Choosing the right payment processor can affect your profit margins, checkout experience, and ability to grow an online store. Stripe, PayPal, and Square are three popular payment solutions, but they serve somewhat different needs. One focuses heavily on flexible online payments and developer tools, another is widely recognized for digital wallet checkout, and the third combines payment processing with in-person point-of-sale systems.
In this guide, we compare Stripe vs PayPal vs Square for online sellers, including transaction fees, payment methods, integrations, subscriptions, fraud protection, and international availability. You will also find a fee calculator to estimate processing costs based on your average order value and monthly sales volume.
Stripe is a strong option for customizable online checkout and recurring billing in supported countries. PayPal is attractive when customers prefer paying through a familiar digital wallet. Square is particularly useful for businesses that sell both online and in person in supported markets.
The best choice depends on your business country, customer preferences, ecommerce platform, and total processing costs—not just the headline transaction fee.
Stripe vs PayPal vs Square: Quick Comparison
Stripe
Example US standard rate for domestic online card payments.
Best for customized checkout, subscriptions, APIs, and multiple payment methods.
PayPal
Example US rate for expanded checkout card payments; PayPal wallet transactions have different fees.
Best for sellers whose customers want to pay using PayPal.
Square
Example US Free-plan rate for online card payments.
Best for retailers, restaurants, and service businesses combining online and physical sales.
Rates above are US examples, not global prices. Stripe’s rate applies to successful domestic card transactions; PayPal’s displayed expanded-checkout rate applies to card payments; Square’s online rate shown is for its Free plan. Country-specific fees, payment methods, international cards, currency conversion, and other plan fees can change the final cost.
1. Stripe: Best for Custom Online Payments
Stripe is a payment infrastructure platform used by ecommerce stores, subscription businesses, software companies, marketplaces, and digital service providers. It offers hosted payment pages, embedded checkout components, payment links, invoicing, recurring billing, and developer APIs.
Stripe fees for online sellers
Stripe’s standard US pricing lists domestic online card payments at 2.9% plus $0.30 per successful transaction. Additional fees can apply to international cards, currency conversion, certain payment methods, disputes, and optional products.
| Stripe feature | Why it matters |
|---|---|
| Hosted Checkout | Accept payments through a prebuilt checkout experience without developing every component yourself. |
| Payment Links | Sell through a payment link without building a full ecommerce website. |
| Recurring billing | Support subscriptions, memberships, and recurring services with suitable billing configuration. |
| Developer APIs | Customize payment flows and connect payments to other applications. |
| Fraud tools | Use authentication and risk controls to help identify or reduce suspicious transactions. |
| International payments | Offer supported currencies and payment methods, subject to merchant-country eligibility and applicable fees. |
Advantages of Stripe
- Flexible checkout options for websites and applications.
- Useful tools for subscriptions and recurring revenue.
- Payment links and hosted checkout for sellers who do not want to build everything from scratch.
- Detailed transaction data and integrations.
- Options for developers and businesses with more advanced payment requirements.
Disadvantages of Stripe
- Some advanced integrations may require technical work.
- Fees vary by country and payment method.
- International cards and currency conversion can increase processing costs.
- Businesses based in unsupported countries generally cannot simply open a local Stripe payments account.
Stripe is often a good fit for a business that needs control over the checkout process, offers subscriptions, or plans to build a more customized ecommerce operation. A small store using a standard platform should still compare how easily Stripe integrates with its existing setup.
See Stripe’s official pricing page for current rates and additional payment products.
2. PayPal: Best for Familiar Digital Wallet Payments
PayPal is a widely recognized digital payment service. Customers may use their PayPal balance, linked bank account, or eligible payment cards depending on their country and account setup. Businesses can also offer card checkout and other payment options through eligible PayPal products.
PayPal fees for online sellers
PayPal has different pricing for wallet transactions, card processing, invoices, and other payment products. On its US business pricing page, PayPal lists wallet payments at 3.49% plus $0.49 per transaction, while expanded checkout card payments are listed at 2.89% plus $0.29. These rates should not be treated as universal prices.
| PayPal feature | Why it matters |
|---|---|
| PayPal checkout | Lets customers complete a purchase through their PayPal account. |
| Card payments | Eligible products can accept card payments from customers who do not want to use a PayPal wallet. |
| Payment links and invoices | Useful for freelancers, consultants, and businesses selling services. |
| Seller protection | Eligible transactions may receive protection subject to the program’s conditions and exclusions. |
| International payments | Can help sellers reach customers across many markets, subject to country, currency, and product availability. |
Advantages of PayPal
- Recognizable checkout option for customers who already use PayPal.
- Useful for service businesses that send invoices or payment requests.
- Can be added as an additional payment method alongside another processor on supported platforms.
- Supports a broad range of markets, although specific features and seller terms vary by country.
Disadvantages of PayPal
- Wallet transactions may have different fees from card transactions.
- International and currency conversion charges can affect net revenue.
- Payment holds, disputes, and account reviews may affect access to funds in some cases.
- The checkout experience and customization options depend on the product and integration.
PayPal can be particularly useful if your customers actively prefer its wallet. However, it is worth comparing the actual fees for your transaction mix instead of assuming every PayPal payment has the same rate.
Review PayPal’s official merchant fees and check the pricing page for your business country.
3. Square: Best for Businesses Selling Online and In Person
Square combines payment processing with point-of-sale tools and business management features. It is especially relevant to retailers, restaurants, salons, and other businesses that accept payments at a physical location as well as online.
Square fees for online sellers
Square’s US pricing varies by plan and payment type. Its retail pricing page lists online card processing at 3.3% plus $0.30 on the Free plan and 2.9% plus $0.30 on certain paid plans. Check the current plan terms before assuming a paid subscription will reduce your total cost.
| Square feature | Why it matters |
|---|---|
| Point of sale | Accept payments in person using supported hardware and software. |
| Online payments | Process eligible online transactions and connect supported commerce workflows. |
| Inventory management | Help manage product records and stock across supported sales channels. |
| Invoices | Request payment for services, projects, and other business transactions. |
| Sales reporting | Review business performance through available reporting tools. |
Advantages of Square
- Combines in-person and online payment workflows.
- Useful point-of-sale and retail features for eligible businesses.
- Can help businesses manage sales from different channels in one ecosystem.
- Offers payment and business tools that may reduce the need for separate systems.
Disadvantages of Square
- Availability is limited to supported countries and regions.
- Some ecommerce features and pricing depend on the plan.
- Businesses that sell exclusively online may not need its in-person features.
- Integrations and capabilities can differ by market.
Square is worth considering if you operate a physical shop, sell at markets or events, or want to connect in-person sales with your online store. If you sell only digital products or run a customized online platform, Stripe or PayPal may be a more natural starting point.
See Square’s official pricing page for plan-specific fees.
Stripe vs PayPal vs Square: Fee Comparison
Comparing processing fees is easier when the transaction type is identical. The table below uses example US online card rates from the providers’ published pricing pages. It is not a global rate comparison and does not include every possible fee.
| Provider and transaction type | Example fee | Illustrative fee on a $50 sale |
|---|---|---|
| Stripe: domestic online card | 2.9% + $0.30 | $1.75 |
| PayPal: expanded checkout card | 2.89% + $0.29 | $1.74 |
| PayPal: PayPal wallet payment | 3.49% + $0.49 | $2.24 |
| Square: online card, Free plan | 3.3% + $0.30 | $1.95 |
| Square: online card, eligible paid plan | 2.9% + $0.30 | $1.75 |
Calculations use the listed rates before any additional fees, refunds, taxes, or currency conversion. Square’s rate depends on plan eligibility, and PayPal wallet and card payments have different fee schedules. Actual fees may differ by merchant location and account.
Why the cheapest rate is not always the cheapest option
A processor charging a slightly higher percentage might still be worthwhile if it increases checkout conversion, simplifies accounting, reduces software costs, or makes it easier for customers to pay. A low processing rate is less useful if customers abandon checkout or the integration requires expensive maintenance.
You should also consider the fixed fee on small transactions. A fee of $0.30 represents a larger percentage of a $5 sale than a $100 sale. This can matter for low-priced digital downloads, small accessories, and inexpensive subscriptions.
Compare Your Estimated Processing Costs
Use this calculator to compare illustrative fees for Stripe, PayPal card checkout, PayPal wallet payments, and Square. The default values reflect the US example rates discussed above. Change the percentages and fixed fees to match the actual pricing available to your business.
Payment processing fee calculator
Stripe: $0.00
PayPal card checkout: $0.00
PayPal wallet payments: $0.00
Square: $0.00
Lowest estimated fee based on your inputs.
Estimated transaction count: 200
Calculation: estimated transaction count = monthly sales volume ÷ average order value. Estimated fees = monthly sales volume × percentage rate + transaction count × fixed fee. The calculator assumes all transactions use the selected rate and does not include international-card charges, currency conversion, refunds, disputes, subscription costs, or other possible fees. Use the currency selector for display only; it does not convert the entered amounts.
Which Payment Processor Has the Best Features?
| Feature | Stripe | PayPal | Square |
|---|---|---|---|
| Online card payments | Yes, in supported markets | Yes, through eligible products | Yes, in supported markets |
| Digital wallet checkout | Supports eligible wallets and payment methods | Core wallet experience | Supports available methods through eligible integrations |
| Payment links | Yes | Available through supported products | Available through supported products |
| Subscriptions | Strong recurring billing tools | Recurring payments available through eligible products | Subscriptions available through supported services and plans |
| In-person POS | Available through Stripe Terminal in supported markets | Available through eligible POS products | A major strength of the platform |
| Developer customization | Extensive APIs and integration options | APIs and checkout integrations | APIs and commerce integrations |
| International availability | Limited to supported merchant countries | Broad availability, with country-specific restrictions | Limited to supported markets |
Feature availability depends on the specific product, merchant country, and ecommerce platform. For example, a provider may accept international customers but still require the seller to have an eligible local business entity and bank account.
International Sellers: Check Availability Before Fees
If you sell internationally, the first question is not which provider has the lowest advertised fee. It is whether you can open and verify an account from your business location, accept payments in your target markets, and withdraw the proceeds through an eligible payout method.
Stripe publishes its supported merchant countries on its global availability page. Square also has country restrictions, while PayPal’s products and fees vary by market.
Peru is not listed among the countries currently supported for standard Stripe Payments accounts, and Square’s online payment products are also limited to supported markets. PayPal may be an option depending on your Peruvian business account, product eligibility, withdrawal methods, and current local terms. Check each provider’s official country-specific documentation before building your checkout around it.
Do not assume that registering a business address in another country is enough to qualify for a payment processor. Providers may require a legitimate legal entity, tax information, physical address, identity verification, and an eligible bank account in the supported country.
Sellers in countries where these services are unavailable should compare locally supported payment gateways and ecommerce integrations instead of choosing a provider based only on US pricing.
Stripe vs PayPal vs Square for Different Online Business Models
For a Shopify store
Check the payment providers supported for your store’s country and Shopify plan. Stripe may power some supported payment setups, while PayPal can offer an additional checkout option. Square may be relevant for businesses with physical sales, but integration availability varies.
Compare the processor’s fees alongside any additional platform transaction fees that apply to your specific plan and payment configuration.
For a WooCommerce store
WooCommerce supports payment extensions for different providers. Stripe and PayPal are common choices in supported markets, while other gateways may be more suitable for a particular country.
Check extension compatibility, subscription support, refunds, saved payment methods, and the total checkout cost before installing a gateway.
For digital products and subscriptions
Stripe is worth evaluating for recurring billing, customizable checkout, and developer-led workflows. PayPal can be useful as an additional payment option for customers who prefer its wallet. Compare recurring payment support, failed-payment handling, refund procedures, and any billing-product fees.
For freelancers and service businesses
PayPal invoicing and payment requests may be convenient for businesses that collect project payments from clients. Stripe also offers invoicing and payment links, while Square provides invoices and business payment tools in supported markets.
For businesses with physical stores
Square is often a natural candidate when a business needs in-person card payments, a point-of-sale system, and online selling tools. Stripe Terminal may suit businesses that want to integrate in-person payments with a more customized technology stack.
Hidden Costs to Check Before Choosing a Payment Processor
The headline processing fee is only one part of the cost. Review the following items before you commit:
- International card fees: Cross-border transactions can cost more than domestic payments.
- Currency conversion: Receiving or converting funds into a different currency may add fees.
- Fixed transaction fees: These have a bigger proportional impact on low-value orders.
- Refund costs: Some original processing fees may not be returned when a transaction is refunded.
- Chargebacks and disputes: Dispute fees and lost payments can increase the cost of fraud or customer disagreements.
- Monthly software plans: Paid ecommerce, POS, or invoicing plans may add recurring costs.
- Platform transaction fees: Your ecommerce platform may charge separate fees depending on your plan and gateway.
- Integration and maintenance: Custom checkout development may require ongoing technical support.
- Payout timing: Funds may not be available immediately, and instant payout options can cost extra.
How to Choose the Right Option in Five Steps
- Confirm country availability. Verify account eligibility, supported payment methods, and withdrawals first.
- Calculate your real transaction mix. Estimate your average order value, number of transactions, domestic versus international sales, and wallet usage.
- Check your platform integration. Confirm compatibility with Shopify, WooCommerce, your custom website, or your invoicing software.
- Compare the total cost. Include processing, currency conversion, subscriptions, platform charges, and likely support costs.
- Test checkout before launch. Verify successful payments, failed payments, refunds, mobile usability, receipts, and reconciliation.
Frequently Asked Questions
Is Stripe cheaper than PayPal?
It depends on the country, transaction type, and payment method. In the US examples shown in this guide, Stripe’s domestic card rate is 2.9% plus $0.30, while PayPal’s expanded-checkout card rate is 2.89% plus $0.29. PayPal wallet payments have a different fee. Compare the rates that apply to your actual transactions.
Is Square better than Stripe for ecommerce?
Square may be a better fit for retailers that combine physical sales with online orders. Stripe may be a better fit for businesses that need customized online checkout, developer APIs, or advanced recurring billing. Country availability and integration requirements can determine which option is practical.
Can I use Stripe and PayPal together?
Many ecommerce platforms support multiple payment methods, so a store may use Stripe for eligible card payments and PayPal for wallet checkout. Confirm that the platform, country, and integration support your intended setup, and check whether extra platform fees apply.
Which payment processor is best for small online sellers?
PayPal may be convenient for sellers whose customers prefer its wallet. Stripe is a strong option for eligible businesses needing flexible online payments and subscriptions. Square is worth considering when a business combines ecommerce with in-person sales. The best choice depends on location, payment methods, and total costs.
Does PayPal charge the same fee for cards and wallet payments?
No. PayPal lists different rates for different products and payment methods. Its US pricing page, for example, distinguishes PayPal wallet payments from expanded-checkout card processing. Always check the fee schedule for your account and country.
Can I accept international payments with these services?
Each provider supports international selling to varying degrees, but international customer acceptance is not the same as merchant account availability. Check supported seller countries, currencies, cross-border fees, conversion costs, and payout options before launching.
Which processor is best for selling from Peru?
Start by checking which services currently support businesses registered in Peru and offer suitable withdrawals. Standard Stripe Payments accounts and Square are not generally available to Peruvian merchants through their standard supported-country programs. PayPal or a locally supported payment gateway may be more practical, depending on the business and current account terms.
Final Verdict: Stripe vs PayPal vs Square
Stripe, PayPal, and Square can all be useful, but they solve slightly different problems. Stripe is a strong choice for customizable payment infrastructure and recurring billing. PayPal can help customers pay through a familiar digital wallet and offers additional business payment products. Square stands out for businesses that want to connect in-person and online sales.
Do not choose a processor solely because its advertised percentage is lower. Confirm that it supports your country, compare the fee for your most common transaction, review currency conversion and payout costs, and test how it works with your ecommerce platform.
The right payment processor is the one that your business can use reliably, that your customers can pay through easily, and that delivers the best overall cost for your actual sales—not simply the lowest headline rate.