What is Stripe? 2025 features, pricing, & how it works

Stripe has become a dominant force in online payment processing, trusted by millions of businesses worldwide for its versatility and ease of use. But while Stripe remains a popular choice, the landscape of online payments is constantly evolving. 

Newer platforms, such as Orb, are emerging to offer innovative solutions tailored to SaaS and GenAI businesses that specifically need usage-based billing and dynamic pricing models.

In this article, we'll explore:

• What Stripe is and how it works
• Stripe's features, pricing, and security measures
• A comparison between Stripe and Orb, highlighting the strengths of each platform

Let’s get started by explaining what Stripe is in simple terms.

What is Stripe?

Stripe is a cloud-based software platform that facilitates online payment processing for businesses of all sizes. It acts as an intermediary, securely transmitting customer payment information to the appropriate financial institutions. 

Why is Stripe so popular among developers?

Stripe's reputation as a developer-friendly platform stems from its powerful APIs, which allow businesses to create custom payment solutions tailored to their specific needs. 

The Stripe payment platform supports a wide range of payment methods, from major credit and debit cards to digital wallets and "buy now, pay later" services. This breadth of options makes it easier for businesses to accept payments from customers around the globe. 

Stripe software also offers a suite of additional services, including invoicing, recurring billing, and fraud prevention tools, all accessible through an intuitive dashboard. 

Is Stripe payment safe? 

Stripe prioritizes security, employing encryption and adhering to industry standards like the Payment Card Industry Data Security Standards (PCI DSS) Level 1 certification to protect sensitive financial data. This certification requires annual compliance reports, routine security scans, and tests, demonstrating Stripe's commitment to maintaining a secure environment for transactions.

Introducing Orb: Stripe’s top alternative

While Stripe is a popular choice, other platforms are emerging to address specific billing needs. 

Orb, for example, is gaining traction, particularly for businesses with usage-based pricing models. Unlike Stripe, which was originally designed for simpler subscription models, Orb is built from the ground up to handle the complexities of usage-based billing. 

Orb's architecture allows for high-volume data ingestion, flexible pricing adjustments, and real-time usage visibility — features that are critical for businesses with dynamic pricing strategies. 

What’s more, Orb allows companies to experiment with pricing, fine-tune their monetization strategy, and drive growth without the constraints of rigid billing systems. It decouples usage data from pricing metrics, allowing businesses to easily adapt to changing market conditions and customer needs.

Note: We’ll get into the nitty gritty of the differences between Orb vs. Stripe in a later section, so keep reading to learn more. 

How does Stripe work?

This section breaks down how Stripe functions. We’ll be covering both its payment processing capabilities and its appeal to developers. Let’s get started with Stripe’s payment processing.

Payment processing overview

Stripe acts as the bridge between a firm and its customers' chosen payment methods. When a customer makes a purchase, whether online or in person, their payment information is entered securely into Stripe's system. 

Stripe then encrypts this data and transmits it to the appropriate financial institutions for authorization. This process happens behind the scenes, allowing businesses to focus on their core operations. Stripe handles a variety of payment types, including:  

• Credit and debit cards: Stripe supports all major card networks (Visa, Mastercard, American Express, Discover, etc.), processing transactions quickly and securely.  
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• ACH transfers: For businesses that accept bank transfers, Stripe facilitates Automated Clearing House (ACH) transactions, allowing for direct debiting and crediting of bank accounts.  
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• Digital wallets: Recognizing the growing popularity of digital wallets, Stripe integrates with services like Apple Pay and Google Pay, enabling customers to pay with their preferred mobile devices.  

One of Stripe's strengths is its ability to support global commerce. Businesses can accept payments in multiple currencies, expanding their reach to international customers. 

Stripe handles the currency conversion, simplifying the process for businesses and ensuring smooth transactions for customers, no matter where they are located. This global reach is a key part of what Stripe is and its appeal to businesses of all sizes.  

A developer-centric platform

Stripe has always prioritized developers, providing them with the tools they need to build custom payment solutions. Its APIs are well-documented and easy to integrate, giving developers a high degree of control over the payment experience. 

This focus on developers has made Stripe a popular choice for businesses that want to create a unique and seamless checkout process. Stripe's tools allow for customization of everything from the look and feel of the payment page to the underlying logic of how transactions are processed.  

A brief comparison between Orb and Stripe

Stripe excels in providing customization options for traditional billing models, but the landscape of online commerce is evolving. Businesses are increasingly adopting more complex pricing structures, such as usage-based and hybrid models. 

For these advanced billing needs, platforms like Orb offer greater agility. 

Orb is designed to handle the intricacies of usage-based billing, providing the flexibility and scalability that modern businesses require. While Stripe might require workarounds or custom coding for such models, Orb simplifies the process with its purpose-built platform.

Features and benefits of Stripe

We’ll now explore the features and benefits of Stripe, demonstrating how it helps businesses manage their finances effectively. Let’s zoom in on their payment options first.

Varied payment options 

Stripe offers a wide array of payment options, allowing businesses to cater to their customers' preferences. This breadth of support is a key part of what Stripe is and what led to its widespread adoption. 

Stripe facilitates transactions in multiple currencies, enabling businesses to expand their reach globally. Customers can pay using all major credit and debit cards, providing a familiar and convenient experience. 

Furthermore, Stripe integrates with popular digital wallets like Apple Pay and Google Pay, recognizing the growing trend of mobile payments. This commitment to supporting various payment methods ensures that businesses can accept payments from a broad customer base.

Beyond these common methods, Stripe also accommodates other payment types, making sure that businesses can adapt to evolving customer needs and regional preferences. Let’s take a closer look:

• Global commerce enabled: Accept payments in a multitude of currencies, breaking down international barriers and expanding your market.
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• Comprehensive card support: Seamlessly process transactions from all major credit and debit card networks, including Visa, Mastercard, American Express, and Discover.
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• Modern mobile payments: Integrate with leading digital wallets like Apple Pay and Google Pay to capture the growing segment of mobile-first customers.
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• Adaptable payment solutions: Support a range of additional payment methods beyond cards and wallets, ensuring you can meet diverse customer preferences and regional payment norms.

Subscription management 

For firms with subscription-based models, Stripe offers a recurring billing solution. This system automates the process of charging customers on a regular schedule, whether it's monthly, quarterly, or annually. 

Stripe's subscription management tools allow businesses to easily create and manage subscription plans, track customer subscriptions, and handle cancellations or upgrades. 

This functionality simplifies the complexities of recurring billing, freeing businesses to focus on other aspects of their operations. Stripe provides tools to manage:

• Flexible subscription plans: Create tiered pricing structures, offer introductory discounts, and customize subscription terms to fit your business model.
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• Automated recurring billing: Set up recurring charges effortlessly, eliminating manual invoicing and ensuring consistent revenue streams.
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• Frictionless customer management: Track subscriber status, payment history, and manage cancellations or upgrades with ease.
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• Automated invoicing and receipts: Generate professional invoices and send automated receipts, saving time and improving the customer experience.

Subscription management: Orb vs. Stripe

Stripe provides a solid foundation for subscription management. However, businesses with more intricate billing needs may consider alternative platforms. 

Orb, for instance, is designed to handle more complex billing models, including usage-based and event-driven billing, offering greater adaptability for businesses with dynamic pricing strategies. Orb's capabilities include:

• Usage-based billing: Charge customers based on their actual consumption of your product or service, aligning revenue with value.
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• Event-driven billing: Trigger charges based on specific customer actions or milestones, providing granular control over your revenue model.
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• Hybrid billing models: Combine subscription, usage-based, and other pricing models to create unique offerings that cater to diverse customer segments.

Integration and customization: Orb vs. Stripe

Both Stripe and Orb offer robust integration capabilities, but they cater to different business requirements and technical proficiencies. 

Stripe is renowned for its developer-friendly approach, providing extensive APIs that allow businesses to build custom payment solutions from the ground up. Key aspects include:

• Detailed API documentation: Developers have access to detailed guides and references, facilitating the integration process and enabling the development of tailored solutions.
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• Customizable checkout: Businesses can design their checkout flows to align with their brand identity, ensuring a cohesive customer experience.
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• Extensive plugin support: Stripe offers a wide range of pre-built plugins and extensions, simplifying integration with popular e-commerce platforms and content management systems.

Orb is designed specifically for SaaS and GenAI companies, and it simplifies the implementation of complex billing models by not requiring engineering resources. Its integration features are tailored to meet the unique needs of usage-based businesses. Highlights include:

• User-friendly interface: Orb provides an intuitive dashboard that allows non-technical users to manage billing configurations, dig into customer usage, and understand invoices, reducing reliance on development teams.
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• Payment gateway integration: Orb integrates with payment gateways like Stripe to process payments, map customers, and automatically pull payment information to streamline operations.
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• Flexible pricing models: Businesses can easily implement various pricing strategies, such as usage-based or tiered plans, without the need for custom development.

Advanced reporting and analytics 

Stripe provides businesses with real-time insights into their financial data through the Stripe dashboard. This centralized hub offers a clear overview of transactions, payments, and revenue, enabling businesses to track their performance and make informed decisions. 

The reporting tools offer detailed breakdowns of sales data, allowing businesses to identify trends, understand customer behavior, and optimize their revenue strategies. Stripe's reporting features include:

• Real-time performance monitoring: Gain instant access to key financial metrics, including sales, payments, refunds, and more, all within a user-friendly dashboard.
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• In-depth sales analytics: Dive deep into your sales data with detailed reports that reveal trends, identify top-performing products, and highlight areas for improvement.
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• Customer behavior insights: Understand how your customers interact with your business, from payment preferences to purchase patterns, enabling targeted marketing and product development.
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• Customizable reporting: Generate custom reports tailored to your specific needs, allowing you to track the metrics that matter most to your business.

Reporting and analytics: Orb vs. Stripe

Stripe's reporting capabilities are substantial, but platforms like Orb focus heavily on providing transparent, real-time revenue data specifically designed for SaaS and GenAI businesses. 

Orb's reporting and analytics tools offer granular insights into usage and billing data, empowering businesses to make data-driven decisions and drive growth. Orb's analytics include:

• Real-time revenue visibility: Stay on top of your revenue performance with up-to-the-minute data, enabling proactive decision-making.
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• Granular usage and billing data: Gain detailed insights into customer usage patterns and billing information, empowering you to optimize pricing and improve customer retention.
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• Data-driven growth strategies: Leverage Orb's powerful analytics to identify growth opportunities, refine your monetization strategy, and drive revenue.

Stripe pricing

Understanding Stripe's pricing structure is crucial for businesses evaluating this platform. This section breaks down the costs associated with Stripe, including its standard fees, additional charges for optional services, and a comparison with Orb's pricing model. Let’s dive into it.

Standard pricing

Stripe's standard pricing model is based on a pay-as-you-go structure, meaning businesses only incur costs when they process transactions. For domestic card transactions, the standard fee is 2.9% + $0.30 per transaction. 

This straightforward pricing makes it easy for businesses to predict costs and manage their budgets. However, it's important to note that additional fees may apply for certain types of transactions or services. These include:  

• International payments: Processing payments from international cards typically incur an extra fee, reflecting the added complexity of cross-border transactions.  
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• Currency conversion: If your business accepts payments in multiple currencies, Stripe may charge a fee for converting funds into your preferred currency.  
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• Advanced features: Certain advanced features, such as recurring billing or fraud prevention tools, may have associated costs. These costs are typically transparent and outlined in Stripe's documentation.  

Additional fees

Beyond the standard transaction fees, Stripe offers optional add-ons that provide additional functionality. These add-ons come with their own pricing structures, allowing businesses to tailor their Stripe experience to their specific needs. Some of the optional add-ons include:

• Stripe Billing: This service simplifies recurring billing and subscription management, automating the process of charging customers on a regular basis. Stripe Billing uses a usage-based pricing model, where the fee is 0.7% of the billing volume. 
  
  This means you are charged based on the total value of the recurring transactions processed through the system. This pricing model offers greater flexibility and scalability, especially for businesses with high transaction volumes or fluctuating revenue.

• Stripe Connect: For platforms or marketplaces that facilitate payments between multiple parties, Stripe Connect provides a streamlined solution for managing these transactions. Connect offers a flexible pay-as-you-go pricing structure with two main options:‍

• Stripe handles pricing: In this model, Stripe manages the pricing for your users, charging a flat fee per transaction plus a percentage of the transaction volume. This option simplifies things for platforms, as Stripe handles all the complexities of pricing and billing. Platforms can also qualify to earn a revenue share from Stripe in this model.

• You handle pricing: This model gives platforms more control over pricing, allowing them to set their own fees for connected accounts. 
  
  The pricing for this model is as follows: $2 per monthly active account, which applies to each account that has payouts sent to its bank account or debit card within a given month. Then there’s 0.25% + $0.25 per payout sent, which applies to each individual payout sent to a connected account.

• Stripe Radar: This advanced fraud prevention tool leverages AI to identify and block suspicious activity, protecting businesses from chargebacks and revenue loss. Radar offers two main pricing tiers:

• Radar's machine learning: This is included for free with all Stripe accounts and offers basic fraud prevention tools. It charges $0.05 per screened transaction.
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• Radar for fraud teams: This advanced version is for businesses needing more control and customization. It costs $0.07 per screened transaction or $0.02 for accounts with standard pricing.

It's important to consult Stripe's official documentation for the most up-to-date pricing information on these optional services, as fees can vary based on factors like transaction volume, business type, and specific features used.

Comparing Stripe pricing with Orb

Stripe's pricing model is straightforward and predictable. The issue is it may not be the most suitable option for all businesses. Orb, a platform gaining traction in the SaaS and GenAI space, offers a different approach to pricing. 

Orb's pricing focuses on usage-based models and transparent fee structures, making it more appealing to companies with complex billing needs. Orb's pricing structure is designed to align with the way SaaS and GenAI businesses operate, charging based on actual usage.

This approach can be more cost-effective for businesses with high transaction volumes or those that rely on usage-based pricing models. Orb's emphasis on transparency confirms that businesses have a clear understanding of their billing costs.

Stripe vs. Orb

While both Stripe and Orb offer powerful billing solutions, they cater to different needs and business models. This section provides a clear comparison to help you determine which platform is the best fit for your specific needs. Let’s get started with the first point.

Use cases

• Stripe: Stripe is a versatile payment gateway that excels in handling straightforward payment needs. It's a great choice for businesses focused on e-commerce, retail, and traditional subscription models. 
  
  If your primary need is to accept payments online and manage basic recurring billing, Stripe's robust features and ease of use make it a compelling option.

• Orb: Orb is purpose-built for businesses with more complex billing requirements, particularly those operating in SaaS and GenAI. If your business utilizes dynamic pricing models, such as usage-based, tiered, or hybrid billing, Orb offers the specialized tools and flexibility you need. ‍
  
  Orb's focus on granular usage tracking, real-time data analysis, and flexible pricing configurations makes it ideal for SaaS and GenAI companies looking to optimize their revenue strategies.

Customization and flexibility

• Stripe: Stripe is highly customizable, offering developer-focused APIs that allow for deep integration with your existing systems. 
  
  This level of customization allows developers to tailor the payment experience to your specific needs, whether it's creating a unique checkout flow or integrating with third-party applications. Stripe also offers Stripe Sigma, a SQL interface as well as prebuilt UI components. 

• Orb: Orb offers a different kind of flexibility, one specifically designed for SaaS and GenAI businesses. It provides built-in support for complex billing models, eliminating the need for custom development. 
  
  Orb's intuitive interface and tools like the Orb SQL Editor enable business users to manage pricing and billing without relying on engineering resources.

Billing models

• Stripe: Stripe offers robust support for recurring billing and one-time payments, making it suitable for businesses with traditional subscription models or those that primarily process individual transactions.
  
  Its features for managing subscriptions, automating invoices, and handling recurring payments are comprehensive and user-friendly.

• Orb: Orb goes beyond basic billing models, offering advanced capabilities specifically designed for the complexities of modern SaaS and GenAI pricing. It provides complete support for usage-based, event-driven, and hybrid billing models. 
  
  This advantage allows businesses to charge customers based on their consumption, specific actions, or a combination of factors. Orb's flexible billing engine adapts to your evolving needs, making sure you can monetize your products and services effectively.

Pros and cons of Stripe

Before committing to any payment processing platform, it's crucial to weigh its strengths and weaknesses against your specific business needs. We’ll now provide an in-depth look at the pros and cons of Stripe.

Pros of Stripe

• Integration: Stripe integrates effortlessly with a wide range of platforms, including popular e-commerce platforms, website builders, and customer relationship management (CRM) systems. This extensive compatibility simplifies the setup process and ensures that Stripe can fit into your existing tech stack.
  
  
• Transparent pricing: Stripe's pricing for basic transactions is clear and predictable. You'll typically pay a standard fee of 2.9% + $0.30 per transaction for domestic cards, with transparent pricing for international payments and currency conversion.
  
  
• Scalability: Stripe is designed to accommodate businesses of all sizes, from startups to large enterprises. Its infrastructure can handle high transaction volumes and offers features that cater to the needs of growing businesses.

Cons of Stripe

• Limited support for complex billing models: While Stripe excels in handling basic transactions and recurring subscriptions, it may not be the ideal choice for businesses with more complex billing needs. If your business relies on usage-based, tiered, or event-driven billing models, you’ll find Stripe's capabilities limited.
  
  
• International transaction fees: While Stripe supports international payments, the associated fees can accumulate, especially for businesses with a significant portion of their customer base located overseas.
  
  
• Complex setup for non-developers: While Stripe offers extensive documentation and support, setting up and customizing the platform can be challenging for those without a technical background. 

In contrast to some of Stripe's limitations, Orb offers greater flexibility in billing models, real-time revenue analytics, and usage-based pricing. These features cater specifically to the needs of SaaS and GenAI businesses with dynamic pricing models. 

Stripe alternatives

It can be tough to choose the right payment processing platform with so many options available. This chart compares Stripe to some of its main competitors.

Key takeaways:

• Orb: A strong contender for SaaS and GenAI businesses needing advanced billing models and real-time revenue analytics.
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• PayPal: A user-friendly option, but less suitable for businesses needing extensive customization or complex billing.
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• Square: Excels in in-person payments, but it may not be the best fit for online-focused businesses.

Beyond Stripe: Orb's unique advantages for SaaS businesses

While Stripe is a powerful and versatile payment platform, it's not always the perfect fit for every business. SaaS and GenAI companies, especially those with complex pricing models, require a more specialized solution. That's where Orb comes in as a top Stripe alternative.

Orb is a done-for-you billing platform. It’s designed specifically for the needs of SaaS and GenAI businesses. It helps you implement and manage refined pricing strategies, improve your revenue streams, and gain a deeper understanding of your customers' usage patterns.

Here's how Orb goes beyond the capabilities of Stripe:

• Effortless usage-based pricing: Orb makes it easy to track and measure any billable metric, whether it's API calls, monthly active users, storage, or custom events. Its unique raw event architecture ensures that events aren’t dropped — no matter the scale or complexity of the incoming event data. With intuitive tools and a high degree of accuracy, you can quickly implement usage-based pricing models that align your revenue with the value your users get.
  
  
• Tiered plans with granular control: Orb enables you to create tiered pricing plans with varying features and limits, catering to different customer segments and needs. This flexibility allows you to design a pricing strategy that boosts both user acquisition and revenue growth.
  
  
• Flexible pricing for every customer: Orb provides the tools to implement various pricing models, including per-user pricing, volume discounts, and flat subscriptions. This adaptability guarantees you can tailor your pricing to specific user preferences and evolve your pricing as customer needs or the market changes.
  
  
• Data-driven pricing decisions: Orb's robust reporting and analytics tools provide real-time insights into your revenue streams and customer usage patterns. This data helps you make informed decisions about your pricing strategy.
  
  
• Simplified billing operations: Orb automates key billing operations, such as invoicing, subscription management, and payment processing. It also integrates seamlessly with your existing technology stack.

Ready to take your billing to the next level? Explore Orb's flexible pricing options and discover how we can help you unlock your growth potential.