Pricing model: similar shape, different details
Both charge a percentage of the transaction plus a fixed fee. PayPal's fixed fee is meaningfully higher than Stripe's, which matters more on lower-value transactions.
PayPal also has a separate, higher rate tier ('PayPal Checkout') aimed at businesses that want PayPal-branded buyer protection. The headline rate Stripe quotes is close to the all-in rate; PayPal's effective rate is often higher than the headline once you include their per-currency conversion margin.
Buyer behaviour and trust
PayPal still drives meaningful conversion lift in some consumer markets, especially for buyers who do not want to enter card details. For B2B and higher-value transactions, that lift is much smaller. If you sell to consumers internationally with low average order values, PayPal as a secondary option (not primary) often pays for itself.
International and currency
PayPal's currency conversion margin is among the highest in the industry — typically 3–4 percent above the interbank rate. Stripe's is lower (around 1 percent in most markets) but still meaningful for businesses with substantial cross-border revenue.
If international is more than 25–30 percent of your volume, neither Stripe nor PayPal is your cheapest option. A specialist (Wise Business, Adyen) usually beats both substantially.
Disputes and chargebacks
PayPal's dispute system is buyer-friendly by design — useful as a buyer, costly as a merchant. Chargebacks resolved in the buyer's favour without merchant input are more common on PayPal than on Stripe. Stripe gives merchants more granular evidence-submission tooling.