Why Stripe Is Arguably The Best Payment Gateway Built To Date

TL;DR: If you need a good, well-priced payment gateway, it’s hard to go past Stripe.

By Julian Wallis
10 min read

When customers pay for products or services they acquire from your company, they can simply use cash or a cheque in a traditional payment system. Those payments can be directly deposited into your business bank account. But say your customers want to make payments using a credit card or online wallets, you’ll need a payment processor software.

Introduction To Online Payment Systems 🌐💰👇

A payment processor — often called a payment gateway — authorises various payment methods during the checkout process, enabling an easy and secure transfer of funds from a customer’s account to the business’s account. Your company can then accept payments from customers’ credit or debit cards, mobile wallets, and buy now, pay later services. But what’s Stripe?

We’ll answer that question and many more in this blog post and walk you through Stripe’s key features and the top reasons for you to choose Stripe for your internet business.

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So, What Is Stripe? 🤔


Stripe is a payment processor or gateway that allows your customers to safely and efficiently transfer funds from their credit cards or bank accounts in a variety of currencies.

It also helps them to make both one-time and subscription-based payments and also offers many other additional services, including billing, invoicing, and sales tax automation.

What’s more interesting is that if your business wants to accept in-person payments, you can do so from a Stripe Terminal, the company’s point-of-sale system. As a result, Stripe is the perfect solution for processing both online and offline payments.

In addition, Stripe’s developer-friendly API is rich and robust, and it has a resource-oriented URL and HTTP to regulate errors in code. Thus, the solution that Stripe.js offers is beneficial to the developers — but more on that later!

Stripe is quick and easy to implement and comes with reasonable pricing — and with its API, you can also build your own e-commerce platform. That’s why more and more companies worldwide — from Amazon to Google to Zoom — trust Stripe when it comes to managing their payments and subscriptions.

How Does Stripe Work? 🙋‍♀️

Stripe handles the steps between a customer providing their card information and acknowledging that their payment has been received — and thereby accepted. In addition, Stripe has simplified its service process for business owners, so it’s easy to understand and navigate.

From the developers’ perspective, Stripe takes all the tediousness and hard work out of processing payment systems by providing a solid payment infrastructure through a single, developer-friendly API. Also, the API is easy to integrate and comes with various integrable libraries or documentation — to be integrated into your e-commerce website.

Also, the APIs establish clear expectations for what’s possible and how to get it done. Therefore, instead of learning complex rules around banking, accounting, and Payment Card Industry (PCI) compliance, developers only do what they do best: code.

From the viewpoints of customers and business owners, here’s how Stripe works 👇

  • Upon creating an account for your business, Stripe will connect to the purchasing page of your e-commerce site. 
  • When your customers are ready to buy the products or services you offer, they will click on the ‘checkout’ option and enter their card details.
  • The financial information your customers provide goes through Stripe’s payment gateway after encryption. Stripe verifies if the required funds are available, and it serves as a merchant account (with business owners as a sub-merchant).
  • The payment passes through the credit card network (for example, Visa or MasterCard) and then to the bank, which later approves or denies the transaction.
  • Finally, the confirmation gets back to your customers (from the bank to the card network to the payment gateway and eventually to the customer) — and they are notified about the acceptance or denial of the payment.

As a business owner, you will have to pay Stripe a standard transaction fee for facilitating the entire process. Check out the Stripe Pricing section of this article for more information.

Should Your Company Use Stripe? 🤷‍♂️

Without a payment gateway, your company will need a substantial technology stack and a separate payment system. That can make the entire process cumbersome to manage.

If yours is a business that needs to do online transactions (via credit or debit cards and mobile wallets), you can choose Stripe as it’s becoming the backbone for internet business today. By making the process of moving money easy, borderless, and programmable, Stripe has become highly sought after.

Some of the world’s largest companies like Amazon or Shopify have chosen Stripe as their trusted payment gateway because of its strong security and availability of the best developmental tools. Whether you are an online retail store, a B2B platform, or a B2C marketplace, Stripe is going to help you power your business transactions.

Here are a few noticeable benefits of using Stripe as your online payment system 👇

  • Accepts payments without any delays or errors
  • Is easy to set up for recurring (or subscription-based) payments
  • Does not charge any hidden fees from customers or businesses
  • Provides an easy-to-use and extensive documentation for developers
  • Works with all types of currencies, banks, credit cards, and wallets
  • Provides informative UI with graphs and charts for customers
  • Gives an overall seamless checkout experience for customers

Benefits of Using Stripe 😎

Stripe is renowned for its speedy and secure payment processing. In addition, because of its ease of integration and convenience of use, many business owners and developers find it easy to work with Stripe’s platform.

Here are some further significant benefits of using Stripe as your online payment system 👇

✔️ A fully integrated suite of payments products

Stripe provides you and your developers with everything needed to build systems that accept online payments globally. So even if you’re an online or in-person retailer, a subscription business, or a software platform, you will get a fully integrated suite of payment products with Stripe.

What that means is Stripe offers credit card processing service as well as payment gateway service. By providing support for countertop credit card terminals and point-of-sale systems, Strive provides a fully integrated suite that works for both retail and e-commerce businesses.

✔️ A powerful and easy-to-use API

Stripe makes the development process more manageable, as it has extensive documentation. Written in clear and lucid language, the developers can easily understand the product and its API. Moreover, there are many ready-made solutions available (built-in libraries) as well as options for customisation of Stripe payment gateway.

Stripe also offers client and server libraries from React and PHP to .NET and iOS. Since the custom libraries are available in many programming languages, Stripe allows developers to focus on the core product. Thus, they don’t have to write the additional subprograms to integrate Stripe’s API in the initial codebase.

✔️ A technology-first approach to payments and finance

From direct integration with the card networks to monitoring checkouts at the end of the buying process, Stripe optimises every aspect of the financial stack. Being a technology-first company, Stripe focuses on releasing new features and improvements every year, helping you stay abreast of the industry shifts. They deploy their production API 16x per day on average, making them the fastest-improving platform.

In addition, Stripe’s system operates with 99.9%+ uptime, and it is highly scalable besides adhering to the highest compliance standards. The goal of Stripe is to help increase your company’s revenue through intelligent technology-driven methods.

✔️ A complete set of security features and customisation options

Stripe is SSL (Secure Socket Layer) protected. What that means is your financial information (credit card details, bank account number, passwords) are duly encrypted and securely transmitted. In addition to that, Stripe is also PCI (Payment Card Industry) compliant, so you can rest assured that your information is safe and secure.

Besides providing an excellent set of security measures, Stripe also offers you an extensive collection of developer tools and APIs — as mentioned in their documentation. With some coding and testing skills, you can take full advantage of these features and benefit from the expansive array of customisation options available.

Some “Real Life” Use Case Scenarios 🏙️

As mentioned at the beginning of this article, many large companies use Stripe’s payment gateway for their online transactions. Companies like Twitter, Reddit, Pinterest, Salesforce, Wired, TED, Shopify, Zoom, Slack, and many others have chosen Stripe over other payment gateway products. Stripe’s official website claims that millions of businesses have been their loyal customers for years.

From start-ups to Fortune 500, Stripe’s customers are based all over the world — and Stripe processes billions of dollars each year for small to large businesses. That means Stripe is the fastest growing payment platform that builds market-first functionalities to meet your business needs. Notwithstanding the type of business you are in — marketplace, SaaS, e-commerce, B2B, B2C — Stripe offers a robust platform without you needing to spend months on integration and customisation.

With Stripe, you have enough time to focus on your product’s success and customer experience instead of wasting time on joining disparate systems or fixing never-ending errors. That’s why we at WEBO Digital have also used Stripe for two of our own SaaS products that we’ve built, Trackify and Klokka.

A Minor Consideration 🧐

Now that you know everything that’s awesome about Stripe, here is one minor consideration. 

Suppose you want to integrate Stripe into your online business or add extra features to the existing platform. In that case, you will need the necessary technical resources (developers or testers) to manage such tasks. Even though the documentation of Stripe is pretty straightforward, you will have to do some coding to stitch all the pieces together. Yet, this minor consideration is not really Stripe’s disadvantage since payment gateways expect some assistance from the developers.

In short, Stripe’s API is excellent for businesses having developers who can build a customised online e-commerce experience. Unfortunately, companies without technical resources will have to pay extra for a separate e-commerce solution.

Stripe’s Pricing Model 💳

Like any other online payment platform, Stripe charges a standard fee for each transaction. The company charges a flat rate of 2.9% + $0.40 for non-European cards, similar to PayPal and Square. However, one good thing about Stripe’s pricing is that it provides volume discounts to businesses making over $108,000 in sales each month.

That is, Stripe is a great online-only credit card processor that charges reasonable processing rates. For more information, check out Stripe’s pricing page which includes customised packages for businesses of different sizes.

In Conclusion 👍

If your business has an e-commerce sales channel and you want a technology-first payment gateway with robust security, Stripe could be an excellent choice. If you also have a dedicated team of developers in your company, they can help you get the best out of Stripe’s developer tools and customise Stripe as per your business needs.

You can indeed build your online payment infrastructure in minutes with Stripe’s services, but before that, you might want to determine if yours is a company that needs Stripe for its payment processing. For some small-scale businesses or bootstrap start-ups, Stripe can be a pricey option. Though you get a handful of services from Stripe, you might not even use all of them. So consider the benefits that Stripe offers — and then decide.

If you like what you have learnt about Stripe and are interested further, it may well be a good solution for your payment gateway requirements.

However, if you need more information on Stripe and how we at WEBO Digital can help you answer your questions, feel free to send us a message. We’d love to hear from you!

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Published on November 08, 2021

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