Stripe vs Razorpay: Which Payment Gateway is Right for You?

Intro to Stripe & Razorpay💰

The online payment industry is evolving rapidly, with various platforms offering different features to businesses. Among them, Stripe and Razorpay are two popular payment gateways. Stripe is a globally recognized platform offering advanced customization, while Razorpay is an Indian payment gateway designed to simplify transactions for businesses in India. This article compares them based on customer service, security, payment modes, pricing, features, and underlying technology.

1. Customer Service

Stripe: Stripe provides 24/7 customer support through email and tickets. While it does not offer phone-based support, its extensive documentation and large online community make it easier to troubleshoot issues independently. Additionally, Stripe’s chat-based support ensures users get real-time assistance for technical and operational concerns.

Razorpay: Razorpay offers documentation and online guides, though not as comprehensive as Stripe. In addition to ticket-based support, it provides phone support on weekdays during business hours, making it more accessible for immediate concerns. However, users have reported that response times can be slower compared to Stripe’s support ecosystem.

2. Security

Stripe: Stripe is PCI Level 1 certified and ensures secure transactions using HTTPS and HSTS encryption. It also provides a fraud detection tool called Radar, which uses machine learning to prevent fraudulent transactions, making it a highly secure option. The system continuously learns from transaction patterns to improve security measures over time.

Razorpay: Razorpay is also PCI Level 1 certified and ensures secure transactions via HTTPS. While it follows industry standards, it lacks an advanced fraud detection system like Stripe’s Radar, making it slightly less robust in fraud prevention. Businesses may need additional security layers to mitigate fraud risks effectively.

3. Payment Modes💵💰💳

Stripe: Stripe supports various payment methods, including major debit/credit cards (Visa, Mastercard, Amex), digital wallets (Apple Pay, Google Pay), and alternative payment methods like Giropay and Bancontact. It also offers in-person payment options through Stripe Terminal, making it ideal for businesses with both online and offline presence.

*Image depicting the technology behind the payments: From Razorpay*

Razorpay: Razorpay supports all major Indian and international cards, digital wallets (Amazon Pay, Mobikwik), and UPI. It also integrates with net banking and EMI options, catering specifically to Indian businesses. However, it lacks in-person payment support, making it less versatile for businesses with a physical storefront.

4. Pricing

Both Stripe and Razorpay follow a flat-rate pricing model without setup or maintenance fees.

Plan	Stripe	Razorpay
Pay-as-you-go	2% for Indian cards, 3% for international cards, 4.3% for multi-currency	2% for Indian cards, 3% for international cards & EMI
Enterprise Plan	Custom pricing with dedicated support and migration assistance	Custom pricing with priority support and early access to features

Stripe’s fees can be higher when processing international transactions, but it provides additional benefits like multi-currency support, advanced analytics, and scalability for global businesses. Razorpay’s pricing remains competitive for Indian businesses, particularly with its UPI and net banking integrations, which can lower transaction costs.

5. Features

Stripe:

Highly customizable payment solutions with extensive API support.
Invoicing capabilities with branding options for professional billing.
Integration with eCommerce platforms like WooCommerce and Magento.
Pre-built checkout pages with full customization support for a seamless user experience.
Stripe Connect for businesses that require marketplace-style payments.

Razorpay:

Easy-to-integrate checkout system with JavaScript, making setup simpler.
Mobile payments with OTP autofill for Android users, improving the checkout experience.
Supports multiple eCommerce integrations, including Shopify and Prestashop.
RazorpayX for businesses looking for banking and payout solutions within India.
Subscription billing and automated payment collection, catering to recurring revenue models.

6. Technology Behind Stripe and Razorpay🛍️

Stripe: Stripe is built on a highly scalable and developer-friendly infrastructure. It uses modern technologies such as:

Programming Languages: Primarily written in Ruby and JavaScript (Node.js) with additional support for Python and Go.
APIs: Provides RESTful APIs with detailed documentation, allowing businesses to integrate payment solutions easily.
Machine Learning: Uses AI-based fraud detection through Radar to minimize payment risks.
Cloud Infrastructure: Runs on AWS and Google Cloud to ensure high availability and security.
Encryption: Uses AES-256 encryption to secure transaction data and prevent breaches.

Razorpay: Razorpay is optimized for Indian businesses and relies on robust technology for secure transactions. It utilizes:

Programming Languages: Primarily built using Python and Java, ensuring a stable backend.
APIs: Offers RESTful APIs with SDKs for multiple languages like PHP, Python, Java, and Ruby.
UPI and Banking Integrations: Provides direct integrations with Indian banks and the UPI framework for instant payments.
AI-Based Analytics: Uses AI to enhance fraud detection and optimize payment success rates.
Cloud Infrastructure: Hosted on AWS to ensure seamless transaction processing.

Verdict: Which One to Choose?

Both Stripe and Razorpay offer secure and efficient payment solutions, but they cater to different needs.

Choose Stripe if you need advanced customization, in-person payments, and international payment support. It is ideal for businesses with a global reach and developers looking to tailor their payment experiences.
Choose Razorpay if you are an Indian business looking for a simple, easy-to-integrate solution with local payment methods like UPI and net banking. It is better suited for startups and businesses targeting the Indian market.

For global businesses with developer support, Stripe is the better choice. For Indian startups and small businesses, Razorpay provides a hassle-free solution with strong local integrations.

You can also read the article on How Visa and Mastercard works for more info…

Check out more article on Finance on our Finance and Crypto articles on our Technology Category section.

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