TL;DR
Stripe for online/SaaS businesses. PayPal for consumer trust and international reach. Square for businesses with both online and in-person sales.
Quick Comparison
| Feature | Stripe | PayPal | Square |
|---|---|---|---|
| Online fee | 2.9% + $0.30 | 2.9% + $0.30 | 2.9% + $0.30 |
| Subscriptions | Excellent | Basic | Basic |
| In-person | Via Terminal | Via Zettle | 2.6% + $0.10 |
| Developer API | Best-in-class | Limited | Good |
| Global reach | 135+ countries | 200+ countries | Limited |
1. Stripe
The developer's choice. Best subscription billing, invoicing, Connect (marketplaces), and documentation. Stripe Atlas for company formation. Default for SaaS and tech startups.
2. PayPal
Consumers trust PayPal at checkout — offering it can reduce cart abandonment by 10-15%. Weaker developer tools but unmatched brand recognition globally. Use alongside Stripe, not instead of.
3. Square
Unified online + in-person payments. Free POS hardware, inventory management, and online store. Lower in-person rates. Best for retail, food service, and hybrid businesses.
How We Chose These Tools
We compared fees, features, developer experience, subscription support, and suitability for different business models.
Key Takeaways
- SaaS/online: Stripe primary, PayPal secondary.
- Retail/hybrid: Square.
- Never rely on PayPal alone for a tech product.