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Choose your app's payment provider: Stripe VS SagePay VS PayPal

Alice Breton5 min read

When deciding what external payment service you want to use, you need to take into account several factors: the price of the payment provider, the amount of time of implementation, the ease of customising and styling the form, the trust of users to the company … and see what is best suited for your needs. There is not one best online provider, but this article will help you chose one that fits you project.

At Theodo we use different online payment providers: SagePay, PayPal and Stripe for our websites. For each one of them we have discovered advantages and drawbacks, that I will share with you.

Keep in mind that using a payment provider such as one we are going to talk about allows to easily be PCI compliant, which is essential for any website dealing with card data.

Overall price

The overall price covers the development cost and the transaction fees. Additional costs for setup, refunding and breaking the contract may also apply.

Development cost:

Here is in order a comparison of the three payment providers we use:

Fees per transaction:

The price depends on:

From our experience we found that for websites selling lots of products at small prices (~10€) it is worth using SagePay. But if there is a smaller traffic and higher prices Stripe might be a better solution. In both casesPayPal tends to have higher fees.

Finally, companies often negotiate the price fees directly with the payment providers to get more interesting offers, but this can take some time.

Here is an example of what you would be paying to the different companies:

If your company sells 100 products a month at an average price of £40 (total of £4,000), these would be the prices:

But if your company sells 350 products a month at an average price of £10 (total of £3,500), these would be the prices:

Here are the fees that you can find on the 3 websites:

Website Integration / design

The design of the form is very important. Users probably will not trust a website with cheap design. Also, paying is not the most pleasant moment of a customer’s journey. A seamless flow should be a must-have to get customers to pay and come back. Do not underestimate the design of your form!

What we recommend

If you wish to add a payment method to your website for the first time and that the project is short, we would recommend Stripe. As it is really easy to integrate and style it is perfect for these projects. If your website has a lot of traffic, SagePay is a good choice because of its low fees with a lot of transactions. However keep in mind that the implementation can take time. Finally it is a nice option to add aPayPal button on top of your existing payment methods as some customers are reluctant to input the card details on websites.

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