Pick / avoid summary (fast)
Skim these triggers to pick a default, then validate with the quick checks and constraints below.
- ✓ Payment facilitator model lets platforms earn 20-40 basis points per merchant transaction
- ✓ Full white-label solution - platform controls merchant onboarding and branding
- ✓ Revenue share improves platform unit economics vs Stripe Connect's flat per-merchant fee
- ✓ Slightly lower standard rate (2.89% + 29¢) compared to Stripe (2.9% + 30¢)
- ✓ Native PayPal and Venmo integration without separate contracts
- ✓ Discounted charity pricing (2.19% + 29¢) for verified 501(c)(3) organizations
- × Requires significant commitment - platform must be registered PayFac (regulatory burden)
- × Minimum revenue requirements - typically need $100M+ GMV or 500+ merchants
- × International cards add 1% surcharge (same pain as Stripe)
- × Non-USD currency adds another 1% on top
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The trade-offOwning payments economics vs minimizing compliance/ops burden
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Validate byyour platform take-rate goals, risk tolerance, and whether payments margin is strategic
At-a-glance comparison
Finix
Finix is payment infrastructure enabling software platforms to become payment facilitators (PayFacs) and own payment economics. Captures merchant payment revenue share vs paying Stripe Connect fees.
- ✓ Payment facilitator model lets platforms earn 20-40 basis points per merchant transaction
- ✓ Full white-label solution - platform controls merchant onboarding and branding
- ✓ Revenue share improves platform unit economics vs Stripe Connect's flat per-merchant fee
Braintree
Braintree is PayPal's end-to-end payment platform designed for growth, offering card processing, PayPal/Venmo integration, ACH payments, and fraud tools. Uniquely positioned to leverage PayPal's ecosystem while offering standalone payment processing.
- ✓ Slightly lower standard rate (2.89% + 29¢) compared to Stripe (2.9% + 30¢)
- ✓ Native PayPal and Venmo integration without separate contracts
- ✓ Discounted charity pricing (2.19% + 29¢) for verified 501(c)(3) organizations
What breaks first (decision checks)
These checks reflect the common constraints that decide between Finix and Braintree in this category.
If you only read one section, read this — these are the checks that force redesigns or budget surprises.
- Real trade-off: Becoming a PayFac to own payment economics and onboarding vs using a gateway/processor to ship payments quickly with lower compliance burden
- Developer Experience vs Simplicity: Assess internal technical capabilities and API integration requirements
- Transparent Pricing vs Cost Variability: Analyze transaction mix (card types, international %, currency conversions)
Implementation gotchas
These are the practical downsides teams tend to discover during setup, rollout, or scaling.
Where Finix surprises teams
- Requires significant commitment - platform must be registered PayFac (regulatory burden)
- Minimum revenue requirements - typically need $100M+ GMV or 500+ merchants
- Platform assumes merchant risk and chargeback liability (Stripe Connect doesn't)
Where Braintree surprises teams
- International cards add 1% surcharge (same pain as Stripe)
- Non-USD currency adds another 1% on top
- Chargebacks cost $15 each with no refund on transaction fees
Pros and cons
Finix
Pros
- + Payment facilitator model lets platforms earn 20-40 basis points per merchant transaction
- + Full white-label solution - platform controls merchant onboarding and branding
- + Revenue share improves platform unit economics vs Stripe Connect's flat per-merchant fee
- + Direct sponsor bank relationships reduce dependency on third-party processors
- + Merchant underwriting and risk management tools included in platform
Cons
- − Requires significant commitment - platform must be registered PayFac (regulatory burden)
- − Minimum revenue requirements - typically need $100M+ GMV or 500+ merchants
- − Platform assumes merchant risk and chargeback liability (Stripe Connect doesn't)
- − Setup complexity high - 6-12 month implementation vs Stripe Connect's weeks
- − Monthly platform fees ($2,000-$5,000) before merchant volume considered
- − Smaller payment coverage than Stripe - fewer alternative payment methods
- − Developer experience less polished than Stripe's documentation and SDKs
- − Platform responsible for compliance (PCI, KYC, AML) - operational overhead
Braintree
Pros
- + Slightly lower standard rate (2.89% + 29¢) compared to Stripe (2.9% + 30¢)
- + Native PayPal and Venmo integration without separate contracts
- + Discounted charity pricing (2.19% + 29¢) for verified 501(c)(3) organizations
- + ACH Direct Debit capped at $5 per transaction (better for large payments)
- + American Express pass-through option ($0.15 flat) for existing AmEx merchants
Cons
- − International cards add 1% surcharge (same pain as Stripe)
- − Non-USD currency adds another 1% on top
- − Chargebacks cost $15 each with no refund on transaction fees
- − ACH returns and disputes add $5 per occurrence
- − Chargeback Protection Tools add 0.4%-0.6% per transaction
- − Venmo limited to US market only
- − Charity pricing requires verification and pre-approval
- − Custom pricing only for 'established businesses' - startups pay full rate
Keep exploring this category
If you’re close to a decision, the fastest next step is to read 1–2 more head-to-head briefs, then confirm pricing limits in the product detail pages.
FAQ
How do you choose between Finix and Braintree?
Pick Finix when you’re a software platform that wants to become (or migrate toward) a payment facilitator model and capture more of the payment margin, with the operational responsibilities that come with it. Pick Braintree when you want to process payments as a capability (not a business line) and you value speed-to-market and simpler compliance. The real decision is whether you’re building a payments business or enabling payments.
When should you pick Finix?
Pick Finix when: Payment facilitator model lets platforms earn 20-40 basis points per merchant transaction; Full white-label solution - platform controls merchant onboarding and branding; Revenue share improves platform unit economics vs Stripe Connect's flat per-merchant fee; Direct sponsor bank relationships reduce dependency on third-party processors.
When should you pick Braintree?
Pick Braintree when: Slightly lower standard rate (2.89% + 29¢) compared to Stripe (2.9% + 30¢); Native PayPal and Venmo integration without separate contracts; Discounted charity pricing (2.19% + 29¢) for verified 501(c)(3) organizations; ACH Direct Debit capped at $5 per transaction (better for large payments).
What’s the real trade-off between Finix and Braintree?
Becoming a PayFac to own payment economics and onboarding vs using a gateway/processor to ship payments quickly with lower compliance burden
What’s the most common mistake buyers make in this comparison?
Going PayFac too early (underestimating compliance, underwriting, and support), or staying on a gateway when payments are strategic to unit economics
What’s the fastest elimination rule?
Pick Finix if: You need PayFac economics (monetize payments) and can support onboarding, underwriting, and risk operations
What breaks first with Finix?
Merchant growth slower than projected - fixed monthly fees erode margins. Chargeback rates spike - platform absorbs losses Stripe Connect would shield. Compliance burden (PCI, KYC, AML) exceeds internal operational capacity.
What are the hidden constraints of Finix?
Monthly platform fee ($2,000-$5,000) fixed cost before merchant volume revenue. PayFac registration costs $50K-$150K in legal, compliance, and setup fees. Platform liable for merchant chargebacks - reserve requirements can lock up capital.
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Sources & verification
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