Stripe and PayPal are the payment providers available in a Sharetribe marketplace to process monetary transactions.
PayPal and Stripe have many similarities, such as they both take a processing fee for each completed monetary transaction, but there are also differences.
Both PayPal and Stripe will charge a processing fee for each monetary transaction on your marketplace. These fees are different between the two providers and depend on which country or currency you use.
Paypal charges fees every time money is moved from one account to another. Because of how the commission is paid to the admin, PayPal charges a fee both from the provider and from the admin.
Stripe's fee comes out of the admin account only. Your marketplace providers do not have to pay any additional fee, so you should define your commission when using Stripe carefully to cover all your costs.
You can read more about PayPal's processing fees in this article and about Stripe in this article.
Payment provider setup
With both payment providers, the administrator needs to have an account. With PayPal, all providers also need to have an account and connect it to the marketplace. With Stripe, the providers just need to add their bank account information directly in their user settings.
You need to create an account for each payment provider that you would like to connect to your marketplace. The setup is quite specific, so it is better to follow our related articles' instructions to complete these setups. This article explains how to set up PayPal for your marketplace and this one on how to set up Stripe.
If you have set up both payment providers in your marketplace, a provider can choose to set up PayPal, Stripe, or both. If you only have one payment provider set up in the admin section, your providers would only be able to connect through that payment provider.
You can read about PayPal setup for providers here and Stripe setup for providers here.
Supported payment methods
With PayPal, providers can receive payments through PayPal accounts and credit cards most of the time. Buyers may have to create a PayPal account. Payment happens on PayPal's website.
With Stripe, buyers can pay with credit and debit cards, and the payment happens within the marketplace.