Learning Hub | E-Commerce
PayPal vs Stripe for WooCommerce: Which One is Better?
January 3, 2022 | Jon Teodoro
Chances are, if you’re building a WooCommerce site, you’ll need it to process customer payments. But how do you choose? There are just so many options!
There are plenty of payment processors that you can add to your site, with two of the biggest—and easiest to integrate—being PayPal and Stripe. Here’s what you should know about each.
The case for PayPal
PayPal is huge. According to Statista, as of 2021’s second quarter, PayPal had 403 million active users.
In order to integrate PayPal with your WooCommerce store, all you have to do is verify your PayPal account through WooCommerce—no plugin necessary. However, there are extensions you can download for free that enhance the PayPal experience, like PayPal Express Checkout, which is faster than PayPal’s Standard option.
PayPal Express Checkout reduces users’ clicks and allows them to check out directly from your WooCommerce store instead of redirecting to PayPal’s website. Users can also use PayPal Money and PayPal Credit, as well as PayPal’s buy now and pay later program.
Merchants also have the option to use PayPal Payments Pro, which lets you completely customize your customers’ checkout experience. You can design and host your checkout page, authorize transactions in real time, accept all major credit and debit cards and eliminate the need for your customers to enter their shipping, billing or payment information. more.
PayPal does charge a fee for each transaction, which is the responsibility of your WooCommerce store, not the customer. Currently, the fee is 2.9% and 30 cents. For example, if someone makes a $100 purchase, you, as the merchant, would get $96.80 from that transaction.
One of the best things about PayPal is the fact that you get your money almost instantly, after a customer’s transaction. It’s available in PayPal right away, or you can have it transferred to your business’s bank account within a couple of business days.
The case for Stripe
Stripe is a different type of platform than PayPal, as users don’t need to have a Stripe account in order to check out in a webstore that offers Stripe as a payment processing option.
Conveniently, Stripe integrates seamlessly with WooCommerce, via a free plugin. With Stripe, you can accept all major credit and debit cards, use Stripe Elements, which helps your customers input their payment information quickly at checkout,
Like PayPal, Stripe charges 2.9%, plug 30 cents for each transaction, without hidden fees. You also have the option to design a custom package for your business, which can include volume discounts, country-specific rates, multi-product discounts, and interchange pricing. Stripe states that this offer is available for businesses with large payment volumes or unique business models.
Is one really better than the other?
For eCommerce store owners looking to maximize their revenue, we recommend installing both payment methods on your site. Stripe payments work well for those who want to use their credit cards to pay online, but with PayPal’s ownership of Venmo, along with the ability to pay with PayPal Credit, offering both of these merchant processors into your eCommerce store expands the ability for more people to take action and buy from you.
Need help getting a payment processing program set up on your WooCommerce site? Verde Media can help! Contact us today for a free consultation.