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PayPal vs Stripe? Which payment gateway is better?

20 August 2018 openplay Leave a comment Booking System, Technology

PayPal and Stripe are two programmes that process online payments. It sounds pretty straightforward, but there is a heap of other products, such as financing services, mobile payments and dashboard reviews. These tag onto their systems, making the booking process cleaner and more effective.

These two are by no means the only payment gateways out there- nor are they the cheapest- but PayPal and Stripe are far superior to anything else in the market. Before getting stuck into comparisons, it is important to know that both companies adhere to strict international laws and are highly secure. There is no need to worry about the security of your transactions, as both of these systems are completely trustworthy and reliable.

Founded in 1998, PayPal is a globally recognised brand, trusted by even the most novice of consumers. It is reliable, hardy and functional. But just because the brand is long established does not mean it is superior.

Stripe came about in 2010, co-founded by the Collison brothers- aged just 19 and 21. But don’t let the company’s youth turn you off. Stripe bulldozed its way to multi-billion dollar success, making John Collison the world’s youngest self-made billionaire. Companies like Facebook, Under Armour, Deliveroo and Shopify all rely on Stripe’s service.

We, at OpenPlay, have years of experience dealing with payment gateways. Some have clumsy integration, others self-promote, many are unreliable. With our knowledge, and from listening to feedback from clients, there are two that stand out amongst the pack. And then, between PayPal and Stripe, there is one very clear winner.

1) Speed and efficiency

PayPal makes consumers complete 10 steps en route to payment. The longer and more complicated a booking form takes to complete, the more likely your customers will get frustrated and abandon their shopping cart.

The Stripe journey requires only three steps, meaning payment- the boring, but most important part of a purchase- is speedy and successful.

PayPal: 0

Stripe: 1

2) The sign-up process

PayPal encourages customers to sign up to its system. This means that PayPal is prioritising its own service over that of the market website. A lengthy sign-up distracts your customer, leaving the potential for basket abandonment.

Stripe keeps its eye on the prize, focusing on getting your customers to enter their card details.

PayPal: 0

Stripe: 2

3) Appearance

Online payment gateways can be on-site or off-site. As the name suggests, on-site keeps the transaction on your website. Customers will enter their payment details into an inline or pop-up. Off-site takes customers off your website to that of the payment gateway. This is a messy and unnecessary step that drags focus away from your business.

PayPal works as an offsite payment vendor and can be a distracting re-direction for your customers.

Stripe’s pop up window appears on your website, fading the booking page behind it to grey. This is a much slicker experience for the consumer, making the process more streamlined.

PayPal: 0

Stripe: 3

Is your business in Aus? Check out Australia’s best payment gateways


4) Customer focus

Part of PayPal’s fame is because it markets itself as both business and consumer-focused. When a customer buys from your website they will be aware of both your brand and PayPal’s. For a business owner, there is a definite sense that PayPal’s loyalties are split.

On the other hand, Stripe is much more under the radar and your average consumer may not have heard of the multi-billion dollar company. Stripe works behind the scenes, ensuring that the payment process is as smooth and effective as possible- then it lets you take the credit.

PayPal: 0

Stripe: 4

5) Fees

Within the United States, they charge the same base fee and fee per transaction: 2.9% plus $0.30. But Stripe undercuts PayPal’s margins when entering the European market. Stripe’s European prices are significantly cheaper: 1.4% plus 25c in Euro or 20p in G.B.P. PayPal sticks close to its U.S. fees, charging the same 2.9%, plus 35c in Euro or 20p in G.B.P.

Paypal’s pricing structure is more complicated than Stripe’s, with prices varying for international cards, large or micropayments, online, mobile, or in-store, profit or non-profit etc.

Stripe keeps its charging structure more simple. It charges extra for international card payments, converting currencies, payment disputes, billing services and refunds.

Stripe’s fees are less of a headache. If you are also worried about returns and chargebacks, then Stripe is going to be the better option.

PayPal: 0

Stripe: 5

6) Innovation

Stripe is miles ahead of the game in terms of features. They roll out new and innovative developments all the time. The service has the ability to save data, allowing for recurred billing (e.g. monthly memberships) and speedy repeat purchases. Refunds can be made at the click of a button, eliminating the lengthy refund process of PayPal and other services. Stripe is also the most efficient mobile payment system.

PayPal: 0

Stripe: 6

7) Brand recognition

So, this all depends on individual customers. As PayPal is known across the globe, many people already have PayPal accounts. The brand has already won the trust of consumers- this familiarity is both comforting and handy.

However, Stripe, as said before, keeps a low profile when on your website, allowing you to shine. If Stripe were to market to your customers, it would detract from your own branding.

PayPal: 1

Stripe: 6

OpenPlay is not affiliated with Stripe in any way, but we do recommend the service to all of our clients- because it is the best. Stripe is in a league of its own- it is slick but also reliable. PayPal is by no means a bad service, but it lags behind Stripe, whose success seems to be on a sharp upward trajectory. If you are choosing a payment gateway for your business, we cannot recommend Stripe highly enough.

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Best UK Payment Gateways For Online Booking

11 February 2018 openplay Leave a comment Booking System

A payment gateway is an e-commerce application that authorises online payments. It is the online version of a card machine that you would find at a shop till. All sales websites must choose a programme that is safe and reliable, as it will store sensitive customer data and will deal with any payment disputes and refunds.

On-site or Off-site?
At OpenPlay we mainly deal with on-site payment gateways. This is because your payments will be received directly through your website, which looks professional and trustworthy. The reverse of this is an off-site payment gateway, where customers are led from your site to that of a third party (eg.paypal). This option can seem drawn out and inconvenient to customers, so there is a greater tendency for people to leave the site before completing their booking. On-site payments make the checkout process seamless and lead to more customers completing their bookings.

There are three main companies offering payment gateways in the UK. All three companies offer secure payments with excellent support…


Stripe is the gateway that we, at OpenPlay, recommend. Founded in 2010, it is relatively new to the scene, but it is fast becoming the popular choice due to its quick set-up (it takes just five minutes) and easy integration with an e-commerce website. Stripe only offers onsite payments, preferring to keep your customers on your website and thus increase the number of completed purchases. Stripe is also ahead of the game in terms of features, with innovative developments being rolled out all the time. It has the capacity to save data, so recurred billing (e.g. monthly memberships) is automatic and repeat purchases are speedy. It is also the most efficient system for mobile payments.
*Once you’ve set up your account, it will be integrated with your OpenPlay account and seamless booking will commence.
Monthly payments: £0
Transaction fee: 1.4% plus 20p (European cards), 2.9% plus 20p (non-European cards)

This is the preferred system of accountants as it is delivered by the accounting software company Sage. SagePay not only offers online payments, but also contactless, over the phone and those made through EPOS systems. It is a highly secure payment gateway and is recognised by all major banks and card companies. SagePay is used by startup businesses and global brands alike. It is often the chosen brand for small companies, because of its comprehensive customer support.
Monthly payments: £20.90 (Flex plan: up to 350 transactions per month) £45 (Plus plan: 500 purchase per month). If you have more than 500 per month you will be placed on the Corporate plan which offers bespoke pricing.
Transaction fee: 0%

The most globally recognised brand, it is highly trusted by even the most novice of consumers. One of the issues with PayPal is that customers presume you need an account to book through the system, which in fact is not the case. Customers can choose between using their PayPal account or paying with credit or debit card. PayPal works as an off-site service, so their system will pop up as a separate frame within your website. It has a slightly clunkier feel to it then the other two providers.
Monthly payments: £0
Transaction fee: Depends on the volume of your sales. If you take less than £1500 per month it’s 3.4% plus 20p. £1500.01-£6000 is 2.9% plus 20p. £6000.01-£15,000 is 2.4% plus 20p. The percentage continues to drop as your sales intake increases.

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