In this guide · 7 sections
Short answer
Use Stripe as your main card checkout: 3.4% + S$0.50 for local cards against PayPal's 3.9% + S$0.50 for standard PayPal payments, plus PayNow. Add PayPal as a second button if many overseas buyers ask for it, since some trust it more than typing a card number.
Stripe vs PayPal: the short comparison
Both have no setup or monthly fee for standard accounts and charge per transaction. They differ in who the customer is paying and how. With Stripe, the customer types a card (or pays by PayNow, Apple Pay or Google Pay) into your checkout. With PayPal, the customer usually logs in to their PayPal account, or checks out as a guest with a card.
Stripe
Usually the main checkout3.4% + S$0.50 (local cards)
- Lower fee on Singapore cards
- PayNow at 1.3%
- Subscriptions, invoices and payment links in one account
- First payout typically 7 to 14 days, then on schedule
Best for: Local customers, subscriptions, custom builds.
PayPal
Useful second button3.9% + S$0.50 (standard domestic)
- Buyers pay from a PayPal balance or saved card
- Familiar to overseas buyers
- Holds are common for new sellers
- Free bank withdrawals in SGD above S$200
Best for: Overseas buyers who prefer not to type a card number.
Fees compared: local and overseas customers
Standard published rates for a Singapore business, from Stripe's Singapore pricing and PayPal's Singapore merchant fees page. Approximate, as of October 2026, before any custom or volume pricing.
| Fee | Stripe | PayPal |
|---|---|---|
| Singapore customer, card | 3.4% + S$0.50 | 3.9% + S$0.50 (standard PayPal payment); 3.4% + S$0.50 with Advanced Credit and Debit Card Payments, if approved |
| Overseas customer, card or PayPal | 3.4% + 0.5% international card fee + S$0.50 | 4.4% + fixed fee (standard international rate) |
| Currency conversion | +2% if the charge currency differs from your payout currency | 3.0% above the base rate when converting balances or payments received (SGD account) |
| PayNow | 1.3% | Not offered |
| Dispute or chargeback | S$15 per dispute received, plus S$15 if you counter manually (refunded if you win) | S$11 standard dispute fee; S$22 for high-volume dispute sellers; S$15 chargeback fee on direct card transactions |
| Bank payout or withdrawal | Standard schedule free | Free in SGD above S$200; S$1 below |
PayPal's fixed fee depends on the currency you receive; for Singapore dollars it is S$0.50. PayPal also offers a lower merchant rate to accounts it approves, based on monthly sales volume and average order size, and Stripe offers custom pricing to larger businesses. Ask both if you sell more than a few tens of thousands of dollars a month.
Worked examples (charged in SGD)
| Sale | Stripe fee | PayPal fee (standard rate) |
|---|---|---|
| S$100 from a Singapore card | S$3.90 | S$4.40 |
| S$100 by PayNow | S$1.30 | Not available |
| S$100 from an overseas buyer | S$4.40 | S$4.90 |
| S$300 from an overseas buyer | S$12.20 | S$13.70 |
If you charge overseas customers in US dollars and convert to Singapore dollars, add Stripe's 2% or PayPal's 3.0% conversion fee. Our Stripe fees guide works through those cases in more detail.
Payment holds, reserves and new accounts
This is where small businesses most often get caught out with PayPal. Its Singapore user agreement says PayPal may hold payments for new sellers or sellers with limited activity, for higher-risk categories like electronics or tickets, and for sellers with many disputes. Risk-based holds generally last up to 30 days from the date of payment, and PayPal may release them earlier, for example when you upload shipment tracking.
PayPal can also place a reserve on an account it sees as higher risk. The user agreement gives the example of a 10% rolling reserve held for 90 days, where a slice of each day's sales is released three months later. It must tell you the terms if it does.
Stripe works differently but has its own waiting period. Stripe says your first payout typically completes 7 to 14 days after your first live payment, depending on industry and risk (Stripe payouts guide), then follows your payout schedule. Stripe can also hold funds or add a reserve on accounts it judges risky.
How disputes and chargebacks work on each
A chargeback is when a customer asks their card issuer to reverse a payment. A dispute in PayPal's sense also covers complaints a buyer opens in PayPal's Resolution Centre, which can be escalated to a claim that PayPal decides.
Stripe
On Stripe, card disputes come from the customer's bank. Stripe charges a S$15 dispute received fee and, if you respond manually, a further S$15 countered fee that is refunded if you win. Stripe also offers Smart Disputes, which prepares evidence for you and takes 30% of the disputed amount on disputes you win. You submit evidence in the dashboard and the card issuer decides. Our Stripe dispute and chargeback guide covers what evidence wins.
PayPal
PayPal buyers can open a dispute for an item not received or significantly not as described, then escalate it to a claim. PayPal decides claims itself and, under its Seller Protection programme, you may keep the full amount if you meet its requirements, which include fulfilling the order as promised and providing proof of shipment or delivery when asked. PayPal charges a standard dispute fee of S$11, or S$22 for sellers it classes as high-volume dispute accounts, and does not charge the standard fee on very small transactions.
Stripe disputes
- Decided by the card issuer, using the evidence you submit
- Counter fee refunded if you win
- Clear evidence fields per dispute reason
PayPal disputes
- PayPal decides claims on its own process and timeline
- Seller Protection requires tracking and delivery proof
- Funds can be held while the dispute is open
Which suits which business
| Your situation | Usually the better fit | Why |
|---|---|---|
| Local customers, mostly Singapore cards | Stripe | Lower card fee and PayNow |
| Many buyers in the US, Europe or Australia | Stripe plus a PayPal button | Some overseas buyers prefer paying from PayPal |
| Subscriptions or memberships | Stripe | Stripe Billing handles plans, retries and a customer portal |
| Freelancer invoicing overseas clients | Either; compare invoice fees | Clients may already pay suppliers by PayPal |
| Selling event tickets or electronics | Stripe, with care | PayPal lists tickets and electronics as higher-risk categories for holds |
Running both is common and not hard: Stripe as the main checkout, PayPal as an extra button on Shopify, WooCommerce or a custom site. The cost is two dashboards and two payout streams to reconcile in your accounts. If you also want PayNow at a lower fee, our payment gateway comparison covers HitPay and others.
Do it yourself or get help?
Opening either account takes under an hour with your ACRA details, director ID and business bank account to hand. Before you go live, check the points below.
Before you take real payments
If you would rather hand it over, Online Payment Setup (S$290) sets up Stripe, PayPal or HitPay in your name with checkout, payment links and test transactions. IT Sorted does not earn commission or referral fees from payment providers, and you pay their fees directly.
Frequently asked questions
On standard published rates as of October 2026, yes for Singapore cards: Stripe charges 3.4% plus S$0.50, while PayPal's standard domestic rate is 3.9% plus S$0.50. For overseas buyers, Stripe works out at about 3.9% plus S$0.50 when charged in SGD and PayPal's standard international rate is 4.4% plus a fixed fee. Both offer lower custom rates to larger merchants.
PayPal's Singapore user agreement says it may hold payments for new sellers or sellers with limited activity, for higher-risk categories such as electronics or tickets, and for sellers with many disputes. Risk-based holds generally last up to 30 days. Uploading shipment tracking can lead PayPal to release a hold earlier.
Stripe says the first payout typically completes within 7 to 14 days of your first live payment, depending on your industry and risk. After that, payouts follow your account's payout schedule. Your bank may take a little longer to show the funds.
Yes. Most e-commerce platforms, including Shopify and WooCommerce, let you offer a card checkout and a PayPal button side by side. You will have two dashboards, two sets of fees and two payout streams to reconcile, so only add PayPal if your customers actually ask for it.
Stripe charges S$15 for each dispute received and another S$15 if you respond manually, which is refunded if you win. PayPal's standard dispute fee is S$11, rising to S$22 for sellers with a high dispute rate, and a S$15 chargeback fee applies to some direct card transactions. Figures as of October 2026.