Stripe vs PayPal on sustainability

When selecting a payment provider, there are a number of factors you will want to consider when making a choice: fees, user experience, security, reviews, reputation etc. However, there is another point we believe should be considered, and that is sustainability.

This is part of our decision-making when we make recommendations to clients, so we wanted to set it out here to help others who may be looking for more information on the topic.

Stripe

When comparing Stripe and PayPal in terms of sustainability, Stripe stands out for us with its focused and proactive approach to climate action. Through its initiative, Stripe Climate, the company is actively supporting the development of carbon removal technologies. Rather than relying solely on traditional carbon offsets, Stripe channels funding into early-stage startups working on permanent carbon capture methods such as direct air capture, enhanced weathering, and bio-oil sequestration. Furthermore, Stripe allows businesses using its platform to automatically contribute a portion of their revenue to these efforts.

Stripe also regularly publishes detailed reports about the projects it funds, including specific suppliers, methods, and expected long-term impacts.

PayPal

PayPal appears to take a broader Environmental, Social, and Governance (ESG) approach, with climate action a part of their wider commitment to responsible business.

In its latest Global Impact Report, PayPal outlines a commitment to reach net-zero emissions by 2040. As of 2023, it reported that it was sourcing more than 90% of its electricity from renewable sources for its data centres. Its strategy leans on traditional sustainability efforts like offsets, energy efficiency, and renewable procurement, rather than investing in carbon removal.

While PayPal’s reporting is comprehensive, it is less detailed than Stripe’s when it comes to the specifics of individual climate projects. Furthermore, there’s currently no direct mechanism for PayPal merchants or developers to contribute to climate action through the platform.

In summary

Stripe is purposefully aligned with climate innovation, investing in permanent carbon removal and offering tools for users to contribute. PayPal has strong ESG credentials and has made significant progress in renewable energy and net-zero commitments, but with a more conventional and less participatory model.

We believe that Stripe is showing leadership in this space, going beyond simple commitments and instead focusing on innovation.