Merchant services
Stripe vs PayPal: which costs less for UK businesses?.
Stripe and PayPal are the two best-known ways to take payments online. We compare their published UK fees, read 27 October 2026, on real sales.
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Stripe and PayPal are the two best-known ways to take payments online. We compare their published UK fees, read 27 October 2026, on real sales.
Published online rates from the major processors serving UK businesses, plus the quoted rates that only come on request. You see them side by side, on your own sales.
The short answer
Stripe is usually cheaper for card payments on your website, at 1.5% + 20p on standard UK cards. PayPal's standard rate for payments through a PayPal account is 2.9% + 30p, with 1.29% or 1.99% added for buyers abroad. PayPal's own card processing is 1.2% + 30p, subject to approval. Many shops offer both. Prices read 27 October 2026.
Published prices read on 27 October 2026 from each provider's own pricing page. Quote only or not published means the provider gives rates on request; we obtain those for you.
| Provider | Standard UK card rate | European and international cards | Monthly fee | Payouts | Contract |
|---|---|---|---|---|---|
| Stripe Source | 1.5% + 20p standard UK cards; 2.8% + 20p premium UK cards | 2.5% + 20p EEA; 3.15% + 20p international; +2% if converted | £0 | Standard free; instant 1% (min 40p); first payout 7 to 14 days | Pay as you go |
| PayPal Source | 2.9% + 30p standard; 1.2% + 30p for advanced card payments | +1.29% EEA, +1.99% other markets | £0; £20 for Website Payments Pro | Free withdrawal to bank | Not stated |
| PayPal Braintree Source | 1.9% + 20p; Amex 2.4% + 20p | +1% for non-UK cards | Not published | Not published | Not stated |
Rates are for online card payments taken by UK businesses, before VAT where the provider states it. Premium, business and non-UK cards usually cost more. Our service is free to you. We may receive a fee from the provider you choose; it never changes the price you pay.
Tell us about your business. We compare the whole market, including the processors that only quote on request, and come back with the lowest total cost for your online sales and the right set-up. You keep a named account manager after setup.
Our service is free to you. We may receive a fee from the provider you choose; it never changes the price you pay.
Published UK fees read 27 October 2026:
Take £10,000 a month in 200 payments of £50, all from UK customers. If every payment is a standard UK card through Stripe, fees are £150 plus £40: £190 a month.
If the same payments go through PayPal at its standard 2.9% + 30p, fees are £290 plus £60: £350 a month. On PayPal's tiered plan, once you have sold more than £8,000 the previous month, the rate drops to 2.1% + 30p: £210 plus £60, or £270.
If you use PayPal's Advanced Credit and Debit Card Payments to take cards on your own checkout, the blended rate of 1.2% + 30p comes to £120 plus £60: £180 a month, slightly below Stripe. That service needs an application and PayPal's approval.
In practice most shops see a mix: some customers pay by card and some choose PayPal. If 30% of the £10,000 came through PayPal accounts at 2.9% + 30p and 70% through Stripe, the total would be £105 plus £133, or £238 a month.
Both charge more for foreign customers, in different ways. Stripe uses card-based rates: 2.5% + 20p for cards from the European Economic Area and 3.15% + 20p for other international cards, plus 2% if currency conversion is required.
PayPal adds a percentage to its domestic rate based on where the buyer's PayPal account is: 1.29% for the EEA and 1.99% for all other markets. On its standard rate, an EEA buyer costs 2.9% + 1.29% + 30p.
On a single £50 sale to an EEA customer, Stripe charges £1.25 plus 20p, or £1.45. PayPal's standard rate with the EEA fee charges about £2.10 plus 30p, or about £2.40. On a £50 sale to a customer in the United States, Stripe charges £1.78 and PayPal's standard rate with the 1.99% fee about £2.75, before any currency conversion.
For businesses with many overseas buyers, both are worth comparing with Airwallex, which publishes 2.40% + 20p for EEA cards.
A dispute, or chargeback, is when a customer asks their bank to reverse a payment. Stripe charges £20 for each dispute received and £20 for each dispute you counter manually, which is refunded if you win.
PayPal charges a standard dispute fee of £12 when a buyer files a dispute or chargeback through PayPal checkout, and a £14 chargeback fee on card payments that did not go through a PayPal account or guest checkout.
Both can hold back money if they see risk. PayPal's UK user agreement says it may place a reserve on an account and gives the example of a rolling reserve of 10% held for 90 days, where 10% of each day's takings is released 90 days later. Factors it lists include whether your industry has a higher likelihood of chargebacks and your delivery time frames. Stripe also reviews accounts and publishes a list of businesses it restricts or prohibits.
Stripe pays out on a standard schedule for free. It says the first payout typically completes within 7 to 14 days, depending on your industry, country and risk level. After that, Instant Payouts are available for 1% of the amount, with a minimum fee of 40p.
PayPal pays your sales into your PayPal balance. Withdrawing to a UK bank account is free when no currency conversion is involved.
For cash flow, Stripe pays to your bank on a schedule once the account is established. With PayPal, you move money from the PayPal balance to your bank yourself, or set up transfers.
Which to choose: for card payments on your own checkout, Stripe's 1.5% + 20p is cheaper than PayPal's standard rate. PayPal as an extra checkout button can lift sales from customers who prefer it. Most UK online shops offer both.
We compare the whole online payments market for you, including the processors that only quote on request, such as Worldpay, Checkout.com, takepayments and Elavon. We look at your real card mix, average sale and the countries you sell to, and work out the total monthly cost with each one, including monthly charges, dispute fees and payout costs, not just the headline rate.
We then negotiate the rate and terms, handle the application and the switch from your current processor, and give you a named account manager who stays with you after you go live and reviews your costs as your sales grow. Our service is free to you. We may receive a fee from the provider you choose; it never changes the price you pay.
For card payments, usually yes. Stripe charges 1.5% + 20p on standard UK cards, while PayPal's standard rate for payments through a PayPal account is 2.9% + 30p. PayPal's own card processing for your checkout is 1.2% + 30p, subject to approval. Prices read 27 October 2026.
PayPal's standard rate is 2.9% + 30p for commercial transactions, with 1.29% added for EEA buyers and 1.99% for other markets. An optional tiered plan drops to 2.1% + 30p above £8,000 a month. Advanced Credit and Debit Card Payments cost 1.2% + 30p.
Most UK shops use both: Stripe, or another card processor, as the main card checkout, and PayPal as an extra button for customers who prefer it. That keeps card costs low while capturing PayPal buyers. We can model the cost of your mix.
On a £50 EEA sale, Stripe charges about £1.45 and PayPal's standard rate about £2.40. Stripe adds 2% for currency conversion when needed. PayPal adds 1.29% for EEA buyers and 1.99% for other markets. For many overseas sales, Airwallex is also worth comparing.
Stripe says first payouts typically take 7 to 14 days, then follow its free standard schedule, with Instant Payouts at 1% and a 40p minimum. PayPal money is available in your PayPal balance, and withdrawal to a UK bank is free without currency conversion.
Stripe charges £20 per dispute received and £20 to counter one manually, refunded if you win. PayPal charges a £12 standard dispute fee and a £14 chargeback fee on card payments made outside a PayPal account, read 27 October 2026.
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