Stripe vs Adyen: Ultimate Payment Gateway Face-Off!
By Abhishek Sebin on 1/30/2024 · 5 minute read
Payment gateways are essential for the success of any e-commerce business today. They act as a bridge between online stores and banks to enable digital transactions. As the e-commerce industry has grown over the past decade, payment gateways have become even more critical to ensure smooth and secure processing of online payments.
Among the many payment gateways available today, two platforms have risen to prominence for internet businesses - Stripe and Adyen. Founded in 2010, Stripe has become a preferred choice among small businesses and startups for its easy integration and pricing model. Adyen, launched in 2006, has gained popularity for its advanced functionality and global reach, making it ideal for large enterprises.
Both Stripe and Adyen have played a major role in shaping e-commerce by facilitating online payments and allowing businesses to scale globally. This comparison aims to help online merchants understand the key features, fees, and capabilities of these two leading payment gateways. Analyzing the pros and cons of Stripe and Adyen can inform e-commerce owners to select the best payment processing solution tailored to their business needs.
Understanding Payment Gateways
A payment gateway acts as an intermediary between an e-commerce business and various banking institutions and payment processors. It allows online businesses to accept payments on their website or mobile app from customers’ credit cards, debit cards, and digital wallets.
The key role of a payment gateway is to authorize credit card transactions in real time by checking with the issuing bank, process the transfer of funds between the customer and merchant, and protect sensitive payment information.
Payment gateways enable secure online transactions while providing merchants with useful features and integrations. When choosing a payment gateway, e-commerce businesses should consider:
Payment methods - The gateway should support all major credit cards, debit cards, and popular digital wallets used in your target markets.
Reliability & uptime - Merchants want a gateway with high uptime and fast response times to avoid interrupted transactions.
Transaction rates & fees - Gateway pricing varies so compare setup costs, monthly fees, and transaction rates to calculate total costs.
Fraud prevention & security - Robust security protections and compliance with industry standards are critical.
Global reach & multi-currency - For international businesses, accepting diverse payment methods and multiple currencies is key.
Integration & API - The gateway should easily integrate with your e-commerce platform, accounting software, CRM, and other business systems.
Reporting & analytics - Detailed reporting on transactions, reconciliation, and metrics improves financial oversight.
Customer support - Good customer service and technical assistance provides peace of mind.
Scalability - As your business grows, ensure the gateway can smoothly handle your rising transaction volumes.
Selecting the right payment gateway is an important decision for online businesses. With an understanding of your needs and gateway capabilities, you can make the optimal choice.
Stripe: An Overview
Stripe is one of the most popular payment processing platforms for internet businesses. Founded in 2010, Stripe serves millions of businesses in over 100 countries around the world. Some key highlights of Stripe include:
Global Payments Infrastructure: Stripe allows businesses to accept payments from customers anywhere in the world with support for over 135 currencies. This makes it easy for companies to expand internationally.
Recurring Billing: Businesses can use Stripe to set up recurring payments and subscriptions. This helps create predictable revenue streams.
Fraud Protection: Stripe’s machine learning algorithms monitor transactions and identify potential fraud in real-time. This prevents revenue loss due to fraudulent activities.
Easy Integration: Stripe provides pre-built integrations with major e-commerce platforms like Shopify and WooCommerce. Businesses can also integrate Stripe easily via its APIs.
Dashboard and Analytics: The Stripe dashboard provides detailed reports and analytics on transactions, payments, customers, and more. Businesses get visibility into revenue and sales.
Developer Tools: Stripe offers advanced APIs and SDKs that developers can use to customize payments experiences. This makes Stripe a preferred choice for technology companies.
Brand Reputation: Stripe is trusted by companies like Amazon, Salesforce, Lyft, and Instacart. Its brand reputation gives businesses confidence in using Stripe.
With its well-designed interface, robust tools, and popularity with high-growth companies, Stripe emerges as a go-to payment gateway for modern internet businesses. It enables global sales, recurring revenue, and data-driven insights into the business.
Adyen is a global payment company that was founded in 2006 in Amsterdam. It has quickly grown to become one of the top payment processors for many large enterprises.
Some key features of Adyen include:
Omnichannel payments - Adyen offers seamless payment processing across multiple sales channels including in-store, online, and mobile. This unified experience makes managing transactions easier.
Global reach - Adyen accepts over 250 payment methods enabling businesses to expand internationally. Their single platform with one merchant account simplifies global commerce.
Data insights - Adyen provides detailed reporting and analytics into shopper behavior and transaction data. These insights help merchants optimize sales.
Fraud prevention - Adyen’s sophisticated algorithms and AI effectively detect and reduce fraud and chargebacks. This results in greater revenue protection.
Customizability - The Adyen platform is highly customizable allowing deep integration into a merchant’s tech stack. Adyen’s APIs enable flexibility.
Adyen is used by large enterprises like eBay, Uber, Spotify, Microsoft, L’Oreal, and many more. It’s a preferred choice for high-volume merchants that benefit from customizable payment flows. With advanced data tools, Adyen caters to complex e-commerce needs. The integrated omni-channel capability also suits enterprise retailers.
Some typical use cases for Adyen include:
- Global e-commerce companies scaling into new markets
- Enterprise retailers with advanced omnichannel requirements
- Businesses with large volumes of high-risk transactions
- Platforms needing seamless localization and payments
- Merchants wanting greater control over payment flows
Adyen provides robust payment capabilities for enterprise level businesses
with sophisticated needs. Their omni-channel focus combined with customer insights enables smart revenue growth.
Feature Comparison: Stripe vs Adyen
When choosing a payment gateway, the features offered can make all the difference for an e-commerce business. Here we’ll compare some of the key features of Stripe and Adyen side-by-side:
Stripe supports major credit and debit cards like Visa, Mastercard, American Express, Discover, JCB, and Diners Club International. It also supports local payment methods in over 25 countries.
Adyen supports over 250 local and alternative payment methods around the world, including popular options like Apple Pay, Google Pay, Klarna, and PayPal.
For businesses with an international customer base, Adyen has a clear advantage in global payment acceptance. But Stripe still covers the major card networks.
Stripe is available in over 35 countries, including the U.S., Canada, U.K., most of Europe, Australia, New Zealand, Singapore, Hong Kong, and more.
Adyen has an even larger global presence, operating in over 40 countries across 6 continents. Some key markets it serves beyond Stripe are Brazil, Mexico, Argentina, South Africa, Malaysia, and the Middle East.
For maximum global coverage, Adyen is the preferable choice. But Stripe still serves many of the top e-commerce markets.
Stripe is renowned for its simple, intuitive user interface. It’s easy to navigate, set up payments, and access reporting.
Adyen also prioritizes usability with its clean dashboard design and straightforward tools. But some users find it less intuitive than Stripe initially.
For fast and seamless payments integration, Stripe has a slight edge in new user experience. But Adyen matches it in usability over time.
Pricing Structure: A Cost Analysis
When it comes to transaction fees, Stripe and Adyen have some similarities and differences:
Stripe charges 2.9% + $0.30 for online transactions and in-person transactions swiped with a Stripe reader.
Adyen’s transaction fees vary based on the payment method and merchant location. They typically range from 1.5%-2.5% + $0.10-$0.30 per transaction online. In-person rates are customized.
Both Stripe and Adyen offer reduced rates for high-volume merchants processing over $1 million annually.
There are some extra costs to factor in beyond Stripe and Adyen’s transaction fees:
Stripe charges a monthly fee for their POS hardware. The basic Stripe reader is $29/month. Other hardware bundles with an iPad and accessories range from $59-$199/month.
Adyen has a monthly minimum fee that ranges from $25-$50 depending on the merchant’s processing volume. Accounts below this minimum are charged the difference.
Both Stripe and Adyen charge various add-on fees for access to advanced features like marketplace payments, recurring billing, and business analytics. These range from 0.5%-2% per transaction depending on the feature.
There may also be individual fees for disputes, refunds, insufficient funds, and other incidental costs. These vary in pricing between the two.
When evaluating the total cost to use Stripe vs Adyen, you have to look beyond just the headline transaction fees and consider all the additional expenses too. Carefully estimate your expected monthly volume and feature needs.
Integration and Compatibility
Both Stripe and Adyen integrate easily with major e-commerce platforms like Shopify, WooCommerce, BigCommerce, and Magento. Their plugins and extensions allow quick installation and setup.
For Shopify, Stripe’s integration allows automatic syncing between orders and payments. Adyen also offers deep integration, allowing merchants to store customer details for faster checkout.
On WooCommerce, Stripe has an official extension with full support. Adyen provides an API-based integration that works seamlessly. Both are top choices among WooCommerce merchants.
On platforms like BigCommerce and Magento, Stripe and Adyen both have plug-ins that connect with minimal development required. Both can handle complex payment needs on enterprise-grade platforms.
Beyond e-commerce, Stripe and Adyen also integrate with platforms like QuickBooks, Xero, NetSuite for accounting and reconciliation. Their APIs allow integration with CRM, marketing, and other systems. Overall, both offer extensive compatibility and integrations for a modern tech stack.
Stripe has hundreds of extensions for platforms like Slack, Salesforce, Hubspot. Adyen also connects with leading software tools, but Stripe has a slight edge in breadth of integrations. For most use cases, both offer sufficient compatibility.
So when evaluating integration and compatibility, both Stripe and Adyen are top choices. It comes down to specific platforms and tools used by the business to determine the ideal fit. But the extensive resources from both vendors ensure smooth integrations.
Security and Compliance
Security is paramount for any ecommerce business, and choosing a payment gateway with robust security measures and compliance with industry standards is crucial.
Both Stripe and Adyen employ advanced security protocols and infrastructure to protect transactions and customer data.
Stripe adheres to strict security practices, including end-to-end encryption, tokenized card data, and rigorous fraud monitoring. Stripe is certified to PCI Service Provider Level 1, the most stringent level of the payment card industry standard. It is also EU-US Privacy Shield compliant for secure data transfers from the EU to the US.
Adyen has also prioritized security in its technology stack and physical data centers. Sensitive data is encrypted and tokenized according to the latest industry standards. Adyen is PCI DSS compliant and maintains system and organization control certifications including SOC 1, SOC 2, and SOC 3.
When it comes to compliance, both Stripe and Adyen enable merchants to accept payments and conduct business while meeting global regulatory requirements. They are continually updating their products to align with new regulations and compliance needs across different jurisdictions and industries.
With either payment processor, online businesses can reassure their customers that transactions are secure. However, Adyen does have slightly stronger security infrastructure and compliance coverage which gives it an edge for higher risk businesses. But for most ecommerce merchants, Stripe and Adyen both provide sufficient security and compliance to safely accept payments online.
When it comes to customer service and support resources, both Stripe and Adyen aim to provide users with multiple avenues for assistance. However, there are some differences in their offerings.
Stripe is well-known for its excellent customer service. Users have access to 24/7 phone and chat support to quickly get issues resolved. Stripe also offers email support and an online help center with extensive documentation, FAQs, guides and useful tips. Developers can get support through the forum and Stack Overflow integration. There are also regular product updates, release notes and educational resources.
Adyen also provides email and phone support but chat is only available during European business hours. Their help center contains documentation and FAQs to self-serve information, and they offer customer service in several languages. However, Adyen’s support channels don’t seem to be as robust or responsive as Stripe’s based on user reviews.
When it comes to educating users, Stripe has a clear edge. Their radar resource center offers ebooks, videos, podcasts and more for users to gain knowledge. Adyen has webinars and ebooks but their educational resources don’t seem to be as comprehensive.
Overall, Stripe’s superior customer service infrastructure and wealth of support resources make it the better choice for most e-commerce businesses. Adyen’s customer service could be improved to match Stripe’s level of responsive support and user education.
Selecting the right payment gateway is critical for any e-commerce business. This comparison between Stripe and Adyen reveals that both are excellent options with their own unique strengths. However, some key factors can help determine which is the better fit.
Stripe shines when it comes to simplicity and ease of use. Its clean interface, thorough documentation, wide range of integrations, and superior customer support make it ideal for small businesses just starting out. The extensive feature set also allows it to scale with a growing company.
Adyen excels in international payments and enterprise-level e-commerce. Businesses selling globally can benefit from its broad country coverage and support for localized payment methods. The robust risk management and automation capabilities suit high-volume merchants.
If your business is US-focused, prioritizes simplicity, or is just starting up, Stripe has the edge. You’ll appreciate its intuitive dashboard and top-notch customer service. But as your company expands internationally or processes increase, Adyen is worth considering.
In the end, evaluating your business model, target markets, growth goals and risk appetite is essential. Weigh the fees, features, and reputation of each provider accordingly. Run test transactions to ensure integration works seamlessly. Read user reviews specific to businesses like yours. With this diligent approach, you can determine if Stripe or Adyen is the best fit as your e-commerce payment gateway.