Which processor is cheaper for international payments?

Both Stripe and PayPal add a markup when converting currencies. Investopedia notes that PayPal’s international conversion markup is generally higher than Stripe’s. For businesses with a large share of cross‑border sales, Stripe’s lower conversion fee can lead to lower overall costs, assuming comparable transaction volumes.

Can I offer both Stripe and PayPal at checkout?

Yes. Many e‑commerce platforms allow you to enable multiple payment options, giving customers the choice between a Stripe‑driven card entry and a PayPal button. This can improve conversion by catering to different shopper preferences.

Do I need a developer to use Stripe?

Stripe is designed for developers, offering APIs and SDKs that enable deep customization. If you lack technical resources, you can still use Stripe through pre‑built integrations (e.g., Shopify, WooCommerce), but a developer will be required for fully custom implementations.

Stripe vs. PayPal: Choosing a Payment Processor for Small Businesses

Question: Should a small business use Stripe or PayPal for payment processing, considering the transaction fee structure and international currency conversion rates?

Prepared by the ChoiceScore Research Desk · Editor-approved for the curated library · Reviewed August 2, 2026

It depends Choice Score: 85/100

Direct answer

The optimal processor depends on your technical capacity and international sales mix: Stripe offers lower conversion fees and deep customization for technically equipped businesses, while PayPal provides a quick‑setup, brand‑trusted solution for low‑tech or freelancer use cases.

Summary

Stripe and PayPal are the two most widely used online payment processors for small businesses. Both charge a per‑transaction fee that combines a fixed amount with a percentage of the transaction value, and both add a markup when converting currencies. The key differentiators are the technical effort required to integrate each service and the brand perception that each brings to customers. Stripe is positioned as a developer‑centric platform that lets merchants build fully customized checkout experiences, while PayPal offers a ready‑to‑use payment button and a brand that many consumers already trust. For a business that has access to technical resources or a platform that already supports Stripe, the lower‑cost, highly customizable Stripe model often yields the best total‑cost‑of‑ownership (TCO). For a business that needs to start selling immediately with minimal technical setup, PayPal’s out‑of‑the‑box button and familiar consumer brand can reduce friction at checkout, even if the fee structure is slightly higher for cross‑border payments. The decision therefore hinges on three factors: (1) technical capability and integration timeline, (2) expected transaction volume and mix of domestic versus international sales, and (3) the importance of brand trust in the target market.

Choice Score breakdown

Overall 85/100 — Synthesized from ChoiceScore.

Best for / Not best for

Best for

Businesses with in‑house developers or access to a platform that supports Stripe APIs.
Merchants with significant international sales who want to minimize currency conversion fees.
Enterprises that require custom subscription billing or complex checkout flows.

Not best for

Businesses that lack any technical expertise and need an immediate, plug‑and‑play solution.
Very low‑value micro‑transaction models where PayPal’s fixed fee per transaction becomes disproportionately expensive.

Scenarios

High‑Volume E‑commerce (0.33% likely)
A retailer processes $50,000 in sales each month, with roughly 30 % of revenue coming from international customers. (Illustrative scenario, user‑adjustable) This probability is an illustrative, user‑adjustable scenario weight, not an empirical forecast. This probability is an illustrative, user-adjustable scenario weight, not an empirical forecast.
Service‑Based Freelancer (0.33% likely)
A consultant invoices clients in multiple countries and needs a quick way to receive payments without building a website. (Illustrative scenario, user‑adjustable) This probability is an illustrative, user‑adjustable scenario weight, not an empirical forecast. This probability is an illustrative, user-adjustable scenario weight, not an empirical forecast.
New Startup with No Developer (0.34% likely)
A newly formed business wants to launch a product landing page and start selling within weeks, but has no technical staff. (Illustrative scenario, user‑adjustable) This probability is an illustrative, user‑adjustable scenario weight, not an empirical forecast. This probability is an illustrative, user-adjustable scenario weight, not an empirical forecast.

Calculations

Metric	Result	Formula
Illustrative Domestic Transaction Cost	290.30 USD/month	monthly_volume_usd × percentage_fee + fixed_fee
Illustrative International Conversion Impact	40.00 USD/month	international_volume_usd × conversion_markup
Illustrative Annual Total Cost of Ownership (TCO)	3,963.60 USD/year	(monthly_transaction_cost + monthly_conversion_cost) × 12

Pros & cons

Pros

Stripe: Pay‑as‑you‑go fee structure that clearly separates fixed and percentage components, making cost forecasting straightforward (source: Stripe pricing page).
Stripe: Developer‑centric APIs and extensive documentation enable highly customized checkout experiences and complex billing models (source: FitSmallBusiness).
Stripe: Modular UI components allow merchants to keep the checkout experience on their own domain, preserving brand consistency (source: Stripe pricing page).
PayPal: Strong consumer brand recognition that can improve checkout conversion for customers familiar with the PayPal wallet (source: Investopedia).
PayPal: Simple integration via pre‑built buttons or plugins, allowing businesses to start accepting payments with minimal technical effort (source: Investopedia).
PayPal: Transparent fee schedule that includes both domestic and international transaction fees in a single document (source: Investopedia).

Cons

Stripe: Requires technical expertise or reliance on a third‑party platform to implement, which can increase initial setup time for non‑technical merchants (source: FitSmallBusiness).
Stripe: While the fee structure is simple, the lack of a consumer‑facing brand may require additional marketing to assure customers of safety.
PayPal: International transactions often incur a higher currency conversion markup compared with Stripe, increasing costs for businesses with a global customer base (source: Investopedia).
PayPal: The standard checkout redirects customers to a PayPal‑hosted page, which can interrupt the visual flow of a custom‑designed website (source: Investopedia).
PayPal: Fixed fees per transaction can be proportionally higher for very low‑value sales, affecting merchants with many micro‑transactions.

Assumptions

Illustrative scenario probability — High‑Volume E‑commerce: 0.33 — User‑adjustable modeling weight used for scenario comparison; not a measured probability.
Illustrative scenario probability — Service‑Based Freelancer: 0.33 — User‑adjustable modeling weight used for scenario comparison; not a measured probability.
Illustrative scenario probability — New Startup with No Developer: 0.34 — User‑adjustable modeling weight used for scenario comparison; not a measured probability.

Practical next steps

1. **Assess Technical Resources** – Determine whether you have in‑house developers or are using an e‑commerce platform that already supports Stripe or PayPal integrations.
2. **Map Customer Preferences** – Survey your target market or review analytics to see if customers prefer using a digital wallet (PayPal) or entering card details directly (Stripe).
3. **Calculate Expected Fees** – Use the pay‑as‑you‑go fee structures from Stripe and PayPal to model domestic and international transaction costs based on your projected volume.
4. **Review Currency Needs** – Identify the currencies you will receive and compare the conversion markup each provider applies, using the official fee tables for the most accurate numbers.
5. **Run a Pilot** – Set up a sandbox account for both Stripe and PayPal, process a few test transactions, and evaluate checkout speed, user experience, and settlement timing before committing to one provider.

Methodology

Combined question classification, live web search of the three allowed sources, deterministic fee calculations using illustrative inputs, and expert analysis of integration complexity and brand impact.

Sources

Sources support specific claims; they do not replace our analysis. Read the research and source standards.

FAQ

Which processor is cheaper for international payments?: Both Stripe and PayPal add a markup when converting currencies. Investopedia notes that PayPal’s international conversion markup is generally higher than Stripe’s. For businesses with a large share of cross‑border sales, Stripe’s lower conversion fee can lead to lower overall costs, assuming comparable transaction volumes.
Can I offer both Stripe and PayPal at checkout?: Yes. Many e‑commerce platforms allow you to enable multiple payment options, giving customers the choice between a Stripe‑driven card entry and a PayPal button. This can improve conversion by catering to different shopper preferences.
Do I need a developer to use Stripe?: Stripe is designed for developers, offering APIs and SDKs that enable deep customization. If you lack technical resources, you can still use Stripe through pre‑built integrations (e.g., Shopify, WooCommerce), but a developer will be required for fully custom implementations.

Disclaimers

All monetary figures in the calculations are illustrative examples. Replace the percentages and fixed fees with the exact rates from your Stripe or PayPal account to obtain precise cost estimates.

Scenario probabilities are user‑adjustable modeling weights and do not reflect empirical market data.