Stripe or PayPal for a small UK business?
Fees, payout speed, how customers see them, chargebacks, and the case for both.
See the templatesThe short answer: Stripe is cheaper per sale and cleaner at checkout. PayPal is dearer but some customers trust the button and will not type a card number anywhere else. Most small shops do best with Stripe as the main checkout and PayPal as a second button.
Fees
| Stripe | PayPal | |
|---|---|---|
| UK card online | 1.5 percent plus 20p | About 2.9 percent plus 30p |
| Monthly fee | None | None |
| On a £40 sale | 80p | About £1.46 |
Payouts
Stripe pays into your bank on a rolling schedule, typically a few days after the sale for a new account, faster later. PayPal holds the money in your PayPal balance; you move it to your bank when you like, and new sellers can find some of it held for a while.
How customers see it
Stripe is invisible: the customer sees your shop's checkout. PayPal is a brand: some people choose it because they know it, especially older customers and buyers abroad.
Chargebacks and disputes
Both handle them. Stripe charges a fee per dispute whether you win or not. PayPal's buyer protection tends to side with buyers; keep proof of postage.
Our advice
Set up Stripe. Add PayPal as a second button if your customers ask for it. On our shop template the card rate through your Stripe account is 1.9% + 20p per sale.
Fees in this post were checked on 9 October 2026 and change; confirm on the provider's own page before you decide.
A shop of your own is £99 then £20 a month, with card payments through your own Stripe account at 1.9% + 20p per sale, paid straight to you. See the shop templates.