You sent the invoice, the work was good, and now you are waiting. The fastest way to stop waiting is to let the client pay online with a tap. The two names that come up every time are Stripe and PayPal. Both let your client pay a Billr invoice from a link, and both mark the invoice paid for you the moment the money clears. So which one should a plumber, electrician, carpenter, or any small contractor actually turn on?
This guide compares Stripe vs PayPal the way a tradesperson needs to see it: real fees with worked examples, how fast the money lands, how hard each is to set up, what your customers trust, who protects you in a dispute, and what happens when you bill abroad. No jargon, no hype. By the end you will know which to switch on, or why offering both is often the smartest move.
The short answer
For most small trades, the honest answer is this: turn on the one your customers already use, and if you can, offer both. Stripe tends to win on card acceptance, professional checkout, and predictable fees. PayPal wins on instant customer recognition and the buyer who refuses to type a card number into a website they do not know. Billr lets you put a Stripe pay link, a PayPal pay link, or both on the same invoice, plus a bank-transfer option and a scannable QR code, so you do not actually have to pick a single winner.
Transaction fees, with real numbers
Fees are where the choice gets concrete. Both providers charge a percentage of the payment plus a small fixed fee per transaction. The exact numbers change by country, card type, and over time, so always check each provider's current pricing page for your market before you decide. As a working guide, online card payments commonly land somewhere around 1.4% to 2.9% plus a fixed fee of roughly 0.25 to 0.35 per transaction, with PayPal's standard online rate often sitting at the higher end of that band.
Here is what that means on jobs you actually do. Take a 600 callout-plus-parts invoice. At 1.5% plus 0.25, the fee is 9.25, so you keep 590.75. At 2.9% plus 0.30, the fee is 17.70, so you keep 582.30. The gap is about 8.45 on one invoice. Now scale it: if you bill 8,000 a month online, that same spread is roughly 68 a month, or over 800 a year, purely on which rate you pay.
- Small jobs feel the fixed fee. On a 40 invoice, a 0.30 fixed fee is already 0.75% before the percentage even applies. If you do lots of small callouts, the fixed portion matters more than the headline percentage.
- Big jobs feel the percentage. On a 4,000 renovation, the fixed fee is noise. Half a percent of difference is 20 on that single invoice.
- Watch the extras. Currency conversion, chargeback fees, and instant-payout fees are charged on top. A cross-border or converted payment can add roughly 1% to 2% more.
A simple rule: if your average ticket is small and frequent, weigh the fixed fee heavily. If you do fewer, larger jobs, weigh the percentage. Either way, the difference is real money over a year, so it is worth ten minutes on each pricing page.
Payout speed and timing
Getting marked paid instantly is not the same as having the cash in your bank. Each provider runs its own payout schedule, and that is the part neither you nor your invoicing tool controls.
With Stripe, your first payout is usually held for a number of business days while your account is verified, then payouts settle on a rolling schedule, often a couple of business days after the payment, straight to your bank account. Once you are established you can typically set a daily, weekly, or monthly payout rhythm. PayPal money usually lands in your PayPal balance very quickly, sometimes within minutes, but moving it to your actual bank account is a separate step that can take one to several business days unless you pay for an instant transfer.
The practical takeaway for cash flow: PayPal can feel faster because the balance updates immediately, but the bank transfer out still takes time. Stripe skips the in-between wallet and aims the money at your bank directly on its schedule. Neither is magic, and to be clear, Billr does not speed up or control these payout schedules. Billr's job is to get the invoice paid and mark it paid; when the provider moves the cash to your bank is the provider's own timeline.
Ease of setup
If you can do your own tax return, you can set up either one. Both ask for the same basics: who you are, your business details, and a bank account to pay out to.
- PayPal is the quicker start if you already have a PayPal account, because you are half done. A business account adds a few verification steps but is straightforward.
- Stripe takes a little more upfront detail and identity verification, but the result is a clean, card-first checkout that looks like a proper business. Many tradespeople find the extra ten minutes worth it.
In Billr the connection is the same idea either way: you link your Stripe or PayPal account once, and from then on every invoice can carry the matching pay button automatically. You can see how that fits into the whole billing flow on the online payments page, and how invoices are built on the invoicing page.
Customer trust and the pay experience
The best payment method is the one your customer will actually complete. Trust is not a soft factor here, it is the difference between paid today and "I will sort it later."
PayPal's strength is recognition. A homeowner who would hesitate to type a card into an unfamiliar page will happily click a PayPal button they have used a hundred times. That familiarity can lift completion rates on consumer jobs, the kitchen tap, the broken socket, the fence repair. Stripe's strength is a slick, modern card checkout that feels native to the invoice and supports the wallets people already have on their phones, like Apple Pay and Google Pay, which means a paid-in-two-taps experience for card users.
For business clients, a clean card checkout often reads as more professional, and many companies prefer paying by card for their own bookkeeping. For one-off residential customers, the PayPal button can be the reassurance that gets the click. This is exactly why offering both removes the guesswork: the customer picks the rail they trust, and you get paid either way.
Chargebacks and disputes
Sooner or later a customer will dispute a payment, whether it is a genuine misunderstanding or a "I do not recognise this charge." How each provider handles that matters.
- Card chargebacks (Stripe): the customer's bank initiates a chargeback, the disputed amount is held, and you submit evidence to contest it. A chargeback fee usually applies whether or not you win, so good records matter.
- PayPal disputes: these run through PayPal's own resolution centre first, which can be quicker to talk through, and may escalate to a claim. PayPal also applies its own fees and holds in some dispute cases.
Your best defence with either provider is the same: a clear invoice that says exactly what was done, when, and for how much. This is where good invoicing pays off twice. An itemised invoice that lists the labour hours, the materials, the dates, and a description of the work is strong evidence in any dispute, far stronger than "fixed boiler, 600." Billr's itemised invoices and per-invoice activity record give you that paper trail without extra effort.
International payments
If you ever work across a border, do a holiday-let in another country, a job for an overseas client, or buy in clients from abroad, currency matters.
Both providers can accept payments in multiple currencies and convert to yours, and both charge for the convenience: a currency-conversion margin on top of the standard fee, commonly in the region of 1% to 2%. PayPal is available in a very large number of countries and is a familiar option for international buyers, which can make collection easier. Stripe supports a wide range of currencies and presenting prices in the customer's currency, which can improve completion for overseas card payers. On a 1,000 cross-border invoice, a 1.5% conversion margin is 15 on top of the normal processing fee, so for regular international work it is worth comparing the exact rates for the specific corridor you bill into.
Whatever you collect in, Billr renders the invoice in the right currency and, if you like, the client's language, so the pay page does not look foreign to them. You set the currency per client, so a euro job and a pound job each look correct.
So which should you choose?
Match the tool to how you actually bill:
- Mostly residential, one-off jobs: lead with PayPal for the trust factor, and add a card option for the customers who prefer it.
- Mostly business clients or larger invoices: lead with Stripe for the professional card checkout and predictable fees.
- Lots of small, frequent callouts: compare the fixed per-transaction fee closely, it is the part that bites on small tickets.
- Any international work: compare conversion rates for your specific currencies before committing.
- Not sure: offer both. The few minutes to connect each is cheaper than a single unpaid invoice.
Because Billr supports both, plus bank transfer and a QR code, you are never forced into one lane. You can start with the one your customers know, watch which button they actually click, and adjust.
Key takeaways
- Fees are close but not equal. Expect roughly 1.4% to 2.9% plus a small fixed fee; check each provider's current rate for your country. The spread can cost hundreds a year at typical trade volumes.
- Small jobs feel the fixed fee; big jobs feel the percentage. Weigh whichever matches your average ticket.
- Payout timing is the provider's, not your tool's. PayPal updates a wallet fast; Stripe aims at your bank on a rolling schedule. Billr marks the invoice paid but does not control when the cash settles.
- Trust drives completion. PayPal for consumer familiarity, Stripe for a clean card checkout and phone wallets.
- Itemised invoices win disputes and make chargebacks far easier to contest.
- Offering both removes the guesswork. Billr lets you put Stripe and PayPal pay links on the same invoice, alongside bank transfer and QR.
FAQ
Is Stripe or PayPal cheaper for contractors?
It depends on your job sizes and country. PayPal's standard online rate often sits at the higher end of the typical band, while Stripe is frequently a touch lower, but fixed per-transaction fees, conversion, and chargeback fees all factor in. Check each provider's current pricing for your market and compare against your real average invoice.
Which one gets me paid faster?
PayPal credits your PayPal balance very quickly, but withdrawing to your bank is a separate step. Stripe pays out to your bank on a rolling schedule, often a couple of business days after the payment. Each schedule is the provider's own; neither Billr nor any invoicing tool can speed it up.
Do I have to choose just one?
No. With Billr you can offer a Stripe pay link, a PayPal pay link, or both on the same invoice, plus bank transfer and a scannable QR code. The customer picks what they trust, and the invoice is marked paid automatically when they pay.
Can my customer pay without an account?
Card payments through Stripe do not require the customer to have any account, they just enter card details or use a phone wallet. PayPal lets customers pay with their PayPal account, and guest card payment is available in many regions too.
Does Billr charge extra on top of Stripe or PayPal fees?
The transaction fees are set by Stripe and PayPal, not by Billr, and Billr does not waive or change them. Billr's role is to put the pay link on your invoice and mark the invoice paid the moment your client pays.
Get paid the way your customers prefer
Stop chasing payments and let clients tap to pay. Connect Stripe, PayPal, or both, and Billr puts the right pay button on every invoice and marks it paid automatically. Take a look at online payments in Billr or check the plans to get started.