Stripe vs PayPal vs Square: Best Payment Processor for Coaches & Online Courses
Picking the right payment processor for your coaching or online education business can feel like a guessing game. Fees, payout delays, and handling customer refunds can eat into your profit. Stripe, PayPal, and Square each fit different online business models. Choosing the wrong one can cost you time and money beyond just the transaction fees. Let's break down which one is best for selling courses, coaching packages, or tutoring sessions.
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The Quick Answer
Stripe is best for selling online courses, coaching subscriptions, and one-on-one sessions directly on your website or through a course platform. Square makes sense if you host in-person workshops, sell physical workbooks, or offer face-to-face tutoring. PayPal works if many of your students or clients expect to pay with it, especially for international sales or quick, simple payment links without a full website setup.
Side-by-Side Breakdown
Stripe: 2.9% + 30c per successful online transaction (for course sales, coaching packages). 2.7% + 5c for in-person (e.g., workshop tickets). No monthly fee for standard use. It's the top choice for recurring billing (coaching retainers, monthly course subscriptions) and integrating directly with popular course platforms (like Teachable, Thinkific, Kajabi) or your own website. Handles global payments easily, important for reaching students worldwide.
PayPal: 3.49% + 49c for standard online payments (selling a course, a one-off coaching session). 2.29% + 9c for in-person via PayPal Zettle (e.g., selling books at a live event). Recognized globally, useful for international students who prefer PayPal. Good for simple payment links. But be aware of aggressive account holds, which can block access to your coaching or course sales funds for weeks without clear reason.
Square: 2.9% + 30c online (for an online course). 2.6% + 10c in person (for a workshop ticket or physical product). Free card reader on sign-up. Best if you mainly do in-person events, sell physical products (like a coaching journal or printed course materials), or offer tutoring at a physical location. Less suited for digital-only, recurring online sales compared to Stripe.
When to Choose Stripe
You should choose Stripe if: * You sell online courses (e.g., on Teachable, Thinkific, Kajabi, or your own site) or offer coaching packages and need reliable online payment collection. * You offer subscription-based coaching programs, membership sites, or monthly course access and need easy recurring billing. * You want to reach a global audience, accepting payments from students and clients worldwide without hassle. * You value tools to prevent fraudulent purchases on your high-ticket coaching programs or popular courses. * You're using a common course platform or website builder that integrates smoothly with Stripe (most do).
When to Choose Square
You should choose Square if: * You host in-person workshops, seminars, or live training events and need to accept payments on site. * You sell physical products related to your coaching (e.g., workbooks, merchandise) at events or from a small office. * You offer face-to-face tutoring or local consultations and need an easy way to swipe cards. * You need a simple, all-in-one system for occasional in-person sales without much technical setup.
When to Choose PayPal
You should choose PayPal if: * Many of your coaching clients or course students are international and prefer paying with PayPal, especially in markets where credit cards are less common. * You need to send a quick invoice or payment link for a one-off coaching session or course sale without setting up a full checkout process. * You sell on platforms or marketplaces where PayPal is a primary payment option and your customers expect it. * You need to accept payments immediately with minimal technical setup, even if it's just a "Buy Now" button for a single digital product.
The Verdict
For most coaches and online educators, Stripe should be your main payment processor. It handles online course sales, recurring coaching fees, and global payments best. Use PayPal as a backup, especially for international clients or when you need a very fast payment link – but be aware of their strict account hold policies. Only consider Square if a significant part of your business is physical, like in-person workshops or selling physical products. Leading with PayPal is risky due to poorly documented account holds that can freeze your funds.
How to Get Started
Stripe: Go to stripe.com, create an account, and link your business bank account. You can start accepting payments for your courses or coaching packages the same day, even using simple payment links or by connecting it to your chosen course platform.
Square: Sign up at squareup.com, order their free basic card reader if you plan to do in-person sales. Download the Square POS app. You can be ready for in-person payments soon after receiving the hardware.
PayPal: Create a business account at paypal.com/business. You can instantly send invoices or add a PayPal button to your website for quick sales.
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Stripe
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Square
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PayPal Business
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FREQUENTLY ASKED QUESTIONS
Can I use Stripe and PayPal together?
Yes. Many businesses use Stripe as the primary processor and add PayPal as a secondary option at checkout. This adds 5-15% additional conversion for customers who prefer PayPal. The trade-off is two separate payout schedules and two reconciliation streams.
Why do PayPal accounts get held?
PayPal holds funds when their fraud algorithms flag unusual activity — a sudden spike in volume, high-value transactions, or a spike in disputes. Holds can last 180 days in extreme cases. Stripe and Square also have hold policies, but they are generally less aggressive and more transparent about resolution.
What are interchange fees and do I pay them?
Interchange is the fee the card network charges the payment processor. With flat-rate pricing, you pay the listed rate and the processor absorbs variance. With interchange-plus pricing (available at higher volumes), you pay interchange directly plus a small markup — cheaper at scale.