If you’re adding a payment step to an online form — a client intake, a service agreement, a booking flow — Stripe and PayPal are the two most common choices. Both can be embedded directly in a form so customers pay without leaving the page. Both handle card payments. Both are widely trusted.
The differences show up when you look more closely: who your customers are, where they’re paying from, how much setup you want to do, and what happens after the payment clears.
Fee rates and feature availability change frequently. Always verify current pricing on each provider’s official website before making a decision.
On this page
How each gateway works inside a form
When you embed a payment gateway in an online form, the customer fills in their details, signs if required, and pays — all in one flow. No redirect to a separate checkout page, no separate invoice to follow up on.
Both Stripe and PayPal support this kind of embedded payment experience. The difference is in how the payment widget appears to the customer:
Stripe shows a card input field. Customers enter their card number directly. Stripe also supports Link (its saved-payment-method product) and local payment methods depending on the customer’s country. The experience is clean and minimal — it looks like part of the form.
PayPal shows a familiar PayPal button alongside card and Pay Later options. Customers can pay with their PayPal balance, a linked card, or directly with a debit or credit card — without needing a PayPal account. The button is instantly recognizable, which can reduce hesitation at the payment step.
For form-based payment collection, both approaches work. The choice usually comes down to your customer base.
Stripe
Stripe is built primarily for online businesses and developers. Its API-first architecture means it can be integrated into almost any workflow, and it supports a wide range of payment types beyond basic card processing — including ACH transfers, Buy Now Pay Later options, recurring billing, and multi-party marketplace payouts.
As of 2026, Stripe operates in 46 fully supported countries and processes payments in over 135 currencies.
Fees (US standard rates): 2.9% + $0.30 per successful card charge. Volume discounts available. See Stripe’s pricing page for current rates.
What it does well in forms:
- Clean card input that doesn’t interrupt the form flow
- ACH bank transfers for US customers — lower cost for high-ticket services
- Subscription billing built in — useful if the form is the entry point for a recurring service
- Strong fraud detection
Limitations: More configuration required than PayPal. Not available in all countries — check stripe.com/global.
Read more: Stripe Payments Form Pros and Cons: A Product Review by PlatoForms
PayPal
PayPal is the most widely recognized consumer payment brand globally. It’s available in 200+ markets and supports 25 currencies.
Fees (US standard rates): 2.99% + $0.49 per transaction for the standard checkout (PayPal, cards, Pay Later). Rates vary by transaction type and country — see PayPal’s merchant fees page.
What it does well in forms:
- Brand recognition reduces hesitation at checkout
- Customers can pay from existing PayPal balance — common for frequent online shoppers
- Pay Later options where supported — can increase completed payments for higher-value services
- Simplest setup — no developer required
Limitations: Standard withdrawal takes 3–5 business days (instant transfer available for a fee). No ACH support. Some advanced features carry monthly fees.
Read more: How to Add PayPal Payment to an Online Form
What the fee difference actually means
The rate difference between Stripe (2.9% + $0.30) and PayPal (2.99% + $0.49) looks small, but it adds up depending on your volume and transaction size.
| Payment amount | Stripe fee | You receive | PayPal fee | You receive | Difference |
|---|---|---|---|---|---|
| $100 | $3.20 | $96.80 | $3.48 | $96.52 | $0.28 |
| $500 | $14.80 | $485.20 | $15.44 | $484.56 | $0.64 |
| $1,000 | $29.30 | $970.70 | $30.39 | $969.61 | $1.09 |
| $2,000 | $58.30 | $1,941.70 | $60.29 | $1,939.71 | $1.99 |
Based on standard US rates. Actual fees may vary.
For a single transaction, the difference is negligible. At higher volume — say, 50 invoices a month at $500 each — PayPal costs about $32 more per month than Stripe, or roughly $384 per year. For most small businesses, that’s not the deciding factor. But if you’re processing significant volume and both options otherwise fit, Stripe’s slightly lower rate compounds.
The more meaningful fee difference appears at the fixed-fee level. Stripe’s $0.30 fixed fee vs PayPal’s $0.49 means PayPal is proportionally more expensive for smaller transactions. A $20 payment costs $0.19 more with PayPal — nearly 1% extra. For high-volume, low-ticket businesses this matters more.
Which one fits your situation
A photographer collecting a booking deposit ($200–$500)
PayPal is the easier starting point. Customers expect the PayPal button, the setup is quick, and the fee difference on individual bookings is under $1.
Start from the Photography Session Release Waiver template and add a PayPal Payment field for the deposit.
A consultant sending a project invoice ($2,000–$10,000)
Either works, but Stripe’s ACH option becomes relevant here — bank transfer fees are significantly lower than card fees for large amounts. If your clients are US-based and comfortable with bank transfers, Stripe + ACH saves meaningful money.
A SaaS or digital product with recurring billing
Stripe. Its subscription billing is more capable, and the developer tools make it easier to build recurring payment flows into a form-based onboarding.
A service business with international clients
Depends on where they are. Stripe’s 135+ currency support is better for Europe and Asia-Pacific. PayPal’s 200+ country coverage is better for markets where PayPal is the dominant payment method (Latin America, Southeast Asia, parts of the Middle East).
A freelancer who wants to get paid today without touching settings
PayPal. The setup is faster and the customer experience requires no explanation.
A business collecting payments through forms + signatures
Both work equally well for this use case. The deciding factor is usually customer expectation — if your clients already use PayPal, use PayPal. If they’re card-first, Stripe’s cleaner card input is slightly better UX.
Things to watch out for
PayPal fund holds for new sellers
PayPal sometimes holds funds for up to 21 days for new accounts or accounts with low transaction history — as stated in PayPal’s seller guidance, this is a standard industry practice to cover potential buyer complaints. This is common when you first start using PayPal for business payments and can disrupt cash flow. The hold period typically decreases as you build a track record, but it’s worth knowing before you go live.
Stripe requires a supported country for registration
You need to register your Stripe account in one of Stripe’s 46 supported countries. If your business is registered elsewhere, Stripe isn’t an option — PayPal’s broader country coverage becomes relevant here.
Both have chargeback risk
Chargebacks (disputed payments) are a reality with both gateways. Stripe’s documentation and dispute management tools are generally considered more developer-friendly. PayPal’s Buyer Protection program is designed as a consumer-centric feature: it gives buyers strong coverage for items not received or significantly not as described, and PayPal’s determination is considered final. This means sellers sometimes lose disputes even when they provide supporting documentation. PayPal does offer Seller Protection for eligible transactions, but it requires meeting specific shipping and documentation requirements. For service-based businesses using forms, collecting a signed agreement through the same form that takes payment is your strongest evidence if a customer disputes a charge.
PayPal’s advanced features have monthly fees
PayPal’s standard Checkout is free to set up. But if you need features like Virtual Terminal or Payments Pro, monthly fees apply on top of transaction fees. Stripe’s pricing is more straightforwardly pay-per-transaction with no monthly platform fees for standard use.
Currency conversion costs
Both gateways charge for currency conversion if you’re receiving payments in a currency other than your account’s primary currency. PayPal applies a currency conversion spread above the market rate when converting currencies — check PayPal’s fee schedule for the current rate applicable to your account type. Stripe’s is lower but still applies. For high-volume international payments, currency conversion costs can exceed the transaction fee itself — check each provider’s current fee schedule for the applicable rate.
Side-by-side comparison
| Stripe | PayPal | |
|---|---|---|
| Standard online fee (US) | 2.9% + $0.30 | 2.99% + $0.49 |
| Countries supported | 46 | 200+ |
| Currencies | 135+ | 25 |
| Customer recognition | Moderate | Very high |
| Setup complexity | Higher | Lower |
| ACH / bank transfer | Yes | No |
| Subscription billing | Built in | Available |
| Pay Later options | Yes | Yes |
| Fund holds (new accounts) | Rare | Common |
| Chargeback tools | Developer-friendly | Buyer-favoring |
| Monthly fees | None (standard) | Some advanced features |
Fee rates are standard US rates and subject to change.
A note on Square
Square is worth considering if your business takes payments both in person and online. Its unified point-of-sale and online payment management is useful for retail shops, restaurants, and service businesses with a physical location. Online fees are 2.9% + $0.30. Currently available in the US, Canada, UK, Australia, Japan, Republic of Ireland, France, and Spain. See Square’s pricing page for details.
Collecting payments in PlatoForms
PlatoForms supports Stripe, PayPal, and Square natively. Stripe and PayPal embed inline — customers pay without leaving the form. Square offers an embedded field (inline) or Square Checkout (redirects to a Square-hosted page after submission).
- Stripe: Set up Stripe on your form
- PayPal: Set up PayPal on your form
- Square: Set up Square on your form
Each form supports one payment method — once you add a Stripe, PayPal, or Square field, the others are disabled. PlatoForms does not charge additional transaction fees on top of what each gateway charges.
For a full walkthrough of building a service intake and payment form, see How to Sell Services Online Without a Website Using Just a Form and PayPal.
Browse ready-to-use payment form templates: Payment form templates →
Frequently asked questions
Does Stripe or PayPal have lower fees?
Stripe is slightly cheaper for most transactions. The standard US rate is 2.9% + $0.30 for Stripe vs 2.99% + $0.49 for PayPal. The difference is small on individual payments but adds up at volume — on 100 transactions of $500 each, Stripe saves about $64. For high-ticket services using ACH bank transfers, Stripe’s cost advantage is larger.
Can I use both Stripe and PayPal on the same form?
No — PlatoForms allows only one payment method per form. Once you add a payment field (Stripe, PayPal, or Square), the other payment fields are disabled. Pick the one that fits your customers best, or create separate forms for different payment options.
Which is better for international payments?
It depends on where your customers are. Stripe supports 135+ currencies across 46 countries — stronger for Europe and Asia-Pacific. PayPal is available in 200+ markets, which gives it an edge in countries where PayPal is the dominant payment method, particularly in Latin America and parts of Southeast Asia.
Do customers need a PayPal account to pay with PayPal?
No. The PayPal checkout widget includes a “Debit or Credit Card” option that lets customers pay without logging into a PayPal account. A PayPal account gives them access to additional options like Pay Later, but it’s not required.
What happens if a customer disputes a payment?
Both Stripe and PayPal have dispute processes, but they work differently. Stripe gives merchants detailed tools to respond to disputes with evidence. PayPal’s Buyer Protection program is designed to be consumer-centric — PayPal’s determination is final, and sellers sometimes lose disputes even with documentation. PayPal’s Seller Protection can help for eligible transactions, but service-based businesses need to meet specific documentation requirements to qualify. For either gateway, having a signed agreement from the same form as the payment is your strongest evidence.
Which is easier to set up for a non-technical user?
PayPal. You can connect a PayPal Business account and start accepting payments in minutes without touching any code. Stripe requires slightly more configuration — selecting payment methods, configuring currencies, and understanding the dashboard — but isn’t technically difficult once you’re past the initial setup.
