When you decide to set up recurring payments for your WooCommerce store, you’re stepping into a world of predictable revenue and growth opportunities.
However, to make this work seamlessly, you need to choose the right payment gateway. For most store owners, Stripe and PayPal will be the top contenders.
Both offer solid solutions for managing subscription-based billing, but they differ in critical areas such as ease of use, fees, and flexibility.
So, how do you decide which is best for your store? This guide takes an in-depth look at Stripe vs PayPal for WooCommerce recurring payments, helping you make the right choice for your business.
Table of Contents
Why Recurring Payments Are a Game-Changer for WooCommerce Stores
Recurring billing empowers businesses to:
- Automate income and reduce manual invoices
- Improve customer retention and lifetime value
- Offer flexible billing cycles, free trials, and upgrades
But not every payment processor handles subscriptions the same way — especially when it comes to refunds, dispute handling, free trials, and developer flexibility.
Stripe vs PayPal for WooCommerce Subscriptions (2025 Comparison)
| Feature | Stripe | PayPal |
| Supported Countries | 40+ | 200+ |
| Recurring Billing Support | Native + WooCommerce Subscriptions | Native via IPN / REST API |
| Dispute Fee | €15 (refundable) | €16 (non-refundable) |
| Checkout Flow | On-site embedded checkout | Redirects to PayPal site |
| Setup Simplicity | Easy via plugin | More manual configuration |
| Free Trial Support | Yes (native) | Yes (manual setup) |
| API & Developer Tools | Excellent | Limited customization |
| Best For | SaaS, DTC, global subscriptions | Legacy PayPal users, digital sellers |
Stripe for WooCommerce Recurring Payments
Stripe has become one of the most popular payment gateways for businesses, particularly those that need to handle recurring payments and subscriptions. Let’s take a closer look at what Stripe has to offer.
Integration with WooCommerce
Integrating Stripe into your WooCommerce store is a seamless experience. The official WooCommerce Stripe Payment Gateway plugin is well-documented and designed for ease of use.
Once you install the plugin, you can start accepting payments almost immediately.
Stripe’s plugin integrates smoothly with WooCommerce and supports both one-time payments and subscriptions.
It also offers options for configuring subscription models, including free trials, variable billing cycles, and discounted rates.
How to Set Up Stripe for WooCommerce Recurring Payments
- Install the WooCommerce Subscriptions plugin.
- Go to WooCommerce → Settings → Payments.
- Enable Stripe and input your API keys.
- Configure your product to be a Subscription type.
- Define trial period, billing frequency, and duration.
- Run a test transaction using Stripe Test Mode.
Bonus: Stripe handles automatic retries, plan switching, and discounts with minimal code.
Fees for Stripe
- Dispute Fees: Stripe has a €15 fee per dispute, which is refundable if you win the dispute.
- Transaction Fees: Stripe typically charges 1.4% + €0.25 for European cards and 2.9% + €0.25 for international transactions.
- Currency Conversion: Stripe adds a 2% fee if currency conversion is required.
- Refunds: Stripe does not charge a fee for issuing refunds, but the original transaction fee is not refunded.
Features and Capabilities
- Payment Methods: Stripe supports a broad range of payment methods, including major credit and debit cards, Apple Pay, Google Pay, and local payment options for global reach.
- Recurring Billing: Stripe’s recurring billing functionality is built directly into its platform. You can set up subscriptions easily and offer flexible billing cycles to suit your business model.
- Fraud Prevention: Stripe utilizes Stripe Radar, a machine learning tool that detects and prevents fraudulent transactions, adding an extra layer of security.
- Reporting and Analytics: Stripe provides comprehensive reporting tools and detailed analytics, giving you insight into customer behavior and transaction trends.
PayPal for WooCommerce Recurring Payments
PayPal is another leading payment gateway that many WooCommerce store owners use for recurring payments. Let’s explore how PayPal performs when it comes to handling subscriptions and recurring billing.
Integration with WooCommerce
Integrating PayPal with WooCommerce is simple, thanks to the official PayPal for WooCommerce plugin. The plugin allows you to accept both one-time and recurring payments, but setting up recurring billing can be more complicated than with Stripe.
For recurring payments, PayPal uses an Instant Payment Notification (IPN) system, which can require more manual configuration than Stripe’s automated system.
This system works well once set up, but it may be less intuitive for non-technical users.
How to Set Up PayPal for WooCommerce Recurring Payments
- Enable either PayPal Standard or PayPal Checkout in WooCommerce.
- Create and verify a PayPal Business account.
- Activate Paypal from payments option.
- Define trial durations, billing intervals, and renewal behavior.
⚠️ PayPal doesn’t handle proration or failed payments automatically — manual adjustments are often needed.
Fees for PayPal
- Dispute Fees: PayPal’s dispute fee is €16, which can quickly add up if you have a lot of disputes.
- Transaction Fees: PayPal’s standard fee is 2.9% + €0.35 for domestic transactions, but international fees can rise to 4.4% + a fixed fee depending on the currency received.
- Currency Conversion: PayPal charges a 3-4% conversion fee above the base exchange rate.
- Refunds: Like Stripe, PayPal does not charge a fee for refunds, but they do not return the original transaction fee.
Features and Capabilities
- Payment Methods: PayPal allows payments through PayPal accounts, credit and debit cards, and other funding sources, making it accessible to a wide customer base.
- Recurring Billing: PayPal supports recurring payments, but unlike Stripe, it may require additional configuration for a smooth subscription experience.
- Fraud Prevention: PayPal’s robust fraud detection tools provide solid protection, ensuring your business stays secure.
- Reporting and Analytics: PayPal also offers detailed transaction reports and basic analytics to help you monitor and manage your payments effectively.
When Should You Choose Stripe Over PayPal?
Choose Stripe if:
- You want seamless, in-site checkout
- Your customers are international or on mobile
- You need detailed subscription analytics and retry logic
- You prefer modern APIs and developer tools
Choose PayPal if:
- You already have a loyal PayPal user base
- Your store targets countries where Stripe isn’t supported
You want to offer both gateways side-by-side
Real-World Use Case Tips
- Free Trials? Stripe handles them natively. PayPal requires a workaround.
- Chargebacks? Stripe’s refund policy favors sellers; PayPal often favors buyers.
- Recurring Revenue Stability? Stripe’s automated retries reduce involuntary churn.
Complex Plans? Stripe allows switching, proration, and metered billing — PayPal doesn’t.
FAQs: Stripe vs PayPal for WooCommerce Subscriptions
Q: Which is better for international WooCommerce stores?
A: Stripe — it offers lower foreign exchange fees and smoother cross-border pricing.
Q: Can I offer WooCommerce free trials with both?
A: Yes, but Stripe supports it natively. PayPal requires manual setup.
Q: What’s the difference in dispute resolution fees?
A: Stripe: €15 (refunded if you win). PayPal: €16 (non-refundable).
Q: Which is easier for non-technical store owners?
A: Stripe — setup is more visual and fully integrated in WooCommerce.
Final Verdict: Stripe vs PayPal for WooCommerce Subscriptions
Stripe is built for scale, flexibility, and growth.
From automatic retries to modern APIs, it’s the better fit for SaaS, DTC, and subscription-heavy models.
PayPal still has value, especially if your customers prefer it or you’re operating in Stripe-restricted countries. But for recurring revenue, Stripe wins on performance and developer freedom.
Ready to grow your subscription revenue?
Use WP Subscription with Stripe to create flexible plans, free trials, and seamless recurring payments on WooCommerce.
Start now and unlock the power of predictable income.
