Not Legal Advice
This guide provides general information only and is not legal advice. Company formation requirements and regulations vary by country and change over time. Consult a qualified legal professional before making business decisions. Information current as of January 2025.
Why Switch to Stripe?
Many businesses start with PayPal because it's easy. But as you grow, Stripe offers significant advantages:
Stripe Advantages
- ✓ Lower fees (1.4% + €0.25 EU cards)
- ✓ Better developer experience
- ✓ Subscription billing built-in
- ✓ Stripe Tax for VAT automation
- ✓ Modern checkout experience
- ✓ Better fraud protection (Radar)
PayPal Limitations
- ⚠ Higher fees (2.9% + fixed fee)
- ⚠ Account holds and restrictions
- ⚠ Limited subscription features
- ⚠ No built-in VAT handling
- ⚠ Dated checkout experience
- ⚠ Unpredictable dispute handling
Fee Comparison
Processing €10,000/month
| Transaction Type | PayPal | Stripe | Savings |
|---|---|---|---|
| EU Cards | ~€340 | ~€165 | €175/mo |
| International Cards | ~€340 | ~€315 | €25/mo |
| Mixed (70% EU) | ~€340 | ~€210 | €130/mo |
Based on 100 transactions/month average €100 each. PayPal 2.9% + €0.35, Stripe EU 1.4% + €0.25, Stripe intl 2.9% + €0.25. Actual fees vary by plan.
Migration Checklist
Before Migration
- Ensure you have an EU company (Estonian OÜ works perfectly)
- Have business bank account ready (Wise or Revolut EUR IBAN)
- Export current subscriber/customer list from PayPal
- Note active subscriptions and their billing dates
Stripe Setup
- Create Stripe account with Estonian company
- Complete verification (company docs + personal ID)
- Connect payout bank account
- Enable Stripe Tax (if needed for VAT)
- Set up products and pricing in Stripe
Customer Migration
- Notify customers about payment method change (email)
- Send new payment links for subscription re-enrollment
- Cancel PayPal subscriptions as customers migrate
- Update checkout pages to use Stripe
Post-Migration
- Monitor Stripe dashboard for first payments
- Withdraw remaining PayPal balance
- Keep PayPal account active for refund handling (180 days)
- Update accounting to track both processors during transition
Handling Subscriptions
Subscription Migration Strategy
You can't automatically transfer PayPal subscriptions to Stripe. Customers need to re-enter payment details. Here's how to handle it:
Option 1: Gradual Migration
Keep both systems running. New customers use Stripe. Email existing customers to switch, offering incentive (discount, extra month). Eventually sunset PayPal.
Option 2: Hard Cutover
Pick a date. Cancel all PayPal subscriptions. Send migration emails with Stripe payment links. Accept some churn as cost of better infrastructure.
Option 3: Natural Renewal
At each renewal date, redirect customer to Stripe instead of PayPal. Slower but minimizes customer friction. Takes a full billing cycle.
Customer Communication Template
Email Template
Subject: Quick action needed: Update your payment method
Hi [Name],
We're upgrading our payment system to give you a better experience with more payment options and improved security.
Action needed: Please update your payment method by [Date] to continue your subscription without interruption.
It takes 30 seconds: [BUTTON: Update Payment Method]
As a thank you for switching, enjoy [discount/benefit].
Thanks,
[Your name]
Frequently Asked Questions
Everything you need to know before getting started
All information verified as of December 2025. Prices and features subject to change. Always verify current pricing with providers.
