Stripe vs PayPal for International Payments 2025

Stripe Vs Paypal, choosing between these two platforms to receive international payments is often a dilemma for Indian businesses and freelancers.

PayPal, a trusted brand since 1998, is known for its widespread acceptance and user-friendly approach. On the other hand, Stripe, though newer to the scene, has made its mark with advanced features and developer-friendly solutions. 

In this blog, we will compare Stripe with PayPal, examine real costs, practical features, and genuine limitations of both platforms in India. Whether you're a freelancer or a growing business, let's find out which platform best fits your international payment needs.

Stripe vs PayPal: Understanding the Differences 

The following table quickly sums up the Stripe Vs PayPal debate, comparing their availability, fees, compliance, etc. We will be zooming on each of these aspects throughout the blog

What is Stripe? 

Stripe is a global payment platform supporting 135+ currencies. In India, it operates as an invite-only service, prioritizing businesses focused on international expansion. 

Pros of Stripe

Cons of Stripe

🔖Not happy with Stripe? Learn about these Stripe alternatives. 

What is PayPal?

Known for its ease of use, PayPal is a leading global payment platform operating in over 200 countries. For Indian businesses and freelancers, PayPal is a payment gateway for international transactions, though it has certain limitations specific to the Indian market.

Pros:

Cons:

🔖Not happy with PayPal? Learn about these PayPal alternatives. 

Stripe vs PayPal Fees for International Transfers (2025)

Stripe Fees for receiving international payments:

Processing Fee: Stripe charges 4.3% as processing fees on every successful transaction.

Currency Conversion Fee: An additional 2% fee is charged for currency conversion.

So to receive a payment of USD 10,000 via Stripe, you need to pay

4.3% processing fee, which comes to USD 430. So, the remaining balance is USD (10,000-430), which is USD 9570. 

This balance will be converted at a 2% forex markup. So, if the prevailing exchange rate is 1 USD = INR 86, then it will be reduced by 2%, making the effective exchange rate around INR 84.3.

So, the final amount receivable is INR (9570*84.3)= INR 8,06,751, as against (10,000*86)= INR 8,60,000, which is the full value of your USD 10,000 payment at the live forex rate. 

So, to receive a payment of USD 10,000 via Stripe, you will have to pay INR (8,60,000-8,06,751)= INR 53,249 in Stripe fees (assuming an exchange rate of 1 USD = INR 86)

Here's a detailed breakdown of Stripe Fees for receiving international payments in India

Paypal Fees for receiving International Payments: 

Transaction Fee: PayPal charges 4.4% as fees on every successful transaction.

Currency Conversion Fee: An additional 4% markup is charged for currency conversion.

Fixed Fee: Additionally, PayPal also charges a fixed fee, which varies across currencies. For USD it is $0.30 

So to receive a payment of USD 10,000 via Paypal, you need to pay

4.4% processing fee $0.30 in fixed fee, which comes to USD 440. 30. So, the remaining balance is USD (10,000-440.30 ), which is USD 9559.7. 

This balance will be converted at a 4% forex markup. So, if the prevailing exchange rate is 1 USD = INR 86, then it will be reduced by 4%, making the effective exchange rate around INR 82.56

So, the final amount receivable is INR (9559.7*82.56)= INR 7,89,249 (approx) as against (10,000*86)= INR 8,60,000, which is the full value of your USD 10,000 payment at the live forex rate. 

So, to receive a payment of USD 10,000 via PayPal, you will have to pay INR (8,60,000-7,89,249)= INR 70,751 in PayPal fees (assuming an exchange rate of 1 USD = INR 86)

Here's a detailed breakdown of PayPal fees for receiving international payments in India 

 The Verdict: Stripe Vs Paypal, Which Platform is Ideal for Businesses?

There is no one-size-fits-all answer to the question, and it honestly depends on the specific nature and requirements of the business. 

Stripe is more suited for businesses that:

Consider Stripe if you're a software company, digital service provider, or established ecommerce platform with development resources. Its features like customising online checkout experience, custom integrations and other relatively complex options make it more suitable for established businesses. Further, its relatively lower fees make more sense for larger transaction volumes. However, while applying for Stripe, don't forget that it is currently invite-only in India, and there's a good chance your application may not be approved as they are only supporting a very limited number of businesses in India. 

PayPal is more suited for businesses that:

For freelancers, smaller businesses, or those just starting with international payments, a PayPal account makes more sense. While its fees are higher, the simpler setup and immediate access can be worth the trade-off.

Skydo: An Affordable Alternative in the Stripe Vs PayPal Debate

For Indian businesses, beyond Stripe Vs Paypal, Skydo offers a refreshing approach to international payments. As a made-in-India solution, it addresses common pain points businesses face with platforms like PayPal and Stripe.

Unlike the percentage-based fees of PayPal and Stripe, Skydo uses a transparent flat-fee structure:

That is it, no additional fees like monthly account fee, maintenance charges, account setup fee etc.

What sets Skydo apart is its zero forex markup policy, providing live exchange rates without hidden charges. This means significant savings - on a $10,000 payment, you'd pay just $29 with Skydo, compared to $630 with Stripe or $840 with PayPal.

Beyond cost savings, Skydo offers practical features designed for Indian businesses:

While PayPal and Stripe remain popular choices globally, Skydo emerges as a cost-effective alternative specifically built for Indian businesses handling international payments. Its combination of transparent pricing, instant compliance documentation, and faster settlements makes it particularly attractive for companies looking to maximize their international earnings.

Want to try Skydo? 

Get started now!