PayPal vs Stripe Billing

The OG of online payments: everyone uses it, but nobody loves the fees meets the billing api that actually makes you want to charge customers, not dread it. Here's our take.

PayPal

Nice Pick

The OG of online payments: everyone uses it, but nobody loves the fees.

Pros

• Near-universal acceptance for online transactions
• Built-in fraud protection and buyer/seller safeguards
• Easy integration with most e-commerce platforms

Cons

• Transaction fees can eat into profits, especially for small businesses
• Account freezes and disputes can be a nightmare to resolve

Stripe Billing

The billing API that actually makes you want to charge customers, not dread it.

Pros

• Handles complex subscription logic (metered billing, trials, prorations) with minimal code
• Seamless integration with Stripe Payments and other Stripe products
• Built-in invoicing, dunning management, and revenue recognition automation
• Developer-friendly API with clear documentation and predictable webhooks

Cons

• Pricing adds up quickly with transaction fees on top of Stripe Payments fees
• Lock-in effect: migrating away is painful once you're deep in Stripe's ecosystem

The Verdict

Use PayPal if: You want near-universal acceptance for online transactions and can live with transaction fees can eat into profits, especially for small businesses.

Use Stripe Billing if: You prioritize handles complex subscription logic (metered billing, trials, prorations) with minimal code over what PayPal offers.

The Bottom Line

PayPal wins

The OG of online payments: everyone uses it, but nobody loves the fees.