What Is Stripe and How Does It Work? Full 2025 Guide for Online Payments

Easily accept online payments worldwide using Stripe — fast, secure, and developer-friendly

Introduction

In the world of digital payments, Stripe has become a top choice for entrepreneurs, developers, and e-commerce businesses. Whether you're building a SaaS app, launching a Shopify store, or selling services online — Stripe gives you the tools to accept payments globally, securely, and efficiently.

In this guide, we’ll cover:

• What Stripe is

• How Stripe works

• How to create a Stripe account

• What Stripe offers (features and integrations)

• Stripe Atlas for company formation

• How to accept payments using Stripe

• Supported countries and currencies

• Fees, limits, and security tips

What Is Stripe?

Stripe is a global online payment processing platform that allows individuals and businesses to:

• Accept credit and debit card payments

• Send invoices

• Set up subscriptions and recurring billing

• Receive payouts to bank accounts

• Integrate payment solutions into websites and mobile apps

Founded in 2010, Stripe is trusted by companies like Amazon, Shopify, Zoom, and millions of startups around the world.

What Can Stripe Be Used For?

Common Use Cases:

• Selling digital or physical products

• Freelance payments and client invoicing

• Subscription-based businesses (SaaS, memberships)

• Donations and fundraising

• Booking systems and service-based payments

• Marketplaces and platforms

How to Open a Stripe Account (Step-by-Step)

Step 1: Go to the Official Website

Visit https://stripe.com and click on “Start now” or “Sign up”.

Step 2: Enter Basic Information

• Full name and business name (can be personal)

• Country of operation

• Email address and password

Step 3: Provide Business Details

• Business type: individual, company, nonprofit

• Industry and product description

• Business website (or social media if no website)

• Expected revenue and customer location

Step 4: Add Payout Information

• Link a bank account in your country for receiving payouts

• Add your legal name and address for verification

• Upload government-issued ID and/or selfie if requested

Step 5: Activate Your Account

Stripe will review your info and usually activate your account within 1–3 days.

✅ Once approved, you can immediately start accepting payments online.

Stripe Payment Features

Payment Methods Supported:

• Visa, MasterCard, American Express

• Apple Pay, Google Pay

• ACH, SEPA, iDEAL, Klarna (region-specific)

• Buy Now Pay Later (Afterpay, Affirm)

How to Accept Payments:

• Payment links (no coding required)

• Stripe Checkout (hosted checkout page)

• Stripe Elements (customizable frontend forms)

• Stripe API (fully programmable payments)

Other Features:

• Recurring billing & subscriptions

• One-time or usage-based invoices

• Fraud detection (Radar)

• Tax compliance (Stripe Tax)

• Instant payouts in supported regions

What Is Stripe Atlas?

Stripe Atlas is a program that lets non-U.S. residents form a U.S. company (Delaware C-Corp) and get access to:

• A U.S. bank account

• U.S. tax ID (EIN)

• A Stripe account with full features

• Legal templates and tax support

This is perfect for international entrepreneurs wanting to do business globally.

Supported Countries and Currencies

Stripe supports over 45 countries and 135+ currencies.Popular supported countries include:

• United States

• United Kingdom

• Canada

• Australia

• European Union countries

• Singapore, Hong Kong, Japan

Check full list here: https://stripe.com/global

Transaction Type	Fee Example (US)
Domestic card	2.9% + $0.30 per payment
International card	3.9% + $0.30
Currency conversion	+1% on top of base fee
Instant payouts	+1% fee (optional)

Is Stripe Safe?

Yes — Stripe uses bank-grade security and advanced fraud detection tools:

• PCI-compliant platform

• Two-factor authentication

• Tokenized payments

• Real-time fraud detection (Stripe Radar)

Feature	Stripe	PayPal
Custom Integration	✅ Yes (developer-friendly)	❌ Limited flexibility
Checkout Branding	✅ Fully customizable	❌ PayPal-branded only
Fees	✅ Competitive	❌ Slightly higher
API Access	✅ Extensive	❌ Basic API

Stripe is ideal for developers, SaaS founders, and growing e-commerce stores. PayPal is simpler for beginners.

Important Note: Rules and fees may vary by country. Always check the current policies and pricing for your region.