10 Best Payment Methods For Shopify

Richard Ball
April 17, 2024
5 min read

The best payment methods for Shopify are the ones that allow your customers to choose their preferred payment method and help you ensure a good online shopping experience. They also enable you to build trust with your audience and existing customers.Thanks to the Shopify Payment gateway and the alternative third-party payment gateways, Shopify store owners have access to a secure, easy, and quick way to manage online payments.While Shopify Payments is the default payment gateway, it is only available and suitable for some eCommerce businesses. If you want to have the best payment methods set up for your Shopify store, you should look into third-party payment gateways that integrate with this eCommerce platform. In this guide, you'll learn what Shopify Payments are, the benefits of using Shopify payment gateways, what factors to consider when looking for a solution, and our top 10 best Shopify payment methods recommendations.

What are Shopify Payments?

A payment gateway is a technology that reads and transfers payment information from your customer to your bank account, allowing you to process various payment methods securely.Shopify Payments is the eCommerce platform's built-in payment gateway that allows merchants to accept online payments. Shopify store owners that use Shopify Payment as their default payment gateway don't need to set up a third-party payment provider.One of the first things a customer looks at is how many payment options your store offers, so you want to cover as many alternatives as possible, including mobile payments, cash on delivery (COD), bank transfer, debit cards, or credit card payments.If you choose Shopify Payments as your payment gateway, your Shopify store is automatically set up to accept the most popular payment methods, including:

  • Visa;
  • Mastercard;
  • American Express;
  • Discover;
  • Apple Pay;
  • Google Pay;
  • PayPal;
  • JCB;
  • Diner’s Club.

Your Shopify Payment fees depend on your Shopify store's subscription plan. Credit card rates vary based on your plan and represent a small fee Shopify charges for each credit card transaction so you can accept payment with major credit cards. There are no setup fees, third-party transaction fees, or hidden fees. Double billing is also prevented when using two payment gateways. For example, if you accept PayPal payments, and use both Shopify Payments and Paypal Express, you only pay the fee for the payment gateway chosen by the customer at checkout.Shopify Payment gateway is available in 17 countries and supports 130 currencies. If Shopify Payments isn’t available in your country, you can pick one of the third-party providers that offer multiple benefits to Shopify store owners.

Benefits of Using Shopify Payment Gateways

Shopify Payments is a great choice if you own or have just opened your Shopify store and sell from a supported country or region.If you aren’t eligible for using Shopify Payments, you can always choose from a payment gateway provider that integrates with your store and keep an eye on updates regarding the supported countries. Many Shopify merchants prefer Shopify Payments over a third-party provider because of all the advantages that come with this native solution:

User-friendly

Shopify Payments is the simplest and quickest way to accept online payments, which business owners can enable as soon as they create their Shopify store. It eliminates the need to set up third-party payment gateways and helps merchants avoid transaction fees that Shopify charges for third-party solutions.Shopify Payments is a user-friendly solution fully integrated with your dashboard, allowing you to track transactions in Shopify admin and have a synced view of your inventory and sales.Shopify Payments' average payout time is two business days for US-based stores. You can contact customer support through phone calls and live chat whenever you need help, as the support team is available 24/7.

Easy Cart Integration

The best payment method for Shopify is the one that’s popular in your target market. When you choose Shopify Payments, you enable multiple payment gateways and let your customer choose their favorite payment method. Shopify Payments helps you create a positive shopping experience thanks to its direct easy cart integration with Shop Pay, the customer-facing checkout solution that accelerates checkout and allows customers to save their information for future purchases.Shopify's integrated payment solution improves both customer experience and profit margins. The conversion rates for shops that use Shopify Pay are 1.72x higher.

Fraud Protection

One of the most important criteria when choosing a payment gateway is its capability to detect suspicious activities and protect your store from payment fraud. Shopify's fraud protection solutions allow you to review suspicious or high-risk orders, prevent fulfilling fraudulent orders, and avoid chargebacks.Shopify Payments enables fraud detection through its fraud analysis capabilities, while Fraud Protect offers fraud protection for your orders on Shopify Payments. You will be charged a small fee for the protected orders if you use Fraud Protect.In the next section, we want to walk you through the critical factors that help you choose the best Shopify payment gateway for your store.

Factors to Consider for Shopify Payment Gateways

Besides access to the best carriers, ensuring easy returns, and generating labels automatically, your Shopify store needs a reliable Shopify payment gateway that keeps your conversion rates high.Your payment system should make customers feel safe to share their payment information. Trust in your brand and conversion rates increase when stores offer secure payment options and a seamless shopping experience. Some payment providers offer customization options so that the payment page reflects their brand's image.With the customer-centric approach in mind, let's take a look at the factors that help you pick the right payment solution for your store:

Location

When analyzing which payment method is best for Shopify, you should keep in mind which payment methods are popular in the country or region you're targeting. The more payment options you offer your customers, the better the online shopping experience will be. For example, Mastercard might be popular globally, but if your main focus is on the US, people will probably expect alternatives like American Express.If you're considering choosing Shopify Payments, keep in mind that the solution is available only in 17 countries, such as Ireland, Canada, Australia, the United Kingdom, and New Zealand. If your country is not on the supported countries list, you should look for third-party payment providers that help you process payments online in the targeted area.

Business Size

The best payment method for your Shopify store is the one that fits your current needs and can scale up with your business growth when you want to expand internationally. For example, eCommerce businesses that want to start selling globally should look for global payment solutions that accept debit cards and credit card payments in various currencies. Small online stores would probably opt for hosted or self-hosted payment gateways that take customers off the store's site to the payment gateway page, then redirect them to the store's website on the post-checkout landing page. Larger stores could consider non-hosted solutions when they can afford the technical work and maintenance required.

Pricing

The cost of payment services is critical in choosing the right payment gateway for your store. Carefully analyze the pricing models and look out for hidden costs.

Transaction Fees

Transaction fees usually consist of a fixed fee and a percentual one. The total cost varies from one payment processor to another. For example, if you use Shopify Payments and upgrade your plan, you'll have lower credit card rates for each debit and credit card transaction and stop paying subscription transaction fees.

Payment Card Types

If you're selling to other countries or planning to extend abroad, you should check what payment card types and currencies your payment processor supports. Ensure that the international payment processing costs are affordable for you and your customers.Now that we’ve covered the factors that help you decide which payment method is best for your Shopify store, let's explore some of the most popular payment options among Shopify merchants.

Our Top 10 Best Shopify Payment Methods Recommendations

Based on the factors presented in the previous section and your list of criteria, you should be able to decide which payment method is best for Shopify.We’ve selected 10 of the best Shopify payment methods to help you find an affordable solution that can scale as your business grows, is suitable for both online and in-person payments, and enables multiple payment solutions for your customer.Let’s look at the key features, pros and cons, and pricing of our ten recommendations.

1. Shopify Payments

Shopify Payments is one of the best payment gateways that merchants can set up as soon as they create their Shopify Store. It is a fully integrated payment gateway solution and eliminates the need to set up a third-party payment gateway or merchant account. Shopify Payments enables all major payment methods, while Shop Pay offers an accelerated checkout process, and Shop Pay Installments offer flexible checkout options. The stores using Shopify's native payment solution get lower credit card rates by upgrading their Shopify subscription plan, which eliminates subscription transaction fees.Key features:

  • Enables multiple popular payment methods at checkout
  • Available in 17 countries and supports 130 currencies
  • Manage finance, sales, and inventory in one place

Pros:

  • Fast and easy setup
  • Fully integrated with Shopify stores
  • Multiple payment options

Cons:

  • Available only in certain countries and regions
  • High monthly fees for higher plans

Pricing: Shopify plans starting from USD 24/month; credit card processing fees starting from 2.4% + $0.30

2. Stripe

Stripe is one of the most popular gateways among US Shopify merchants, recognized for its flexibility and testing possibilities. This payment provider allows stores to customize their payment process and offers detailed documentation for developers. While it's highly customizable, Stripe is more suitable for larger stores, as development skills are needed to enable more complex features. The payment gateway is available in 47 countries, supports more than 135 currencies, and enables mobile payments, one-click checkout, and subscription billing. Stripe offers immediate payouts to a debit card in return for a fee.Key features:

  • Enables credit and debit card payments, digital wallets, Google Pay, Apple Pay
  • Integrates with 300+ tools and products
  • Customizable checkout flow

Pros:

  • Multiple payment methods and currencies supported
  • Transparent pricing and flat-rate
  • 24/7 customer support via phone, email, or live chat.

Cons:

  • Certain features might not be available due to geo limitations
  • Might need software development expertise

Pricing: 2.9% plus 30 cents per transaction, an additional processing rate of 1% for international cards or transactions

3. PayPal

PayPal is one of the best payment methods for Shopify stores, being one of the platform's default payment providers. The platform is popular for its easy cart integration, online invoicing feature, and multiple customization options.You can choose a free or paid merchant account. Setting up a PayPal account is easy and allows you to collect payments for orders made with PayPal. If you want to process payments from buyers that don't have a PayPal account, you can activate PayPal Payments Pro. To avoid being charged transaction fees, you can activate Shopify Payments. Key features:

  • Pre-integrated with major shopping carts
  • Processing recurring payments automatically
  • Accept major debit and credit cards, L2/L3 purchase cards, prepaid cards, etc.

Pros:

  • Secured online encryption for online transactions
  • Available in over 200 countries and regions
  • Various solutions for online and in-person payments

Cons:

  • Confusing transaction fees and costly chargebacks
  • Poor customer support

Pricing: payment processing rates from 1.9% and 3.5% per transaction

4. Authorize.net

Authorize.Net is one of the most versatile gateways for eCommerce businesses of all sizes, available to merchants in Australia, Canada, Europe, the United Kingdom, and the United States. The payment provider offers support for online, mobile, and in-person purchases made via credit card, e-check payments, and digital payment services like Apple Pay, PayPal, or Visa Checkout.Authorize.Net offers advanced fraud detection features and prevention filters that signal and block suspicious transactions. The Customer Information Manager helps you automatically update payment card information, billing, or shipping addresses.Key features:

  • Recurring billing and online invoice
  • Customized checkout page
  • Detailed reporting system

Pros:

  • Advanced fraud detection features
  • Processing e-checks and recurring payments
  • Customer information management

Cons:

  • Outdated merchant interface
  • High flat rates for merchant accounts

Pricing: $25 per month gateway fee and 2.9% + $0.30 per transaction processing fee for users that pick the all-in-one option, which includes the payment gateway and a merchant account

5. Amazon Pay

Amazon Pay is one of the most trusted payment solutions among customers that want to make secure online and mobile purchases. The solution seamlessly integrates with your Shopify account and enables a streamlined checkout process for your customers. By using their Amazon account, customers can pay their orders without having to enter their name, address, or credit card information. Amazon Pay accepts digital wallets, online, mobile, and Alexa Voice Payments. The quick and secure checkout process is one of the reasons many merchants consider this the best payment method for Shopify store.Key features:

  • Shopify and merchant website integration
  • Merchant protection and fraud detection
  • Enables digital wallets, online, mobile, and Alexa Voice Payments

Pros:

  • Trusted payment method
  • Accelerated one-click checkout
  • Amazon fraud protection

Cons:

  • 3-5 business days to complete the payment
  • Available only in 13 countries

Pricing: starting at 2.9%  plus a $0.30 per transaction fee for desktop or mobile payments

6. Opayo (formerly Sage Pay)

Opayo, formerly known as Sage Pay, is one of the most popular payment methods among UK and US Shopify merchants. The payment gateway is suitable for small businesses that sell both online and in-store and are looking for one solution to manage online payment, phone orders, POS terminals, and card terminals.Opayo has one of the best security levels with a high level of customer authentication and offers a 99.99% reliability rate. Compared to other payment providers, Opayo is available at a monthly fee for a predefined number of transactions. Phone support is available 24/7 for smooth setup and technical support.Key features:

  • Online, phone, face to face payments
  • Multi-layered fraud prevention and detection
  • Real-time analytics and reporting

Pros:

  • Single click checkout
  • Industry-leading security
  • 99.99% reliability rate

Cons:

  • Back end interface
  • Merchant fees

Pricing: price tiers starting at £25 per month for 350 transactions per month

7. Verifone (formerly 2Checkout)

Verifone, formerly known as 2Checkout, is a payment service provider that allows Shopify stores to manage international sales and subscription billing. The payment provider offers easy shopping cart integration, supports multi-currency transactions, and is available in over 80 countries. Because Verifone can only process card-not-present transactions, you might need to use it in combination with other payment solutions. However, Verifone has one of the most extensive ranges of online payment processing features.Key features:

  • Robust eCommerce integration
  • Customized checkout process
  • Multi-currency and multi-language support

Pros:

  • Customized subscription plans
  • Flat-rate pricing
  • Support for international merchants

Cons:

  • Not available for card-present transactions
  • Frequent reports of held funds

Pricing: plans starting from 3.5% + $0.35 per transaction

8. Worldpay

WorldPay is one of the most popular payment gateways for Shopify stores. This third-party gateway provides secure online, card machines, and telephone payments in over 120 countries and supports over 120 currencies.Besides its integration with Shopify, WorldPay can also integrate with third-party bookkeeping and point-of-sale (POS) software. WorldPay offers tailored solutions for online and in-person transactions and is more suitable for companies looking for long-term contracts.Key features:

  • Multi-channel payments
  • Hosted payment pages
  • Recurring payments and mobile wallets

Pros:

  • Takes payments within 24 hours
  • Real-time tracking
  • Online and phone support

Cons:

  • Standard three-year contract term
  • Early termination fee

Pricing: plans starting from £19 per month with 350 transactions included

9. Klarna

Klarna is a popular payment gateway among merchants that want to offer customers "buy now, pay later" (BNPL) options: 30-day to pay, installments, and financing. The payment processor provides secure transactions and one-click checkout.This BNPL solution is suitable for online businesses of all sizes that want to increase the average order value. You must sign up as a Klarna partner to enable this payment option. Then, you can add it as a payment option at checkout for your Shopify store.Key features:

  • Custom solutions available
  • "Buy now, pay later" shopping options
  • Available in 17 countries

Pros:

  • Appealing payment options for customers
  • On-site payment process

Cons:

  • High transaction fees
  • Refusing customer credit

Pricing: costs vary depending on the installment plan; credit-card processing fees between 1.5% and 2.9% per transaction

10. Skrill

Skrill is one of Europe's most popular online payment systems that enable safe and secure digital wallet transactions and hosted payments. A solution is a good option for eCommerce companies that only process online and mobile payments.Thanks to the recurring payments option, the payment provider is great for Shopify stores that offer subscription and membership options. Skrill allows shopping cart integrations and 1-tap purchase approval for wallet users.Key features:

  • Enable digital wallet payments
  • Safe and secure gateway
  • Integration with Shopify stores

Pros:

  • Chargeback protection
  • Affordable transaction fees
  • Detailed guidelines and technical assistance

Cons:

  • Expensive money transfer fees
  • Poor customer support

Pricing: digital wallet transaction fee starting from 1.9% + €0.29 per transaction

Adding the Best Payment Gateway to your Shopify Ecosystem

Offering more payment alternatives to your customers helps you generate positive customer experiences and build trust through secure and fast online payments. Whether you have just opened your store or want a better solution for your growing business, you need to find the best payment methods for your Shopify store.As Shopify Payments is available only in 17 countries, you should also consider the third-party gateways and pick the best one based on the factors presented in this guide. After you analyze our ten payment recommendations, we hope you'll find the one that brings you the most benefits.As you improve your Shopify ecosystem and find more tools that help you automate processes, you'll save more resources to focus on what matters most for your store's growth.If you want to drastically reduce the manual work on returns, transform more returns into exchanges, and retain more revenue, check out the best Shopify Returns Management App.

Richard Ball
April 17, 2024
5 min read