Welcome back to our channel Mavericks. Today, we’re talking PayPal VS Stripe, 2 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 website, 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 know-how. Stripe, on the other hand, was built for website developers. It’s a platform that allows really tech-savvy coders to add payments to applications or more complicated websites that really need to modify the shopping cart experience. or the checkout experience, for those developers. Stripe operates behind the scenes in apps that you and I use on a daily basis to accept payments. So, whenever you’re you’re driving lyft or taking a lyft and you end up paying, Stripe is working behind the scenes there. They have a ton of other big-name clientele like “Into the car” “Doordash” “Postmates”. I think they’re even working with Target these days. So with today’s video, we’re gonna 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 break down 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. PayPal for traditional businesses, Stripe for web developers. Now, a more accurate comparison would probably be Stripe versus PayPal subsidiary called Braintree, which does almost exactly the same thing that stripe does. But for the sake of this video we’re just gonna stick to PayPal and Stripe 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 websites very easily with several product and service offerings, like PayPal checkout, 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 point-of-sale solutions like the retail solution fend. And looking at stripe, although they offer very similar products and services… But they really focus on is Customizability and creating code for developers to allow them to implement various types of checkout processes within their applications and on their websites. So we’re talking support for credit cards ACH 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 form from scratch. And now, they’ve recently created a software developer kit for what they call Square terminal, which is essentially the ability to integrate stripe with a traditional over-the-counter point-of-sale map. And so it’s important to point out that PayPal is the more user-friendly, easier, non-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 stripe. So not only do they have the user-friendly option, but they also have the web developer-friendly option. Moving on to 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 are exactly the same for both Stripe and PayPal: 2.9 percent plus 30 cents a transaction. If you want to process mobile point-of-sale or over-the-counter in-person transactions, with PayPal it’s going to cost you two point seven percent, but with Stripe, with their terminal offering, it’s gonna cost two point seven percent plus five cents a transaction. A slight advantage for Stripe here is that they also offer ACH transactions at 0.8 percent and cap at five dollars. ACH is something that PayPal does not offer. So there you have it, a very similar price offering between the two. I would say that it’s really a tie, unless you have a need for ACH transactions within your app and you have a developer that can code it, then Stripe would edge it out a little bit here. But overall it’s a tie. Moving on to ease of use. PayPal makes it extremely easy for the traditional regular business owner to implement online payments or to accept payments on a mobile phone, or a traditional point of sale. So for our audience, which compromises mostly Small business owners, PayPal is the clear winner in the ease of use Department. But if you’re a developer and you are familiar with code and you need that customizability, then Stripe 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 in the ease-of-use department. When it comes to contract lengths 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 websites. There are no hidden fees. Everything that you see on the website on the pricing page is 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 Stripe offer a whole host of options like knowledgebase, 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 hit or miss. You might get a great support agent. You 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 know. We set them up on live chat. You can 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 PayPal and Stripe are evenly tied. And so, moving on to user reviews of actual people that have used PayPal and Stripe, the two major complaints that we’re seeing are withheld funds and freezing of account, and inconsistent or unresponsive support. In addressing the first complaint of withheld funds and freezing and termination of accounts, both PayPal and Stripe make it really easy for any business to sign up and begin accepting payment immediately. What that causes or the problem that is 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. It’s kind of a double-edged sword. In addressing the Inconsistent or unresponsive phone support, as what should 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 that big, they drop the ball when it comes to customer support sometimes. But here at Merchant 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 product services and offerings that PayPal offers. Stripe customers like the quick and easy setup, the great API or software developer kit and the awesome documentation for developers. So in taking the pros and cons, the pluses and the 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. And as I mentioned in the beginning of this video, they fundamentally do the same things, but they do them differently. So it’s really hard for me to pick a clear and overall winner. I’m gonna have to say that it’s a tie. If you are a nontech 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, they’re simple and transparent. If you’re a developer and you want to do some more heavy lifting, you have an app like say Insantcart, Doordash, Lift, something like that, Stripe is the way to go. They have great software developer kits. They have great documentation. They have great support for developers. So it really depends on what your specific situation is. So there you have it, PayPal VS Stripe. 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 have mentioned here. And we also have really in-depth reviews of each provider, both PayPal, and Stripe. 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, comment, all of that, please, as much as you can, we’ll take it. Thank you for watching. See you next time!