Stripe vs PayPal: Best Choice for International Payments
When it comes to receiving international payments in India, two names dominate the conversation: Stripe and PayPal. Businesses often ask Stripe vs. PayPal which option will be the most apt for them. While both platforms help you get paid by global clients, they differ significantly in what they offer Indian businesses in 2025.
PayPal, a trusted brand since 1998, is known for its widespread acceptance and user-friendly approach. On the other hand, Stripe, though newer to the scene, has made its mark with advanced features and developer-friendly solutions.
But which one actually serves your business better?
In this Stripe vs. PayPal comparison, we'll cut through the noise and focus on what matters most - real costs, practical features, and genuine limitations of both platforms in India. Whether you're a freelancer or a growing business, let's find out which platform best fits your international payment needs.
Stripe vs Paypal: Understanding the Differences
What is Stripe?
Stripe is a global payment platform that enables businesses to accept international payments in over 135 currencies. However, it's crucial to note that Stripe operates on a highly selective invite-only basis in India. The platform only accepts a limited number of businesses, primarily those focused on international expansion, and there's no guaranteed timeline for application approval. This restricted access means many Indian businesses might wait indefinitely or face rejection, making it a less reliable option for those needing immediate payment solutions.
Pros of Stripe
- Supports multiple currencies (135+) via card networks like Visa and Mastercard
- Developer-friendly with robust API integration and the ability to create a customised checkout page
- Comprehensive payment tools (invoicing, subscription management)
- Strong security measures with built-in fraud protection
- Clean, modern dashboard for payment tracking
Cons of Stripe
- Invite-only access in India (limited availability)
- High fees (4.3% transaction fee for international cards+ 2% currency conversion)
- For businesses in India, Stripe only supports card payments for international transactions and no local payment methods
- No FIRA (Foreign Inward Remittance Advice) provided
- Requires IEC code and additional documentation
Pricing:
- Transaction fee: 4.3% per transaction
- Currency conversion fee: Additional 2%
- Example: On a $10,000 payment, you'll pay approximately $630 in fees
🔖Not happy with Stripe? Learn about these Stripe alternatives.
What is PayPal?
Known for its ease of use, PayPal is a leading global payment platform operating in over 200 countries. For Indian businesses and freelancers, PayPal is a payment gateway for international transactions, though it has certain limitations specific to the Indian market.
Pros:
- Widely accepted with strong global trust
- Simple setup and intuitive interface
- Provides monthly digital FIRA certificates
- Advanced security features and built-in buyer and seller protection
- Greater flexibility to design checkout process and payment customization
- Supports multiple payment methods beyond cards
Cons:
- High fees (4.4% transaction fee + 4% currency conversion + fixed fee)
- No domestic transactions in India
- Mixed customer and phone support experiences
- Limited features compared to global offerings (no PayPal Credit, Buy Now Pay Later, or domestic payment processing in India, unlike US and UK markets)
Pricing:
- Transaction fee: 4.4%
- Currency conversion: 4% markup
- Fixed fee: Varies by currency (e.g., $0.30 for USD)
- Example: On a $10,000 payment, you'll pay approximately $840 in fees
🔖Not happy with PayPal? Learn about these PayPal alternatives.
Stripe vs PayPal: A Quick Comparison
While Stripe and PayPal help you receive international payments, their offerings differ significantly in ways that could impact your business.
Looking at everything from fees to features, let's break down how these platforms stack up against each other. Understanding these differences will help you choose the platform that best fits your needs, whether you're processing occasional payments or handling regular international transactions.
Here’s a quick sneak peek into Stripe vs. PayPal and their key differences:
When to choose Stripe?
Best for businesses that:
- Have technical resources for API integrations
- Process high-volume transactions (due to lower fees)
- Need customizable checkout experiences
- Want detailed transaction analytics
- Can meet the IEC code requirements
- Have patience for the invite-only approval process
Consider Stripe if you're a software company, digital service provider, or established ecommerce platform with development resources. Its features like customising online checkout experience, custom integrations and other relatively complex options make it more suitable for established businesses. Further, its relatively lower fees make more sense for larger transaction volumes.
When to choose PayPal?
Best for businesses that:
- Need immediate account access
- Want a simple setup process
- Require FIRA certificates
- Prefer multiple payment method options
- Need quick integration without technical expertise
- Value brand recognition with international clients
For freelancers, smaller businesses, or those just starting with international payments, a PayPal account makes more sense. While its fees are higher, the simpler setup and immediate access can be worth the trade-off.
The bottom line
In this conversation around Stripe Vs Paypal, the winner ultimately depends on your business needs. If you're technically equipped, can handle a longer setup process and mainly receive credit card payments from abroad, Stripe's customized offerings may be more suited for you. However, if you need to start accepting international online payments quickly and prefer simplicity over customization, PayPal might be your better option despite the higher fees.
Skydo: An Affordable Alternative to Receive International Payments
For Indian businesses beyond Stripe Vs Paypal, Skydo offers a refreshing approach to international payments. As a made-in-India solution, it addresses common pain points businesses face with platforms like PayPal and Stripe.
Unlike the percentage-based fees of PayPal and Stripe, Skydo uses a transparent flat-fee structure:
- $19 for payments up to $2,000
- $29 for payments between $2,001 to $10,000
- 0.3% for payments above $10,000
That is it, no additional fees like monthly account fee, maintenance charges, account setup fee etc.
What sets Skydo apart is its zero forex markup policy, providing live exchange rates without hidden charges. This means significant savings - on a $10,000 payment, you'd pay just $29 with Skydo, compared to $630 with Stripe or $840 with PayPal.
Beyond cost savings, Skydo offers practical features designed for Indian businesses:
- Instant FIRA generation for every transaction
- Quick 5-minute setup for global accounts in 10+ countries
- Real-time payment tracking
- Settlement within 24 hours
- India-based support team with dedicated representatives who understand local business needs, compliance requirements, and payment regulations
While PayPal and Stripe remain popular choices globally, Skydo emerges as a cost-effective alternative specifically built for Indian businesses handling international payments. Its combination of transparent pricing, instant compliance documentation, and faster settlements makes it particularly attractive for companies looking to maximize their international earnings.
Want to try Skydo?
Is Stripe better than PayPal?
Neither is universally "better" - it depends on your needs. Stripe offers lower fees and better developer tools but requires technical expertise. PayPal provides a more straightforward setup and wider acceptance but charges higher fees.
Does Stripe work in India?
What are the disadvantages of Stripe?
Can I use PayPal instead of Stripe?
