Selecting the right payment gateway for a Shopify store helps ensure smooth transactions, minimize fees, and provide a smooth user experience. More to that, the payment gateway for Shopify significantly impacts your store's profitability and customer satisfaction.
The tricky point is that there’s no one-size-fits-all best or right payment gateway solution; it depends on your business’s unique needs and goals, and what is a match for one store will be a no-go for the other. This post will walk you through the 10 best Shopify payment gateways, highlighting their features, advantages, and drawbacks.
Before we dive into the list, it's essential to understand the key concepts associated with payment processing on Shopify. Shopify offers a variety of payment methods and payment processors that can help streamline your sales process. Choosing the best payment provider for Shopify depends on several factors, including transaction fees, geographical availability, and integration with other apps and services.
1. Shopify Payments: The Default Payment Gateway
The first option for Shopify store owners is Shopify Payments, which is integrated directly into the platform. Shopify Payments is often regarded as the best payment provider for Shopify because it allows for seamless integration without the need for third-party apps.
Features:
No transaction fees for stores using Shopify Payments.
Easy setup and management from within your Shopify admin panel.
Direct integration with Shopify's dashboard for tracking payments, chargebacks, and orders.
Supports multiple currencies and is available in various countries.
Why Shopify Payments is the Best Payment Gateway for Shopify:
For merchants looking for simplicity and ease of use, Shopify Payments is the best payment processor for Shopify. Since it’s native to the platform, you don’t need to deal with complicated setups or multiple logins. Furthermore, Shopify offers competitive transaction fees and guarantees secure processing through its built-in fraud prevention tools.
However, Shopify Payments isn't available in all countries, so if you’re based outside of the supported regions, you may need to consider third-party payment providers for Shopify.
2. PayPal: A Trusted Payment Provider for Shopify
PayPal is one of the most popular payment methods for Shopify and is widely accepted by online shoppers. As a global leader in online payments, PayPal is a trusted and reliable option for Shopify store owners.
Features:
Widely recognized and used by millions of online shoppers worldwide.
Offers multiple payment options, including credit cards, bank accounts, and PayPal balances.
Buyers have the ability to use PayPal credit and debit cards, which can be a significant advantage for customers who prefer not to share their card details with merchants.
Easy integration with Shopify, requiring minimal setup.
Why PayPal is the Best Payment Processor for Shopify:
PayPal is known for its robust fraud protection and buyer and seller protections, making it a safe and trusted choice. It's particularly useful for international transactions as it supports multiple currencies and is available in over 200 countries. With PayPal Express Checkout, you can streamline the checkout process for your customers, making it one of the best payment options for Shopify.
While PayPal charges transaction fees, these fees are comparable to other third-party payment providers for Shopify, and its widespread use can increase your store's credibility and trustworthiness with customers.
3. Stripe: Powerful Payment Solutions for Shopify
Stripe is another top contender for the best Shopify payment gateway, offering powerful tools for merchants who need more than just basic payment processing. Stripe supports a wide range of payment methods and currencies, making it ideal for international businesses.
Features:
Supports credit and debit card payments, Apple Pay, Google Pay, ACH transfers, and more.
Advanced fraud detection and security features.
Offers custom payment solutions for businesses with unique needs.
Easy integration with Shopify for seamless transaction management.
Why Stripe is the Best Payment Gateway for Shopify:
Stripe is often hailed as one of the best payment processors for Shopify due to its flexibility and customization options. Whether you're a startup or an enterprise-level business, Stripe offers scalable solutions that can grow with your store. Additionally, its comprehensive developer tools and APIs make it the go-to choice for businesses with specific requirements.
One of Stripe’s significant advantages is its ability to support subscription payments and recurring billing, which makes it an excellent choice for businesses with subscription-based models.
4. Authorize.Net: A Veteran Payment Provider for Shopify
Authorize.Net has been around for more than two decades, making it a trusted name in online payment processing. This payment provider for Shopify is perfect for businesses that need a reliable and feature-rich payment gateway.
Features:
Supports credit card payments, eCheck, and digital payment methods.
Customizable checkout experience that can match your branding.
Secure customer information storage with tokenization for recurring payments.
Available in over 30 countries, making it ideal for international businesses.
Why Authorize.Net is the Best Payment Provider for Shopify:
If you’re looking for a payment gateway that has stood the test of time, Authorize.Net is a strong contender. Its long history in the industry and extensive features make it one of the best payment providers for Shopify. The gateway integrates easily with Shopify, and it provides robust reporting and analytics tools to help you monitor transactions, sales, and customer behavior.
While Authorize.Net’s fees are slightly higher than other options, the reliability and security it offers make it a worthwhile investment for many businesses.
5. Klarna: A Popular Payment Provider for Shopify
Klarna is an increasingly popular payment option for Shopify that allows customers to pay for their orders over time. This buy-now-pay-later service is particularly appealing to customers who prefer more flexible payment plans.
Features:
Offers a “pay later” or “installments” option for customers.
Simple integration with Shopify.
Encourages higher average order value by giving customers the flexibility to pay over time.
Available in over 14 countries, including the U.S., U.K., Germany, and Sweden.
Why Klarna is the Best Shopify Payment Provider:
As more shoppers prefer flexible payment options, Klarna has become one of the best payment methods for Shopify. By offering buy-now-pay-later services, Klarna encourages larger purchases and enhances the customer shopping experience. Klarna also takes on the risk of non-payment, so merchants don't have to worry about unpaid invoices.
6. Square: A Seamless Payment Processor for Shopify
Square is a well-known payment processor, especially for businesses that operate both online and offline. While it's commonly associated with point-of-sale systems, Square also offers an excellent payment solution for Shopify merchants.
Features:
Accepts payments via credit and debit cards, Apple Pay, Google Pay, and more.
Provides detailed analytics and reporting tools to track sales and customer data.
Allows for both in-person and online payment processing.
Free to sign up, with transparent and competitive pricing.
Why Square is the Best Payment Method for Shopify:
Square's integration with Shopify makes it easy to accept payments both in-person and online, which is perfect for businesses with brick-and-mortar stores. Square is particularly suited for merchants who want an all-in-one solution for payment processing, inventory management, and reporting.
With Square, merchants can also benefit from its competitive processing fees, making it one of the best Shopify payment options for small businesses.
7. Worldpay: A Global Payment Solution for Shopify
Worldpay is a global payment gateway known for its vast reach and international support. This is an excellent payment provider for Shopify if you plan to sell in multiple regions or countries.
Features:
Supports a wide range of payment methods, including credit and debit cards, Apple Pay, and digital wallets.
Available in over 40 countries and supports multiple currencies.
Offers strong security and fraud prevention measures.
Provides flexible pricing plans tailored to your business needs.
Why Worldpay is the Best Payment Processor for Shopify:
With its extensive global reach, Worldpay is one of the best Shopify payment providers for businesses looking to expand internationally. Its ability to process payments in multiple currencies and offer localized solutions makes it a perfect option for eCommerce stores targeting customers from different parts of the world.
8. Adyen: A Robust Payment Gateway for Shopify
Adyen is an enterprise-level payment gateway designed for large businesses. It offers a full suite of payment solutions, making it a powerful option for Shopify merchants who need more control over their payment processing.
Features:
Supports a wide variety of payment methods, including credit cards, debit cards, and mobile wallets.
Advanced fraud protection and security features.
Robust reporting and analytics tools.
Available in more than 20 countries.
Why Adyen is the Best Payment Provider for Shopify:
Adyen is an excellent option for enterprise-level merchants looking for a comprehensive payment gateway. It integrates seamlessly with Shopify and provides access to advanced tools for tracking payments, managing chargebacks, and improving conversion rates. Adyen is a strong contender for the best Shopify payment processor due to its global presence and extensive capabilities.
9. 2Checkout: A Payment Provider for Shopify with Global Reach
2Checkout (now known as Verifone) is a global payment solution that allows Shopify merchants to accept payments from customers worldwide.
Features:
Supports over 45 payment methods, including credit cards, PayPal, and local payment options.
Multi-currency support for businesses that operate internationally.
Recurring billing options for subscription-based businesses.
Integration with Shopify and other popular platforms.
Why 2Checkout is the Best Shopify Payment Gateway:
2Checkout is a great option for merchants who need to cater to international customers. Its ability to handle local payment methods and currencies makes it an attractive choice for Shopify merchants looking to expand globally.
10. Braintree: A Versatile Payment Provider for Shopify
Braintree, owned by PayPal, is a versatile payment gateway that offers a range of payment solutions for Shopify stores.
Features:
Supports credit cards, PayPal, Apple Pay, Google Pay, and more.
Customizable checkout experience for a smoother user experience.
Robust fraud protection and security features.
Available in over 40 countries.
Why Braintree is the Best Payment Processor for Shopify:
Braintree is ideal for merchants who want flexibility and scalability. Its integration with Shopify is seamless, and its wide range of supported payment methods makes it a great choice for businesses that want to offer multiple payment options to their customers.
Selecting the best Shopify payment provider depends on your specific business needs. For those looking for simplicity and ease of use, Shopify Payments is the best option. If you're looking for a more global reach, PayPal, Stripe, and Worldpay are great choices. On the other hand, if you want to offer flexible payment options to your customers, services like Klarna and Afterpay might be ideal.
Ultimately, the best payment method for Shopify is the one that aligns with your business goals, provides the best transaction rates, and offers the payment options your customers prefer. By considering the features and advantages of each payment gateway, you can make an informed decision on the best payment processor for Shopify that will help your business thrive.
Frequently Asked Questions
Yes, Shopify has its own built-in payment gateway called Shopify Payments. This payment gateway is the easiest to integrate with your Shopify store and allows you to accept credit card payments directly through the platform. Shopify Payments supports a range of payment methods, including credit cards, debit cards, and more, without the need for third-party providers. If Shopify Payments is available in your region, it's typically the recommended option for Shopify store owners.
Shopify Payments has no setup fees, monthly fees, or additional charges for using the payment gateway itself. However, Shopify does charge a transaction fee if you use a payment gateway other than Shopify Payments. The fees vary depending on your Shopify plan:
Basic Shopify: 2.9% + 30¢ per transaction.
Shopify: 2.6% + 30¢ per transaction.
Advanced Shopify: 2.4% + 30¢ per transaction.
These rates are for credit card payments in the U.S. Rates may vary by country and type of payment method. If you choose to use a third-party payment provider, Shopify charges an additional fee on top of what the third-party processor charges.
While Shopify Payments is the simplest payment gateway to use and offers many advantages, it does come with some drawbacks:
Availability: Shopify Payments is not available in all countries. If you operate outside of supported regions, you will need to use a third-party payment gateway.
Limited Payment Methods: Shopify Payments supports many common payment methods, but it doesn't support every payment processor or alternative payment method (e.g., PayPal or some digital wallets) unless integrated separately.
Transaction Fees: Although there are no additional fees for using Shopify Payments, if you decide to use a third-party provider, Shopify charges extra fees (ranging from 0.5% to 2%) depending on your plan.
Account Termination Risks: Shopify Payments may terminate your account if you violate their terms of service, such as selling prohibited items. It's essential to be aware of these terms to avoid potential disruptions in your payment processing.
When you have a Shopify store, payments from customers are processed via the payment gateway you have chosen. If you use Shopify Payments, the funds from your sales are automatically deposited into your linked bank account. If you use a third-party provider like PayPal or Stripe, the payments are typically deposited into your account with the respective provider, which you can then transfer to your bank account.
Payment intervals vary depending on the payment provider, with Shopify Payments typically offering daily or weekly payouts. Be sure to check your payment schedule and settings to know when you can expect your funds to appear in your bank account.
