Stripe vs PayNow: Best Payment Gateway for Local Web

Stripe fees compared to PayNow costs

Stripe charges a standard per-transaction fee of 3.4% plus S$0.50 for most card payments in Singapore, with a slightly lower rate of 2.9% plus S$0.30 for local cards. In contrast, PayNow transactions processed through a third-party gateway like HitPay or Aspire typically incur a flat fee of 0.5% to 1.5% per transaction, with no monthly minimums. For a business processing S$10,000 monthly across 200 transactions, Stripe fees would be around S$440, while PayNow fees could be as low as S$50 to S$150, making PayNow significantly cheaper for high-volume local sales.

Integration ease for local websites

Stripe offers a popular plugin for WooCommerce, Shopify, and custom HTML sites, with a one-click setup and a well-documented API. PayNow, however, requires a separate payment gateway provider (e.g., HitPay, PayMaya, or Xero) that integrates with your e-commerce platform. For local web developers, Stripe’s native integration is quicker to deploy, while PayNow often demands additional configuration with bank APIs or third-party SDKs. HitPay’s PayNow plugin eases this but still adds an extra layer compared to Stripe’s out-of-box solution.

Local payment method support differences

Stripe fully supports PayNow as a payment method in Singapore, allowing customers to pay via their banking app without a card. However, Stripe also processes international cards, GrabPay, and FPX, giving broader reach. PayNow alone only handles instant bank transfers within Singapore, which limits sales to local customers. For a local web store targeting only Singapore residents, PayNow’s simplicity and zero interchange fees are ideal. For stores with occasional international buyers, Stripe’s multi-method support is essential to capture sales without friction.

Settlement speed and currency handling

PayNow settlements are near-instant – funds arrive in your bank account within seconds, directly from the customer’s bank. Stripe settlements follow a T+1 schedule, meaning funds from card payments clear the next business day, though PayNow transactions via Stripe settle instantly. For currency, PayNow only supports SGD, while Stripe handles over 135 currencies and auto-converts to SGD with a 1.5% currency conversion fee. Local businesses with no foreign revenue benefit from PayNow’s speed, but those accepting payments in USD or other currencies must use Stripe.

Best use cases for each gateway

Stripe is the superior choice for web stores that need to accept international customers, offer subscription billing, or require recurring payment tokens. PayNow excels for local merchants selling low-margin goods (e.g., grocery delivery, Hawker food, digital services) where every cent counts, and where instant cash flow matters more than global reach. A hybrid approach using both – Stripe for cards and PayNow for local bank transfers – is common among savvy local e-commerce operators, achieving both low fees and broad acceptance.