subscription-based businesses needing reliable recurring billing
  • Businesses seeking a global payment processing solution
  • Developers needing a flexible and comprehensive API
  • Companies requiring strong security and compliance features

PayPal videos

STOP Using PayPal - 5 Reasons You Should Stop Using PayPal in Your Business or On Your Website!

More videos:

  • Review - Why I No Longer Use PayPal · Selling AND Buying
  • Review - is PayPal Credit a Scam | 6 Month Interest Free

Stripe Connect videos

create a marketplace with stripe connect

Category Popularity

0-100% (relative to PayPal and Stripe Connect)
Online Payments
93 93%
7% 7
Recurring Billing
80 80%
20% 20
Payment Platform
89 89%
11% 11
eCommerce Tools
100 100%
0% 0

User comments

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Reviews

These are some of the external sources and on-site user reviews we've used to compare PayPal and Stripe Connect

PayPal Reviews

  1. PayPal is cool

    I like PayPal, it has a high security standard. Except when I am the one suffering a chargeback for some flimsy reasons.


Top 5 Payoneer Alternatives [2024]
The best payment method for freelancers varies based on individual needs. Wise and Revolut are excellent for their multi-currency account features and using the mid-market exchange rate, while PayPal is globally accepted and offers instant transfers to other PayPal accounts. Freelancers should consider factors such as transfer speed, fees and currency support when choosing a...
Source: www.exiap.com
Top 5 Payoneer Alternatives for Seamless Online Transactions
PayPal excels in user familiarity and widespread acceptance, making it convenient for both businesses and customers. It offers buyer and seller protection, but comes with potentially higher fees and account limitations compared to Payoneer. Choose PayPal for convenience and buyer trust, Payoneer for potentially lower fees and specialized features.
Source: www.doola.com
What to Use Instead of PayPal? 10 Best PayPal Alternatives
Braintree is a PayPal service, but it is still one of the PayPal alternative payment methods worth considering. There is no monthly fee for using this payment service. Accepting payments from credit or debit cards or digital wallets costs 2.59% + $0.49 per transaction. You can also use Braintree to accept Venmo payments in the United States, but this costs 3.49% + $0.49....
9 Best Cryptocurrency Payment Gateways Reviewed [January 2023]
PayPal provides 24/7 secure transactions of both fiat and cryptocurrencies to its users. Even though it was initially an online payment platform, PayPal added a crypto payment feature in 2020. Its crypto wallet also allows users to directly buy and store cryptocurrencies. PayPal doesn’t charge extra fees for making crypto payments.
Source: coingape.com
The 6 best online payment processing services in 2024
What happens on the customer side? When they visit your website, they'll see the button you've configured. They can then choose to pay with their PayPal balance or any saved payment method on their PayPal account. If they don't have PayPal, they can check out by entering their credit card details (all data is handled securely by PayPal in both cases). Added security measures...
Source: zapier.com

Stripe Connect Reviews

Top 6 Open Banking API Providers to Consider in 2025 [Updated]
Stripe Connect is primarily known for its payment processing capabilities but offers basic Open Banking API features. While its primary strength is in multi-party transactions, Stripe Connect’s global reach makes it a viable option for businesses seeking a wide range of payment options.

Social recommendations and mentions

Based on our record, Stripe Connect seems to be a lot more popular than PayPal. While we know about 29 links to Stripe Connect, we've tracked only 1 mention of PayPal. We are tracking product recommendations and mentions on various public social media platforms and blogs. They can help you identify which product is more popular and what people think of it.

PayPal mentions (1)

  • Trying to activate PayPal just brings me to PayPal's website.
    (I live in USA) When I go to payments under my shopify account to add paypal as a payment method I am having trouble doing so. I first click activate paypal > activate paypal express checkout which directs me to a "security challenge" (confirm I am not a robot). Then it just brings me to paypals website (paypal.com/us/home). When I sign in nothing happens, I am just on my paypal homescreen. Source: over 2 years ago

Stripe Connect mentions (29)

  • Does this violate Stripe's ToS?
    Thanks for the feedback! I do apologize for the lack of information in my original post. Here's some additional color that hopefully clarifies my use case a bit more: Stripe offers a service called Stripe Connect (https://stripe.com/connect) which enables platforms to have intermediary sellers / merchants which collect money from end customers. Ultimately, this can lead to a scenario where an end customer pays a... - Source: Hacker News / almost 2 years ago
  • Accept PayPal as a payment method with Stripe in the EU, UK and Switzerland
    We recently made PayPal available as a payment method in the EU, UK, and Switzerland, so you can now offer an additional way for your customers to submit payments using their PayPal account. If you have a Connect account, first reach out to the support team to see if you’re eligible. If you’re a direct merchant, meaning you accept payments directly from consumers, let’s go through the steps to enable it. - Source: dev.to / about 2 years ago
  • Is there a way to pay out to clients through Stripe?
    You can do it with Stripe Connect https://stripe.com/connect. Source: about 2 years ago
  • Stripe as payment gateway for a website like Amazon.
    Maybe Stripe Connect would be the best option for the services you are offering: https://stripe.com/connect. If you have any specific questions to your platform, our Sales Team will be happy to help you here: https://stripe.com/contact/sales. Source: about 2 years ago
  • Creating a Direct Deposit Stripe system like Tasker by TaskRabbit
    Previously, our apps have required Sellers/Merchants/Taskers to follow the Stripe Connect flow which is quite extensive. Source: about 2 years ago
View more

What are some alternatives?

When comparing PayPal and Stripe Connect, you can also consider the following products

Stripe - Online payment processing for internet businesses. Stripe is a suite of payment APIs that powers commerce for online businesses of all sizes. Use Stripe’s payment platform to accept and process payments online for easy-to-use commerce solutions.

Sage Intacct - Intacct is a cloud-based accounting and financial management system that is designed for the businesses of all levels.

Payoneer - Whether making international payments, receiving funds, managing your digital business, or accessing capital, Payoneer opens your business up to the world.

Neolink.io - White-label acquiring platform to launch and scale payment businesses.

PayPal Braintree - An all-in-one solution to accept, process, and split payments in your mobile app or online - from small business to large enterprise.

Chargebee - Chargebee lets you manage subscriptions and payments at scale, handle custom recurring billing scenarios, reduce subscription churn and simplify accounting.