Why We Chose Stripe Over PayPal

To simplify a complex topic, choosing a payment processor basically comes down to a choice between Stripe and PayPal.

Choosing a payment processor isn’t easy. There are no perfect options. We need a service that can move money globally while supporting a complex, functional marketplace. When we first started Subvert, most of the feedback we heard was frustration with PayPal - that it was prone to scams and lacked flexibility.

As a small team trying to ship a functioning platform, we couldn't afford to build for both. We had to choose. After extensive research, we chose Stripe. Here's why.

Why Stripe

Stripe is built for platforms like ours. Its infrastructure gives us the ability to create sophisticated automated splits - programmatically distributing payments between artists, collaborators, and labels in real time. This is something our members have been asking for from day one, and it's simply not possible with PayPal. The backend reporting is also significantly better.

On fees: yes, Stripe's cut hurts more on a $1.00 digital track. But Subvert is evolving into a full marketplace - physical media, merch, bundles. On a vinyl or a larger merch order, Stripe's cost structure is the better deal.

On global reach: Stripe's geographic limitations are frequently overstated. Every payment processor has some restrictions, often tied to international sanctions. Unfortunately, there are regions blocked by both Stripe and PayPal. This isn't a Stripe-specific problem.

And critically: Stripe negotiates. There's a documented history of Stripe reducing fees with platforms once they hit scale. PayPal doesn't offer the same openness. We believe that as a cooperative, we can bargain our fees down significantly as Subvert grows.

Addressing the trade-offs

We know some in our community have strong feelings about this. Often, the preference for PayPal comes down to Stripe's stricter tax reporting requirements. We understand the desire for privacy. But helping members work around standard reporting isn't something we're willing to build on. We're a cooperative. Integrity isn't optional.

If a globally-scaled cooperative alternative to Stripe existed today, we'd use it without hesitation. But we have to build the world we want using the infrastructure that actually exists. And for those citing PayPal as the ethical choice - it's worth remembering that PayPal was co-founded by Elon Musk and Peter Thiel.

This is not a permanent choice

We're not locked in forever. Down the line, the co-op could vote to build support for multiple payment processors. But that's a significant investment of time, money, and developer attention - and it would need to be collectively decided with full understanding of the trade-offs. For now, we're focused on getting Subvert into your hands. Stripe is the pragmatic choice that gets us there in regards to ensuring artists get paid.

A note on geographic limitations for Subvert's launch

Stripe Connect - the specific infrastructure that powers artist payouts in a marketplace like Subvert - is available in 120 countries at this time. This is simply where Stripe operates, and where we are compliantly able to send money, today. If you're an artist based in a country outside of Stripe's supported list, we won't be able to process your sales or pay you out at launch.

We want Subvert to be global, and not US-centric. This limitation matters to us.

What this means for you

If your country isn't on Stripe's supported list (see the full list at the bottom of this post), there are two paths forward.

The first: list your music on Subvert for free. Your page, your catalog, your profile - all of it can be live and discoverable. You just won't be able to transact until we have a payment solution that reaches you.

The second: wait. We're aware this isn't a permanent ceiling, and we're actively thinking about what a broader payments solution looks like in the future. We can't give you a timeline right now - as we won't make promises we can't keep - but expanding geographic access is something we take seriously and is firmly on our radar.

Sincerely Ours,