Stripe vs PayPal: UK Fees and Checkout Costs
Compare a defined Stripe card-payment scenario with PayPal commercial pricing, then weigh the cost difference against checkout suitability and actual customer behaviour.
The short answer
Stripe and PayPal should be compared using the payment products, card categories and confirmed tariffs you will actually use. A standard-card Stripe rate and a PayPal commercial rate describe different payment routes. They can inform a cost model, but they do not prove that replacing one checkout option preserves the same orders.
In this guide
Define the two routes before comparing prices
Start with the customer journey: card entry, a wallet choice, a payment link or a website integration. Write down what the proposed change would replace. If customers can choose both methods, model the expected split instead of assigning the full turnover to each provider.
Use the detailed Stripe UK fee guide and PayPal business fee guide to select the correct category. Confirm eligibility and any negotiated agreement before treating a published tariff as your own price.
Keep software and platform charges visible. A payment method that is inexpensive on one website can have a different total cost when another platform adds a fee.
Worked example: one specified payment profile
Fictional profile using public UK tariffs checked 15 October 2026. Assume £20,000 across 500 payments. In the Stripe scenario, every payment qualifies as standard UK. In the PayPal scenario, every payment is a domestic GBP transaction in its standard “all other commercial” category, without tiered enrolment.
| Component | Stripe scenario | PayPal scenario |
|---|---|---|
| Percentage charge | 1.5% = £300 | 2.9% = £580 |
| Fixed fees | 500 × 20p = £100 | 500 × 30p = £150 |
| Monthly processing | £400 | £730 |
The processing difference is £330 monthly, or £3,960 over twelve identical months. Different categories or a confirmed individual agreement can change the result. This is a tariff calculation, not a claim that switching produces that saving for an actual business.
What if customers prefer the more expensive option?
Do not assume that every order using a payment method would vanish if it disappeared, or that every customer would simply use another button. Measure the behaviour where practical and keep any forecast explicitly uncertain.
Separate fictional decision test. Suppose an additional payment option costs £330 more each month, and each genuinely additional order contributes £20 after all variable costs, including its payment fee. It would need 17 additional orders to more than cover that cost: 17 × £20 = £340.
Orders that would otherwise have used another method do not count as additional. This test does not assume either provider creates more sales, and the £20 contribution is an invented assumption.
Compare the work around the payment
- Demonstrate the required checkout, refund and subscription journeys.
- Check who supports the integration when an order is paid but not recorded correctly.
- Compare payout reconciliation and the handling of disputes.
- Price any migration work, replacement extensions and testing.
- Check which original fees remain after a refund.
Request written answers for the exact account and integration. Keep staff capacity gains separate from spending reductions. If a provider reduces manual work, explain how that benefit will be measured instead of adding an unsupported saving to the processing calculation.
Make the decision on complete costs and suitability
Compare keeping the existing setup, replacing it and offering both methods. Assign a realistic share of sales to each method in the mixed scenario. Count each order once, add the necessary fixed costs and show one-off changes separately.
Use the calculator for the clearly specified rate comparison, then add the customer-behaviour and operational assessment alongside it. On Shopify, check platform fees and PayPal exemptions before assuming the same add-on applies to every provider.
Common questions
Which is cheaper, Stripe or PayPal?
It depends on the product, account tariff, payment categories and other charges. The example gives a result only for its stated profile. Check your actual setup before drawing a conclusion.
Can I compare both methods if customers choose between them?
Yes. Allocate the sales and payment counts to each method and total the resulting fees. Do not charge both providers against the entire sales volume unless both genuinely charge on those transactions.
Put your own figures to work.
Use the free calculator to organise your costs and keep a report. If something is unclear, you can ask for a free initial review.
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Sources and how to use this guide
Primary references checked on 15 October 2026:
- Stripe: published UK payment pricing
- PayPal: UK merchant fees, payment categories and optional tiered plan
- Shopify: third-party fee rules, exemptions and calculation
Trading profiles and any explicitly invented quotes or allowances are fictional. Published provider tariffs are identified and dated; they are not personalised quotations. Worked totals include only the stated components and tax assumptions. They are not customer results or market averages. Provider prices, eligibility and terms can change. Check your written agreement before deciding.
Our guides explain costs and comparison methods. They do not rank the whole market or claim hands-on product testing. Source links are references, not a claim of partnership. Read the calculation method and limitations, or about the service.