Are you looking for the best Shopify Payment Gateway for your store?
The world of eCommerce has seen exponential growth, and Shopify stands as a beacon in this vast landscape, with over 4.12 million online stores under its wing as of July 2023. If you’re gearing up to become a part of this booming merchant community, one of the essential decisions you’ll make is selecting the right payment method for your Shopify store. The importance of this decision cannot be overstated, as the success of your online business hinges on your ability to collect payments from customers seamlessly.
In this article, we will discuss 10+ Best Payment Methods For Shopify in 2023 to help you make an informed choice that aligns with your business model.
What are Shopify Payments?
Shopify Payments is the most convenient way to accept online payments. It removes the stress of establishing a third-party merchant account or payment provider and then entering details into Shopify. With Shopify Payments, you’ll be equipped to accept major payment methods from the moment you’ve set up the Shopify store.
How Shopify Payments Works
Shopify Payment processing refers to the set of systematic activities that facilitate the collection and transmission of payments for goods and services over the internet.
In the context of Shopify, payment options (or payment methods) include the preferred payment systems used to manage customer payments. These mechanisms involve the intricate processes that ensure the secure and successful transfer of electronic transaction data between buyers, sellers, and online payment service providers.
The process of payment processing might seem straightforward on the surface, but its underlying architecture is complex, involving multiple actors and steps.
Here’s a general overview of how payment processing works on Shopify:
Customer Initiates Payment
The process begins when a customer initiates a transaction on your Shopify store by selecting items to purchase and proceeding to checkout.
Payer Selects Payment Method
At checkout, the payer chooses their preferred payment method from the available options, such as credit/debit cards, digital wallets, or cryptocurrencies.
Payment Processing Begins
Once the payer enters their payment details, the information is securely transmitted to the payment processor via a payment gateway. This third-party service validates the payment details, checks for sufficient funds, and encrypts the data to safeguard it from unauthorized access.
Payment Authorization
The payment processor seeks authorization from the payer’s bank or card issuer for specific payment instruments, like credit cards. The bank verifies whether the payer has the necessary funds or available credit. If approved, an authorization code is generated.
Settlement
After receiving authorization, the payment processor settles the payment by transferring funds from the payer’s account to the seller’s account. Settlement times vary; some methods take a few days, while others are settled within a day or two.
Payment Confirmation
Both the payer and payee receive transaction confirmation once the payment is successfully processed and settled. This confirmation can take the form of SMS or email notifications, depending on the chosen payment method.
While technological advancements have simplified the process, it’s crucial to scrutinize the fine print of each service provider to ensure you’re well-informed.
Factors to Consider for Shopify Payment Gateways
Selecting the right Shopify payment method is a critical decision that requires careful consideration of features and benefits. Each payment option comes with its own set of pros and cons, so it’s essential to evaluate them thoroughly before integrating them into your store. To guide your decision-making process, here are some features to look for in an ideal Shopify payment method:
Ease of Onboarding
Seamless integration is paramount. Choose a payment provider that doesn’t require a complete overhaul of your system and offers minimal ongoing management costs. Additionally, prioritize providers that enhance your customers’ shopping experience.
Fraud and Risk Prevention
With the rise in payment scams, security is of utmost importance. Opt for a payment service provider with robust security measures, including encryption, tokenization, 3D Secure, and PCI compliance. This safeguards against chargebacks and builds customer trust.
Multi-Currency Support
To tap into the global market, your payment method must support international payments and offer multi-currency support. This is essential for businesses looking to expand their reach beyond borders.
Multiple Payment Options
Diversify your checkout process with a range of payment instruments. In addition to credit/debit cards, ensure your provider supports modern options like digital wallets and cryptocurrency.
Transparency of Cost
Understand the cost structure of your chosen payment method. Consider setup costs, maintenance fees, and transaction charges. Be wary of hidden costs such as chargeback, statement, or cancellation fees.
Effortless Account Reconciliation and Payouts
A seamless transaction process should be complemented by swift account reconciliation and fund payouts. Look for a payment method that allows you to schedule regular payouts.
What are the Best Payment Gateways for Shopify in 2023?
1. Shopify Payments
Shopify Payments is the platform’s native payment gateway. It offers a seamless and hassle-free experience, eliminating the need to integrate third-party solutions. One of its standout features is the absence of additional transaction fees, making it an attractive choice for cost-conscious businesses. Shopify Payments enables easy credit card transactions, simplifies inventory management, and provides a unified environment for all your business needs.
Pricing: No additional fee apart from standard credit card processing charges, which vary by location.
Pros:
- No additional transaction fees in most countries.
- Seamless integration with Shopify stores.
- Low conversion rates and processing fees.
- User-friendly experience for both customers and sellers.
- Strong support from the Shopify community.
Cons:
- Limited availability in some countries.
- Potential holds or account reviews due to security measures.
- May lack advanced features compared to third-party gateways.
- Limited customization options for checkout.
- Limited payment methods compared to some other gateways.
2. Square
Square is a versatile payment processor known for its offline and online payment capabilities. Beyond processing payments, Square offers features like appointment scheduling and social media selling. The integration with Shopify allows for smooth synchronization between online and offline stores. Square is an excellent choice for businesses seeking a comprehensive payment solution.
Pricing: Transaction fee of 2.9% + 30 cents per transaction. Premium plans are available starting at $12 per month.
Pros:
- Seamless integration between online and offline sales.
- Built-in security features, including end-to-end encryption.
- Fast payment processing and fund transfers.
- Access to additional features like appointment scheduling.
- Reliable customer support.
Cons:
- Transaction fees of 2.9% + 30 cents per transaction.
- Premium plans can add to costs for certain businesses.
- Limited international presence compared to other gateways.
- Some features might be more suited for physical stores.
- Limited customization options for checkout.
3. Stripe
Stripe is a well-established payment gateway with a robust feature set, making it a popular choice among online businesses. It supports various payment methods, including credit and debit cards, as well as Apple Pay and Google Pay. Stripe’s hosted payment page integrates seamlessly with Shopify, offering customizable workflows and fraud protection.
Pricing: Transaction fee of around 2.9% + $0.30 per sale. Custom pricing is available upon request.
Pros:
- Comprehensive payment options, including recurring subscriptions.
- Hosted payment page integration with Shopify.
- Customizable workflows for an optimized checkout process.
- Invoicing and payment through the Stripe mobile app.
- Strong fraud protection and PCI compliance.
Cons:
- Transaction fees of around 2.9% + $0.30 per sale.
- Custom pricing might be expensive for high-volume businesses.
- Some advanced features might require technical expertise.
- Limited customer support options.
- Some customers might not be familiar with Stripe’s branding.
4. Braintree (PayPal)
Braintree, owned by PayPal, offers a secure and user-friendly payment solution. With features like payment data analysis and currency conversion, it provides a unique interface within the Shopify ecosystem. Braintree supports various payment methods, including PayPal, credit cards, Google Pay, and more.
Pricing: Transaction fee of 2.9% + 30 cents per transaction. Additional features and custom plans are available.
Pros:
- Strong security measures, including end-to-end encryption.
- Easy integration with Shopify and other platforms.
- Accepts PayPal, credit cards, and other payment methods.
- Access to third-party integrations for social media and point-of-sale systems.
- Flexible and convenient payment options for customers.
Cons:
- Transaction fees of 2.9% + 30 cents per transaction.
- Additional fees for some features and services.
- Potential issues related to PayPal’s reputation.
- Some customers might prefer other payment methods.
- Limited customization options for checkout.
5. Klarna
Klarna stands out as a solution for businesses looking to offer “buy-now-pay-later” options for customers. It allows shoppers to spread the cost of purchases over installments, making it an attractive choice for larger transactions. Klarna’s cart integration is user-friendly and helps increase conversions, especially among younger customers.
Pricing: Transaction fee of around 2.49% + 20p per transaction for UK and Ireland cards.
Pros:
- One-click purchasing and installment options.
- Easy cart integration for quick setup.
- Attractive for businesses selling high-ticket items.
- Convenient for customers looking to spread payments.
- 24/7 customer support for assistance.
Cons:
- Transaction fees of around 2.49% + 20p per transaction for UK and Ireland cards.
- Limited availability in some regions.
- Potential complexity in managing installment payments.
- Customers might hesitate due to potential credit checks.
- Some customers might prefer traditional payment methods.
You may want to learn complete story on How to Add Klarna to Shopify Payment Method.
6. Worldpay
Worldpay is a well-established payment provider with a global presence. It offers secure payment services both online and offline, making it suitable for a range of businesses. Worldpay’s fraud protection, real-time data tracking, and flexible pricing plans contribute to its appeal.
Pricing: Standard Gateway starts at approximately £19 per month. Advanced Gateway at around £45 per month.
Pros:
- High-level security with PCI compliance and fraud tools.
- Real-time data tracking for insights into sales and customer preferences.
- Flexible payment options for various sales channels.
- Faster payouts with transfers twice a week.
- Global reach with support for multiple currencies.
Cons:
- Monthly fees may increase costs for small businesses.
- Advanced features might be unnecessary for some businesses.
- Transaction fees might vary based on location.
- Might not be as user-friendly as some other gateways.
- Limited support for some niche payment methods.
7. Amazon Pay
Amazon Pay provides a convenient solution for businesses by allowing customers to check out using their Amazon accounts. This saves time for customers who already have Amazon accounts, potentially boosting conversions. Amazon Pay is available globally and offers a reliable and quick transaction process.
Pricing: Transaction fee of around 2.9% + $0.30 per transaction, with additional fees for cross-border processing.
Pros:
- Quick and seamless checkout process for Amazon account holders.
- Global reach with customers already familiar with Amazon’s interface.
- Reliable and secure transaction processing.
- Access to customer service and support.
- Suitable for businesses with an international customer base.
Cons:
- Limited to customers who already have Amazon accounts.
- Additional fees for cross-border processing can increase costs.
- Some customers may have concerns about sharing Amazon account details.
8. Opayo (Sage Pay)
Opayo previously known as Sage Pay, offers a unique approach with monthly fees based on the number of transactions. It supports online and offline payments, making it versatile for various sales channels. Opayo’s strong customer authentication and security features are noteworthy.
Pricing: Monthly fees start at £19.90 for 350 transactions per month. Custom corporate plans are available.
Pros:
- Strong security and compliance with industry regulations.
- Versatile payment options for online and offline sales.
- Quick and reliable transaction processing.
- Suitable for businesses of varying sizes.
- Access to customer support and guidance.
Cons:
- Monthly fees might not be cost-effective for very small businesses.
- The complexity of different plans and pricing tiers could be confusing.
- May not provide as many additional features compared to other gateways.
- Not as well-known globally as some other payment options.
- Limited integration with non-European payment methods.
9. Adyen
Adyen is a comprehensive payment solution known for its industry compliance and reliability. It offers a range of payment methods and supports various regulations, including SCA, PCI, and PSD2. Adyen’s customizable dashboards provide valuable insights into sales and customer behavior.
Pricing: Transaction fees vary based on location and payment method. Additional charges for certain payment methods.
Pros:
- Strong compliance with industry regulations and security standards.
- Real-time data tracking for insights into sales and customer behavior.
- Suitable for businesses with a global customer base.
- Access to 24/7 customer support.
Cons:
- Advanced features might require technical expertise to set up and manage.
- Customer support might not be as specialized compared to smaller gateways.
- Initial setup and integration might take longer due to customization options.
10. PayPal
PayPal is a widely recognized and trusted payment gateway known for its user-friendly interface and secure transactions. While not exclusive to Shopify, PayPal offers seamless integration with the platform, allowing customers to pay using their PayPal accounts.
Pricing: Transaction fees vary based on location and payment method.
Pros:
- Trusted and recognized payment platform.
- Seamless integration with Shopify.
- Quick and secure transaction processing.
- Access to PayPal’s extensive customer base.
- Varied payment methods, including PayPal balance and credit cards.
Cons:
- Transaction fees can become relatively high for high-volume businesses.
- Not all customers have or prefer using PayPal accounts for payments.
- Limited customization options for branding during the checkout process.
11. Skrill
For merchants predominantly operating in Europe, Skrill emerges as a prime payment gateway. Widely embraced in Europe and accepted in 40 other countries, Skrill offers seamless, secure, and efficient payment solutions. Its popularity stems from its affordability, charging only a 1.9% checkout transfer fee.
Pricing: Skrill’s pricing revolves around a 1.9% checkout transfer fee.
Pros:
- Preferred choice for European merchants due to its popularity in the region.
- Low 1.9% checkout transfer fee is appealing for cost-conscious businesses.
- Focuses on secure and efficient payment processing, enhancing user experience.
- Accepted in 40 countries, facilitating international transactions.
- Offers matchless payment solutions for merchants operating in Europe.
Cons:
- Limited presence outside of Europe
- Support and customer service might not be as robust in regions outside of Europe.
11. Authorize.Net
Authorize.Net caters to businesses of all sizes, positioning itself as an ideal Shopify Payment Gateway. Its versatility extends to its support for multiple payment methods, including e-check payments and credit card transactions. Notably, it supports a wide range of credit cards such as MasterCard, Discover, JCB, Visa, Diner’s Club, and American Express.
Pricing
Authorize.Net follows a tiered pricing model, offering two plans which include All-In-One Option and Payment Gateway Only. All in one plan charges a monthly gateway fee of $25, with a transaction fee of 2.9% + $0.30 per transaction. With Gatway only , you pay a monthly gateway fee of $25 along with a transaction fee of $0.10, making it ideal for high-volume businesses.
Pros:
- Accommodates businesses of all sizes with flexible payment plans.
- Secure and seamless payment management and processing services.
- Ideal for high-volume businesses due to its tiered pricing structure.
Cons:
- Monthly gateway fee and transaction fees could be relatively higher for smaller businesses.
- Limited support for international payment methods
- May not be the most cost-effective option for low-volume merchants.
12. Verifone (formerly 2Checkout)
Verifone, formerly known as 2Checkout, specializes in simplifying the complexities of international payments. It supports a wide array of payment methods and offers a customizable checkout experience to align with your brand’s aesthetic.
Pricing
Verifone employs a flexible pricing structure based on your business needs. Its standard plan includes 3.5% + $0.35 per successful transaction and pricing can be customized for high-volume businesses, offering advanced features.
Pros:
- Global reach with support for multiple currencies and languages.
- User-friendly interface for easier navigation and setup.
- Various payment options, including credit cards and PayPal.
- Subscription billing and recurring payment capabilities.
- Integration with Shopify and other popular e-commerce platforms.
Cons:
- Some merchants have reported unexpected account holds and transaction freezes.
- Transaction fees can be higher for certain international transactions.
- Limited customization options for checkout pages.
- Advanced features might require additional fees or a more complex setup.
Choosing the right payment gateway for your Shopify store depends on your business’s specific needs, customer preferences, and global reach. Consider factors such as transaction fees, security features, and compatibility with your target audience to make an informed decision that will enhance your customers’ shopping experience and streamline your operations.
Benefits of Using Shopify Payment Gateways
1. Seamless User Experience
The cornerstone of Shopify Payments’ appeal lies in its user-friendliness. It presents a streamlined and hassle-free solution for accepting online payments. As soon as you set up your Shopify store, you can enable Shopify Payments, eliminating the need for intricate third-party gateway integration. This is a significant advantage over alternative payment solutions that often require complex setup processes.
With Shopify Payments seamlessly integrated into your dashboard, you gain the ability to monitor transactions from within the Shopify admin. This unified view allows you to maintain a synced perspective of your inventory, sales, and financial records. The convenience of having all these aspects interconnected ensures that you can manage your business efficiently and make well-informed decisions based on real-time insights.
In terms of customer support, Shopify Payments stands out. Their support team operates round the clock, providing assistance through both phone calls and live chat. This readily available support system is invaluable, especially for businesses that operate across different time zones or encounter unexpected issues that require immediate attention.
2. Effortless Cart Integration
A significant determinant of a payment gateway’s effectiveness is its compatibility with diverse payment methods that cater to your target audience’s preferences. Shopify Payments excels in this aspect by offering multiple payment gateways, allowing customers to choose their preferred method of payment. By catering to various payment preferences, you create a more inclusive shopping experience that encourages customer satisfaction and repeat business.
What sets Shopify Payments apart is its seamless integration with Shop Pay—a customer-oriented checkout solution. Shop Pay enhances the checkout experience by simplifying the process and enabling customers to save their payment information for future transactions. This not only expedites the payment process but also fosters customer loyalty, as returning customers can complete purchases with minimal effort.
Furthermore, the integration of Shopify Pay, the integrated payment solution, has been proven to elevate conversion rates by a substantial margin. Studies indicate that shops leveraging Shopify Pay experience conversion rates that are approximately 1.72 times higher. This statistic underscores the significance of a frictionless checkout experience in driving sales and boosting revenue.
3. Robust Fraud Protection
In the realm of e-commerce, security is of paramount importance, especially when dealing with financial transactions. Payment gateways must possess robust fraud protection mechanisms to safeguard merchants and customers from potential threats. Shopify Payments recognizes this critical need and equips merchants with advanced fraud protection solutions.
The platform empowers merchants to assess and scrutinize potentially suspicious or high-risk orders. By providing the tools to identify fraudulent activities, Shopify Payments allows businesses to proactively prevent the fulfillment of fraudulent orders and preemptively thwart chargebacks. These features contribute to a secure business environment and protect merchants’ financial interests.
To enhance its fraud protection capabilities further, Shopify Payments incorporates fraud analysis tools. These tools leverage data and algorithms to identify patterns indicative of fraudulent transactions. Moreover, Shopify offers the option of Fraud Protect, an additional layer of security for orders processed through Shopify Payments. While a nominal fee is associated with this service, its benefits far outweigh the cost in terms of safeguarding your business from financial losses.
Choosing the Best Payment Option for Shopify
Selecting the right payment processor that is suitable for Shopify isn’t an easy task. The ideal payment gateway depends on many factors, including the products you’re planning to sell and the type of payment method your customers are already using.
With a wide range of payment options, you will not face any difficulty creating your store and setting up a payment gateway that is suitable for your customers.
Let Shopify Guruz Help You for Selecting the Best Payment Method for Shopify
Navigating the sea of payment gateway options can be overwhelming, especially for those new to the world of e-commerce. This is where Shopify Guruz’s experts come into play. We have a deep understanding of the Shopify platform and its ecosystem, including payment gateways. Our expertise can streamline the process of selecting and integrating a payment gateway that aligns perfectly with your business needs. Our Shopify Experts can provide personalized recommendations based on your industry, target audience, and business goals. They can assess your current setup, suggest optimizations, and guide you through the entire process, ensuring that you’re not only choosing the right payment gateway but also utilizing it to its full potential.
