Stripe vs Braintree: Which Payment Gateway Should You Choose?

By: Nigel Ewart|LinkedIn Profile
Stripe vs Braintree

Did you know that the transactional value of digital payments in 2021 was $5.4 trillion? As more people turn to online payments for their purchases, business owners have to find ways of making these purchases secure, efficient, and simple. That is where the right online payment gateway comes in.

Lately, two payment gateways have been vying for dominance: Stripe and Braintree. With all of the features each one offers, how can you choose the best payment gateway?

Let us take a deep dive into Stripe vs Braintree.

Stripe vs Braintree: The Main Services

Stripe and Braintree offer similar core services, making the decision between them more difficult. Looking at the details of their main services can help.

What They Both Offer

Both of these gateways offer mobile wallet support, allowing you to use Apple Pay and Google Pay, among others. They both have flat rates for credit card processing, which means a customer will always get charged the same rate, no matter what card they use.

Braintree and Stripe have third-party integration, ensuring that there are no gaps in their services, and they also make international commerce possible. With over 135 supported currencies, you will be able to accept payments from practically anywhere.

Both gateways have anti-fraud tools that can keep transactions secure and the ability to send payouts to contractors and suppliers.

Added Features With Stripe

When looking for the difference between Stripe and Braintree, one of the biggest is that Stripe not only makes it possible for foreign businesses to process credit cards, but it also supports payment methods that are region-specific.

Unlike with Braintree, where you would have to use integrations, Stripe offers invoicing as part of their bundled services. It also has a much faster onboarding process.

Another feature is Stripe Capital. For certain Stripe customers, Stripe Capital offers the chance to borrow against the money coming through the Stripe service.

Added Features With Braintree

Braintree has its sister site, PayPal, to help with many add-ons. PayPal integration can fill in lots of the service gaps you may find in Braintree, making it possible to even include Venmo as a payment option.

Unlike with Stripe, which does not allow you to separate its payment gateway from its payment processing structure, Braintree does have this separation. An independent payment gateway is always a useful tool.

Although the onboarding process is a bit slower than it is with Stripe, you can create your own merchant account with Braintree. It may take a bit longer, but it makes for a most stable account.

With Braintree, you also have the option of using the platform in different ways. You have the option of Braintree Direct, which is perfect for businesses that sell directly from a mobile app or through their websites.

Braintree Marketplace, on the other hand, offers management tools that can track all financial aspects of the business. It can set up escrow accounts and even divide payments between you and your providers.

Key Differences Between Stripe and Braintree

There are some key differences between these payment gateways. Let us take a closer look at each one.

Pricing Structure

Both of these gateways use flat-rate pricing but there are some differences. Stripe uses a structure that can add fees for its premium services. This adds expenses to the transactions.

With Braintree, you can expect all of its services bundled into one package, making the fees you have to pay truly a flat rate.

Payments Supported

Stripe can accept more regional payment options than Braintree. International merchants will have more freedom in what they can accept if they choose Stripe.

Braintree, however, processes PayPal and Venmo transactions, which Stripe cannot do.

Transaction Fee Collection

Stripe groups customer accounts into a common pool and uses that to calculate the transaction fees. This allows new companies to on-bard quickly.

With Braintree, you can have your own merchant account, which offers more stability. For established companies, your own merchant account is important.

Which Is More Affordable?

If you are looking for affordability, you want to know that Stripe does tend to take a higher transaction fee that varies depending on premium features. With Braintree, there is one flat transaction fee, but it is a higher one than what Stripe charges.

In the end, Stripe is more affordable for small transactions, while Braintree is better for larger ones.

Deciding on Stripe

Deciding on Stripe as the best payment gateway for your business can be a good idea if you want to get your payment system working as quickly as possible. With its rapid onboarding process, you can start accepting money almost immediately. Stripe also allows for regional payment methods, so if a large portion of your sales is international, Stripe is the better choice.

If you want a payment gateway that relies less on integration and want to have access to some of the best tools, even if you have to pay a little extra for them, choose Stripe.

Deciding on Braintree

For businesses who want to set up their own merchant accounts, only Braintree makes that possible. It also allows you to use the gateway independently while still being able to access PayPal’s infrastructure.

If you want maximum functionality and do not mind integration, Braintree is the better choice. It is a more streamlined option that can get the job done.

Make Online Payments Easy

By making it easy for customers to pay online for your products or services, you will encourage them to return for more purchases. When considering Stripe vs Braintree, make your decision based on your own business needs and what will satisfy your customers.

At Digital Outlook, we can ensure your online business is efficient and ready to earn you the revenue you want. Contact us today for a project enquiry!