Stripe vs Braintree: Which is The Best Solution for Your Startup?

E-business is ever-evolving, while cash transfer is advancing together with it.  These days there are lots of popular online payment solutions that serve as a full-range alternative to traditional payment methods, like money orders, terminals or checks. A payment gateway is a complex service provider that enables card payments for e-commerce businesses and retailers, together with fraud management, data reporting, and other helpful tools.

 Among the top benefits, offered by payment gateway:

  • Twenty-four seven online sales
  • Enhancement of customer engagement and loyalty
  • Real-time payment acceptance
  • Secure transfer of payments
  • Easy currency conversion

Considering a long list of gateway providers, none of the companies takes an increasing share of the market, so competition among them remains severe. PayPal integration is a pioneer online processor with over 14 mln merchants and 184 mln customers, meantime customer preferences are smoothly shifting towards more advanced systems.


When do you need a payment platform?

One of the most common cases, when you may need a payment gateway, is the establishment of an online business or moving your sales online. Today we talk about on-demand services, ecommerce platforms and marketplaces, data storage facilities, messengers, and dozens of other web and mobile solutions. Businesses of different types have one simple thing in common: they need to process payments.

We have a broad experience of developing online marketplaces and our clients want to be sure that they give their audience the right options to select from. Our clients want to know that the preferred provider offers an appropriate range of payment options, recurring billing when needed, convenient dashboards and other useful services.

Moreover, we know that peer-to-peer marketplaces require the ability to perform split payments, thus both the platform owner and the vendor get their cuts of the sale. Braintree and Stripe have addressed this issue a few years ago, introducing their own solutions. Business owners often compare Stripe Connect vs Braintree Marketplace, as these platforms come with a complete set of features to support literally any business model.

What is Stripe? A brief overview of the main features

Stripe online payments system is the most recent alternative for business launch. It is an excellent solution to start handling payments without a lot of fuss and at a loyal price. Among the core reasons why clients opt for Stripe are good API, quick signup process and a bunch of handy Stripe merchant services tools.

On closer inspection, Stripe eliminates the necessity for storing sensitive data and thus getting onto Payment Card Industry Data Security Standards (PCI DSS). All the payments are performed through its own servers, so your company shouldn't be PCI compliant. While with Braintree, if you take online payments PCI Security Standards are applied to you.


Image source: Business Insider

Our full-stack developers often mention Stripe's powerful API as the main factor that has helped them outdistance most competitors and even PayPal. Moreover, this payment provider comes with multiple third-party integrations allowing users to eliminate the need for additional development or hosting.

Stripe Connect integration consists of several steps and is sustained by a detailed documentation. The company offers ready-assembled UI components to kickstart the project as fast, as possible. Using Connect multi-sided platforms can charge a fixed dollar amount per transaction that administrators can preset it as a percentage value.

What is Braintree? A brief overview of the main features

Braintree payment solutions company is a PayPal subsidiary since 2013. It also provides developers with a customizable API in six programming languages, ongoing support, and transparent pricing. But clients mostly choose Braintree for their vast experience in assisting trading companies as they develop from the early stages to the very top of international e-commerce market players. Moreover, it doesn't charge for foreign currency exchange.

In terms of functionality, this payment provider has lots of similarities to Stripe. However, initially, the company focused on high-quality service adapted to both developers and end users. While Stripe offers email support mainly, Braintree is ahead of the field with phone and email customer support.


Image source: Braintree

Braintree Marketplace makes the integration process as easy, as possible providing a detailed documentation and drop-in UI to get started. The platform allows users to receive split payments as the erratic dollar amount that differs from transaction to transaction.  

One of the main differences between Stripe and Braintree is the ability of the last-named to serve as a payment gateway only.

Braintree vs Stripe: payment gateway comparison chart

CriteriaStripeBraintreeUsed By (websites)334.32456.942Supported PlatformsMagento, BigCommerce, WooCommerce, Spree Commerce, Shopify, etc.Magento, BigCommerce, WooCommerce, Spree Commerce, Shopify, etc.Transaction Fee2.9% + $0.30 per transaction

After first $1 mln
2.9% + $0.30 per transaction

After first $50.000
Bitcoin FeeStop performing Bitcoin transactions on April 23, 20181% and 0.15% fee after first $1 mlnChargeback Fee$15

Can be refunded if the dispute is solved by the bank in your favor
$15International Payment FeeNo1% per transactionAccepted CardsMasterCard, American Express, Visa, Discover, Diners, JCBOther Payment MethodsACH Debits, Bitcoin, Alipay, Apple Pay, Android Pay, WeChat PayPayPal, Venmo, Apple Pay, Android Pay, Bitcoin, Visa Checkout, Masterpass, Amex Express Checkout, ACH Direct DebitGateway OnlyNoYes. $49 per month and $0.10 per transactionPayment Settlement2 business days

(or less frequently if required)
4 business days for American Express and 2 business days for the restWorks WithOver 300 existing appsOver 40 existing appsDocumentationComprehensiveStandardTop ClientsTwitter, Adidas, Best Buy, Target, Under Armour, Blue Apron, Kickstarter, Lyft, HubSpot, Docker, and others.Uber, Airbnb, OpenTable, GitHub, Pinterest, Dropbox, Twilio, Yelp, BaseCamp, and others.

Stripe vs Braintree payments comparison

The absence of binding monthly fee is listed among the best advantages of Stripe. This payment provider is targeted at developers, thus integration and configuration are done like a breeze. Considering the above-mentioned features it is one of the best choices for custom solutions. In conclusion, Stripe review features 97% user satisfaction rate.

Talking about disadvantages of stripe users complain about the inability to pay on schedule, to accept e-checks or balance transfer.

As we continue payment providers' comparison, let's move on to pros of Braintree. Being a PayPal subsidiary, Braintree seems to be present in all major countries worldwide. What is more, it is positioned as an all-in-one solution with excellent customer support, the capability to automatize recurrent payments, to handle international and mobile payments.

Referring to cons of Braintree users mainly mention the good old merchant fees.

Final Thoughts

Selecting the most appropriate ways to handle online credit card payments can be an insurmountable challenge at the very beginning. For the majority of vendors, proper gateway integration and ability to accept pays online is the main contribution to the success.

Choosing between Stripe and Braintree the determinative factor is the type of business you run. For those companies, that mainly handle international payments, Stripe can be a better solution, whereas, Braintree can be more efficient for local transactions. Beyond that, business owners shouldn't forget about scalability and potential growth.
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