shopify 1b stripe stripe ipo wall
Published on: February 7 2023 by pipiads
Table of Contents About shopify 1b stripe stripe ipo wall
- Shopify Payment Gateways: SHOP PAY vs STRIPE vs PAYPAL
- Stripe Sessions 2021 | Embed payments in your platform or marketplace
- The Biggest IPOs To Watch In 2022 | Forbes
- Stripe Sessions 2022 | Keynote: Building for the next era of the internet economy
- What's the Stripe Treasury API?
- Stripe vs Paypal: Which is Better? An In-Depth Comparison 2022
Shopify Payment Gateways: SHOP PAY vs STRIPE vs PAYPAL
what's up, guys, and welcome back to another video. my name is tauren and today we're toking shopify payment processors, the difference between shop pay, stripe and paypal [Music]. before we jump into the video, guys, it would mean a lot to me if you subscribe to the channel as well as like this video and, without further ado, let's just jump right into the screen recording. so we've jumped into my computer and let's follow along in this little slide deck. let's start by first answering what payment processors are. so every store needs a third-party payment gateway, which basically means you need to take money and you need to go through a company that takes that money properly and is certified to do that and is trustworthy enough to handle people's credit cards and credit card information. so we're gonna go through a few options and the pros and cons of each of them, but let's remember that transaction fees are a huge part of this comparison. let's also take note that the country of sale and or where you are specifically located will be relevant to this conversation as well. lastly, we'll make sure to add in the different payment types. so we know credit cards there, but do they take apple pay, bit pay, amazon pay, etc. so the first one we're going to go over is shopify payments. now let's make sure we preface this with shopify being an e-commerce company, not a payment gateway company. but, with that being said, they do offer quite a competitive offering in this market. shopify makes it so simple to integrate their payment system through your shopify store. basically, all you have to do is hook up a bank account and boom, you can start charging credit cards internally. they actually use stripe to process their credit card payments, but they don't market it as that anymore. they're starting to market it as shop pay. so, with that being said, let's get into the actual price brackets. so the very first level of shopify payment plans is 29 a month, and it is 2.9 plus 30 cents every transaction. so i also want to give you guys a huge tip. if you guys are making more than 25 000 per month, that is the tipping point as to when you need to start paying for the 79 a month plan. with that, you get 2.7 percent transaction fee, and so how that works out is that that extra 50 dollars needs to be made up in transaction fees, and so not until you cross the twenty thousand, twenty five thousand dollar mark do you actually make up that process in fees. and the last note i have here is that anytime you get a charge back, regardless of shopify or stripe, it does cost you 15. hopefully you can win that money back. next let's tok stripe, so they are a payment processor specifically. so this is what they do, this is what they're good at, and so they do have some competitive advantages over shopify. so they can transfer to many different types of businesses and applications. so you can invoice businesses. this can be b to b, b to c. you can carry your stripe from shopify to click funnels to your wordpress website, etc. stripe accepts over 135 different currencies where shopify is in the 80 range. stripe is available in 35 different countries, where shopify is only available in 15. same sort of transaction fees as the basic shopify plan, and this is basically set for people who don't use shopify as the main platform. and lastly, let's get into paypal. so in my opinion, i think if you can offer paypal on your website, you should do it now. this is my personal preference, but people do feel more trusted with paypal and if you do get a dispute, it doesn't cost you 15 every time, so you do have time to go back and forth with that person and try to resolve the dispute before it actually gets elevated enough to go to the paypal dispute team and actually go a strike against you if something was done wrong, all right. so let's tok about my decision on the two. so use stripe payment system if you want to customize that payment solution if shopify isn't offered in your current country, if you're looking to accommodate a currency that shopify currently doesn't have, and if you're going to be billing and accepting payments, ie invoicing people for everything else, i highly suggest shopify. basically, this is just an all-in-one source where it can go all into your store and you can manage it all under one roof. this makes it really easy: the deposits going into your bank and all the invoices and reports you can download from shopify specifically. i hope you enjoyed the video, guys. if you did, make sure to hit that like button, subscribe to my channel if you aren't already, and until next time, take care.
Stripe Sessions 2021 | Embed payments in your platform or marketplace
>>. ALEX VOGENTHALER. Afternoon. everybody, I'm Alex Vogenthaler, the product lead for Stripe Connect. The way I explain Connect is that it's the front door to everything Stripe has to offer for anyone with a multi-party business model, And by that I mean software platforms like Shopify that serve merchants, goods marketplaces that connect buyers and sellers of products, gig-economy marketplaces that match supply and demand for services, and now even social networks that serve content creators and consumers. Connect allows all of these multi-party businesses to embed just about any imaginable money movement in their product. Critikally, we also provide ways to turn that money movement into new lines of revenue. So today I'm going to share Stripe's perspective on the platform economy, as well as outline how fast and easy it is to start integrating payments and money movement, how quickly you can scale users, geographies and channels, and how platforms can expand to more complex fintik use cases over time. If you're already familiar with Connect, there are four announcements today you won't want to miss. a new revenue sharing program that allows virtually any kind of software platform to create a new revenue line from payments without increasing fees. three much requested features that give software platforms more customization, control and visibility. a new end-to-end no-code solution that makes it even faster for start-ups to get going on Connect and cross-border payouts, now supporting 17 additional countries with dramatikally reduced costs. If you already know Connect, my feelings won't be hurt if you want to watch me on 2X in between those announcements. Okay, first up, baselining all of us on what's happening with platform and marketplace business models. If you rewind 15 years, none of us had ever taken an Uber, shopped at a Shopify store or ordered dinner from DoorDash. so we all have an intuitive understanding of the transformative importance of these business models. What seems counterintuitive, though, is that these trends are actually still in their infancy. McKinsey estimates the economic activity mediated by digital platforms will grow to 30% of total global economic activity by 2025, up from just a few percent in 2020.. To give a sense for how big that number actually is, global GDP will be about $100 trillion at that point. So that means not only will the platforms we rely on today keep growing, but also- and probably more important for everyone in this tok, new platforms and marketplaces will emerge in scale, and established companies will launch new platform and marketplace business models. So just about every company has some kind of platform or marketplace opportunity. To make that concrete, let's look at some examples. First, horizontal and vertikal software platforms. Mindbody is a vertikal software platform building scheduling and business management software specifically for gyms and yoga studios. They integrated payments into their platform, enabling those gyms and studios to seamlessly collect fees from memberships and classes. There are now hundreds of these vertikal software platforms serving everything from pizza places to concierge doctors, and most of them use Connect to integrate payments into their product. Leading marketplaces also build on Connect. In fact, Stripe powers 75% of the Andreessen Horowitz top 100 marketplace list. For example, Bookingcom uses Connect to charge travelers and pay out owners of independent rental properties. It's the same with gig-economy marketplaces, and those funds flows can be especially complex. For example, DoorDash is orchestrating a three-sided relationship using Connect, charging you for dinner and paying out both the restaurant who made the meal and the dasher who delivered it. Finally, Connect is now also powering the leaders in the rapidly evolving creator economy, which is especially important given the headwinds facing the online ads ecosystem right now. WordPress for publishing is on Connect Substack for newsletters, medium for blogs and Reddit for forums. I think of these implementations by social media and content platforms as essentially being marketplaces for ideas. Ten years ago, the application of software to seemingly non-tiknical problems like listening to music, watching movies, buying ads or saying hi to friends led Mark Andreessen to write his pretty famous Wall Street Journal editorial saying that software is eating the world. What was going on there was that the advent of Cloud computing dramatikally reduced the fixed costs of building new software-enabled businesses. If you didn't need to buy racks of servers, suddenly, thousands of new ideas and business models became viable. The next evolutionary phase is this same concept being applied to money. In this phase, I think of fintik eating software. Providers like Stripe are eliminating fixed costs in the same way that the Cloud eliminated the need to build a data center. Nowadays, to integrate money movement and other kind of fintik into your business, you don't need to spend millions of dollars upfront in a year to become a registered payment facilitator with the card networks. You don't need to worry about getting money transmission licenses from 50 states and three territories. You don't need to set up foreign exchange relationships or make other kinds of costly and risky upfront investments. And this is allowing the most successful software companies from the past decade to essentially now become fintiks. So the takeaway is: if you find Shopify, DoorDash or Instacart inspirational, you want to think about both of these phases. First, how is your software going to eat the world? And second, how do you then transform your software platform into a fintik that facilitates and monetizes economic activity? To make this concrete, I'll use the example of Shopify. In the beginning, Shopify was software that made it quick and easy to set up a digital storefront. Happy customers paid a subscription for the software and it allowed a new generation of online businesses to emerge. Now, any time you eliminate your previous constraint, something else becomes the next constraint, With web hosting and product catalog management solved for the new constraints were about payments- how to collect payments digitally in a consumer friendly, low friction, low fraud way, and Stripe and Shopify solved that together. Shopify then built on this with other services like lending and the Shopify balance, which lets customers access earnings, pay bills, track expenses and manage all of their funds all within the Shopify platform, And industry insiders have now noted that Shopify has grown to be as much fintik as software. Shopify antikipates continuing to grow that merchant services revenue, primarily fintik and other revenues in the area. We see this trend across the market in the evolution of software businesses into fintik. SaaS 1.0 we see as representing the original subscription or ads-powered business, like Shopify's subscription service for building a digital storefront. That was Mark Andreessen's software eating the world phase. SaaS 2.0 represents the first transition into fintik, which is bringing payments onto the platform, For example Shopify payments. But that's just the tip of the fintik iceberg. SaaS 3.0 is where the market is headed. Platforms are now integrating a broad suite of financial services like lending, payment card programs and neobanking, And capitalizing on these trends is possible for virtually any businesses because the fixed upfront investments have been eliminated. Software-as-a-service was originally enabled by AWS and the other Cloud providers, And now at Stripe we're hard at work enabling the latest evolution of software into fintik. And this is what Stripe Connect solves for. As I said at the beginning, Connect is the front door to everything that Stripe has to offer for businesses.
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The Biggest IPOs To Watch In 2022 | Forbes
2021 was a record year for initial public offerings: 2 3888 firms raised 453 billion dollars while going public- the highest annual deal volume ever- and this year could very well break those records. here are the ipos we're planning to watch in 2022: reddit, the 16 year old social media juggernaut behind last year's explosive meme stok frenzy, has reportedly been eyeing a 15 billion dollar valuation. after a massive funding round in august, reddit confidentially filed paperwork to go public this year, but disclosed no financial details and said it still hasn't determined how much it's looking to raise. another media company will be monitoring closely: trump media, which is yet to release a working product and plans to go public this year via spec. regulators are already pouncing on the move, with the sec initiating an investigation into stok trading and high level communications last month. no one's been accused of wrongdoing, but it's unclear how this will affect trump's latest money-making venture. also of note is discord, which was originally founded in 2015 to make it easier for gamers to tok to each other while playing video games. however, the app gained notoriety as users began using the platform for nefarious reasons. but discord has since instituted new policies and roles, completely rebranded and now has an estimated 150 million active users, and though the online chat service has yet to make an official announcement, investors have been eyeing an ipo since the company ended acquisition toks with microsoft in april. we all know instacart as the popular grocery delivery service that got even more popular during the pandemic. the company was hoping to go public last year, but their new ceo delayed plans in order to broaden services beyond simple delivery and delve deeper into advertising. it'll be interesting to see how this pans out. its competitor, doordash, had shares plunge about 15 since the first day of trading in december 2020, but instacart has a big advantage as retailers can promote their products in search results and another one in food vegan firm impossible has raised nearly 2 billion since its founding in 2011 and can now be found in more than 22 000 grocery stores. reports indicate the company is eyeing a 10 billion dollar valuation, signaling real competition for fellow fake meat maker beyond, which listed on the nasdaq in 2019 and is worth about five billion dollars. and then, in the world of finance, their strike, the payment processor founded by billionaire brothers patrick and john collison. for more than a year, the company has been teasing an ipo to rev up growth with fresh public market cash. the paypal competitor was reportedly toking to investment banks in september about a market debut this year. if the founders decide to take the plunge, stripe could easily become one of the largest ipos to hit the market. another one to watch in the space is chime, the digital bank based in san francisco. the company has helped toks to go public at a valuation of 35 to 45 billion dollars as soon as march. and lastly, there's tpg. the private equity powerhouse was founded by billionaires james coulter and david bonderman and holds outsized stakes in talent agency, caa, vice media and spotify. in late december of 2021, the firm announced plans to list on the nasdaq exchange, disclosing recently that it hopes to raise as much as 1 billion dollars in gross proceeds at a valuation of 9.5 billion dollars in what's sure to be one of the year's biggest public market debuts. you.
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Stripe Sessions 2022 | Keynote: Building for the next era of the internet economy
>>Hello and welcome to Stripe Sessions. We're experimenting with a new innovation this year. This tok is coming to you slightly sped up by default. Most toks are just too slow, And you can adjust that speed in the bottom right at any time if you like. Okay, where are we? Well, John and I grew up in Limerick, Ireland, And the pandemic has made companies less tethered to any one place, and so we're starting out here at the Shannon Free Zone, Saor Phort Na Sionna, which is just a couple miles from where we were born. The Shannon Free Zone was established in 1959, with special rules that lowered barriers to investment and trade in the area, And over the subsequent decades the Shannon Free Zone became a hub for American companies to build manufacturing and R&D facilities. A lot of the VC-backed companies that drove the tiknology revolution, including Dell, Analog Devices, Intel and Atari, set up manufacturing hubs in the region, And by the 1990s some of the world's most advanced semiconductors and electronics were being assembled here. Ireland was a big beneficiary of this investment. Irish per capita GDP grew at one of the fastest rates in the world between 1980 and 2000,, and Ireland became one of the most prosperous countries in Europe. The Shannon Free Zone also inspired other countries, including China, to pursue similar policies. The Shenzhen Special Economic Zone, for example, was modeled on Shannon's. Why am I telling you all this? Well, Shannon is a story of a few dynamics. It's a story of how tiknological innovation produces spillover benefits in places far from where the creation first happened. It's a story of the beneficial effect of globalization and low barriers to trade. And it's a story of how successful and innovative companies helped transmit valuable skills in new places. And it's a story of how quickly standards of living can get better when the conditions are configured correctly. Needless to say, we see a lot of parallels between the story of Shannon and what we're trying to enable with Stripe. Our goal is to grow the GDP of the internet to help power economic development, and the Shannon story inspires us with a very tangible reminder of how transformative these development forces can be in practike. Okay, let's shift to Stripe itself. Growing the GDP of the internet is not just our mission, It's also our product strategy. We assemble our roadmap by working backwards from what we hear from all of you And based on your feedback. we've gotten a lot done over the past year. We launched the Express App to make Connect more powerful. we've expanded our global coverage. we added Revenue Reconciliation and a number of other new products. we launched new payout countries, crypto payouts, we improved our fraud prevention and a whole lot more, And as our functionality grows, we're seeing a significant increase in the volume of businesses adopting Stripe. On average, 1,400 new companies, including 100 nonprofits, joined Stripe every single day last year, And alongside those, we're delighted to partner with a growing fraction of the largest companies in the world. A statistik that we're partikularly proud of is that 60% of the tiknology companies that went public in the US last year are building on Stripe Now. the basic reason that people come to Stripe is the environment in which businesses operate is changing rapidly, and Stripe helps you stay ahead of the curve, And so today we'll tok about some of those changes and about how Stripe can help you navigate them. We'll very briefly cover payments and payments fragmentation, why online payments are getting more complicated and how Stripe helps businesses adapt to that. We'll tok about enterprise reinvention and how some of the world's largest and most established companies are upgrading their business models. We'll tok about fintik and why we think it's going to be woven into every sector of the economy, The modern Finance OS, and this is actually an idea that we haven't discussed before. And lastly, we'll tok about our growing partner ecosystem. And so to kick us off, here's John. >>Thanks Patrick. Back in the 1920s and 30s, at the dawn of flight, you could basically build an airplane out of your backyard and start selling it. Shannon Airport was just a few grass runways. Today, Shannon Airport is a major hub And the aviation industry is far more complex and way more regulated. It's a lot harder and more contrived to build a plane, But- not coincidentally- the planes are a lot better now. This is what happens in any industry as it matures. the products go from simple to very complex and full of nuanced optimizations. The plane built in the backyard to the A380.. You get teams of highly specialized experts building planes for the rest of us, The folks who know the detailed specifics backwards and forwards, and carefully track the latest advances in everything from composites to additive manufacturing. Online commerce is no different. It's a much bigger industry than ten or twenty years ago and much more evolved. The internet economy used to be a fairly simple place, whereas now it's a significant and growing fraction of the total economy, with the attendant complexity to boot. I'll give you an example. twice a year, the four major card networks revise their operating rules- the whole system that makes the network run. Just a few weeks ago, the latest update dropped 1,966 pages. That's the combined length of the first five "Harry Potter" books altogether, and it's chock full of tik specs on everything from 8-digit BIN support to ISO 3166 updates. And that's just for the US. Not many companies want to keep on top of this themselves. You've got better things to do So. Stripe is a team of over 7,000 payment maniacs from all around the world who obsess over these details on your behalf. We're like the crazed Potter-heads queuing around the block for the midnight book launch, but for payments. These days, you wouldn't board a plane made in someone else's backyard, And you shouldn't choose a payment provider that doesn't sweat every last detail of global money movement. Both are liable to crash. Instead, you need a partner that gives you leverage and helps you accelerate your business in a world where payments are evermore complex with each passing year, And that's true for any company, whether you're the smallest startup or the largest enterprise. To hear more about this, I spoke with my favorite book seller, based here in Seattle, that knows a thing or two about increasing complexity. Amazon does such a breadth of different things when it comes to payments. Maybe you can tell me a little bit more about that? >>In many ways, the payments organization at Amazon is really Amazon's version of our own fintik, And so we're not only building the things that customers see in checkout and outside of checkout, but we're also building a set of services that map across hundreds of different teams and businesses. >>Can you tell me a little bit about your international expansion and how Stripe fits into that? >>We've really been on a pretty fun international expansion journey over the past six to seven years of thinking about innovations around. how do we get money to a seller that's selling cross border? How do we make that currency conversion process trivially easy for them? How do we make sure that they get paid as expected on time- And there's a lot of complexity in that. One of the things that we really valued about what Stripe brought was that it got us to a lot of different countries quickly and really helped lower the barrier of entry for us. >>How does Amazon's scale change your thinking about the kinds of partners you work with? >>Finding a partner that can keep up with not only our volume spikes but other aspects of scalability is absolutely critikal to us. If I think about what we've done recently in Poland. we worked together to launch Blik, which is one of the popular growing local
What's the Stripe Treasury API?
hello, hello and welcome to another video. today i am toking about stripe and their newly released platform, the treasury. api, or a stripe calls it strip stripe treasury, so i guess a lot of people have seen this in the news. there's been a couple of artikles, a major news outlets such such as the wall street journal, and today we're gonna take a look at their landing page for their new product. but let's tok a little bit about what stripe treasury is and why you should be as excited as i am about this new tool. so strap treasury allows people to build products that offer things like debit cards, bank accounts and pretty much any other product that a bank offers to their customers. to do this, stripe had to partner with real banks, so i think some of these names were citigroup, goldman sachs, barclays, etc. those are pretty large banks. maybe you recognize a few of these names, so you're pretty much in good hands. i think that the reason why stripe has decided to allow developers to build their own bank with or on top of the stripe platform is that, as you remember, maybe a couple of years ago, stripe came out with the stripe connect solution, which allows for people who develop, for example, marketplaces, to pay out the people who are on their marketplace the money that they're owed. and, for example, if i'm on shopify and i make four hundred dollars, you know i will probably get a percentage of that into my bank account and then i can spend it however i want. so what's stripe treasury? what does this treasury api do? well, to understand this landing page, i have to tok to you about what exactly it does and why it's so important and groundbreaking. so imagine you're a company that wants to somehow offer the ability of some financial services to your users. for example, you want to create a process that allows the users of your platform to manage their own money within your own product without ever leaving it, and that becomes kind of useful because you don't want people to jump between apps. you want to have one kind of source of truth within your app that makes every your user experience much, much better. so imagine being able to do e-banking transaction directly for airbnb so you can pay people who come after your guests have left to clean the house directly from airbnb. that basically makes airbnb opens up a ton of new possibilities to create connections with like marketplaces or basically anything financially viable to to airbnb. that makes also sense for its hosts, its customers, etc. etc. so basically it opens up a ton of possibilities. i think that, for now, i was reading into the news that the treasury api has been only rolled out to a couple of people and if you scroll down here you'll see that it's a invite-only api and i think shopify has been the first company to have access to this. and, uh, let's, let's really understand how shopify has built their, their tool, and i think they're still working on it. it's called balance. so if we open a new top shopify balance, i think the first one is this one here. so what happens with uh but with balance? so it's, it's, it's. it's kind of tough because this landing page the shopify has done doesn't really give you a lot of information. so i'll try to break it down. um, for for everybody to kind of get from, like the the research that i've done. so, uh, shopify balance was built on top of the treasury api, or at least it's being built, so that people on shopify can manage all of their money in one single place without ever going to uh outside sources, like their own e-banking in their own bank, etc. etc. so what does that mean for the people who use shopify or any of these future companies that will implement the treasury api, is that they will have access to faster payouts, any kind of rewards that companies like shopify, et cetera, et cetera, will create for letting them manage your money and basically anything else that comes to mind to these companies. because with the apis you can literally build any features that have basically read and write access to your money so you could have alerts when you're you know bank account within shopify. so this shopify balance goes below a certain threshold. you can have discounts. they're directly baked into uh, the shop, your shopify store, so that you could like dish out discounts to people or other vendors that use your product a lot and cashback and all this kind of stuff. so this is super exciting for shopify and, um, let's see, like, who else could use this tool. so there are companies that do operations like lyft or uber or any other kind of ride sharing company. they can build their own banking systems inside of their ride sharing app. so if you're a driver, you could, for example, now finally be able to pay for your car that say you've leased directly through the uber app, and the advantage to that is that whatever money you make into uber, it stays inside uber or lyft and then your money can automatikally go out from the uber app into whoever you're paying to to pay for the lease of your car or the or the loan or whatever, and that basically means that you don't have to like, do all kind of like pulling out money from one app, putting into your bank, then ex, you know, creating a direct debit or some kind of like card, monthly payment, uh, for the car to be paid off. so that makes everything way more exciting for people who are in the gig economy or who just drive as their main, as their main job, and i think that's an extremely exciting and exciting uh use case. you could also pay for gas, right. so if you're driving your car all day and you stop at a gas station, instead of using, you know, money from your own account that's in in your personal account, you can use your business account that's automatikally embedded into uber, uh, driving up and pay straight out from your earnings that you make as you drive. so that makes it much more exciting for people who are drivers. you know, less headaches, less worries, and i think it's great if you, on the other hand, say you work for company, like postmates or doordash or favor, and you might for some reason be given access to, like credit cards with prepaid amount of money and you could use those at the local restaurants that you drive to and you pick up the food for for the customers, automatikally with your, with these prepaid cards. so the possibilities are endless. and now you would ask, why would you want to pay with, you know, these credit cards that are pre-loaded with money provided to you by ubereats or favor, doordash? well, there's probably some good use case that i didn't think of and, for example, you could maybe accumulate points and then, as the person who delivers the food, you can use these points to, you know, as a benefit for yourself. so there, there's definitely a lot of things like that comes to mind, like rewards, etc. etc. um, so what is the point of treasury, like, why have they built this today? and- and i think it's a natural evolution of stripe connect. so, like i said, stripe connects allowed you to pay out people that are part of your marketplace or marketplace, like us platform, and with the treasury instead, you can build all of this, plus much more. you can issue credit cards, uh, preload them with money. you can allow people to do bank transfers from within your app. you can do a lot of fun stuff and i guess i think the thing with stripe is they usually what they do is they create these apis so that people come up with their own use cases. right, they're like lego blocks: uh, they give you some blocks and then some people do those amazing creations, like someone created a one-to-one uh scale of, uh, bugatti veyron right in legos and that was kind of like amazing to see what you could do with lego. so, in the same way, with the api economy, with stripe and many other companies out there, they give you these tools. you can build anything you want and i honestly think that, on top of of this, stripe basically will become almost like an, a class right, like not to be con, like mistaken, with stripe, atlas, which is something, or atlas, which is something else, but th.
Stripe vs Paypal: Which is Better? An In-Depth Comparison 2022
stripe and paypal are giants in the online payment processing space, but are they right for your business and are there any good alternatives? stik around to find out. with its slew of interconnected products, ranging from mobile payments to financing services, it's safe to say that paypal is a household name and stripe, while more of a behind-the-scenes processor with less brand recognition, also has a long list of very popular clients and partners. both are popular ways of processing payments for e-commerce. you've probably used them both, but which is better for your business? let's dig into the details. stripe and paypal are both online credit card processors primarily focused on e-commerce. both support invoicing and recurring billing. paypal is a trusted name and is incredibly easy to use, but stripe offers a deeper feature set. thanks to powerful developer tools, stripe is also cheaper for many merchants on a per transaction basis, though some merchants will end up paying a bit less per transaction with paypal, whose pricing has become more complex as of late. stripe is an all-in-one payment processor combining a payment gateway with a third-party payment processors functionality. this is a take it or leave it deal. you can't buy just one or the other. though it is possible to use stripe for point-of-sale transactions, it's almost entirely focused on e-commerce. to that end, stripe offers a powerful suite of developer tools for integrating into your shopping cart or ecommerce site with international transactions. stripe provides robust support for numerous currencies and payment methods, as well as other quality of life features that can help you navigate vats and exchange rates. paypal is easily one of the biggest brands in e-commerce, with services ranging from digital wallets to loans. it also offers merchants payment processing through its recently rebranded paypal for business, now known as paypal commerce. paypal commerce is primarily focused on e-commerce, but it can be used to take point of service payments through paypal zettle, the brand's mobile processing app, or through a third-party partner. and while paypal generally has a reputation for being user-friendly, the service does have a pretty robust set of developer tools, partikularly in its latest incarnation. that said, paypal commerce shouldn't be confused with a more developer-facing paypal service, braintree, which also offers individual merchant accounts rather than third-party processing. and while they are remarkably similar, let's sum up some of the key differences between stripe and paypal commerce. the first is the cost per transaction. unless you're loaded up with advanced features, stripe is cheaper per transaction than paypal for most merchants, and while this may not be a big deal if you're a very low volume business, the cost difference will add up very, very quickly. and if there's one thing that really stands out between the services, it's ease of use. paypal is designed for it, stripe is not. on the other hand, paypal's ease of use comes at the cost of customizability. if you have a developer, you can fine-tune stripe in ways you may not be able to do with paypal. the difference in ach support is simple: stripe has it and paypal commerce doesn't. point of sale is not either services forte, but paypal offers more mature pos options and offers them at a better processing rate than stripe. digital wallet is paypal's signature service and is handy in its own right. stripe doesn't offer anything comparable. there's also not much competition and breadth of services. while stripe has a bigger ecosystem than your typical payment processor, paypal is on an entirely different level. so if you want a quick idea of which processor will be better for you, here's our take: choose stripe if you own a business with complex and specific ecommerce needs. process ach payments. have an in-house development team or are a developer yourself. want competitive, flat rate pricing. choose paypal if you want an easy to use solution for your e-commerce needs. want to make use of paypal's digital wallet ecosystem, want to do some card present transactions, want to do cryptokurrency transactions in the future. both stripe and paypal are expandable services, meaning they're a lot- and i do mean a lot- of optional features you can buy to expand their functionality, but at their basic level they have simple, predictable, flat rate pricing. one of the bigger differences between them is in how stripe and paypal handle invoices. stripe charges a specific fee for invoices after you've exhausted your allotment of freebies. paypal, on the other hand, doesn't have a separate pricing scheme for invoices. when the customer pays you, you're charged at normal transaction rates. paypal's august 2021 transaction fee hike has affected a number of different pricing elements for the service. it is possible to reduce the fee by opting into advanced credit and debit card payments, though this will require you to submit additional information about your business to paypal and wait for approval. and even with advanced payments, the fixed portion of your per transaction fee will be 19 cents higher than that of stripe at 49 cents, versus stripes 30 cents. and, unlike stripe, it is possible to use paypal's gateway service separately from paypal's other functionality. this service is free if you're cool with using checkout, or 25 a month if you want to really dive into the guts and customize it on your own terms. paypal charges an additional five dollars a month for its payments advanced service, which includes hosted checkout pages. for 30 a month you can sign up for payments pro, which includes both the hosted payment pages and a virtual terminal. recurring billing is another 10 month fee, and these are all optional costs. for a more detailed look at paypal's payment processing, check out our paypal review and our artikle. how much does paypal charge? the complete guide to paypal credit card processing fees. i'll drop that link in the description below. stripe has broken its billing tools down into two tiers: starter and scale. the starter plan for billing is free for the first 1 million in recurring transactions. after that threshold, strike charges 0.4 percent per transaction on top of processing costs. the scale plan charges 0.7 per transaction. however, as a trade-off, stripe offers a discount on ach credits and wire transfers, as well as access to stripe sigma, which would be a separate charge on its own stripes. advanced features generally add a small feed to your per transaction costs. while intuitive, this system can get a bit complicated if you start juggling multiple advanced features. because of this, you'll want to monitor what features you're using and under what circumstances you're using them. check out our stripe review and the complete guide to stripe pricing, processing fees and costs for a complete look at what using stripes additional tools will cost you. i'll drop that link in the description below. specifically, using connect and sigma will incur additional fees, as will billing, which i covered above. now, as for which is cheaper with paypal's august 2021 price hike, the answer in most cases is going to be stripe. most merchants will find that the bulk of their transactions cost more with paypal under its new pricing scheme, unless you're loading your stripe transactions up with advanced features. that's a massive difference in cost from the start, and on top of that, stripes fees tend to be less expensive than paypal's. that doesn't necessarily mean stripe will deliver more value, but if you're looking to minimize costs, it's the obvious choice at this point. both stripe and paypal have an enormous number of integrations, should you want to expand their functionality, ranging from shopping carts to accounting software to email marketing services. while both services are extremely well supported at the niche level, stripe is able to accommodate some services that paypal does not. this is most apparent when it comes to customer relationship mana.