Top 10 Payment Gateways For Your Shopify Store

This comprehensive review will delve into the top 10 payment gateways for your Shopify store, examining their benefits, pricing, standout features, and suitability for different types of Shopify merchants.

Shopify Payment Gateways: Overview

Payment gateways are vital for Shopify’s merchants as they secure transactions, offer versatile payment options, enable global reach, streamline checkout processes, automate tasks, provide reporting and analytics, offer fraud protection, and ensure compliance. 

With this in mind, Shopify offers a wide range of payment gateway options. Choosing the right payment gateway that works for your business and customers is essential as a business owner. Our analysis provides valuable insights to help you make an informed decision that best suits your business needs.

10 Best Payment Gateways for Your Shopify Store

Shopify Payments

Shopify Payments is the proprietary payment gateway offered by Shopify. 

Shopify Payments is a game-changer for Shopify users, offering two fundamental benefits: 

• First, it seamlessly integrates into your Shopify store, making handling payments a breeze. Your Shopify store operates smoothly, processing transactions effortlessly. 
• Second, it’s a cost-saver. By reducing transaction fees, it keeps more of your earnings in your wallet.

Shopify Payments is user-friendly and designed for modern businesses. Customers can swiftly use credit cards, and setting up payments in your store is hassle-free. Plus, there’s no need to track expenses elsewhere.

Pricing & fees

Shopify Payments doesn’t charge any transaction fees. However, processing fees, which go to the credit card processor, have different rates depending on the plan you choose:

• Basic Shopify: 2.9% + 30¢ USD per online and 2.7% + 0¢ USD per in-person transaction.
• Shopify: 2.6% + 30¢ USD per online and 2.5% + 0¢ USD in-person transaction.
• Advanced Shopify: 2.4% + 30¢ USD per online and 2.4% + 0¢ USD in-person transaction.

Additionally, if you’re selling internationally, currency conversion rates are 1.5% in the US and 2% in all other countries.

Best features

• Shopify Payments is included with your account; all you have to do is activate it
• Shopify Payments enables widely used payment methods and local currencies, ensuring a seamless checkout experience
• Compliance with PCI standards and offers support for 3D Secure checkouts
• Free transaction fee for stores in supported countries
• 24/7/365 customer support

Which type of Shopify merchant should use Shopify Payments

• New merchants interested in free transaction fees
• Merchants in 23 supported countries
• Merchants selling in multiple currencies
• Merchants who value simplicity
• Dropshipping businesses
• Merchants using Shopify (POS) systems

Square Payments

Introduction

Square Payments is a globally recognized payment processor. It caters to online and offline payments, even as a POS system tool. Whether you’re an online or physical store owner, Square stands out as a dependable choice. It offers added features like appointment scheduling and social media sales.

Shopify users can integrate Square using available extensions. Square’s dashboard lets you oversee cash flow and track popular purchases. Additionally, you can sync your online Shopify store with your physical inventory.

Square offers multiple payment acceptance methods for businesses, from standard transactions to memberships and donations. Business owners can even opt to impose a fee for appointment bookings.

Pricing & fees

Square Payments has different fees depending on the type of transaction:

• In-Person Transactions: 2.6% + 10 cents per transaction for taps, dips, or swipes cards.
• Online Transactions: 2.9% + 30 cents.
• Invoices: 3.3% + 30 cents for cards or 1% with a minimum of $1 per transaction for ACH bank transfers.
• Manually Entered Transactions: 3.5% + 15 cents for manual key-in card or card on file.

Best features

• Square Payments lets you begin accepting payments almost instantly, bypassing the need for lengthy third-party activations.
• It provides free invoicing software and a mobile payment app.
• Funds are typically transferred to your bank account before the next business day.
• End-to-end encryption and complete PCI compliance
• You can easily add the Square functionality to your store with a built-in app for the Shopify environment.
• Great customer support

Which type of Shopify merchant should use Square Payments

• Start-up budget-conscious businesses 
• Brick-and-mortar stores 
• Mobile or pop-up shop merchants
• Merchants in supported countries
• Businesses with smaller transaction volumes
• Merchants valuing instant access to funds

Stripe

Introduction

Stripe is a leading payment processing tool that rivals top competitors. It’s packed with features and serves many prominent online stores. With Stripe, you can:

• Integrate a payment gateway on your site.
• Send invoices and set up recurring subscriptions.
• Counteract fraud.

Beyond credit and debit cards, Stripe accepts Apple Pay and Google Pay. Its API also allows for additional payment connections.

Stripe offers a user-friendly platform to monitor sales. Although there’s a Stripe extension for Shopify, it won’t waive transaction fees like Shopify Payments does.

Pricing/fees

• Online Transactions: 2.9% + 30¢ USD per successful card charge.
• In-Person Transactions: 2.7% + 5¢ USD per transaction.
• Bank debits and transfers: 0.8% ACH Direct Debit
• Instant payouts: 1% of Instant Payouts volume
• Post-payment invoices: 0.4% on transaction total

Best features

• Dependable and adaptable support for both online and in-person payments.
• You can design a completely personalized online checkout process.
• Diverse billing options, catering to both one-time invoices and recurrent payments.
• Sophisticated reporting tools
• Full integration with Shopify’s hosted payment page
• Built-in fraud protection ensures secure transactions.
• Accepts global payments with 135+ currencies and offers instant payouts.

Which type of Shopify merchant should use Stripe

• Shopify merchants who sell internationally
• Businesses offering multiple payment methods
• Subscription-based or recurring billing models businesses
• Merchants seeking custom checkout experiences

Amazon Pay

Introduction

Amazon Pay integrates seamlessly with Shopify, allowing customers to check out using their existing Amazon accounts. Given the vast number of Amazon users in the US, Canada, Europe, and Australia, this can streamline the buying process. Consequently, businesses may see an increase in conversions. 

Available globally, Amazon Pay ensures quick and dependable transactions by utilizing user details from Amazon accounts. However, for larger merchants, costs associated with this service can be on the higher side.

Pricing/fees

• Web & Mobile Transactions: 2.9%+ 30 cents USD for each successful transaction.
• Alexa (Real-World Goods, Services): 4% + 30 cents USD per transaction.
• Cross-Border Processing Fee:
  • For web and mobile transactions: 3.9% + 30 cents USD. 
  • For transactions via Alexa involving real-world goods and services: 5% + 30 cents USD.
• Disputed Chargeback Fee: $20.00, along with applicable taxes.

Best features

• Amazon is globally recognized and trusted. 
• With fast and easy checkout, customers don’t need to add their payment details to a new platform
• Amazon Pay provides robust fraud protection measures.
• Optimized for mobile devices, catering to the growing number of mobile shoppers.
• Seamless integration with Shopify
• Good customer service

Which type of Shopify merchant should use Amazon Pay

• Shopify merchants looking to provide a convenient and trusted payment option for their customers. 
• Businesses targeting frequent Amazon shoppers
• Merchants seeking a trustworthy payment gateway
• Businesses looking for streamlined checkout
• Globally operating merchants

Paypal

PayPal is a trusted payment gateway for many Shopify store owners worldwide. Its widespread recognition and trustworthiness can make checkouts smoother and more secure for customers. When Shopify merchants integrate PayPal, they can reduce cart abandonment and potentially increase conversions. 

The platform’s strong security ensures safe transactions, and its flexibility supports both local and global sales.

Pricing/fees

• Digital Payments: 3.49% + 49 cents per transaction.
• In-Person Payments with a PayPal QR Code: Transactions exceeding $10 incur a fee of 1.90% + 10 cents per transaction. For transactions totaling $10 or less, the fee amounts to 2.4% + 5 cents per transaction.
• Online Credit and Debit Card Payments: 2.59% + 49 cents per transaction.
• In-Person Card Payments: 2.29% + 9 cents per transaction.

Best features

• PayPal’s One Touch feature enables customers to make purchases with a single click, enhancing the shopping experience and reducing cart abandonment rates.
• PayPal offers seller protection against unauthorized transactions and chargebacks, reducing the risk of financial losses for merchants.
• Businesses can easily create and send invoices through PayPal, streamlining billing processes.
• PayPal is optimized for mobile devices, catering to the growing number of customers shopping via smartphones and tablets.

Which type of Shopify merchant should use Paypal

• Global sellers
• Businesses who are just starting out and looking to build trust with their audience
• Merchants prioritizing checkout conversion
• Merchants offering subscriptions or recurring payments

Opayo

Opayo, previously known as “Sage Pay,” is favored in the US and UK. Compatible with platforms like Shopify, it offers a monthly fee structure based on a set transaction count and supports both offline and online payments. It’s a comprehensive system, handling online payments, card terminals, POS, phone orders, and even offers a PayPal option. 

While its robust security ensures safe transactions, the intense customer authentication can be a drawback. Setting up an account might take up to 5 weeks due to rigorous identity checks, which could be a concern for some users.

Pricing/fees

Opayo, formerly known as Sage Pay, offers two pricing editions:

• Flex: This plan costs $27.00 per month.
• Plus: This plan costs $45.00 per month.

Best features

• Opayo offers tokenization, allowing businesses to securely store customer payment information for future transactions, simplifying the checkout process for returning customers.
• Opayo supports Strong Customer Authentication, helping businesses comply with regulatory requirements such as PSD2 in Europe.
• Opayo facilitates recurring payments for subscription-based businesses, making it ideal for services like subscription boxes and membership sites.
• Opayo provides in-depth reporting tools, enabling businesses to gain insights into their transaction data and customer behavior.

Which type of Shopify merchant should use Opayo

• Shopify UK-based merchants
• Enterprise-level businesses
• Shopify merchants seeking a secure, versatile, and globally accessible payment solution
• Businesses with subscription-based models
• Merchants looking for a payment processor with a strong focus on security and compliance
• Small startups or established e-commerce brands

Adyen

Adyen, though not as popular as some payment gateways for Shopify, stands out for its compliance and reliability. It doesn’t just process major credit card transactions; it also aligns with significant global regulations, ensuring your store meets standards like SCA, PCI, and PSD2. 

Moreover, Adyen bolsters security with advanced fraud protection tools. Its customizable dashboards allow merchants to monitor everything from mobile payments to standard transactions, aiding in understanding customer behavior. 

With 24/7 support and compatibility for international payments, Adyen is a robust choice for businesses serving a global clientele.

Pricing/fees

• Processing Fee:
  • For European cards: 0.1% + €0.05 per transaction
  • For non-European cards: 0.3% + €0.05 per transaction
• Payment Method Fee: The fee varies depending on the card and transaction type. The interchange and card scheme fees vary depending on the card and transaction type.
• Minimum Transaction Fee: $120.
• Acquirer Fee: starts at 0.6% per transaction.

Best features

• Adyen’s platform seamlessly combines online, in-app, and in-store payment processing, simplifying business payment management with omnichannel sales strategies.
• Adyen’s DCC feature allows businesses to offer customers the choice to pay in their preferred currency, enhancing the shopping experience for international customers.
• Adyen supports a wide range of mobile wallets, catering to growing customers using digital wallets for payments.
• Businesses can securely store and reuse customer payment data without needing to directly handle sensitive information, streamlining the checkout process.

Which type of Shopify merchant should use Adyen

• Shopify merchants aiming for a global presence 
• Businesses with a diverse customer base and omnichannel sales strategies. Mid-sized enterprises or large e-commerce brands

Braintree

Braintree, a subsidiary of PayPal, provides a distinct interface while inheriting PayPal’s simplicity and security. Available in the Shopify app marketplace, it integrates seamlessly into your store, allowing you to accept payments from PayPal, credit cards, Google Pay, and Amazon Pay. 

Besides features like payment data analysis and currency conversion, Braintree stands out for its top-notch security, ensuring transactions are both safe and smooth for customers. 

Furthermore, its user-friendly design makes it an excellent choice for business owners looking for ease of use.

Pricing/fees

• Cards and Digital Wallets: 2.59% + $.49 per transaction.

Best features

• Braintree’s Drop-In UI provides a ready-made user interface for payment processing, reducing development time and effort.
• Braintree’s vaulting feature enables businesses to securely store customer payment information for future use, improving customer convenience.
• Braintree offers software development kits (SDKs) for mobile app payment processing, catering to the increasing number of mobile shoppers.
• Braintree supports marketplace businesses, allowing them to split payments between multiple parties, making it suitable for platforms connecting buyers and sellers.

Which type of Shopify merchant should use Braintree

• Multi-currency retailers
• Merchants offering subscription services
• Businesses prioritizing mobile sales
• Businesses wanting a custom checkout experience
• Startups and growing businesses

Klarna

Klarna, popularly recognized alongside PayPal, offers a convenient buy-now-pay-later option, appealing to businesses wanting simplified purchasing solutions. Customers can spread their payments over several installments, benefiting companies selling high-priced, “high-risk” products. 

With easy cart integration, businesses can quickly facilitate payments. Especially post-pandemic, as economic challenges affect consumer spending, Klarna’s approach is gaining traction. Many merchants find that providing such instant financing options boosts their sales.

Pricing/fees

• Instant Shopping:
  • Transaction fee: $0.30 per transaction fee 
  • Variable fees: Up to 3.29% for onsite and 3.79% for offsite sales.
• 30 Days To Pay: The vendor pays a $0.30 transaction fee and a variable fee of up to 5.99%.
• Klarna Financing:  $0.30 fixed fee and variable fees up to 5.99%. 

Best features

• Klarna’s “Pay Later” feature allows customers to receive products before paying, boosting sales and improving the customer experience.
• Klarna enables businesses to offer installment payment plans, making high-ticket items more accessible to customers.
• Klarna seamlessly integrates with e-commerce platforms, including Shopify, providing businesses an easy setup process.
• Klarna offers valuable customer insights and analytics, helping businesses better understand customer behavior and preferences.

Which type of Shopify merchant should use Klarna

• Merchants targeting Millennial and Gen Z shoppers
• High-ticket item retailers
• Fashion and lifestyle brands
• Merchants focused on reducing cart abandonment
• Merchants looking for international reach

Worldpay

Introduction

Worldpay, a prominent Shopify payment gateway, offers diverse payment services for businesses of all sizes. As the leading payment provider in the UK with a global footprint, Worldpay enables both online and offline transactions. Boasting top-notch fraud protection, it stands out for its reliability and stellar customer service. 

Available in over 100 countries, it makes Shopify’s global expansion seamless. Plus, transaction fees for Shopify merchants are turnover-dependent, offering potential cost benefits. 

Worldpay prides itself on excellent customer support, offering onboarding assistance for industry newcomers. With built-in PCI compliance, bi-weekly fund transfers, and real-time sales data, Worldpay ensures businesses thrive.

Pricing/fees

• Pay-as-you-go: 2.75% + £0.20 per transactions
• Pay Monthly: £19/month.
• Device Cost: £17.50/month (18-month contract).
• Chargeback Fee: £15 

Best features

• Worldpay provides a unified platform for processing online, in-store, and mobile payments, simplifying payment management for businesses with multiple sales channels.
• With support for various currencies and international transactions, Worldpay is an excellent choice for businesses targeting a global customer base.
• Worldpay offers advanced fraud prevention tools, reducing the risk of chargebacks and fraudulent transactions.
• Worldpay facilitates subscription billing for businesses offering subscription-based services or products.

Which type of Shopify merchant should use Worldpay

• Global expansion enthusiasts
• Large-scale operations
• Merchants needing diverse payment options
• Integrated omnichannel sellers
• Businesses looking for a one-stop solution

Factors to Consider When Choosing a Payment Gateway

Choosing a payment gateway is a crucial decision for any online merchant, as it affects both the operation of the business and the customer experience. Here are several factors to consider when making this selection:

• Transaction Fees: Most payment gateways charge a fee per transaction. Depending on the volume of your sales, these fees can quickly accumulate. Ensure that the fees are competitive and manageable for your business size.
• Setup and Monthly Fees: Some gateways may charge a setup or recurring monthly fee, regardless of sales volume.
• Payment Types: Not all gateways accept all credit and debit cards. Some may also accept other forms of payment, such as digital wallets or bank transfers. Determine your target audience’s preferred payment methods and ensure the gateway supports them.
• Geographic Coverage: If your business is global, you’ll want a gateway that can handle international transactions and multiple currencies.
• Security: A secure payment gateway is vital to protect your business and customers. Look for features like SSL certificates, fraud detection, and PCI compliance.
• Integration: The gateway should easily integrate with your e-commerce platform. Some platforms have preferred gateways, making the setup more straightforward.
• User Experience: The payment process should be smooth for the customer. A complicated or prolonged payment process can deter customers and lead to abandoned carts.
• Payment Settlement Period: This refers to the time it takes to deposit funds into your bank account. Some gateways offer immediate settlement, while others might take several days.
• Chargeback Policies and Support: Chargebacks can be a major concern for online merchants. Check the gateway’s policies and what support they offer in case of disputes.
• Customer Support: Whether it’s integration issues, payment disputes, or other concerns, having reliable and accessible customer support is crucial.

How To Choose The Best Payment Gateway For Your Shopify Store

Choosing the right payment gateway for your Shopify store starts by deeply understanding your unique business needs and budgetary constraints.

• Volume of Sales: Those with high sales volumes should gravitate towards gateways offering volume discounts, as this can positively influence profit margins. Conversely, stores with fewer sales should consider providers with minimal or no per-transaction charges.
• Average Transaction Value: Merchants selling premium items should be wary of gateways charging extra for larger transactions and those that implement longer hold times. For those with smaller average sales, it’s wise to opt for gateways with percentage-based fees.
• Type of Products: Digital goods sellers may require gateways that facilitate instant access upon payment. Meanwhile, businesses in “high-risk” sectors should ensure their chosen gateway caters to their industry.
• Budgetary Considerations: It’s crucial to consider transaction fees and monthly charges. Understanding the balance between these costs can significantly affect a store’s overall profitability.

Bottom Line

The right payment gateway can significantly impact your Shopify store’s success. Consider your unique business requirements and target audience when selecting from these top 10 options, ensuring a seamless and secure payment experience for your customers.