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Paypal Versus Stripe – e Commerce Payments

When we are creating ecommerce websites we are frequently asked about the payment options available. Most companies who are starting out with an ecommerce website don’t want to get into a contract for a monthly payment subscription service, they tend to prefer to opt for a ‘pay as you sell’ charge. Two common providers in this sphere are Paypal & Stripe both of which have their advantages.

Paypal has long been dominant in the sector. Setting up an account is quick. requiring your business details and email, you then need to verify your account and bank details and the standard verification of the account holder(s) – i.e. submit proof of identification of the account holder. One of the draw backs we have found with Paypal is the confusion some

people have around being able to pay using their credit card, people often think you can only pay using a Paypal account & it sometimes appears this way (see graphic). If you don’t have a Paypal account you can pay using your credit card. The second draw back with Paypal is cost – 3.4 % plus 35 cent (subject to volume) per transaction can be significant compared to Stripe. On a purchase of €5 on your website you will receive €4.49

Stripe operates in 25 countries around the world. To use Stripe on your ecommerce website you must have an Secure Socket Layer Cert (SSL /https) installed. This in itself is a good thing. Google came out in 2015 and said that it was giving a search ranking boosting to sites with an SSL cert. SSL certs also have the effect of reassuring users to your website that you take security and encryption seriously. A second plus for Stripe is the cost of transaction charges. At the moment Stripe are charging 1.4% + 25 cent ex-vat for European credit cards so on a purchase of €5 on your website you will receive €4.61

You can always go for the best of both worlds and put the 2 payment methods on your website & let your customer choose.

To see what some of our customers have done visit our ecommerce clients section or if you have any questions about payment options for your website please contact us [email protected] / 353-42-9664833