#Guides | 8 min read

Stripe vs Braintree: How To Choose a Payment Provider for Your Business

Olga Iakubovska , Senior Project Manager

Let’s face it – the majority of businesses are all about making a profit.

Nowadays, in the USA 28% of payments are made with eWallets, 52% – with credit and debit cards, and only 17% – in cash.

Your payment provider directly influences your income, and I bet you would not want to make the wrong choice here.

On the surface, it seems that there is not a big difference between the top payment gateways-just choose the one with the lowest fees.

That’s not exactly true. Though Stripe payment providers have 8 times bigger market share and similar features to Braintree, there are a number of situations when one of these payment gateways just would not work for your business.

Let’s go deeper and compare Stripe vs Braintree to know more.

Stripe vs Braintree: Comparison Chart

Payment gateway comparison chart

What is a Payment Gateway

Payment gateways are the payment services that help to perform authorized online credit card or direct payments. As usual, payment gateways are used for e-commerce, online retailers, and other kinds of marketplaces and e-business.

Read more: Alternatives to Payment Gateways: Bank transfers and custom payment systems

  • Stripe

The Stripe payment gateway is an American online payment processing software provider for different types of internet businesses. Stripe positions itself as a payment service both for startups and large companies.

Best Online Payment Provider: Stripe

  • Braintree

As well as Stripe, Braintree payment gateway provides economic software for online merchandising, especially e-commerce companies. Born in 2007, Braintree was acquired by another giant payment gateway, PayPal in 2013.

Best Online Payment Provider: Braintree

Braintree vs Stripe: Features To Compare

No matter which payment gateways you are comparing, the questions are: are they good for my target audience and are they available in the target location? Which one is easier to integrate? Which one is cheaper to integrate with my product? And finally – which online payment gateway charges lower fees?

Stripe vs. Braintree payment methods

Different providers may support different payment methods, and some of them may be unavailable for your region. Or, if payment methods appear to be crucial for your target audience, you ought to analyze their common needs.

Therefore, we usually check the available market payment providers, then conduct market research and learn which payment method is the most popular among the potential users of this product.

So, what’s the difference between Braintree and Stripe? 

  1. Both Stripe and Braintree support the majority of popular credit card types, including Visa, MasterCard, JBC, Diner’s Club, AMEX, Discover.
  2. Both providers enable the usage of the modern payment methods, Apple Pay and Android Pay.
  3. Whilst both being pretty similar in terms of available payment methods, Alipay can be implemented only with the Stripe integration, while PayPal and Venmo are used with Braintree only.

Stripe vs Braintree pricing: Fees

There are 3 core types of fees that payment gateways can charge you with:

Card fees, Chargeback and International fees.

  1. Card fees are equal for Stripe vs. Braintree. Both providers charge 2.9% of the transaction amount + 30 cents for each transaction.
  2. Chargeback fees. Both Stripe and Braintree charge the industry standard $15 fee for chargebacks. But, Stripe is the only one which will refund a chargeback if the dispute is in your favor.
  3. International fees are the fees that are made when using different world currencies and conversions. Both companies support over 100 currencies but charge them different fees from transactions While Braintree charges 1% for international transactions, Stripe processes international transactions for free.

Geolocation

In general, all leading payment providers like Braintree and Stripe are available worldwide: in the USA, Europe, Asia, and Australia.

But, you need to be aware that even top payment gateways have a few geo-restrictions: for example, Stripe is unavailable in the United Arab Emirates and Braintree is not an option for companies targeting users in Norway.

As a vendor, you need to be sure that your users’ geolocation is supported by your payment provider. Sad but true – otherwise your users will not be able to become paying customers.

NB: There are a number of cases when all the top and well-known payment gateways may be unavailable.

In Sloboda Studio, we faced this challenge with some of our clients from Arab countries. For instance, for Safhyre the United Arab Emirates employment platform, we chose to integrate a local payment provider – PayFort.

Stripe vs Braintree: Supported Countries

Countries supported by Stripe and Braintree

Specifics of payment gateway integration

  • Flexibility

Payment gateways integrations are often implemented on frequently changing projects.

Therefore, it is important to have the opportunity to implement payment gateways quickly and to be able to make quick changes if needed.

On this point, Stripe has greater benefits due to its tools and resources for faster development and comprehensive support documentation to make the development process easier.

At the same time, Braintree is not terribly far from the Stripe system-it has its own special software development kit named V.zero SDK so that developers can easily make changes and integrate the payment system into their applications.

  • Geo limitations

Yes, again I’m talking about geo-restrictions. As I’ve mentioned, sometimes payment gateways aren’t available in particular countries like Stripe is restricted in UAE or Braintree doesn’t work in India. So remember to check your location before even thinking of implementation.

Stripe Connect vs Braintree Marketplace for e-commerce

Both Stripe and Braintree are especially great for e-commerce platforms. Let’s see what services each payment provider offers marketplace owners.

  1. Stripe for marketplaces. 

    Stripe’s most popular solution for marketplaces is Stripe Connect, that allows:

  • API-driven development – to optimize your development while connecting Stripe to your marketplace.
  • International support: a payment provider that accepts payments in more than 130 currencies and provides payouts in more than 15 currencies.
  • Dashboard for management. Stripe provides marketplaces with an opportunity to control the workflow, including control of account history, transfers, and verification, operations.
  1. Braintree for marketplaces

Braintree also provides a separate solution for online platforms: Braintree Marketplace. This integration allows marketplace owners to:

  • Add popular payment methods such as cards, bank payments, PayPal, and leading wallets.
  • Make escrow payments: customers can pay for goods or services, but all payments are held back by third-party financial institutions until the purchase is confirmed. Once confirmed, the payment is transferred to the merchant.
  • API integration between the Braintree provider and marketplace.
  • Support for the customers via email and phone.

It is worth noting that both Braintree Marketplace and Stripe Connect offer first-rate features to marketplace founders. The choice has to be based more on the specifics of a particular online marketplace.

Cost of integration Stripe and Braintree integrations

Factors that may affect the price comprise of:

  • Programming languages: if you need a payment integration for a start-up, consider using technologies such as Ruby and PHP. Otherwise, programming languages such as Java or Python will suffice.
  • Time: once you choose the technology, consider how much time you will need to implement Braintree or Stripe. Usually, it takes up to 1-2 hours to implement a payment solution.
  • Functions you’ll need to integrate: for a clear estimation, all custom solutions and third-party integrations should be determined during the discovery phase.

Other services integration

Both Stripe and Braintree allow the integration of mobile services. The only difference is the range of available possibilities.

Braintree:

  • Offers the built-in One Touch service which allows customers to perform faster checkouts and store card details.
  • Offers the Drop-In service so users can add various payment options to both mobile and web versions.

Stripe:

  • It offers several opportunities that can help with making financial management and reconciliation easier. It can also connect accounting systems such as Zoho, FreshBooks, and FreeAgent.
  • Stripe also allows integration with various Client Relationship Management (CRMs) and analytics tools. Additionally, transaction monitoring and shipping systems may be the perfect choice for larger businesses.

Market alternatives 

There are several other online payment options on the market, especially for those who are looking for the best payment gateways for small businesses. Online payment options include MANGOPAY, Adyen, Skrill, Dwolla, and Google Checkout. All of them have their own unique features.

  1. MANGOPAY – an online payment technology designed for marketplaces, crowdfunding platforms, and sharing economy businesses.
  2. Adyen – an online payment getaway that, besides providing online payment solutions, also issues physical and virtual cards. It also provides businesses with in-store terminals.
  3. Skrill – a provider for e-commerce that allows businesses to transfer money and make payments via the Internet. The main focus: low-cost International payments and transfers.
  4. Dwolla – an online payment system and also a mobile payment network for online business. Note: Dwolla is available only in the US.
  5. Google Checkout – a worldwide online payment system that supports money transfers and serves as an electronic alternative to traditional methods like checks and money orders.

Our Experience

Veeqo

Veeqo is an omnichannel retail platform for various merchants. When we met our client, Veeqo used to process all its numerous payments manually. That was not very convenient that all the invoices used to be arranged via bank transfers, or via phone. The whole payment system was manual and required a lot of time and resources to work properly.

Our Solution:

We needed to digitalize and automate payments. Therefore, we chose Stripe as a solution that covers our client’s needs. Moreover, Stripe allows to use of various types of payments and is convenient for both the Veeqo team and Veeqo customers.

TikkTalk

TikkTalk is a marketplace that offers access to different interpreters over video and phone conferences. We met our client at the idea-stage of the project and built the platform from scratch. A payment provider integration was one of our initial goals.

Our Solution:

We decided to integrate the Stripe payment system to allow TikkTalk users to pay for the interpretation session with a card, negotiate price, and award the job of the particular interpreter.

Which Is The Best Payment Gateway: Stripe vs Braintree

Conclusion

So, which is the best payment gateway? Remember to do your research.

The good news is that both Stripe and Braintree payment gateways offer a variety of payment methods and great features. They are easy to implement and both suit e-commerce and marketplace business.

On the other hand, such a thing as “the best payment gateway” just does not exist. And, in a number of situations, neither Braintree and Stripe are even an option. Thus, when choosing a payment gateway, a number of project specifics like target audience, location, and necessary features have to be considered.

Or just contact us for a free consultation and we’ll help you to find the best way to monetize your online business.

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