Stripe is a platform to process all online and credit card transactions for businesses. It allows the funds to get safely transferred from the account of the customer to that of the seller. It has both a credit card payment gateway and a payment processing platform. As a result of this, it is one of the most efficient software for making payments online.

Paytm serves as India’s largest financial services provider. It provides financial and online payments solutions to its service partners, customers, and online retailers. The vision of this company is to revolutionize the way Indians accept payment in India. Its founder is Vijay Shekhar Sharma and is owned by One 97 solutions.

Comparison Table Between Stripe and Paytm

What is Stripe?

Stripe is a platform that works towards developing a plethora of financial software products to support various online platforms to accept online payments. It aims at propelling online growth by making the execution process of online payments seamless. It comprises the following components:

• Cloud-based payments infrastructure
• Instant applications that serve a plethora of purposes that include frauds, billing, or reporting.
• Assist organizations in developing customized applications by providing a personalized payments platform.

Stripe provides wide-ranging documentation to both consumers and developers. Products and services offered by Stripe are as follows:

• Billing: It allows Stripe users to develop schedules regarding when they are supposed to charge consumers.
• Radar: This helps Stripe users in detecting fraudulent transactions. On detecting fraud, the algorithms send a warning to users.
• Connect: This allows marketplace organizations to make payments to sellers and service providers worldwide.
• Terminal: It comprises a physical card reader that allows business organizations to include real-time payments.
• Sigma: This gives users access to transaction information via SQL queries.
• Atlas: Within a very short period, users can set up an entirely new business with this service.
• Premium support: This allows users to get technical support at all times and anywhere.

Stripe’s main customer base comprises businesses. With the shift to online business, Stripe’s market base has seen tremendous growth. And it is expected to grow even further.

What is Paytm?

Founded by Vijay Shekhar Sharma, Paytm is one of the most used apps in India for making payments. It is one of the key factors behind opening the Indian economy to the digital world. Paytm Wallet is widely used by both small businesses and street vendors simultaneously helping in increasing their revenue.

Paytm essentially serves as a digital payment gateway. It enables merchants and customers to make payments using debit or credit cards, e-wallets, and bank accounts. Other payment facilities provided by Paytm include bill payments, train or flight tickets, forex, mobile recharges, etc. One can even link their credit cards and bank accounts with Paytm to make payments on various e-commerce sites.

Paytm has seen tremendous growth in the past few years and at present, it comprises the following subsidiaries:

• Paytm Money
• Paytm Mall
• Paytm Labs
• Paytm Entertainment

Vijay Shekhar Sharma along with One97 Communications Ltd. are the joint owners of the Paytm Payments Bank. This back is the largest digital bank in India having more than 58 million account holders. It aims to make banking more convenient and accessible to all through new technology.

In addition to this, Paytm Money is among the biggest contributors to SIPs. Other noteworthy services include Demat Services, Stock Broking, etc.

Main Differences Between Stripe and Paytm

1. Founded in 2009, Stripe works towards the development of financial software products to assist organizations in making seamless payments. Paytm on the other hand, is a payment solution provider.
2. Stripe has a greater market share in the financial services payment processor compared to Paytm.
3. Stripe has a greater hold in all website categories compared to Paytm.
4. Stripe has greater coverage and serves in more countries compared to Paytm which only serves India, Canada, and Japan.
5. Stripe is headquartered in Dublin, Ireland, and San Francisco, United States. On the other hand, Paytm in Noida, Uttar Pradesh, India

Conclusion

With the rise in online payments, it’s become imperative for sellers to choose the right platform for receiving payments. Choosing a platform with the right fees and one that is safe is crucial.

Both Stripe and Paytm are great companies. However, Stripe is much more developed in this segment as compared to Paytm. It serves in many countries and has more than two million customers. On the other hand, Paytm has come a long way. The pandemic has certainly acted as an accelerator to its growth. But it still has a lot of catching up to do.

References

•  https://card-file.onaft.edu.ua/handle/123456789/17558
• https://www.researchgate.net/profile/Mdal-Amin/publication/344223983_Analysis_of_Centralized_Payment_Eco-System_A_Systematic_Review_on_E-Payments/links/5f5d97a092851c078963178c/Analysis-of-Centralized-Payment-Eco-System-A-Systematic-Review-on-E-Payments.pdf