I’ve been waiting for this for a long time.
Stripe is finally here in Malaysia and you can actually use it. No longer just for beta testers or owners of a large websites.
I wanted to use it because as it allows me to create online training courses with a subscription plan or a payment plan. With Paypal I couldn’t do it easily.
I just activated my account. Nothing difficult here.
All you need to do is to click “Activate Account” and answer a few simple questions.
Details are the usual full name, address, NRIC, bank account, business name etc.
Click submit and you are good to go.
Differences between Paypal and Stripe
The main difference is with Paypal, your money is kept at Paypal until you want to withdraw it to you bank account in Malaysia.
With Stripe payment though, the money goes directly into you local bank account.
Not exactly immediately but within a few days. You can set when the money will be transferred into your bank account whether daily, weekly, monthly or even manually.
Useful in case you need to refund someone if you have money back guarantee of some sort.
Pros and cons?
With the exchange rate fluctuating, there may be advantages to holding the money in Paypal until the rate is more favorable. I also keep some money in Paypal for online purchases like web hosting etc. which is usually in US dollars.
That way I reduce transaction and exchange fees twice from USD to MYR and back to USD.
So there are still some advantage to using Paypal.
However that would also depend on the exchange rate and fees on Paypal vs Stripe. Paypal exchange rate to MYR is rather bad all this while.
By the way make sure you activate TFA, or two factor authentication when you sign up for an added layer of security.
I had some initial problems with Stripe since I used a platform that hooks up to Stripe to process the payment.
The problem was not related to Stripe but the platform I use to host my courses. Any how it was solved and here’s the first test payment.
Got to test things out right?
And here are some from customers.
Here are my observations. after a few transactions. This is for people in MY with international transactions.
The Stripe fee is 3.4% + RM 2 flat rate and then approx 6% tax added to the fees. However Stripe converts whatever currency to MYR first then applies the fees.
For Paypal, the fees are 4.4%+ USD 0.30. Only when you withdraw the currency conversion fee is applied. So you may get more or less favorable rates.
For local transaction the fee for Paypal is 3.9% + RM 2 and remains the same for Stripe at 3.4% + RM2. Not sure if there is any tax added via Paypal to this though.
A fee of RM 3 is charged by Paypal on top of the conversion fee is your withdrawal is less then RM 400.
Take note that Paypal has a fee schedule and as your monthly transactions increase, the fees decrease. So your actual fees could be lower.
Overall I reckon Stripe fees are slightly lower compared to Paypal at least for international transactions when your volume of sales is less than RM 12,000 per month based on the fee schedule.