Stripe vs WooCommerce Payments: Which is More Efficient? 

There is Something Surprising About eCommerce, isn’t it? 

The eCommerce landscape is evolving at a rather quick rate. As a matter of fact, it demands easy-to-use, reliable, and swift payment solutions. Just do some research in this regard. 

You will notice that the market is full of tools, which can make it difficult for you to get the right solution for your business. 

Today, businesses seek something that has prompt processing speed, integrations, seamless customer assistance, user-friendly features, and cost-effectiveness, just to name a few. In light of this, two renowned tools that present such benefits are Stripe and WooCommerce Payments.  

Before we dive deeper into the Stripe vs WooCommerce payments debate, let’s clarify some matters: WooCommerce Payments is a payment gateway, and Stripe is a payment processor. 

Now, let’s see what they present and how they can assist with business transactions.

An Overview of Stripe vs WooCommerce Payments 

Stripe and WooCommerce present an easy way for a given business to receive finances throughout the world. It is because of these tools that businesses can track revenue, handle disputes, and manage transactions.  

Stripe is considered to be a flexible payment gateway that handles transactions for more than 2.5 million websites. 

It has a user-centric design alongside a host of features. Whether it is online platforms or physical storefronts such as brick-and-mortar shops or farmer markets, Stripe takes care of transactions for all. 

On the other hand, WooCommerce Payments comes as a reliable integrated payment solution that assists in the processing of transactions. 

Stripe vs WooCommerce Payments: The Comparison 

The Stripe vs WooCommerce payments debate seems to be heating up among many professionals who are associated with a WooCommerce development company. 

Well, if you want to have a firm idea of how the two technologies stand against each other, here is an analysis that will be of aid to you: 

Cost 

Stripe vs WooCommerce payments costs could be a complicated thing to comprehend. This is because both of them present comparative rates with small levels of differences. 

It is pertinent to state here that cost is considered to be one of the most defining factors when selecting a payment gateway. However, it seems that there is no prominent difference between these two with regard to charges. 

Here is a look at their charges: 

• Stripe: 2.9% + $0.3 per transaction fee 

• WooCommerce Payments: 2.9% fee 

This hints at the fact that businesses having more than one small payment will save their cash with WooCommerce. 

On the contrary, businesses with a lesser number of large transactions will save their budget with Stripe. 

Stripe and WooCommerce offer transparent pricing. This means there are no hidden fees, no setup fees, and no monthly fees. Still, WooCommerce’s transaction fees are dependent on your plan and location. 

When we look at Stripe, it applies its transaction fees only to successful transactions. 

Moreover, Stripe and WooCommerce do not charge additional fees whenever accepting payments from wallets like Apple Pay or Google Pay. 

If you plan to use either Stripe or WooCommerce, you must take into account more pricing factors. These are international card transactions, card payments, currency conversion, in-person sales, and dispute charges. 

Integration 

Proper integration with apps and tools will improve the overall functionality of a platform. 

Stripe offers a host of integrations that very accurately align with email marketing platforms, accounting software, and more. 

Note that WooCommerce Payments is part of the same ecosystem as it seamlessly integrates with a host of plugins and extensions. This allows a good degree of flexibility and customisation options. 

Furthermore, it is known to seamlessly integrate with WordPress. This is why many eCommerce experts and even those related to search engine optimisation services have come to give a high rating to the WooCommerce plugin on WordPress. 

This gives an edge to WooCommerce Payments in the overall Stripe vs WooCommerce payments debate. 

Functionality 

Stripe lets customers directly complete their respective transactions on their online store without doing any redirection to a separate checkout page. 

As a result, the possibility of cart abandonment is greatly reduced. It also allows a purchaser to experience a better degree of checkout experience. 

Now, let’s look at WooCommerce Payments. This tends to present a similar checkout experience. 

However, this tool does something extra as it incorporates all payment-associated data present in the WordPress dashboard. 

As a result, it is easier to manage and track the transactions. Additionally, WooCommerce presents the Wooexpert program, a contact form, community forms, and FAQs. 

Here is some exciting news for WooCommerce users: the forum on WooCommerce has a rather bustling community of more than 35,000 topics. 

Looking at Stripe, it presents 24/7 contact support, Stripe support, discord developer chat, and Stripe docs. 

Flexibility 

If you have a growing business then it simply cannot keep its customers waiting. This means that it has to be supported by a reliable and quick-functioning payment processing tool. 

When we look at availability, WooCommerce Payments is known to support around 100 currencies and functions in more than 15 countries. 

Let’s look at Stripe. It is available in 47 nations and supports at least 135 currencies. 

It can be assessed that Stripe has an edge over WooCommerce, since it presents a payment management interface and day-to-day reconciliation. 

Additionally, Stripe does not guarantee to let you accept payments via renowned third-party payment processors like PayPal. This is not the case with WooCommerce, as it supports payment gateways such as PayPal. 

Subscription Payments 

If you depend on recurring billing models like subscription services, then subscription payments are vital. 

Stripe features well-developed subscription management capabilities like offering a customer portal, assisting with subscription schedules, providing billing for platforms, and invoicing. 

This allows businesses to smoothly monitor their overseas payments. 

In the case when you are based in the United States and you register an account with WooCommerce or Stripe, there is a seven-day payout period. Note that this period can go as much as 14 days if you are living in a different country. 

After the conclusion of the waiting period, there is a two-day standard waiting time that can be applied to the payments. 

If you are a non-U.S. resident, then you also have the option of applying for an instant payout. 

With Stripe, you will notice that the presentation of such instant payouts is dependent on the nature of a given case. There isn’t any cap when it comes to WooCommerce. 

Note that instant payouts have an additional charge associated with them. 

Stripe processes instant payouts for 1%. Here, there is at least a $0.5 fee per transaction. When it comes to WooCommerce, it charges 1.5% on the payment amount for the discussed payout. 

Moreover, WooCommerce Payments requires just a few minutes for instant payouts, whereas Stripe takes 30 minutes to do so. 

Analytics 

Many businesses that have just started to use WooCommerce are immensely appreciative of its analytics. This is because it allows businesses to effortlessly take a glance at the performance of an online store with the aid of the hugely helpful Google Analytics 4. 

You can use the WooCommerce dashboard to take care of every payment activity. Thanks to the integrated analytics, you will get thorough insights into highly important metrics like finance, SEO, revenue, traffic, and conversion. 

When we look at Stripe analytics, it allows businesses to attain customer behaviour insights, monitor payment activity, and track sales. Also, it allows you to take data from online sales and then puts forth a detailed picture of your newest marketing efforts and revenue. 

Feel free to share your Stripe analytics reports with team members to enhance collaboration. 

Stripe vs WooCommerce Payments: The Offered Gains 

Users of both Stripe and WooCommerce Payments take a very keen interest in the overall gains that are presented by both of these platforms. A similar thing can be stated about those who have just started to take an interest in the Stripe vs WooCommerce payments debate. 

It is safe to say that this is actually a logical thing to do. This is because if the potential user is aware of the gains offered by each of the tools, the user will be able to put himself in a position that will allow him to make the most out of a given tool. 

In light of this, here is a look at the top gains offered by both Stripe and WooCommerce: 

WooCommerce Payments 

Direct Bank Transfers: Some specific regions can get WooCommerce Payments support through direct bank transfers. This is usually a good option for those customers who are not inclined to utilise credit cards. 

Decreases Fraud Risk: Many tech experts have appreciated the fact that WooCommerce Payments leverage WooCommerce’s fraud prevention tools. This allows it to properly identify and then block any sort of suspicious transactions. As a result, users can enjoy peace of mind knowing that their store is safe from harmful activities. 

Seamless Integration: The WooCommerce Payments tool was created particularly for WooCommerce stores and presents a smooth integration process. As a potential user, you have the option of activating it in your WordPress dashboard, and you need to go through a rather minimal setup process. This is why it is amazing for those users that are comfortable with WordPress. 

Customer Data Management: If you get valuable customer data from WooCommerce Payment, it is stored in your WooCommerce store. This offers a great deal of assistance when it comes to managing customer accounts and a host of marketing efforts. 

Subscription Management: Perhaps your store presents subscriptions. In this case, the good news for you is that WooCommerce Payments seamlessly integrates with WooCommerce Subscriptions. As a result, you will be able to effectively manage recurring payments without the requirement for additional plugins. 

Stripe 

Developer-Friendly: This is actually one of the go-to arguments for Stripe fans whenever they are engaged in the Stripe vs WooCommerce payments debate. Stripe offers a reliable developer API that is meant to build custom integrations. As it turns out, this is great for those businesses that have a particular set of needs or those that aim to connect Stripe with various platforms. 

Customisation Options: Stripe paves the way for a great amount of customisations. This means that if you are a user, you can amend the checkout experience and make it in accordance with your brand identity. 

Security and Compliance: Stripe puts an immense amount of emphasis on security. This is why it adheres to a host of industry standards, such as PCI compliance. As a result, if you are a Stripe user then rest assured, your customer’s financial information is safe from harmful actions. 

Advanced Features: If you are looking for wide-ranging features, Stripe could just be what you need. It has a host of features that are beyond its basic payment processing, such as integration with a host of accounting and marketing platforms, fraud prevention tools, subscriptions, and invoicing. 

Extensive Payment Methods: This is very good news for those who have struggled with the issue of payment methods. The fact is that Stripe supports a host of payment methods, like ACH payments, Google Pay, Apple Pay, debit cards, and credit cards. As a result, Stripe is able to cater to a broader audience as it offers a high level of flexibility to a business’s customers. 

Global Reach: Stripe performs its operations in a great number of countries all across the globe. This means that if you intend to make good use of it, then it will allow you to accept payments from customers throughout the world. This is of great value for those businesses that are looking to expand their business operations on a worldwide scale.  

Some Food For Thought 

Both Stripe and WooCommerce may seem great in their own regard. Still, this does not mean that the tools do not have causes of concern. If you plan to use the tools in the future or are already using them, it is important that you take a look at such points of concern. Let’s look at the limitations of WooCommerce Payments first: 

• Limited features. 

• Regional restrictions. 

Now, let’s look at Stripe: 

• Steeper learning curve. 

• Potential for higher fees. 

• Third-party integration. 

If you seek more information with regard to these points of concern and whether they will trouble your business activity or not, it is best for you to consult with an expert. Understand that this expert should also have a very good knowledge regarding your existing business, and this will allow the person to offer the right set of recommendations.  

Decision Time: Stripe vs WooCommerce Payments 

One cannot deny the fact that both Stripe and WooCommerce Payments have stood the test of time. A prominent testament to this point is that each of them supports a great many businesses across the world. 

Since Woo Payments was created in partnership with Stripe, it may be somewhat complicated to comprehend whether you should use Stripe or WooPayments. 

Also, WooCommerce is seemingly a wonderful choice for any business that makes use of WordPress since it seamlessly integrates with the platform.  

When we look at Stripe, it performs seamlessly with WooCommerce. 

Here is a heads-up for you. 

Select WooCommerce if: 

• You demand recurring billing features at the moment. 

• You seek ease of use in your existing WooCommerce stores. 

• You have an already present WooCommerce store and are looking to have a seamlessly integrated payment solution. 

Select Stripe if: 

• You are immensely dependent on a recurring bill. 

• You seek various tools and services. 

• You are already operating your business on an international level and cover more than one currency. 

Regardless of your Decision, You May Need This 

It is true that both WooCommerce and Stripe have a somewhat similar underlying infrastructure. Still, if you try to take a deep look into them, then you will be able to make informed decisions. 

Thanks to better reporting, you can fill holes in your business as you will be able to make processes more impactful, efficient, and prompt. 

There are a host of webapp development companies that highlight the importance of better reporting. This is why you should also take it seriously. 

Concluding Remarks 

After all of the analysis done above, it is safe to assume that if you want to make use of any one of these tools, you first have to do a good level of analysis of your business activities.  

Perhaps it will be better for you to take the services of an expert who has a good degree of knowledge regarding both of the technologies, as well as your business. 

Many experts who are associated with today’s leading ecommerce development services claim to have good knowledge of both Stripe and WooCommerce, but they seem to lack a thorough understanding of either of the technologies. 

Here is a wonderful idea: Contact FuturByte today. They come as a reputed web and application developer that will offer you quality advice regarding the Stripe vs WooCommerce payments debate and which one will be best for your business. Just make sure that you explain your overall requirements in detail.