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Stripe vs Braintree vs PayPal: comparison of payment platforms

Stripe vs Braintree vs PayPal: comparison of payment platforms

Have you ever thought about how payment platforms can simplify your business management?

Especially when your business expands globally, having the right payment system can make a difference.

If you are involved in the retail sector, you know how crucial it is to have an advanced, reliable, and efficient payment system. That's why you should seriously consider comparing three of the most popular options available: Stripe, PayPal, and Braintree.

These services offer a wide range of features that can truly make a difference in your business journey, both locally and internationally.

So, take a moment to explore these three options and discover which one could be the key to success for your business.

Factors to consider when choosing a platform

It is important to compare the features offered by each platform.

Some features may include recurring payments, support for multiple currencies, or the ability to handle refunds and disputes, but remember that extra features may involve additional costs.

Speaking of costs, this is another crucial factor to consider. Each platform has a different cost structure, which may include transaction fees, monthly or annual costs, and potential hidden costs.

It is important to do the math and understand which option is most cost-effective for your business in the long run, and you should also consider the key features of each platform.

In the following paragraphs, we will explore in more detail the features, advantages, and disadvantages of each of these platforms.

Braintree

Acquired in 2013, Braintree became a division of PayPal, which allowed its owners to cover a broader market. The integration of the Braintree payment gateway allows entrepreneurs to streamline business operations by automating backend processes, increase sales by reaching more buyers in multiple regions of the world.

Advantages:

Due to its versatility, it can be used to handle online, in-app, recurring, and even in-store payments.

It also offers a range of tools to protect transactions and prevent fraud, thanks to its data tokenization technology.

Disadvantages:

  • The user interface is not as intuitive as it could be.
  • Unlike Stripe, Braintree does not offer the ability to create marketplaces or sharing platforms.

Stripe

Stripe is an online payment platform supporting businesses. This service is based in the United States and allows individuals and businesses of all sizes to make payments using their credit card along with other online payment methods. Stripe is a reliable platform and counts among its regular clients UNICEF, Shopify, Amazon, Dribbble, and many other global companies.

Advantages:

  • It offers a wide variety of payment options, including credit cards, bank transfers, and digital wallets such as Google Pay and Apple Pay.
  • It has a transparent and predictable pricing structure, with competitive rates.
  • It offers a wide range of tools to prevent fraud and protect customer data.
  • It provides comprehensive documentation and a wide range of code libraries that make it easy for developers to integrate the payment system into their website or app.

Disadvantages of Stripe:

  • Advanced customization requires technical skills. If you don't have a development team, it may be difficult to fully leverage all of Stripe's features.
  • It is not available in all countries, which may limit your ability to accept payments from international customers.
  • Customer service is not always quick to respond, which may delay the resolution of any issues.

PayPal

It is one of the largest online payment gateways and one of the few that offers and supports peer-to-peer financial transactions.

Due to this peculiarity, PayPal remains the most beloved payment gateway among P2P markets, online stores, and auction platforms in many countries.

Advantages:

  • One-click payment with support for recurring payments.
  • Strong anti-fraud protection and dispute resolution tools, which can be very useful for sellers.
  • It has a well-established and easy-to-use platform.

Disadvantages:

  • Transaction costs can be higher compared to other platforms.
  • Customer service can be slow to respond.
  • PayPal has a notorious account freezing policy that can cause problems for sellers.

Cost Comparison

Stripe's fees are 1.5% plus €0.25 each time you receive a payment by credit or debit card. There are no hidden, monthly, or setup costs. For international cards, there is an additional 1% conversion fee.

The difference lies in the fact that Stripe does not offer the first transactions for free.

On the other hand, PayPal has a more complex cost structure, as for sales within the United States, the cost is 2.9% + €0.30 per transaction.

However, for international sales, the fees rise to 4.4% of the transaction plus a fixed fee based on the received currency.

Additionally, PayPal also has fees for withdrawing money.

Braintree, on the other hand, applies a 2.9% commission for transactions made by card or digital wallet. There are no monthly costs or hidden fees for Braintree. However, there are fees for multiple currencies and cross-border transactions. The fee for multiple currencies is an additional 1% cost that applies to transactions in any currency other than USD. The cross-border fee is an additional 1% fee that applies when a customer's card is issued outside the United States.

Although Stripe and Braintree have a very similar cost structure, Braintree may be more advantageous for new businesses thanks to the first free transactions.

On the other hand, PayPal may be more expensive, especially for those making many international sales.

Payment Gateway Integration

In case you have a serious business platform or intend to launch one, it is better to keep in mind that it is best for all three payment gateways to be integrated into your system by software development specialists who create or update your platform.

Payments and transactions are the exact aspect of the business that needs to be handled by professionals to avoid leaving room for errors resulting in money losses, refunds, chargebacks, and so on.

Your platform does not have to be directly related to eCommerce; it can be a charity platform, a sports betting service, or any other system capable of accepting payments and requiring recurring billing.

So, if you are looking for experienced specialists in payment services integration and in creating complex platforms, you can rely on us to achieve the most efficient result!