Stripe vs. Paystack: Features, Fees, Support, Payment Services - Compared Head-to-Head!

"Paystack vs. Stripe: Which payment gateway is best for your business? This in-depth guide reveals shocking insights and a head-to-head comparison of features, pricing, and usability."

Have you ever tried to receive payments from clients abroad, only to be met with one wahala after another?

My friend, I know that struggle too well!

Stripe vs. Paystack: Which One Is Better for Your Online Business?

Ten years ago, when I started my freelance writing business, getting paid was like climbing Olumo Rock with slippers.

PayPal Nigeria wouldn’t let me receive payments,

Payoneer had its own annoying limits, and even local banks made things harder than necessary.

Then I stumbled upon Flutterwave. It worked… for a while. But I needed something better, something that truly suited my brand.

That’s when I switched to Paystack. Years later, when I launched my first eBook, How to Build Relationships with Popular Bloggers, I used Stripe to collect payments internationally.

So, which one is better for your business—Paystack or Stripe? Let’s find out!

What You Will Learn - Stripe vs. Paystack: Shocking Truths No One Tells You!

In this blog post, I’ll break down everything you need to know about Paystack and Stripe, including:

• Their features and pricing

• Who they are best suited for

• The pros and cons of each

• The best alternatives for Nigerians

• And much more!

Stick with me, because by the end of this post, you’ll know exactly which one to choose for your business.

Table of Contents

• What is Paystack?

• What is Stripe?

• Brief History of Paystack

• Brief History of Stripe

• Who is Stripe for?

• Who is Paystack for?

• Pros of Paystack

• Cons of Paystack

• Pros of Stripe

• Cons of Stripe

• Pricing: Stripe vs Paystack, which is cheaper?

• Customer support services: Paystack vs Stripe

• The top 5 best alternatives to Paystack and Stripe for Nigerians

• FAQs

• Conclusion

What is Paystack?

Paystack is a Nigerian payment gateway that enables businesses to accept payments from customers via multiple channels, including cards, bank transfers, and USSD.

It is widely used in Africa and is known for its seamless integration with local banks.

What is Stripe?

Stripe is a globally recognized payment processing platform that allows businesses to accept online payments from various sources, including credit and debit cards, bank transfers, and digital wallets.

It is popular for its developer-friendly API and extensive global reach.

Brief History of Paystack Payment Gateway in Nigeria

Ever tried to pay for something online in Nigeria and had your transaction fail for no good reason? Annoying, right?

Well, before Paystack came into the picture, that was the everyday reality for Nigerian businesses and customers.

How Paystack Nigeria Started in 2015

In 2015, two Nigerian entrepreneurs, Shola Akinlade and Ezra Olubi, set out to solve one of the biggest problems African businesses faced—reliable online payments.

At the time, most Nigerian businesses struggled with outdated payment systems, bank downtimes, and an overall lack of trust in online transactions.

Shola, a software engineer with experience in banking technology, built the first version of Paystack as a simple tool to help businesses accept payments seamlessly.

Together with Ezra, a talented designer and developer, they launched Paystack with a bold mission: to make online payments in Nigeria effortless.

Early Growth and Recognition

Their idea quickly gained traction. In 2016, Paystack became the first Nigerian startup to be accepted into Y Combinator (YC)—a prestigious Silicon Valley accelerator that has backed companies like Dropbox, Airbnb, and Stripe.

This was a major win, as it gave them access to funding, mentorship, and a global network of investors.

Armed with a $120,000 investment from YC, Paystack officially launched to the public.

Nigerian businesses, from small startups to big brands, began adopting the platform.

Why?

Because Paystack made it ridiculously easy to accept payments via cards, bank transfers, and even USSD—a game-changer in a country where many people don’t use credit or debit cards regularly.

As Paystack grew, it became more than just a payment gateway. It helped thousands of businesses—e-commerce stores, freelancers, subscription services, and even NGOs—collect payments effortlessly.

Before long, banks and traditional financial institutions started taking notes, and more fintech startups followed Paystack’s lead.

By 2020, Paystack had processed over 50% of all online payments in Nigeria, powering businesses like MTN, Domino’s Pizza, Bolt, and even government agencies.

Brief History of Stripe Payment Gateway

Ever tried to pay for something online, and the checkout process felt like solving a complex math equation?

Yeah, that’s exactly the kind of problem Stripe set out to fix.

How Stripe Was Built;

Back in 2010, two Irish brothers, Patrick and John Collison, saw a huge gap in the online payment industry.

At the time, businesses struggled with complicated payment gateways, slow bank integrations, and excessive paperwork just to accept payments online.

Patrick and John, both self-taught programmers, realized that setting up online payments shouldn’t be rocket science. So, they built Stripe—a developer-friendly payment solution that allowed businesses to integrate payments with just a few lines of code.

Their goal? Make online payments as simple as sending an email.

With a sleek, API-driven system, Stripe quickly became the go-to payment gateway for tech companies, e-commerce brands, and even Fortune 500 businesses.

Startups like Shopify, Lyft, and Instacart adopted Stripe early on, and as these businesses grew, so did Stripe.

By 2016, Stripe had expanded into over 25 countries, allowing businesses around the world to accept payments online without the usual banking headaches.

It introduced game-changing features like instant payouts, subscription billing, and fraud detection, making it one of the most powerful payment solutions in the world.

Who is Stripe Ideal for?

Stripe is best suited for businesses with a global customer base, especially those looking for extensive payment customization, automation, and integration capabilities.

Who is Stripe for? (And Why You Might Need It Too)

Ever wondered if Stripe is the right payment solution for you? 🤔

You're not alone.

Stripe is one of the most popular online payment processors in the world, but who exactly should be using it?

Here;

• Freelancers & Solo Entrepreneurs

• E-commerce Businesses

• SaaS & Subscription-Based Businesses

• Digital Product Creators

Let's break it down. 👇

1. Stripe is for Freelancers & Solo Entrepreneurs

If you're a freelancer or run a one-person business, Stripe makes it ridiculously easy to accept payments from clients—especially those overseas.

No more "Do you have PayPal?" or "Can you send me a bank transfer?" headaches.

With Stripe, you get:

1. A simple checkout page for clients

2. Subscription-based payments (great for retainers)

3. Lower fees compared to many PayPal transactions

Whether you're a writer, designer, developer, coach, or consultant, Stripe is a no-brainer for getting paid.

2. Stripe is Also Perfect for E-commerce Businesses and Online Stores

Running an online store? Stripe is built for you.

Platforms like Shopify, WooCommerce, and Magento seamlessly integrate with Stripe, letting you:

• Accept credit cards, Apple Pay, Google Pay, and more

• Handle refunds and chargebacks effortlessly

• Automate recurring billing for subscriptions

Unlike PayPal, which can sometimes freeze accounts without warning, Stripe gives you more control over your money.

3. SaaS & Subscription-Based Businesses Use Stripe too

If you run a software business (SaaS) or offer monthly memberships, Stripe is one of the best tools out there.

Why?

Because:

1. It’s designed for automated recurring billing

2. You can create different pricing plans (monthly, yearly, etc.)

3. It handles failed payments and retries automatically

4. Stripe powers thousands of SaaS companies, including Slack, Notion, and Zoom. If they trust it, you probably should too.

4. Digital Product Creators Use Stripe Payment Gateway to Sell Online

Selling eBooks? Online courses? Templates?

Stripe makes it easy to sell digital products without hassle.

You get:

1. Instant payouts to your bank

2. Secure payment processing with fraud protection

3. The ability to sell worldwide without extra fees

   
   

Platforms like Gumroad, Kajabi, and Teachable all use Stripe for payments.

5. Stripe is Also Great for Nonprofits & Fundraisers

Stripe also supports nonprofits and donation-based platforms.

You can:

1. Set up one-time or recurring donations

2. Accept payments from anywhere in the world

3. Get discounted fees as a registered nonprofit

   
   

If you're running a crowdfunding campaign or charity, Stripe is a solid choice.

6. Marketplaces & Platforms 

Stripe is perfect if you're building a multi-vendor marketplace, like:

1. A ride-sharing app (think Uber or Bolt)

2. A freelance platform (like Upwork)

3. A ticketing site (like Eventbrite)

4. With Stripe Connect, you can easily split payments between different sellers on your platform. This means less manual work for you and a smoother experience for users.

   
   

Who is Paystack Perfect for?

Who is Paystack Payment Gateway Perfect for?

Have you wondered if Paystack is the right payment solution for you?

Paystack is one of the most popular payment processors in Africa, but who exactly should be using it?

Let’s break it down.

1. Freelancers & Solo Entrepreneurs

If you’re a freelancer or run a one-person business, Paystack makes it incredibly easy to accept payments from clients—especially if you work with businesses and individuals across Africa.

With Paystack, you get:

• A simple checkout page for clients to pay you seamlessly

• Multiple payment options including card payments, bank transfers, and USSD

• Automated invoicing to help manage payments professionally

Whether you’re a writer, designer, developer, coach, or consultant, Paystack offers a hassle-free way to get paid without dealing with unnecessary bank issues.

2. E-commerce Businesses

Running an online store? Paystack is designed for African e-commerce businesses, making it easy to process transactions securely.

With Paystack, you can:

• Accept credit cards, debit cards, bank transfers, USSD, and mobile money

• Handle refunds and chargebacks effortlessly

• Integrate with Shopify, WooCommerce, and other e-commerce platforms

Paystack is a great alternative to PayPal for African businesses, as it provides reliable local payment solutions without the usual restrictions that come with international payment processors.

3. SaaS & Subscription-Based Businesses

If you run a software business (SaaS) or offer subscription-based services, Paystack simplifies recurring billing.

It helps you:

• Automate payments for subscription plans

• Create multiple pricing options (monthly, yearly, etc.)

• Handle failed payments and retries automatically

Many African startups and tech businesses trust Paystack to manage their billing systems because it is optimized for the region.

4. Digital Product Creators

Selling eBooks, online courses, templates, or any digital product?

Paystack allows you to:

• Accept payments instantly and receive payouts directly to your bank

• Provide secure payment processing with fraud protection

• Sell to a broad audience across Africa with multiple payment options

Platforms like Selar and Teachable integrate with Paystack to give digital creators a seamless payment experience.

5. Nonprofits & Fundraisers

Paystack also supports nonprofits and donation-based platforms looking to raise funds locally and internationally.

You can:

• Set up one-time or recurring donations

• Accept payments via multiple channels, including cards, bank transfers, and USSD

• Get discounted fees as a registered nonprofit

If you’re running a crowdfunding campaign or charity organization, Paystack makes it easy to collect and manage donations.

6. Marketplaces & Platforms

Paystack is perfect if you’re building a multi-vendor marketplace, such as:

• A ride-sharing app

• A freelance marketplace

• A ticketing or event booking site

With Paystack Split Payments, you can easily distribute funds among different sellers on your platform, making it easier to manage payments without manual processing.

Paystack Features:

Paystack is one of Nigeria’s most popular payment gateways, helping businesses accept payments quickly, securely, and with minimal setup hassle.

It’s widely used by startups, e-commerce stores, freelancers, and even large enterprises.

But what exactly makes Paystack stand out? Here are its key features and why businesses love it:

1. Multiple Payment Options

Paystack makes it super easy for customers to pay, supporting a variety of payment methods, including:

• Credit & Debit Cards (Visa, Mastercard, Verve, AMEX)

• Bank Transfers (customers can pay by sending money directly to a provided bank account)

• USSD Payments (for customers without internet access)

• Mobile Money & POS Payments

• Apple Pay (for international customers)

With these options, businesses can serve both local and international customers effortlessly.

2. Fast & Easy Setup

Unlike some payment gateways that require weeks of paperwork, Paystack allows businesses to:

• Sign up and get approved quickly

• Start accepting payments within 24-48 hours

• Use simple, no-code integrations (great for non-developers)

This makes it perfect for freelancers, small businesses, and startups looking for a hassle-free payment solution.

3. Instant Settlement & Quick Payouts

One of Paystack’s biggest advantages is fast payouts.

• Payout Speed: Businesses get next-day settlements (T+1) for local transactions.

• Multiple Payout Methods: Receive funds via bank transfers or to mobile wallets.

• Automated Payouts: Businesses can set up automatic withdrawals to their preferred bank account.

This ensures businesses have quick access to their earnings, unlike platforms like Stripe, which can take up to 7 days to settle payments.

4. Subscription & Recurring Billing 

For businesses that offer subscriptions or membership plans, Paystack provides built-in recurring billing.

• Customers can save their card details securely

• Automated recurring payments without manual follow-ups

• Perfect for SaaS businesses, gyms, online courses, and digital services

With this feature, businesses don’t have to worry about reminding customers to pay every month—Paystack handles it automatically.

5. Paystack Storefront (No Website Needed!)

Don’t have a website? No problem!

With Paystack Storefront, businesses can:

• Create a simple online store (for free)

• Sell digital & physical products without needing a website

• Accept online payments easily

This is great for small businesses, creators, and side hustlers who want to start selling online without hiring a web developer.

6. Paystack Invoices & Payment Links

Freelancers and service providers don’t need a website to collect payments—just use Paystack Payment Links!

• Create professional invoices & send them to clients

• Customers can pay online via card, bank transfer, or USSD

• Track payment status in real-time

This makes it easier for Nigerian freelancers, consultants, and businesses to collect payments hassle-free.

7. Fraud Protection & Security

Paystack takes security seriously and uses top-tier fraud prevention tools like:

• PCI DSS Compliance – Ensures all transactions are safe & encrypted

• Two-Factor Authentication (2FA) – Adds an extra security layer for online transactions

• Automated Fraud Detection – Identifies and blocks suspicious transactions

With these protections, both businesses and customers feel secure using Paystack.

8. Seamless API for Developers 

For tech startups and developers, Paystack offers one of the best APIs for payments.

• Highly customizable payment flows

• Integrate Paystack with websites, mobile apps, and software

• Supports e-commerce platforms like WooCommerce, Shopify, and Magento

This makes Paystack a top choice for businesses that need a flexible payment system.

9. Paystack Terminal (For Physical Stores & POS Payments)

Businesses that operate both online and offline can use Paystack Terminal—a POS system that allows customers to pay in-store using cards, QR codes, or mobile payments.

• Accept in-person payments easily

• Sync transactions with online sales

• Great for restaurants, retail stores, and service businesses

With this, businesses can run both online and offline payment processing from one platform.

Pros of Paystack Payment Gateway

If you're running a business in Nigeria (or anywhere in Africa), accepting payments smoothly is non-negotiable.

The last thing you want is for customers to abandon their cart just because the payment gateway didn’t work.

That’s where Paystack shines. Unlike traditional bank payment systems that are slow and unreliable, Paystack offers a fast, secure, and user-friendly way to collect payments.

But what makes it stand out? Let’s dive into the key benefits:

1. Easy Integration for Businesses

One of Paystack’s biggest strengths is how ridiculously easy it is to set up.

Whether you're a developer or a non-tech business owner, you can integrate Paystack with:

• Websites & E-commerce stores (WordPress, Shopify, Magento, etc.)

• Mobile apps (Android, iOS)

• Custom-built platforms using Paystack’s API

Even if you have zero coding knowledge, Paystack provides ready-made plugins to get you up and running in minutes. No complex bank paperwork, no hidden fees—just seamless payments.

2. Multiple Payment Methods

Unlike some platforms that force customers to pay one way, Paystack offers multiple payment options, ensuring no sale is lost due to limited choices.

Customers can pay via:

• Debit & Credit Cards (Visa, Mastercard, Verve)

• Bank Transfers (direct payment to your Paystack account)

• USSD Codes (for customers who don’t use online banking)

• Mobile Money (for users in Ghana and other African markets)

• Apple Pay (for international transactions)

This flexibility makes it ideal for businesses targeting a wide audience, including people who prefer cashless payments and those who don’t have credit cards.

3. Quick Payment Processing & Payouts

No one likes waiting days to receive their money, and Paystack understands that.

Unlike traditional banks that delay settlements, Paystack processes transactions in real-time and ensures businesses get paid within 24 hours.

For businesses handling large volumes of transactions, you can even automate payouts to multiple bank accounts, saving you time and stress.

4. High-Level Security & Fraud Protection

Online fraud is a big problem in Nigeria and across Africa, but Paystack takes security seriously.

It’s PCI-DSS certified, meaning it follows global security standards to protect users’ financial data.

Key security features include:

• Fraud detection tools to prevent fake transactions

• OTP & 3D Secure authentication for extra protection

• Automatic transaction monitoring to flag suspicious activity

With Paystack, you and your customers can trust that every transaction is safe.

5. Detailed Analytics & Business Insights

Want to know who’s buying from you, how they’re paying, and when they’re most active? 

Paystack’s dashboard gives you access to real-time reports and analytics, including:

• Total sales & revenue tracking

• Transaction history & status updates

• Customer insights (repeat buyers, payment trends, etc.)

These insights help you make smarter business decisions, optimize your pricing, and improve customer experience.

6. Subscription & Recurring Payments

If your business runs on a subscription model (e.g., SaaS, membership sites, or digital products), Paystack makes it easy to collect recurring payments without needing manual follow-ups.

Customers can:

• Subscribe once and get charged automatically every month/year

• Save their card details for future payments

• Cancel or update their subscriptions easily

This is a game-changer for businesses that rely on steady, predictable income.

7. Affordable & Transparent Pricing

Unlike some payment platforms that eat into your profits with hidden fees, Paystack offers transparent, competitive pricing:

• 1.5% + ₦100 per local transaction (capped at ₦2,000)

• 3.9% + ₦100 per international transaction

• 0% setup or maintenance fees

That means you only pay when you make sales—no monthly fees, no extra charges.

8. Excellent Customer Support

Ever tried reaching out to a Nigerian bank’s customer support?

Yeah… let’s just say patience is required.

But with Paystack, you get:

• Fast response times via email, chat, and phone

• Extensive Help Center with tutorials & FAQs

• Dedicated support for developers & businesses

Their customer service is one of the best in the fintech space, making troubleshooting a breeze.

Cons of Paystack

Paystack is one of the most popular payment gateways in Nigeria and Africa, offering seamless transactions, security, and fast payouts.

However, no payment gateway is perfect, and Paystack has some limitations that businesses should be aware of.

Here are the key disadvantages of using Paystack:

1. Limited Availability Outside Africa

While Paystack is great for businesses in Nigeria, Ghana, South Africa, and Kenya (beta), it’s not available in many other countries.

If you plan to scale your business internationally or serve customers outside Africa, you might need a more globally recognized payment gateway like Stripe or PayPal.

2. High Fees for International Transactions

Paystack charges 3.9% + ₦100 per international transaction, which is higher compared to competitors like Stripe (2.9% + $0.30).

If your business relies heavily on international payments, these high transaction fees can reduce your profit margins.

3. No PayPal Integration

Many international customers prefer PayPal for payments, but Paystack does not support PayPal transactions.

This means you may need to set up PayPal separately, which can complicate your checkout process and potentially cause you to lose customers who prefer using PayPal.

4. Occasional Downtime & Payment Failures

Like most online payment platforms, Paystack experiences occasional downtime due to server issues, bank network failures, or maintenance updates.

This can cause:

• Delayed payments

• Failed transactions

• Customer frustration

For businesses handling time-sensitive transactions, these downtimes can lead to lost sales and unhappy customers.

5. Requires Internet for Most Transactions

Unlike USSD or offline payment solutions, Paystack requires internet access to process transactions.

This can be a major challenge in areas with poor internet connectivity, making it difficult for businesses to accept payments from customers who don’t have reliable internet access.

6. Limited Chargeback & Refund Policy

Paystack does allow refunds, but the process is not as seamless as PayPal or Stripe.

• Merchants are responsible for processing refunds manually.

• Chargebacks (forced refunds from banks) are not always guaranteed.

This means that if a customer wants their money back, they may struggle to get a refund, leading to trust issues and potential customer disputes.

7. Some Nigerian Banks Have Transaction Issues

Even though Paystack works with most Nigerian banks, some smaller banks may have issues processing transactions smoothly.

Customers using less tech-savvy banks may face:

• Failed transactions

• Delayed processing times

• Restrictions on their cards

Encouraging customers to use major banks like GTBank, Access Bank, or Zenith Bank can help reduce these issues.

Paystack Pricing: How Much Does It Cost to Use?

Paystack is one of the most affordable and transparent payment gateways in Nigeria, offering straightforward pricing with no hidden fees.

Whether you’re a freelancer, entrepreneur, or large business, knowing the costs involved can help you make the right decision.

1. Transaction Fees (Per Payment Processed):

Paystack charges a small fee per transaction, depending on whether the payment is local (within Nigeria) or international. Here’s the breakdown:

Payment Type	Transaction Fee
Local Transactions (Naira Payments)	1.5% + ₦100 (Capped at ₦2,000)
International Transactions (USD, GBP, etc.)	3.9% + ₦100 (No cap)
Bank Transfers (Pay with Bank)	1.5% + ₦100 (Capped at ₦2,000)
USSD Payments	1.0% (Capped at ₦2,000)
POS Payments (For Merchants Using Paystack POS)	0.5% per transaction

Note: The ₦100 fee is waived for transactions below ₦2,500.

2. Payout Fees (Withdrawing Your Money):

Getting your money from Paystack is fast and easy, but there’s a small withdrawal fee:

• Payout to Nigerian Bank Account: ₦10 per withdrawal

• Settlement Time: Next business day (T+1)

Instant Payouts Available! If you need faster payouts, Paystack offers instant settlement for an extra fee.

3. Chargeback Fees (Disputed Payments)

If a customer disputes a payment and requests a refund, Paystack does NOT charge a fee for chargebacks.

However, if the dispute is valid, you may have to refund the customer.

Tip: Use Paystack’s fraud protection tools to avoid chargebacks and disputes.

4. Paystack POS Pricing (For In-Person Sales)

If you run a physical store and want to accept POS payments, Paystack offers POS terminals at competitive rates:

• POS Device Price: ₦45,000 – ₦100,000 (Depending on the model)

• Transaction Fee: 0.5% per POS transaction

• Settlement Time: Instant or Next Day (T+1)

Who Should Use This? If you own a retail store, supermarket, or restaurant, Paystack POS is a great way to accept card payments without delays.

5. Paystack Additional Fees for Advanced Feature

Paystack offers extra features, most of which are free, but some may come with additional costs:

• Recurring Payments (Subscriptions & Auto-Billing) – Free

• Payment Pages & Invoicing – Free

• Custom API Integrations (For Developers & Businesses) – Free

• Bulk Payouts to Multiple Accounts – Custom pricing based on volume

Verdict: Is Paystack Affordable?

Paystack is Best For:

• Businesses selling to Nigerian customers (Affordable local fees)

• Freelancers & entrepreneurs accepting online payments

• Physical stores & businesses using Paystack POS

Paystack is Not Ideal For:

• Businesses focused on international customers (Stripe may be better)

• People who need instant global payouts (Paystack works best for Nigerian payments)

Final Tip: If most of your customers pay in Naira, Paystack is one of the cheapest and easiest payment gateways to use.

It’s built for Nigerian businesses and offers fast settlements, low fees, and reliable service!

Stripe Features

Stripe is one of the world’s leading online payment gateways, but its availability in Nigeria has been limited.

Unlike Paystack, which was built specifically for the Nigerian market, Stripe is not officially available for businesses registered in Nigeria.

However, there are still ways for Nigerians to use Stripe, especially if they have an international business structure.

Here’s what you need to know about Stripe’s features for Nigerian entrepreneurs, freelancers, and businesses.

1. Multiple Payment Methods (Global Reach)

Stripe supports a wide variety of payment methods, allowing Nigerian businesses to accept payments from customers across the world.

• Credit & Debit Cards (Visa, Mastercard, American Express, etc.)

• Bank Transfers & Direct Debits

• Apple Pay & Google Pay (for mobile payments)

• Cryptocurrency (via integrations like BitPay)

• Buy Now, Pay Later (BNPL) Options (like Klarna & Afterpay)

This makes Stripe one of the best choices for Nigerian entrepreneurs selling to international customers, such as SaaS businesses, e-commerce stores, and digital product sellers.

2. Advanced Subscription & Recurring Billing

Stripe’s billing system is one of the best in the world, offering:

• Automatic recurring payments (perfect for SaaS businesses and membership sites)

• Flexible billing cycles (weekly, monthly, annually)

• Smart invoicing & dunning management (to recover failed payments)

If you run a subscription-based business, Stripe is a top-tier option for handling customer payments.

3. International Business Support (Through Stripe Atlas)

Since Stripe is not officially supported for Nigerian-registered businesses, the best way for Nigerians to use Stripe is through Stripe Atlas—a service that allows entrepreneurs to:

• Register a U.S. company remotely

• Open a U.S. business bank account

• Access Stripe’s full payment processing features

With Stripe Atlas, Nigerian entrepreneurs can legally run an international business and accept payments globally.

4. Fraud Protection & Security

Stripe has industry-leading security measures to prevent fraud and protect businesses from chargebacks, including:

• Stripe Radar – Uses AI to detect and block fraudulent transactions

• PCI DSS Compliance – Ensures that all card payments are securely encrypted

• 3D Secure Authentication (3DS2) – Adds extra layers of security for payments

5. Instant Payouts (For U.S. & Other Eligible Countries)

Stripe offers instant payouts, but this feature is only available in supported countries like the U.S., U.K., and Canada.

For Nigerian businesses using Stripe Atlas, payouts typically take 2-7 business days to process.

Alternative: If you need faster payouts in Nigeria, consider using Paystack or Flutterwave for local transactions.

6. No-Code Payment Links & Checkout Pages

Even if you don’t have a website, you can still collect payments using Stripe Payment Links.

• Create & send payment links via email, WhatsApp, or social media

• No coding required – Set up a payment page in minutes

• Supports one-time & recurring payments

This makes Stripe a great option for freelancers, consultants, and Nigerian entrepreneurs who work with international clients.

7. Developer-Friendly API (Highly Customizable)

For businesses that need a custom payment solution, Stripe provides one of the best APIs in the industry.

• Easily integrates with websites & mobile apps

• Works with platforms like Shopify, WooCommerce, and Magento

• Supports automation & AI-powered analytics

This makes Stripe a great choice for Nigerian developers, startups, and tech companies that want a powerful, flexible payment gateway.

Pros of Stripe Platform

Stripe is one of the most widely used online payment gateways globally, powering transactions for businesses of all sizes—from small startups to Fortune 500 companies.

It’s known for its developer-friendly features, global reach, and seamless integration.

Here are the key advantages of using Stripe:

1. Global Availability & Multi-Currency Support

Unlike many payment gateways that are restricted to certain countries, Stripe is available in over 40+ countries and supports payments in 135+ currencies.

This makes it a great choice for businesses with international customers, as customers can pay in their local currencies while merchants receive payments in their preferred currency.

2. Lower Transaction Fees for International Payments

Compared to other payment gateways, Stripe offers competitive pricing, especially for international transactions.

Stripe Fees: 2.9% + $0.30 per international transaction

Paystack Fees: 3.9% + ₦100 per international transaction

If you process a lot of international payments, Stripe can save you money on transaction fees compared to African-based gateways like Paystack or Flutterwave.

3. Seamless Integration & Developer-Friendly API

Stripe is known for its powerful and flexible API, allowing businesses to:

• Customize their payment experience

• Build subscription models, marketplaces, and complex payment flows

• Integrate with mobile apps, eCommerce stores, and SaaS platforms

This developer-first approach makes Stripe ideal for tech startups, SaaS companies, and marketplaces that need more customization.

4. Supports Multiple Payment Methods

Stripe supports a wide range of payment options, making it easier for businesses to cater to different customer preferences.

• Credit & Debit Cards (Visa, Mastercard, Amex, etc.)

• Digital Wallets (Apple Pay, Google Pay, Alipay, WeChat Pay, etc.)

• Buy Now, Pay Later (Afterpay, Klarna, Affirm, etc.)

• Bank Transfers, ACH Payments, SEPA, and more

This level of payment flexibility makes it one of the best platforms for global businesses.

5. Built-in Fraud Protection & Security

Stripe has advanced fraud detection tools, including:

• Stripe Radar – Uses machine learning to detect and prevent fraudulent transactions.

• 3D Secure Authentication – Adds an extra layer of security for online card payments.

• PCI Compliance – Ensures secure handling of customer payment data.

These security features help businesses reduce chargebacks, fraud risks, and unauthorized transactions.

6. Automated Payouts & Fast Settlements

Stripe processes payouts faster compared to many traditional payment processors. Depending on the country, merchants receive their funds within 2-7 days.

Additionally, Stripe offers Instant Payouts in supported countries, allowing businesses to access their funds instantly for a small fee.

7. Subscription & Recurring Billing Support

Stripe is a top choice for SaaS businesses, membership platforms, and subscription-based services because of its powerful recurring billing system.

With Stripe Billing, businesses can:

• Automate subscription charges

• Offer free trials and discounts

• Manage invoicing and tax compliance

This makes it one of the best platforms for businesses with recurring revenue models.

8. PayPal Alternative for Global Businesses

Many businesses prefer Stripe over PayPal because:

• Lower fees for high-volume transactions

• Better developer tools for custom integrations

• More transparent pricing (no hidden fees)

For global businesses, Stripe is often the best PayPal alternative, especially for those needing seamless integration and lower processing costs.

9. 24/7 Customer Support

Stripe provides 24/7 customer support via chat, email, and phone, ensuring businesses can quickly resolve payment issues.

Additionally, Stripe has comprehensive documentation, tutorials, and an active developer community to help users get the most out of the platform.

Cons of Stripe Payment Gateway

While Stripe is one of the most powerful and widely used payment gateways globally, it’s not perfect.

Businesses should be aware of some potential downsides before choosing it as their primary payment processor.

Here are the key disadvantages of using Stripe:

1. Not Available in Many Countries

Despite being a global payment processor, Stripe is still not available in many countries, especially in parts of Africa, Asia, and the Middle East.

For example, Stripe is not fully available in Nigeria, Kenya, or many other African countries, which forces businesses in these regions to look for alternatives like Paystack or Flutterwave.

What we recommend: If Stripe isn’t available in your country, you may need to use a local payment gateway or a workaround like Stripe Atlas (which helps businesses register in the U.S.).

2. Complicated Setup for Non-Developers

While Stripe is highly customizable, it’s not the easiest platform for beginners.

• If you don’t have coding experience, setting up Stripe’s API can be confusing.

• Unlike PayPal or Paystack, which offer simple plug-and-play integrations, Stripe requires some technical knowledge to fully integrate with a website or app.

Solution: If you're not tech-savvy, you may need to hire a developer or use a third-party Stripe integration tool like Zapier, WooCommerce, or Shopify.

3. Higher Chargeback Risks & Strict Policies

Stripe has strict chargeback and dispute policies, which can sometimes favor the customer over the business.

• If a customer disputes a charge, Stripe automatically deducts the amount from your account while the dispute is being investigated.

• Businesses have to provide proof that the transaction was valid, which isn’t always easy.

• Stripe also charges a $15 dispute fee (or more, depending on the country) per chargeback, even if you win the case.

Solution: Use Stripe Radar, its built-in fraud detection tool, to reduce chargeback risks.

4. Delayed Payouts for New Businesses

Unlike Paystack, which offers next-day payouts, Stripe’s default payout time is 2-7 business days, depending on your country.

For new businesses, Stripe may hold funds for longer periods (up to 14 days) until they establish a transaction history.

Solution: Businesses in eligible countries can use Instant Payouts, but this comes with extra fees.

5. Higher Fees Compared to Some Competitors

While Stripe’s transaction fees are reasonable, they can be higher than some local payment gateways, especially for small businesses.

• Stripe Fees (U.S.): 2.9% + $0.30 per transaction

• Paystack Fees (Nigeria): 1.5% + ₦100 for local transactions (capped at ₦2,000)

• Flutterwave Fees (Africa): 1.4% per transaction (capped at ₦2,000)

What to do: If you process a lot of local transactions, consider combining Stripe with a local payment gateway to reduce costs.

6. No Built-in PayPal Support

Unlike some platforms that allow you to accept both Stripe and PayPal payments in one checkout, Stripe does not directly integrate with PayPal.

If many of your customers prefer PayPal, you’ll need to offer PayPal as a separate payment option, which can make your checkout process less seamless.

Try This: Use third-party checkout tools like WooCommerce, Shopify, or SamCart, which allow both Stripe and PayPal payments.

7. Strict Account Freezing & Banning Policies

Stripe has strict fraud prevention measures, which sometimes lead to accounts being frozen or banned without prior warning.

• If Stripe detects suspicious activity, high chargeback rates, or policy violations, they may suspend or terminate your account.

• Once an account is banned, it’s difficult to get it reinstated.

Solution: Carefully read Stripe’s Terms of Service to ensure your business model complies with their policies.

Also, keep chargeback rates low to avoid account issues.

Stripe Pricing: How Much Does It Cost for Nigerians?

Stripe is known for its transparent and competitive pricing, but since Stripe is not officially available in Nigeria, pricing depends on how you set up your account.

If you register a U.S. business through Stripe Atlas or use Stripe in another supported country, here’s what you can expect.

1. Transaction Fees (Per Payment Processed)

Stripe charges a small percentage per transaction, depending on the payment method. Here’s a breakdown of standard Stripe fees:

Payment Method	Fee (U.S. Stripe Account)
Domestic Card Payments (USD)	2.9% + $0.30 per transaction
International Card Payments	3.9% + $0.30 per transaction
ACH Bank Transfers	0.8% (max $5)
Wire Transfers	$8 per transfer
Crypto Payments (via integrations)	Varies by provider

Note: If you’re processing payments in other currencies (GBP, EUR, etc.), fees may vary slightly.

2. Payout Fees (Withdrawing Your Money)

Stripe payout speeds depend on the country of your business registration:

• U.S., UK, & Most Supported Countries – 2-day standard payout

• Some European & Asian Countries – 5-7 day payout window

• Nigeria (Using Stripe Atlas) – You’ll need a U.S. bank account (Stripe won’t pay directly to a Nigerian bank)

Possible Solution for Nigerians: Use Wise, Payoneer, or Mercury Bank to receive Stripe payouts and convert to Naira.

3. Chargeback Fees

If a customer disputes a payment, Stripe charges a $15 fee per chargeback (refunded if the dispute is won).

Tip: To reduce chargebacks, enable 3D Secure (3DS2) authentication and fraud protection tools.

4. Stripe Atlas Pricing (For Nigerian Entrepreneurs)

Since Stripe is not available for Nigerian-registered businesses, many entrepreneurs use Stripe Atlas to set up a U.S. company. Here’s the cost:

• One-time Setup Fee: $500 (covers U.S. business registration, EIN, & Stripe account)

• Annual Delaware State Tax: $100–$300 per year

• Optional Extras: U.S. bank account (usually free)

Is Stripe Atlas Worth It? If you sell to a global audience, it’s a great way for Nigerians to access Stripe, PayPal, and other international banking services.

5. Additional Fees for Advanced Features

Stripe offers extra services that come with additional fees:

• Stripe Billing (Recurring Payments & Invoicing) – +0.5% per recurring transaction

• Stripe Connect (For Marketplaces & Platforms) – Custom pricing

• Stripe Terminal (For In-Person Payments) – Hardware costs + transaction fees

• Radar (Fraud Prevention) – Free for basic protection, advanced tools start at +$0.02 per transaction

Verdict: Is Stripe Affordable for Nigerians?

Stripe is Best For:

• Nigerians selling to global customers

• Freelancers & SaaS businesses accepting international payments

• Entrepreneurs using Stripe Atlas for a U.S. business setup

Also, it is Not Ideal For:

• Businesses that primarily sell in Nigeria (Paystack & Flutterwave are cheaper)

• Merchants who need instant local payouts (Stripe has delays for international transfers)

Final Tip: If your business serves mostly Nigerian customers, Paystack is cheaper and easier to use. But if you want to scale globally, Stripe (via Stripe Atlas) is a solid investment!

party services like Payoneer for withdrawals.

Conclusion - My Final Verdict on Paystack or Stripe; Should You Use Stripe or Paystack?

Choosing between Paystack and Stripe depends on your business needs. If you run a Nigerian business focused on local transactions, Paystack is your best bet.

It’s easy to use, integrates seamlessly with Nigerian banks, and offers great support.

However, if you sell internationally, Stripe provides more flexibility with multiple currencies and global payment options—though accessing it from Nigeria requires workarounds.

Before deciding, consider your target market, transaction volume, and preferred payout options.

The right payment gateway should simplify your transactions, increase your revenue, and provide the best experience for your customers.

Need expert guidance on choosing and setting up the perfect payment system for your business?

Let’s talk! I specialize in helping businesses streamline their payment processes, optimize for conversions, and scale their online sales.

Contact me (Simon - IbiFoundry LLC CEO) today at ibifoundry@gmail.com or simonzakucom@gmail.com, and let’s get your business running seamlessly!

Frequently Asked Questions - The Honest Truth You Need to Know About Paystack and Stripe for Nigerians!

Is Paystack owned by Stripe?

Yes, Stripe acquired Paystack in 2020 for $200 million. However, Paystack continues to operate independently, focusing on African markets.

Is Stripe allowed in Nigeria?

No, Stripe is not officially available in Nigeria. However, some Nigerian entrepreneurs register Stripe accounts using business entities in countries where Stripe is supported.

Who is better than Stripe?

It depends on your needs. Stripe is excellent for global transactions, but alternatives like Paystack, Flutterwave, and Payoneer are better for Nigerian and African businesses.

What is the African version of Stripe?

Flutterwave and Paystack are often called the "African Stripe" because they provide similar payment processing services tailored for Africa.

Can I link Paystack to Stripe?

No, Paystack and Stripe operate as separate payment processors, and there is no direct integration between them.

Which country owns Stripe?

Stripe is a U.S. company founded by Irish brothers Patrick and John Collison.

Which payment gateway is best in Nigeria?

Paystack is one of the best options for Nigerian businesses because it supports local banks, mobile money, and Nigerian Naira transactions.

How do I withdraw money from Stripe in Nigeria?

Since Stripe is not available in Nigeria, users typically withdraw funds using third-party services like Payoneer or Wise, which allow transfers to Nigerian bank accounts.

Can I use Stripe as a bank account?

No, Stripe is a payment processor, not a traditional bank. However, Stripe Treasury offers banking-like services in some supported countries.

Which is bigger, PayPal or Stripe?

PayPal has a larger global user base, but Stripe is preferred by businesses for its developer-friendly APIs and seamless integrations.

Is Stripe 100% safe?

Yes, Stripe is highly secure and complies with global security standards, including PCI DSS, encryption, and fraud prevention tools.

Is Stripe better than Payoneer?

Stripe is better for businesses needing custom payment integrations, while Payoneer is ideal for freelancers receiving international payments.

Are Stripe and Paystack the same?

No, they are different payment gateways. Paystack primarily serves African businesses, while Stripe is a global payment processor.

Can Nigerians pay with Stripe?

Yes, Nigerians can pay merchants who accept Stripe, as long as the payment method supports international transactions.

Can I transfer money from Stripe to a bank?

Yes, if Stripe is available in your country, you can withdraw funds to your linked bank account. However, Nigerians must use third-party services like Payoneer for withdrawals.

What are some Paystack and Stripe Alternatives for Nigerians?

1. Flutterwave

2. Payoneer

3. VoguePay

4. Interswitch

5. Remita

Simon Taki Zaku Founder, CEO, IbiFoundry LLC For the IbiFoundry.com.ng E-magazine. ibifoundry@gmail.com; simonzakucom@gmail.com.