Payment Wars 1.2: Stripe vs Adyen

Payment gateways and payment merchants have dominated the e-commerce market for over a decade now. Multiple payment processing systems have emerged. Some failed, and some have changed the payment game completely.

Stripe vs. Adyen has been long overdue. The two most popular, and dynamic powerhouses are so similar that it’s hard to distinguish between them. In this article we are going to talk about everything there is to know about Stripe and Adyen and give you the best stripe vs. Adyen comparison in 2022.

Let’s get started with the basics and get to know both companies from inside out.

What is Stripe?

Stripe is a decade-old payment software that serves as a global partner to many top names. Founded in 2011, its headquarters are located in San Francisco and Dublin. Stripe emerged as a payment gateway solution that many were happy to get behind.

One of the major pros of Stripe is its global reach and diversity of the payment solution it offers.

Stripe offers multiple options to business owners and allows its users to process and collect payments in a matter of seconds. Stripe supports multiple currencies. You can get access to Stripe by signing up on its website or get access to it as third-party integration.

Stripe offers multiple services including invoicing, billing, and sales tax automation.

Stripe Workflow

Here’s how stripe basically works:

• Customer enters card information, online or in-person
• The data is encrypted by Stripe’s payment gateway
• Stripe as a payment merchant sends the data to the acquirer
• The payment gets passed through a credit card network to the cardholder’s issuing bank
• The transaction gets approved or denied by the issuing bank
• This information is passed from the issuing bank through the card network to the acquirer, then through the gateway to the customer – in the form of a message of payment acceptance or decline

Now stripe offers two products Stripe Connect & Stripe Checkout. Checkout is the mobile checkout with an API that creates a Stripe-hosted payment page. Connect is customizable, works for small businesses, is available in multiple currencies, and has pre-made interfaces available.

What is Adyen?

Adyen is a Dutch/ European payment company that works as a payment service provider and payment gateway. It is one of the most known payment processors in Europe. Adyen was founded in 2006. Its headquarters lies in Amsterdam, Netherlands.

Adyen allows businesses to accept payments from, multiple sales channels. Adyen’s services are very specific and are not suitable for brick-and-mortar businesses or low-volume merchants.

Adyen has been given the status of an acquiring bank (European banking status). Adyen is being used by MANGO, Etsy, Uber, McDonald’s, etc. In 2018, eBay announced that it had signed an agreement with Adyen to become its primary payments, processing partner.

In 2020, during the COVID-19 pandemic, it processed a total of EUR 303 billion, a 27% increase year-on-year, with net revenue of EUR 684 million, a 28% increase year-on-year. It had expanded its operations to the Middle East, US, and Canada by 2021.

How does Adyen work?

Adyen acts as a payment gateway, payment service provider, POS for in-point transactions and offers risk management and local acquiring. It also has integration abilities for in-app or mobile payments.

The Adyen payment process starts at the POS terminal of a retailer; then the payment passes through a payment processing and risk management system to avoid fraud; afterward, the credit card network is used; and finally, the transaction arrives at the customer’s bank. If the payment is verified, a confirmation is sent back to the POS terminal through the various stages.

Stripe vs. Adyen: 5 key components to know

Stripe is a globally prominent name and Adyen shares popularity in Europe. Both have many similarities but the main difference between Stripe and Adyen to remember is that Adyen is a merchant account provider whereas Stripe is a merchant aggregator aka a payment service provider.

1. Pricing: Stripe vs Adyen

You can see a clear difference between Stripe and Adyen based on pricing.

Stripe has a very simple pricing model. For local (online) transactions there is a standard fee of 2.9% + $0.30 per transaction. For in-person payments, the fee is 2.7% + $0.05 per transaction There is no monthly fee, no setup fee, and no integration fees. For all international transactions, it costs you 3.9% per transaction.

Adyen’s processing fee is region-based. Adyen charges a processing fee plus payment method fee per transaction. For instance, credit card fees for Mastercard and Visa transactions are based on an interchange ++ pricing model.

There are no monthly fees, setup fees, closure fees, or integration fees with Adyen. For ACH and wallet payments, fees are specific to the respective payment method.

The winner depends on which region you are basing your transaction in. Both Stripe and Adyen offer reasonable pricing models.

2. Countries, Regions & Currencies

Stripe dominates the US market since it is located at the heart of the Bay area. Stripe is recognized as one of the best globally. Stripe is available in 47 countries and can process over 135 currencies.

Adyen dominates the European and North American markets. Adyen is a leading provider of omnichannel payment solutions with over 250 payment methods and 187 transaction currencies.

3. Payment and Payment Methods

Stripe has a simple signup process after which you can get access to all its standard features. Stripes accept all major credit and debit cards, Apple Pay, Google Pay, ACH transactions, digital wallet transactions, WeChat Pay, and multiple international payment methods.

Adyen allows customization of payment solutions meaning you get to accept and process payment in a way that is most suitable to your business. You can integrate your checkout by a pre-made interface and create your payment form, payment flow, etc.

Adyen accepts multiple payment methods based on the region including but not limited to Boleto, Elo, Google Pay, AmEx, Apple Pay, Maestro, Oxxo, PayPal, UnionPay, and V-Pay.

4. Ease of Use

Stripe is known for its ease of use. It offers multiple easy and vast integration options, checkout customization, and reliability. It has fast and easy API tools and is extremely mobile-friendly.

Adyen is not ideal for smaller businesses or low-volume transaction businesses. Adyen concentrates on optimizing the “behind-the-scenes” of the actual payment process. Stripe focuses on the front-end experience.

5. Developer-Friendly

Stripe is as developer-friendly as they come. Most developers want to grab the chance to work on Stripe. Adyen needs more foothold in the developer community. It is not to say that Adyen is not developer-friendly but it lacks the charm that Stripe offers readily.

 Who Is The Winner?

At the end of the day, you get to decide, who will be the clear winner in Adyen vs. Stripe. According to the comparison above, this is a clear tie. If you are a US merchant then Stripe is it for you! But if you are a European business Adyen will provide you with more flexibility.

Both payment processors are efficient and readily available for use. So choose the one that suits you the best!