What is Braintree? A Look at the PayPal Powerhouse
Braintree operates as both a payment gateway and a processing service, but its biggest claim to fame is that it's owned by PayPal. This provides a deep, streamlined integration with PayPal and Venmo, making it an attractive option if a significant portion of your customer base uses these platforms.
Key Features for Nomads:
Global Reach: Operates in over 45 countries and supports more than 130 currencies.
Payment Methods: Accepts all major credit cards, ACH Direct Debit, and has native support for PayPal, Venmo, Apple Pay, and Google Pay.
Simplified Pricing: Generally offers a straightforward pricing model without extra fees for features like recurring billing or fraud management.
Recurring Billing: Includes tools for managing subscriptions and recurring payments, essential for SaaS and service-based businesses.
Braintree Pricing Structure:
Standard Transactions: 2.9% + $0.30 per transaction for cards and digital wallets.
ACH Direct Debit: 0.75% per transaction, capped at $5.
PayPal Transactions: Processed at PayPal's standard rates.
Discounts: Offers interchange-plus pricing for high-volume merchants (over $80k/month in the US) and discounted rates for registered non-profits.
What is Stripe? The Developer's Choice for Global Business
Stripe has built its reputation as a flexible, developer-first platform designed for modern internet businesses. It's known for its powerful APIs, extensive documentation, and a massive ecosystem of integrations. For digital nomads, its global-first approach is a significant advantage.
Key Features for Nomads:
Stripe Atlas: This is Stripe's killer feature for non-US founders. For a flat fee, Atlas helps you incorporate a C Corporation or LLC in the US (Delaware), open a US business bank account, and get a US tax ID number (EIN). This service alone makes Stripe the default choice for many international entrepreneurs targeting the US market.
Local Payment Methods: While available in slightly fewer countries (around 34), Stripe excels at supporting local payment methods crucial for markets in the EU and Asia, such as SEPA, SOFORT, Giropay, and Alipay.
Extensive Integrations: With over 300 integrations, Stripe connects to virtually any tool you might use for accounting, CRM, or e-commerce.
Advanced Tools: Offers highly customizable checkout forms (Stripe Elements), comprehensive subscription management (Stripe Billing), and powerful reporting (Stripe Sigma).
Stripe Pricing Structure:
Standard Transactions: 2.9% + $0.30 per successful card charge.
ACH Direct Debit: 0.8% per transaction, capped at $5.
International Cards: An additional 1% fee for cards issued outside your home country.
Currency Conversion: An additional 1% fee if you need to convert currency between payment and settlement.
Important Note: Stripe does not refund its processing fees when you issue a refund to a customer. This can add up.
Braintree vs. Stripe: Head-to-Head Comparison for Nomads
Let's break down the key differences that matter most to a location-independent business owner.
Feature | Braintree | Stripe |
|---|---|---|
Standard Fee | 2.9% + $0.30 | 2.9% + $0.30 |
International Card Fee | None explicitly stated (included in flat rate) | +1% |
Currency Conversion Fee | Not explicitly charged as a separate fee | +1% |
Refund Policy | Full processing fee is refunded | Processing fee is not refunded |
Best Feature for Nomads | Seamless PayPal & Venmo integration | Stripe Atlas (US company formation) |
Countries Available | 45+ | 34+ |
Local Payment Methods | Good, but more limited | Excellent, especially for the EU and China |
Integrations | Good, but fewer than Stripe | Massive ecosystem (300+) |
The Verdict: Which Platform Should You Choose?
The choice between Braintree and Stripe depends entirely on your business structure and priorities.
Choose Stripe if...
You are a non-US citizen who needs to establish a legitimate US business presence. Stripe Atlas is a game-changer and simplifies a process that is otherwise complex and expensive. If you need to form a US LLC or C Corp to access the US market, open a bank account, and streamline your tax situation, Stripe is almost certainly the right choice for you. It's also superior if you need extensive integrations or cater to a European audience that prefers local payment methods like SEPA or SOFORT.
Choose Braintree if...
Your business relies heavily on PayPal and Venmo transactions. The seamless integration can improve conversion rates if that's where your customers are. Braintree's simpler and more transparent pricing—without extra fees for international cards or currency conversion, and with refunded fees on returns—can also make it more affordable, especially if you process a high volume of international payments or have a high return rate. If you already have a business entity and don't need the services of Stripe Atlas, Braintree is a very strong contender.
