Global payments
Posted on Jan 22, 2025
In the fast-paced world of Internet payments, success can depend almost entirely on which payment gateway the business has chosen. However, for all Indian entrepreneurs who are trying to tap their global markets, here is a ready-made solution: Stripe. But will it cater to India's unique businesses? This guide runs through everything you need to know about Stripe, from its features and charges to its pros and cons, so you can decide whether it's the right fit for your business.
What is Stripe?
Stripe is a leading global payment gateway, designed for businesses of all sizes. Seamless integration and developer-friendly, Stripe lets businesses accept payments, manage subscriptions, and securely store and save credit cards. With an impressive international presence, Stripe has emerged as the payment gateway of choice for companies with customers around the world.
Is Stripe Suitable for Indian Businesses? Let's explore.
Stripe's Key Strengths:
No hidden charges: Stripe doesn't have any hidden charges, which makes it a powerful feature.
Real-Time Payments: Instant access to payments and advanced reporting for revenue analysis.
Developer-Friendly APIs: Create highly customised payment workflows tailored to your business needs.
Use Cases for Stripe:
Freelancers and Agencies: Provides hassle-free international payment services to freelancers.
SaaS Businesses: Perfect for managing recurring subscriptions and one-time payments.
E-commerce Platforms: Make payment easier for global shoppers with seamless payment.
Detailed Overview of Stripe's Features
Multi-Currency Support
One of Stripe’s standout features is its ability to accept payments in over 135 currencies, making it easier for Indian businesses to serve international clients. Payments are automatically converted to your preferred currency, simplifying operations.
Developer-Friendly APIs
Stripe offers robust APIs that allow extensive customisation. Whether you’re building a custom platform or using tools like Shopify or WooCommerce, integration is seamless and efficient.
Subscription and Recurring Billing
It supports SaaS businesses with powerful management tools for subscription. From free trials to coupons and automated invoices, the tool covers everything.
Fraud Detection and Security
Stripe uses more advanced machine learning algorithms to prevent fraudulent transactions, and it keeps customer data totally PCI DSS compliant.
Reporting and Analytics
Through the Stripe dashboard, one can track payments, refunds, and revenue trends. Businesses can export reports for accounting or strategic planning purposes.
Stripe Charges for Indian Businesses
Stripe charges 4.3% processing fees for international payments. These steep pricing features make it unattractive for small businesses to make frequent global transactions.
A 2% fee is charged on all currency conversions. This can be a substantial amount for businesses that have a lot of international transactions.
Chargeback Fees
In the event of a chargeback, a business is charged ₹600 per chargeback.
Custom Pricing for High-Volume Businesses
If your business has a high volume of transactions, Stripe offers custom pricing to suit your business needs.
How to Use Stripe in India
Go to the Stripe website and sign up for an account.
Provide your business details and complete the KYC process.
Connect your Indian bank account for payouts.
Integration Options
For Developers: Integrate payment systems into your app or website using Stripe's APIs.
For Non-Developers: Install Stripe plugins on Shopify, Magento, or WordPress.
Managing Payments
Stripe dashboard tracks payments in real-time, sends automatic email reminders to customers for failed payments, and manages recurring subscriptions with ease.
Pros and Cons of Stripe for Indian Businesses
Pros:
Supports up to 50+ multi-currency payments, enabling global transactions.
Transparent pricing with no hidden fees.
Advanced fraud detection with PCI DSS compliance.
Developer-friendly tools for extensive customisation.
Detailed analytics and reporting tools.
Cons:
High currency conversion fees (2%) and processing fees (4.3%)
No support for UPI or local Indian payment methods like RuPay.
Limited options for Indian bank payouts.
It may not be ideal for small businesses due to higher transaction costs.
Is Stripe Safe and Reliable?
Security Features- Stripe holds PCI DSS Level 1, the highest level of security, and keeps all customer data encrypted and secure.
Fraud Detection Tools- The Stripe Radar employs machine learning algorithms that flag suspicious transactions and prevent fraud.
Global Trust-Stripe serves as a powerful payment system for trusted brands like Amazon, Shopify, and Uber. It's thus a good business choice.
Who Should Use Stripe in India?
Ideal for:
SaaS companies with recurring billing requirements.
E-commerce companies are targeting international customers.
Individuals and agencies doing work for clients who are overseas.
Not for the following:
Those that make business based on internal payments since UPI and RuPay are not supported.
The micro merchants whose transaction volume is small, because, for them, the fee they have to incur might be higher than their alternatives.
Frequently Asked Questions About Stripe in India
What are Stripe’s fees for Indian businesses?
Stripe charges 4.3% per transaction for international payments and a 2% currency conversion fee.
Can I use Stripe for UPI or RuPay payments in India?
No, Stripe doesn't support UPI or RuPay.
Does Stripe support payouts to Indian bank accounts?
Yes, Stripe allows payouts to Indian bank accounts once you complete the KYC process.
Why is Stripe good for SaaS companies?
Stripe has robust tools to manage subscriptions, recurring payments, and advanced analytics.
Conclusion
Stripe is a secure payment gateway, which enables Indian businesses to scale their business globally. It supports various currencies, which is developer-friendly, and very secure. These features make Stripe ideal for the SaaS industry, freelancing, and online e-commerce, especially for services targeting international customers. However, its higher charges and lack of UPI/RuPay make it less preferred for businesses concentrated on domestic transactions.
To learn more about Stripe and its features, click here.
