Why the ecommerce world is switching to Stripe

Categories Payment Gateways, Technology
Customer paying online

With more and more businesses opting to sell goods and services online, it seems people are doing their research and finding the best Payment Gateway for their needs.

If you are not familiar with the term Payment Gateway, it is merely a way of categorising services offered to handle online transactions. The main competitors in the field are Paypal, which most people are familiar with and Stripe, a relatively new player in the field. Let’s take a look at the most important differences between each.

First things first – Fees!

Both services are pay-as-you-go, meaning no contracts or termination fees which is great for business owners!

PayPal charge: 3.4% + $0.45 NZD per payment made in NZ

Or: 3.9% + fixed fee based on the currency received if you are accepting more than NZD

PayPal also has extra fees depending on the different services that you choose to use. It pays to take a look at their pricing to see how it affects your business.

Stripe charge: 2.9%  + NZ$0.30 and is a flat rate for any currency with no extra fees.

Other things to note…

It’s worth noting that while PayPal has higher fees for microtransactions (small transactions usually less than $10), Stripe actually works out more expensive when taken into account its flat-rate fees.

When it comes to actually getting paid there are some differences between the services.

Stripe offers fast, predictable transfers. Once you’re set up, transfers arrive in your bank account automatically on a 4-day rolling basis.

If you want your money a little faster PayPal transfers arrive in your account between 2-4 day rolling basis, however, you will have to request funds or set up to sweep automatically at the end of each day.


It is worth noting that Stripe is well-known for its developer-friendly environment while PayPal caters more to the average user. PayPal focusses on providing a streamlined online payment service, making it as easy as possible to buy goods and services online with minimal effort.

Stripe supports Apple pay, Android pay and bitcoin payments while PayPal is working on supporting alternative methods.

Stripe has a bigger focus on security with tools that enforce card details being sent only to Stripe and not being available to the website being purchased from.

PayPal is working on providing better options but still leave room for developers to make bad decisions.

One of the biggest advantages of Stripe is the API. (The way developers interface with Stripe) It’s clean, well-documented and easy-to-use. In stark contrast to PayPal’s inconsistent and poorly documented API. Using Stripe’s API enables rapid and reliable development so you can get selling ASAP!

The verdict

Overall, PayPal is great for an entry-level solution. Easy to get up and going but as your business grows you may wish to take advantage of lower fees (depending on usage) and extra features by switching to Stripe.

Moviko recommends Stripe as a solid solution because it allows us to tailor the experience to our customers’ needs. We have the knowledge and expertise to make use of the extensive features that Stripe provides, so why not get in touch?