Which Online Payment Processor Is Best For Your Business?
Today, we’re talking pay power versus Stripe, two large payment processors that although do fundamentally the same thing, go about it in two different ways.
As we all know, PayPal is the user-friendly online payment processor that allows traditional business owners like you and I to integrate payments into our Web site or more recently, accept payments on the go and really makes it super easy for us to accept these payments without having any real technical knowhow. Stripe, on the other hand, was built for Web site developers. It’s a platform that allows really tech-savvy coders to add payments to applications or more complicated Web sites that really need to modify the shopping cart experience or the checkout experience for those developers. Stripe cooperates behind the scenes in apps that you and I use daily to accept payments. So whenever you’re driving Lyft or taking a left, and you end up paying, Strike is working behind the scenes there. They have a ton of other big-name clientele like the car door dash post makes. I think they’re even working with Target these days. So with today’s video, we’re going to break down how they’re similar, how they’re different. We’re gonna put them into context and figure out which one of these guys is better for your business. We’ll breakdown products and services, fees and rates, ease of use and much more so as we begin in the products and services space. As I mentioned before, although these two guys do the same things, they do them differently and they kind of cater their services to different audiences. Hey, Powell, for traditional businesses strive for Web developers.
Now, a more accurate comparison would probably be Strike vs PayPal subsidiary called Braintree, which does almost exactly the same thing that Stretch does. But we’re just going to stick to pay PowerMan strike and show you what they both offer.
And so beginning with PayPal, as we all know, they’re in the business of allowing average everyday users to integrate payments into their Web sites very easily with several product and service offerings like PayPal, check out PayPal payments and PayPal payments pro. And they’ve more recently gotten into the traditional point of sale space with a mobile payments app and several integrations with larger, more in-depth detail of sale solutions like the retail solution fan and looking at Stripe. However, they offer very similar products and services, they really focus on is the customized ability and creating code for developers to allow them to implement various types of checkout processes within their applications and on their Web sites. So we’re talking support for credit cards, AC H and localized payments. We’re talking about support for online and in-app checkouts. And they also provide pre-built embeddable checkout forms, plus the ability to build a model from scratch. And now they’ve recently created a software developer, Kiff, for what they call square terminal, which is essentially the ability to integrate strike with traditional over the counterpoint of sale app. And so it’s important to point out that PayPal is the more user-friendly, more tolerant, no tech-savvy option. And Stripe is for developers and anyone that really wants to be able to customize and code into their app. And so it’s difficult to pick a winner in this category just because their offerings are targeted to different audiences. But if we had to choose, I would have to say that PayPal wins simply because not only do they have the user-friendly option, but they also, with their acquisition of a company called Braintree, have a very similar offering to strike.
So not only do they have the user-friendly option, but they also have the web developer-friendly option. The fees and rates, both PayPal and Stripe, offer very transparent. No commitment, no early cancellation fee types of fees and rates. The cost for online transactions is precisely the same for both Stripe and PayPal, two-point nine per cent plus 30 cents a transaction. If you want to process mobile point of sale or over-the-counter in. Transactions with PayPal, it’s going to cost you two point seven per cent. But with Stripe, with their terminal offering, it’s going to cost two point seven percent plus five cents a transaction. The slight advantage for Stripe here is that they also offer ACARS transactions at point eight percent and capped at five dollars. ACA is something that PayPal does not offer. So they have a very similar price offering between the two. I would say that it’s really a tie unless you have a need for ACARS transactions within your app and you have a developer that can code, it can strike, would edge it out a little bit here. But overall, it’s a tie. Moving on to ease of use, PayPal makes it extremely is easy for the traditional regular business owner to implement online payments for to accept payments on a mobile phone or traditional point of sale. So for our audience, which compromises mostly small business owners, PayPal is the clear winner and the ease of use department. But if you’re a developer and you are familiar with code and you need that customize ability, then strike might be the easier option for you.
Just because they’ve made integration of payments much easier for developers, but for our audience and our sake, PayPal wins and the ease of use department when it comes to contract length and early termination fees. Both of these guys are excellent. Neither of them lock you into a committed contract with any type of early termination fee. You can use them. You can walk away without any penalties. Both of them win in this department. Moving on to sales and advertising, transparency. Again, both of these guys are very upfront. They list all of their fees on their Web sites. There are no hidden fees. Everything that you see on the Web site, on the pricing pages is what you’re going to end up paying. Both PayPal and Stripe win in that department when it comes to customer service and technical support. Both PayPal and strike offer a whole host of options like knowledge base help center, live chat, phone support, email support, social media support. But as is to be expected from really large companies like these guys, it’s usually a hit or miss. You might get a great support agent, might get a horrible support agent. It really depends on the day, but it’s helpful to know that you have multiple options for support. And if one area doesn’t work, then you can chase down another support agent in another area. So if you email them and you don’t get a response, you can always hit them up on Twitter. You always set them up online chat. You always call in. So my suggestion is try every single option at your disposal.
And so I have to say that in the customer support department, both pay power and Stripe are evenly tied.
And so moving on to user reviews of actual people that have used PayPal and straight, the two major complaints that we’re seeing are withheld funds and freezing of accounts and inconsistent or unresponsive support in addressing the first complaint of withheld funds and freezing and termination of accounts. Well, PayPal in stride make it really easy for any business to sign up and begin accepting payments immediately. What that causes were the problem that that that causes is that they don’t necessarily vet the business ahead of time. So if you happen to fall within the high risk category and you begin processing payments or something in your payment processing pattern, changes that they don’t like, it triggers a red flag and they immediately start to hold your funds or they might even terminate your account, although you can find documentation on both of their websites that will tell you what types of businesses they’re unable to accept. It still makes sense for them to do a little bit more vetting and to prevent you from signing up for an account if they don’t think that you fall within their guidelines. But of course, if they change their policy, they would make it much more difficult to accept online payments that quickly. Believ me it’s kind of a double edged sword in addressing the inconsistent or unresponsive phone support.
As much as I hate to say it’s to be expected with such large companies. It’s going to happen. I mean, you have probably dealt with your bank before or your cell phone provider. When these companies get back big, they drop the ball when it comes to customer support sometimes. But here at. Maverick, we always like to talk about the bad and the good. So in looking at the positives, PayPal customers are happy with the very easy setup. The widely accepted multiple products, services and offerings that PayPal offers straight customers like the quick and easy setups. The great API or software developer kit. And the great documentation for Web developers.
So in taking the pros and cons, the pluses and minuses when it comes to user reviews, both of these guys are head to head. It’s a tie. And so it’s time for a final verdict, they fundamentally do the same things, that they do them differently. So it’s tough to pick a clear an overall winner. I’m going to have to say that it’s a tie. If you are not tech-savvy business owner that just easily wants to implement online payments. PayPal is the way to go. They’re widely accepted. They’re well known, simple and transparent. Let me clear, if you’re a developer and you want to do some more heavy lifting, you have an app like say it’s the car door, Dash, Lyft, something like that. Stripe is the way to go. They have excellent software developer kits. They have excellent documentation. They have generous support for developers. So it really depends on what your specific situation is. So there you have it, PayPal versus straight. If you want a more in-depth look at this comparison, we’ll drop a link in our bio to an article that we’ve written that’s a little bit more in-depth than what I’ve mentioned here. And we also have really in-depth reviews of each provider, both PayPal and Strife. We do a ton of research. We test these guys inside and out so that you can focus on what matters most. Your business, if you like this video, hit the like button, subscribe, share a comment. All of that, please, as much as you can. We’ll take it. See you next time.