A payment gateway plays an important role in any e-commerce website, as it provides a medium to carry out transaction between the customers and the sellers. The type of payment gateway may also be responsible for influencing your visitors’ perception towards your brand, and act as a deciding factor whether they make purchases or not. For instance, if you are running a diamond business and if your payment method does not seem reliable, then you probably will lose potential customers just because they are not convinced with the type of payment. So, having a payment gateway is not just enough, but it should be trustworthy and something that consumers can easily rely on.
PayPal is the oldest online payment gateway. However, due to its relatively higher transaction charges and blocking account on petty issues, it has resulted in major loss of a number of PayPal users. That is why switching to a better alternative is worth considering, and that is how Stripe comes into the game.
What is Stripe?
Stripe is one such competent payment gateway provider that accepts payment from all over the globe. Stripe is basically built for developers, and users with a basic to intermediate knowledge of coding can configure it successfully. Developers can enable their online stores to receive payments through Stripe instead of getting a merchant account.
Stripe has been designed with a set of unified APIs and tools that immediately enables businesses to accept and manage online payments. It is compatible with all major credit and debit cards, including MasterCard, American Express, JCB, Visa, Discover, and Diners Club. Whether you are creating a marketplace, mobile app, e-commerce storefront or subscription service, Stripe has all the features you need. Moreover, there are also various Stripe plugins available for WordPress websites.
What is Stripe Connect?
Stripe Connect offers all the tools that marketplaces and online platforms need to enable users to pay. It helps with identity confirmation, tax reporting, and more; doing all the heavy lifting while giving you control over everything from the UI to the timing of transfers. Because of its global presence, it enables your platform to support sellers from anywhere Stripe functions.
Stripe Connect allows your platform to customize complex flows that span many customers, sellers, and anyone who needs to get paid as a part of your business. It is tightly coupled with the rest of the Stripe, letting customers pay from across the globe, either through desktop or mobile devices. It charges as low as 2.9% + 30 cents per transaction.
Why Stripe is Better than PayPal?
- Anyone who ever paid via PayPal knows that when you’re paying via PayPal, you have to go through PayPal’s website, leaving the original site behind. Stripe does not make your customers leave your website during the checkout process. Stripe’s payments are self-hosted. This is a big plus and often deciding factor for many online business owners.
- Stripe does not charge any cross-border fees. And, if you are receiving payment in another currency, it will charge 2% conversion fee. While PayPal on the other hand charges cross-border fee, which varies from country to country, and if you are accepting payment in a different currency, it will charge flat 2.5% conversion fee.
Although both the gateways are totally secure, but checkout process is simply easier with Stripe.
- With Super Stripe, you can integrate the Stripe payment gateway without having to acquire or install an SSL certificate for your website.
- Stripe allows data portability, while PayPal does not. Meaning, if you would like to switch from PayPal to another payment processor, PayPal simply would not allow you to migrate credit card information. All your existing customers will have to sign up again. But, if you want to leave Stripe, it will help you transfer all payment data in a secure and PCI-compliant way.
- When it comes to customer service, PayPal had a slow and unreliable customer service and there were countless terrible stories of PayPal suspending funds for no reason. Stripe has open channels for customer support, where executives can chat with you and get live help from the engineers. This is invaluable if you run into a tough problem and need some instant help.
- How Stripe can be Helpful for Your Business?
Switching to Stripe will bring great benefits to your business that you might not get with other payment processors. As Stripe allows customers to make the payment without redirecting them to another portal, it will give a flawless shopping experience to the customers, bypassing the unnecessary steps, resulting in more customer retention. With businesses growing far and beyond, you are likely to receive customers from all over the world. So, you will always receive the full payment what has been paid by your consumers.
Selecting a right payment gateway is one of the challenges faced by many individuals and businesses in getting their company off the ground. Although both services are not mutually exclusive, but it is clearly being concluded that Stripe is merely a good alternative to PayPal. It will be interesting to watch how these companies develop and compete over the years, as ultimately it would be us to receive better offerings because of it.
Bonus: Did you know there’s a module called Dokan Stripe Connect that lets you add Stripe payment gateway on your Dokan-powered e-commerce stores? Check it out now!