5 Ways to Accept Payments on WooCommerce: The Ultimate US Market Comparison 2025
Choosing the right payment gateway is critical for your WooCommerce store’s success. It directly impacts your conversion rate, administrative complexity, and compliance requirements.
This guide compares five widely used payment methods on WooCommerce — WooPayments, Stripe, PayPal, Mollie und Lemon Squeezy (for digital products via Merchant-of-Record). You’ll find a practical pros/cons breakdown and a side-by-side comparison table to help you decide.
Table of Contents
- WooPayments (by WooCommerce)
- Stripe (WooCommerce Stripe Payment Gateway)
- PayPal Payments (Official)
- Mollie Payments for WooCommerce (EU Focus)
- Lemon Squeezy (Merchant-of-Record for Digital Products)
- Payment Gateways Side-by-Side Comparison (2025)
1. WooPayments (by WooCommerce)
WooPayments is WooCommerce’s first-party solution that lets you accept cards and popular local methods, track payouts, and manage disputes directly inside your WooCommerce dashboard. It’s built and supported by the Woo team for the tightest possible integration.
Key Notes (2025)
- Single Back Office: Manage payments, refunds, and payouts all from your Woo Admin.
- Security & Fraud: Built-in fraud tools; PCI compliance handled by the provider.
- Region Focus: Availability and fees vary by region (mainly US, Canada, UK, Australia, etc.).
Pros
- Tightest WooCommerce integration; fewer moving parts.
- Refunds, disputes, payouts all within Woo; less tool switching.
- Solid fraud/PCI posture via provider.
Cons
- Availability depends on country; confirm US support and fees first.
- Fee structure may shift (e.g., VAT handling updates in 2025).
Best if: You want an all-in-Woo dashboard and straightforward setup without juggling multiple plugins.
2. Stripe (WooCommerce Stripe Payment Gateway)
The official Stripe gateway plugin for WooCommerce supports Stripe’s enhanced checkout with over 20 payment methods (cards, wallets, BNPL, Link accelerated checkout) and mid-2025 updates around optimized checkout flow.
Why Stripe is the Developer’s Choice
Stripe is globally recognized for its developer focus and wide payment method coverage. It’s often considered the global standard for businesses scaling internationally or offering alternative methods like BNPL.
Key Features and 2025 Updates
- Enhanced checkout supports 20+ methods including BNPL and Link.
- Migration guidance available for modern checkout mid-2025.
Best if: You want a single, developer-friendly processor with wide international and alternative payment coverage.
3. PayPal Payments (Official)
The official WooCommerce PayPal Payments extension bundles PayPal Checkout, Pay Later, Venmo (US), advanced card processing, vaulting (saved methods), and local methods in one integration.
The Power of the PayPal Brand
PayPal’s global brand recognition builds instant trust. Express Buttons on product and cart pages can drastically reduce checkout friction and improve conversions. Venmo and Pay Later options are strong conversion boosters in the US.
Key Functionality
- Supports PayPal, Pay Later, Venmo (US), cards, and local options.
- Includes fraud protection, PCI/PSD2/3DS compliance, and express buttons.
- Vaulting for saved payment methods.
Best if: You prioritize PayPal brand trust, one-click checkout, and Pay Later options.
4. Mollie Payments for WooCommerce (EU Focus)
Mollie’s WooCommerce plugin is focused on Europe, offering local payment methods like iDEAL, SEPA Direct Debit, Bancontact, Klarna, plus Apple Pay, credit cards, and recurring payments with Woo Subscriptions.
A Note for US Sellers
Mollie is perfect for US sellers targeting the EU market, but less ideal for domestic-only US sales. Its strength lies in providing trusted, region-specific EU payment options.
Features
- Strong EU coverage: iDEAL, SEPA, Bancontact, Klarna, etc.
- Full Woo Subscriptions support.
- No startup or monthly fees (only transaction fees).
Best if: You sell primarily to Europe and need to accept iDEAL, SEPA, Klarna, or Bancontact alongside cards and subscriptions.
5. Lemon Squeezy (Merchant-of-Record for Digital Products)
Lemon Squeezy is a Merchant of Record (MoR) — meaning they sell on your behalf and handle all global tax compliance (VAT/GST/sales tax), refunds, chargebacks, and PCI duties. It’s ideal for digital products, software licenses, and subscriptions.
What Does Merchant-of-Record Mean for US Sellers?
For US businesses selling digital goods globally, a MoR removes the massive burden of registering, calculating, collecting, and remitting taxes in every country or US state. It’s a major compliance simplification.
Integration with WordPress/WooCommerce
Lemon Squeezy offers WordPress integrations and embeddable checkouts. You can sell digital goods via their hosted checkout while keeping your own site front end.
Pros
- Handles all global taxes, refunds, chargebacks, and PCI compliance.
- Perfect for digital products, licenses, and subscriptions.
Cons
- Not a traditional on-site Woo gateway; checkout may be external.
- Accounting flows differ (since LS is the seller of record).
- Combining digital + physical products adds complexity.
Best if: You sell digital products globally and want to outsource all tax compliance.
Payment Gateways Side-by-Side Comparison (2025)
| Feature | WooPayments | Stripe | PayPal Payments | Mollie | Lemon Squeezy (MoR) |
|---|---|---|---|---|---|
| Integration Depth with Woo | Extremely High (Native) | High (Official Plugin) | Medium–High (Official Plugin) | High (EU Focus) | Low (External Checkout) |
| Core Focus | All-in-One Woo Experience | Global Flexibility & Scaling | Brand Trust & Express Checkout | EU Local Methods | Global Digital Tax Compliance |
| Sales Tax/VAT Handling | Merchant Responsible (note 2025 changes) | Merchant Responsible | Merchant Responsible | Merchant Responsible | Handled by MoR |
| Supported Methods (US) | Cards, Local Methods | Cards, Wallets, BNPL, 20+ Global Methods | PayPal, Venmo (US), Pay Later, Cards | Cards, Apple Pay, EU Methods | Cards, PayPal, Wallets (via MoR) |
| Payout/Refund Location | Woo Dashboard | Stripe Dashboard | PayPal/Woo Admin | Mollie Dashboard | Lemon Squeezy Dashboard |
| Ideal For | Woo Purists, Easy Admin | Global Sellers, Dev Teams | Conversion via Brand Trust | EU-Focused Sellers | Digital Product Sellers |
Disclaimer: Fee structures vary by region and payment method and are subject to change. Always verify current pricing and availability directly with the respective providers.
