Payment Gateway Comparison: Stripe vs PayPal vs Best Alternatives

As e-commerce grows, payment gateways play a larger role in conversion, customer trust, and operating costs. Nearly 70% of online shopping carts are abandoned before checkout, and limited payment options, added fees, or a difficult payment flow can contribute to that loss.

This article compares leading payment gateways by pricing, geographic reach, supported methods, security, and integration requirements, making it easier to identify the right option for your business.

What to look for in a payment gateway

Every payment gateway comparison should start with the business behind the checkout. Transaction volume, target markets, preferred payment methods, and technical resources all affect which provider will work best.

Use this seven-criteria framework to compare options before committing:

1. Transaction fees: Review the full pricing structure rather than the advertised rate. Costs may vary by card type, customer location, currency, payment method, and monthly volume. A provider with a slightly higher standard fee may still cost less overall if it offers favourable international rates or includes fraud tools without an extra charge.

2. Supported payment methods: Check whether the gateway supports the methods customers are most likely to use, including cards, digital wallets, bank transfers, buy-now-pay-later options, and local payment methods. A limited range can create unnecessary friction at checkout.

3. Security: PCI DSS compliance should be the starting point. It is also worth checking for 3D Secure 2, tokenisation, fraud monitoring, and dispute-management tools. These features reduce exposure to sensitive card data and support safer transactions.

4. Global reach: For international sales, confirm which currencies and countries the gateway supports natively, what local payment methods are included, and whether cross-border transactions incur additional fees. Gaps in coverage can create friction at checkout and reduce conversion.

5. Integration complexity: Hosted checkouts (like PayPal Standard or Amazon Pay) can go live in hours with minimal code. API-first gateways (such as Stripe) offer full customization but require developer resources. Assess your technical capacity before choosing – over-engineering a simple checkout adds risk without benefit.

6. Settlement speed: Payouts may arrive on the same day or take several business days. Compare the standard schedule, reserve policy, weekend processing, and any extra fees for faster access to funds. Longer settlement times can put pressure on cash flow, especially for seasonal or fast-growing businesses.

7. Customer support: Verify whether the provider offers 24/7 support, dedicated account managers for your tier, and documented escalation paths for disputes and account holds. User reviews consistently flag support quality as the biggest differentiator between gateways with similar features.

Need more recommendations? Read our article How to Choose a Payment Gateway Partner and to Minimize Risk and Maximize Value

Payment gateway fees: What you actually pay

Payment gateway pricing often looks simple at first: a percentage of every transaction plus a fixed fee. However, in practice, there’s more to it than meets the eye. Most merchants discover additional costs after launch. Here’s what to account for across three categories.

Per-transaction fees

Most gateways charge for every successful payment. The fee usually combines a percentage of the transaction value and a fixed amount per payment. The exact rate may depend on:

• Online or in-person processing
• Card country of issue
• Card type and payment method
• Transaction currency
• Monthly processing volume

International cards commonly carry an extra charge and currency conversion may add another percentage on top of that. Some providers reduce fees as transaction volume grows, while larger businesses may also receive custom pricing.

To compare the real cost, use your expected number of payments, average order value, customer locations, and currencies. A low advertised rate doesn’t always mean a lower monthly cost.

Monthly and platform fees

Payment gateways may offer a plan with no monthly subscription or charge a recurring fee for platform access and advanced features. Higher-tier plans can include lower transaction rates, detailed reporting, recurring billing, fraud tools, or priority support. They may offer good value at higher volumes, although smaller businesses can find the added cost unnecessary.

Check what the standard plan includes and which capabilities require an upgrade. Extra charges may apply to:

• Recurring billing
• Invoicing
• Marketplace payouts
• Advanced fraud prevention
• Additional merchant accounts
• Premium support
• Specialised reporting

Hidden and indirect costs

Fees outside the standard pricing plan can add up quickly. Pay particular attention to:

• Chargebacks: Disputed payments usually come with a fixed charge, which may not be returned even if the business wins the case.
• Currency conversion: An exchange-rate markup can apply when customers pay in a currency different from the one used for settlement.
• Cross-border transactions: International cards and overseas sales often cost more.
• Refunds: Customers may receive the full amount back, but the original processing charge is not always returned to the merchant.
• Faster payouts: Same-day or instant access to funds usually comes at an extra cost.
• Rolling reserves: A share of revenue can be held temporarily to cover possible disputes or returns.
• Settlement delays: Slow access to money can put pressure on cash flow even when no direct charge applies.

Top 10 payment gateways compared

Here’s a side-by-side look at the most popular payment gateways, comparing their fees, supported methods, and ideal use cases so you can quickly spot the best fit for your business.

Stripe

Stripe is a developer-friendly payment platform used by SaaS companies, marketplaces, and online retailers that need a flexible checkout experience.

Fees:  

• Standard US pricing is 2.9% + $0.30 per successful domestic online card transaction and 2.7% + $0.05 for in-person payments. 
• Manually entered cards cost 3.4% + $0.30. 
• International cards add 1.5%, plus an extra 1% for currency conversion. 
• Stripe charges $15 for lost disputes.

Supported methods:

• Major payment options and digital wallets, including Apple Pay and Google Pay.
• Buy-now-pay-later options such as Clearpay and Klarna.

Geographic reach: Operates in 45+ countries and supports 135+ currencies.

Integration approach: API-first, with Stripe Elements for embedded checkout UI. Requires developer resources but offers the deepest customization of any major gateway.

Ideal for: Tech-savvy companies, SaaS providers, and platforms handling recurring billing or marketplace payouts at scale.

PayPal

PayPal is one of the most recognized payment brands globally, built around consumer trust and fast setup rather than deep customization.

Fees: 

• Pricing varies by country, payment method, and checkout product. 
• Merchants generally pay a percentage of the transaction plus a fixed amount, with extra charges possible for cross-border payments, currency conversion, disputes, or advanced features.
• In the US, standard PayPal Checkout rates include 3.49% + $0.49 for standard PayPal Checkout and 2.89% + $0.29 for advanced card processing.

Supported methods:

• PayPal balance
• Bank transfers
• Major cards (Visa, Mastercard, and American Express)

Geographic reach: 200+ countries, around 435 million active accounts.

Integration approach: Hosted checkout via redirect buttons for the simplest setup; more tailored on-site flows on higher tiers.

Ideal for: Small businesses and startups prioritizing fast setup and consumer trust over customization.

Adyen

Adyen brings online, in-app, and in-store payments into one platform. It also includes risk tools and payment processing, making it a strong choice for large businesses operating across several markets.

Fees:

• Interchange++ pricing for card transactions.
• $0.13 processing charge per payment.
• Acquiring costs starting at 0.60% for selected card types.
• Minimum monthly invoice based on industry and merchant profile.
• Exact minimum invoice amount provided on request.

Supported methods:

• Widely used credit and debit cards
• Digital wallets and BACS Direct Debit
• More than 250 global and local payment methods available through one platform

Geographic reach: Strongest in Europe; growing in Americas and APAC via local acquiring licenses.

Integration approach: APIs, mobile SDKs, and connectors for platforms such as Adobe Commerce and Salesforce Commerce Cloud. A custom setup needs dedicated engineering resources.

Ideal for: Enterprises processing significant volume annually wanting transparent, volume-based pricing across channels.

Braintree

Braintree is a PayPal company that combines card processing with native PayPal and Venmo support.

Fees: 

• US cards and third-party digital wallets cost 2.89% + $0.29 per transaction. 
• Venmo costs 3.49% + $0.49 and is available in the US only. 
• Chargebacks carry a $15 fee. 
• Custom flat rates, interchange-plus pricing, and volume discounts are available for established businesses.

Supported methods:

• Cards, Apple Pay, Google Pay, PayPal, Venmo, iDEAL, Bancontact and SEPA Direct Debit
• Other regional options, depending on location and account setup

Geographic reach: Supports more than 130 currencies across 44 countries.

Integration approach: REST and GraphQL APIs, client SDKs, hosted fields, and a drop-in checkout. Account structure depends on region, currency, and banking arrangements.

Ideal for: E-commerce businesses that want PayPal and Venmo alongside card payments in one integration.

Square

Square caters to businesses of all sizes, focusing on in-person payments and mobile commerce. It’s known for its user-friendly system which makes it a good option for businesses with limited technical expertise.

Fees:

• Online: 2.9% + $0.30 for standard online payments; invoices paid online are 3.3% + $0.30.
• In-person: 2.6% + $0.10 for tap/dip/swipe transactions (flat rate on all plans).
• Manually keyed-in: 3.5% + $0.15.
• Square’s POS software is free, with additional monthly plans for specific products (e.g., Retail Plus, Restaurants Plus, Appointments Plus).

Supported methods:

• Major cards and digital wallets
• Square’s own POS hardware

Geographic reach: Strongest in US, Canada, UK, Australia, Japan, Ireland, France, Spain; limited elsewhere.

Integration approach: Square’s own POS software and commerce tools; no separate merchant account needed.

Ideal for: Brick-and-mortar retailers, food service, and small businesses needing both in-person and online sales.

Authorize.net

A long-established, Visa-owned gateway used by 430,000+ merchants. It processes over one billion transactions each year and offers either gateway-only access or an All-in-One plan that includes support with setting up a merchant account.

Fees:

• All-in-One: $25 per month plus 2.9% + $0.30 per transaction.
• Gateway Only: $25 per month plus $0.10 per transaction and a $0.10 daily batch fee.
• Advanced Fraud Detection Suite included, with 13 configurable filters.

Supported methods:

• Credit and debit cards
• Apple Pay, Google Pay, PayPal, and eCheck payments

Geographic reach: Available primarily to merchants based in the US, Canada, the UK, Europe, and Australia; requires a separate merchant account per currency internationally.

Integration approach: Works with an existing merchant account or one arranged through a partner. APIs, recurring billing, invoicing, and fraud tools are available through the same platform.

Ideal for: Established businesses and nonprofits that need recurring billing, fraud controls, or an existing merchant account connection.

Worldpay

Worldpay is an omnichannel acquirer, now part of Global Payments, built for high-volume established merchants.

Fees: 

• UK e-commerce pricing starts at 1.3% +  $0.20 for Visa and Mastercard consumer cards. 
• Commercial cards and American Express cost 2.9% +  $0.20.
• Tailored plans are available for businesses with more complex requirements.

Supported methods:

• Major cards, Apple Pay, Google Pay, and Samsung Pay
• Bank transfers and a broad range of local options, depending on the market

Geographic reach: Supports 146 countries and 135 currencies.

Integration approach: Hosted checkout pages, APIs, SDKs, plugins, and custom integrations for online and in-person payments.

Ideal for: UK retailers and e-commerce businesses that need online and in-person payments from one established provider. Its wider enterprise offering also suits international merchants with more complex processing requirements.

Checkout.com

Checkout.com is a global platform aimed mainly at growing and enterprise businesses. It combines payment processing, acquiring, fraud tools, and reporting within one system.

Fees:

• Pricing is tailored to each business and may use an Interchange++ model. 
• It doesn’t publish standard transaction rates, but states that it charges no setup or account maintenance fees. A custom quote is required.

Supported methods:

• Credit and debit cards
• Digital wallets, bank-based payments, and buy-now-pay-later options
• More than 50 local and alternative methods (availability varies by market)

Geographic reach: Global access to 145+ processing currencies, with domestic processing in 55 countries and settlement in nearly 20 currencies.

Integration approach: Unified Payments API, hosted checkout pages, customizable components, SDKs, and selected e-commerce plugins.

Ideal for: International businesses that need flexible transaction flows, local processing, and greater control over payment performance.

GoCardless 

GoCardless specializes in bank-to-bank payments rather than cards. It’s a strong fit for subscriptions and invoicing.

Fees:

• Standard plan: around 0.05% + $0.05 or 0.75% + $0.05, with higher rates for Advanced/Pro tiers. 
• International: around 1.5–1.9% + fixed fee. No monthly subscription cost.

Supported methods:

• UK Bacs Direct Debit and SEPA Direct Debit (Eurozone)
• Global bank debit alternatives

Geographic reach: Payers in 30+ countries; merchants in the UK, EU, Australia, and some other countries.

Integration approach: API or dashboard setup; many accounting and partner integrations. Can’t process cards directly.

Ideal for: Subscription and invoice-based businesses wanting lower fees and higher success rates than card processing.

Razorpay

Razorpay is the default payment gateway for Indian startups, built around UPI infrastructure.

Fees: 

• Domestic transactions: A flat 2% charge plus tax covers Indian cards, standard UPI, and net banking.
• Premium Rate: A 3% fee applies to overseas payments, corporate cards, Amex, and EMI plans.
• Zero upfront costs or recurring annual platform fees to keep the account active.

Supported methods:

• UPI, cards, and net banking
• Wallets and EMI/pay-later

Geographic reach: Primarily India-focused; international acceptance growing, though cross-border settlement takes 3–5 days.

Integration approach: Clean APIs/SDKs plus smart routing to reduce payment failures.

Ideal for: India-first startups and SaaS companies that need fast setup and broad local payment coverage.

Payment gateway comparison matrix

Before choosing a payment gateway, it’s crucial to look beyond transaction fees. The right provider must fit your markets, payment model, security requirements, and technical setup. Here’s a comparison of all ten options with published rates, pricing models, or relevant local examples.

Best payment gateway by use case

There is no single payment gateway that works equally well for every company. A local retailer, a subscription platform, and a global marketplace will face very different payment requirements. The recommendations below narrow the options by business model.

Small businesses and startups: PayPal

PayPal remains the easiest gateway to set up, with no monthly fee and a brand most customers already trust. For a small business without dedicated developer resources, this is more important than advanced customization. Processing costs may be higher than with certain alternatives, but the lower technical barrier can make the trade-off worthwhile.

Enterprise: Adyen or Checkout.com

Large organisations tend to need more than simple card acceptance. Adyen and Checkout.com support local acquiring, tailored pricing, complex routing, and operations across several markets. Neither is the easiest option to implement, but both give high-volume merchants closer control over payment performance.

Global e-commerce: Stripe

Stripe is a practical choice for online retailers selling across borders. It supports more than 135 currencies, along with a broad selection of regional payment options. This allows companies to enter new markets without creating a separate setup for every country.

Subscription businesses: Stripe or GoCardless

The right choice here depends on how customers pay. Stripe Billing covers fixed plans, usage-based charges, and one-off invoices. GoCardless focuses on recurring bank payments, making it particularly relevant for memberships, B2B services, and subscriptions based on direct debit.

Marketplaces: Stripe or Adyen

Marketplaces have to onboard sellers, divide funds, and arrange payouts. Stripe Connect and Adyen for Platforms handle these tasks within their wider payment systems. Stripe suits faster setup with US- or Europe-based sellers; Adyen suits larger scale across more markets.

High-risk industries: Authorize.net or a specialist processor

A mainstream gateway is not always the safest route for a high-risk merchant. Providers may restrict certain sectors or close accounts that fall outside their risk policies. A specialist processor with experience in the relevant industry is usually a more stable option. Authorize.net may offer additional flexibility through its acquiring partners, although approval still depends on the merchant account provider.

B2B: Adyen or Authorize.net

Authorize.net fits established companies that rely on invoicing, recurring charges, and an existing merchant account. For international B2B payments, Adyen offers more extensive currency support and commercial terms designed around higher volumes.

Mobile-first businesses: Square or Stripe

Square is built around in-person and mobile commerce, with POS hardware that pairs naturally with mobile-first selling. Stripe is the stronger choice for mobile-first businesses that are app-based or online-only, given its mobile SDKs and broader digital wallet support.

Integration considerations: Build vs buy 

Selecting a payment gateway is only one part of the decision. The next question is how the gateway should connect with the checkout, internal systems, reporting tools, and wider payment infrastructure.

Buy: hosted solutions or pre-built plugins

A hosted payment page is usually the fastest route. The provider handles most of the checkout and keeps sensitive card details within its environment. This reduces development work and can limit PCI scope, although the business has less control over the customer journey.

Pre-built plugins offer another practical option for platforms such as Shopify, WooCommerce, or Adobe Commerce. They shorten implementation time, but the business remains dependent on the plugin’s quality, update schedule, and available features.

Choose this option if:

• Speed to launch matters more than full customisation.
• The checkout follows a standard payment flow.
• Technical resources are limited.
• Reducing PCI scope is a priority.

Build: custom API integration

For more complex payment flows, an API-based setup offers greater control over checkout design, billing, routing, refunds, and marketplace payouts. That control brings more responsibility, particularly around security, testing, reconciliation, and long-term maintenance.

Consider this route when:

• The product requires a tailored payment flow.
• Payments connect with several internal systems.
• Complex billing or payout rules are involved.
• The development team can support ongoing testing and maintenance.

Maybe combining both approaches?

A hybrid setup pairs a custom checkout with hosted fields, tokenisation, and fraud tools provided by the gateway.

This model works well when:

• The customer journey needs to remain under your control;
• Sensitive card data should stay outside internal systems;
• The business requires flexibility without developing every payment function in-house.

The right model depends on the product, transaction volume, regulatory exposure, and available technical resources. For a closer look at implementation, see this guide to payment gateway integration.

Modernize payment infrastructure with Neontri

With more than 15 years in fintech and banking, Neontri provides payment technology services for regulated environments, high transaction volumes, and complex existing systems.

Our experience includes:

• PKO Bank Polski Data Hub: Neontri co-developed an offloading platform that handles around 70 million records each day. It reduces pressure on the bank’s core infrastructure, supports near-real-time replication, and processes up to 10,000 requests per second.

• KIR PSD2 Open Banking Hub: Built in response to the 2019 PSD2 deadlines, the hub connects third-party providers with more than 300 Polish banks. It includes a developer portal, sandbox, and gateway API for secure access and testing.

• Decathlon BLIK integration: We connected a BLIK payment engine with Decathlon’s existing retail application. The system processed €1 million in its first week, supported thousands of orders soon after launch, and was completed in 70% of the planned delivery time.

This experience allows us to build payment systems that can support growth without disrupting existing operations. Our ISO 27001 and SOC 2 Type II certifications add an extra level of confidence that security and delivery controls are built into the process.

Move forward with a payment setup designed for long-term reliability. Schedule a call with our experts to discuss your integration.

Conclusion

While no payment gateway leads in every area, the right choice comes down to transaction volume, customer location, preferred payment methods, and the level of technical control the business needs.

That decision should be based on the total cost, not just the advertised rate. It’s also important to check whether the provider can support new markets, changing billing models, and higher volumes without requiring another major integration.

FAQ

What is a payment gateway?

A payment gateway acts as a secure link between customers, businesses, and financial institutions. It allows companies to accept card and other payment methods across websites, mobile apps, and physical stores.

How much do payment gateways cost?

It varies. Most gateways charge a percentage of each payment plus a fixed fee, with extra costs possible for international cards, currency conversion, disputes, refunds, faster payouts, or advanced plans.

Which payment gateway has the lowest fees?

There is no universal lowest-cost gateway because rates depend on the market and transaction profile. A provider with a low domestic rate may charge more for international cards or currency conversion. Compare expected monthly costs using your sales volume, average order value, currencies, and customer locations.

What’s the difference between a payment gateway and a payment processor?

The gateway securely collects and transfers payment information from the checkout. The processor communicates with the relevant banks and card networks to complete the transaction. Providers such as Stripe and PayPal can perform both roles within one service.

Which payment gateway is best for small businesses?

PayPal works well for companies that want a familiar checkout and a relatively simple setup. Square is more suitable when online sales connect with a physical store or POS system, while Stripe fits businesses that are planning custom payment flows or subscriptions.

Which payment gateway is best for international payments?

Stripe is a strong option for growing online businesses because it supports numerous currencies and regional methods. Adyen and Checkout.com are more suitable for large merchants that require local acquiring and tailored pricing across several markets. The best choice still depends on where the company is registered and where its customers pay from.

Is Stripe better than PayPal for e-commerce?

Stripe gives businesses more control over checkout design, subscriptions, and marketplace payments, but it usually requires stronger development resources. PayPal is quicker to add and offers a payment method that customers already know. The better choice comes down to whether flexibility or ease of setup matters more.

Do I need a merchant account with a payment gateway?

Not always. Providers such as Stripe, PayPal, and Square combine payment processing with merchant-account functionality. Gateway-only services may require an existing merchant account or one arranged through a partner bank.

Which payment gateway offers the best customization options?

Stripe offers the most advanced options, with tools like Stripe Elements for branded checkout design and APIs for tailored payment flows. Authorize.net also provides high flexibility with its developer tools, however it requires more technical expertise. For simpler setups, PayPal offers basic customization but focuses more on ease of use.

Sources

https://www.paycec.com/faq/what-is-payu-payment-gateway
https://www.bigcommerce.com/articles/ecommerce/abandoned-carts/
https://www.globenewswire.com/news-release/2022/10/13/2534361/0/en/Payment-Gateway-Market-Size-is-expected-to-reach-at-USD-106-4-Billion-by-2030-registering-a-CAGR-of-16-8-Owing-to-Increasing-Financial-Literacy-across-the-Globe.html