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How do the online payment systems Braintree and Stripe compare?

Answer by Peter Berg:

I wrote about some of the major differences in my answer to this question: Online and Mobile Payment Startups: How does an Accel-backed Braintree impact the opportunity for Stripe?

In a nutshell, Braintree requires customers to have a merchant account (Braintree will help customers obtain one if they so desire). Braintree also offers a wider range of services, analytics and hand-holding for their customers. Some of its services include:

  • gateway services (they process most cards; can connect to a ton of processors)
  • many client programming libraries (multiple languages)
  • fraud tools
  • reporting functionality
  • administrative tools
  • global payment processing (lots of currencies)

Stripe, on the other hand, is a drop-dead simple service with a slick API and not a whole lot more. Its beauty lies in its simplicity and ease of integration. While it, too, requires a merchant account, the onboarding and activation process has been finely tuned and a good developer can integrate it in a matter of hours. It doesn't provide all the value-added services that Braintree does (yet, anyway), but what it does, it does very well.

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