Neither if possible - OUTSIDE. From day one. Provided you have a contained outside space where no strange dogs can get onto, and as far as you know there has been no Parvo. in your house/garden, then there's no reason not to start as you mean to go on. He's probably use to going on newspaper with his breeder in any case, so you could move the newspaper closer and closer to the outside door, but if this was my puppy, I'd get him outside - every hour during the daytime, when he's awake, and at least once during the night for now. He shouldn't be needing to go out every 2 hours during the night - he should be sleeping much as he probably can't hold all night at first.
No Puppy Pads!! This only teaches a puppy that it's fine to mess indoors, and eventually you will have to train him, again, to go where he should be going. The only good about pee pads, is to provide income and jobs for the manufacturers.