Best Payment Gateways For Shopify Integration - Top Options Guide

Top 7 Payment Gateways for Shopify - Head-to-Head Comparison

Choosing the right payment gateway for your Shopify store is a key step to making smooth transactions, improving customer satisfaction, and maximizing your profits.

Shopify Payments: The Native Solution

Best for: Shopify merchants seeking an integrated, seamless payment solution.

Shopify Payments is Shopify’s built-in payment gateway, designed to simplify the payment process for merchants by eliminating the need for third-party solutions. 

Pros of Shopify Payments

1. No Extra Software Required: Since Shopify Payments is a native solution, there’s no need for additional software, making it easy to set up and manage directly from your Shopify admin panel.

2. Competitive Payment Processing Fees: Depending on your Shopify plan, payment processing fees can be as low as 2.4% + 30¢ per transaction, making it cost-effective, especially for high-volume merchants.

3. PCI DSS Compliance: Shopify Payments complies with the Payment Card Industry Data Security Standard (PCI DSS), ensuring that sensitive financial data is protected against breaches and fraud.

4. Multiple Payment Methods: It supports various payment options, including major credit cards, digital wallets (such as Apple Pay, Google Pay, and Shop Pay), and even buy now, pay later services like Klarna.

5. International Payments: Shopify Payments allows you to accept payments in multiple currencies, providing a seamless experience for international customers.

6. Integrated Financial Reporting: Built-in financial reporting tools help you track and analyze your sales and payments directly within your Shopify dashboard.

7. 24/7 Customer Support: Shopify offers round-the-clock support to help resolve any issues quickly.

8. Automatic Deposits: Funds are automatically deposited into your business bank account, streamlining the financial management process.

Cons of Shopify Payments

1. Exclusive to Shopify Merchants: Only available to businesses using Shopify, which limits its accessibility for those on other platforms.

2. Extra Fees for Third-Party Gateways: Merchants not using Shopify Payments, especially those not on Shopify Plus, incur additional transaction fees for payments processed through third-party gateways.

3. Limited Geographic Availability: Shopify Payments isn't available in all countries, so if you operate in an unsupported region, you'll need to use a third-party gateway.

4. Customization Restrictions: For businesses with highly specific needs or those wanting more control over their checkout experience, Shopify Payments may lack the advanced customization options offered by third-party providers.

Pricing

Shopify Payments’ processing fees vary based on your Shopify plan:

• Basic Shopify Plan: 2.9% + 30¢ per transaction

• Shopify Plan: 2.6% + 30¢ per transaction

• Advanced Shopify Plan: 2.4% + 30¢ per transaction

In-person processing fees are slightly lower, and currency conversion fees apply for transactions outside the U.S.

Stripe: Customization for Growing Businesses

Best for: Merchants offering subscriptions and seeking a highly customizable payment solution.

Stripe is a versatile and popular payment gateway that caters to merchants looking for a scalable and flexible payment solution. 

It’s particularly favored by businesses offering subscription services, thanks to its invoicing and card-on-file capabilities. 

Pros of Stripe’s Payment Gateway

1. PCI DSS Compliance: All transactions are secure and compliant with the Payment Card Industry Data Security Standard (PCI DSS), safeguarding sensitive financial data.

2. Customization Features: Merchants can extensively customize the payment experience to align with their brand. This includes options for both embedded and Stripe-hosted checkout pages.

3. Global Reach: Stripe supports a vast number of countries and currencies, automatically handling currency conversion to facilitate international payments.

4. Subscription Billing: Stripe’s features for managing subscriptions and recurring payments make it an excellent choice for businesses that rely on these revenue models. It safely stores card details for future transactions.

5. Advanced Financial Reporting: Comprehensive tools for financial reporting help merchants track and analyze their transactions effectively.

6. Wide Range of Payment Methods: Stripe accepts credit cards, debit cards, buy now, pay later (BNPL) options, ACH direct debits, and major digital wallets like Apple Pay and Google Pay.

7. API-Based Integration: For technically adept businesses, Stripe offers fully API-based integration options, allowing for extensive customization and control over the payment process. It perfectly fits merchants who want to explore the benefits of headless commerce.

Cons of Stripe’s Payment Gateway

1. Technical Expertise Required: Setting up and using Stripe to its full potential requires a higher level of technical knowledge compared to some other payment gateways. This could be a barrier for less tech-savvy merchants.

2. High Chargeback Fees: Stripe imposes substantial fees if a customer disputes a payment, which can be costly for merchants.

3. Limited Availability: Stripe is available in 46 countries, which may limit its accessibility for some Shopify users.

Pricing

Stripe employs a transparent flat-rate pricing model, charging 2.9% + 30¢ per transaction for domestic card payments. Additional fees include:

• 0.5% for manually entered card details

• 1.5% for international cards

• 1% for currency conversion

• 1% for instant payouts to bank accounts, with an additional 1% for international instant payouts

Large-scale e-commerce businesses can request customized quotes based on their transaction volume and specific needs.

PayPal: Trusted Name for Global Recognition and Buyer Protection

Best for: Businesses with a global customer base who have PayPal wallets.

PayPal is one of the most well-known payment gateways globally, trusted by over 431 million users in 2023 (users who have made at least one transaction in the year).

Its widespread recognition and strong buyer protection programs make it an attractive option for e-commerce merchants, especially those with an international clientele. 

Pros of PayPal’s Payment Gateway

1. Global Recognition: PayPal’s brand is widely recognized and trusted, which can enhance customer trust and potentially increase conversion rates. PayPal as a payment option present can be a deciding factor for many customers during checkout.

2. Invoicing Capability: PayPal provides tools for creating and sending invoices, making it easier for businesses to manage their billing processes.

3. Buyer and Seller Protection: PayPal offers protection programs that safeguard buyers and sellers from fraud. This added layer of security can provide peace of mind for both parties involved in a transaction.

4. One-Touch Checkout: PayPal’s one-touch checkout feature simplifies the payment process, improving the customer experience by reducing the number of steps required to complete a purchase.

5. Supports International Payments: PayPal supports transactions in a wide range of currencies, making it ideal for businesses with a global reach. Customers can pay using the money in their PayPal account or linked bank accounts.

6. No Setup Fees: There are no initial costs to set up a PayPal account, making it accessible for businesses of all sizes.

Cons of PayPal’s Payment Gateway

1. Separate Setup and Checkout Process: PayPal requires a separate setup and checkout process, which might not be as seamless as some integrated solutions.

2. Customer Support Issues: Some merchants report inconsistent customer service experiences with PayPal, which can be a concern if issues arise that need quick resolution.

3. Higher Transaction Fees: PayPal’s transaction fees are higher than some other payment gateways, which can add up, especially for businesses processing large volumes of transactions. The standard fee is 3.49% + 49¢ per transaction, with an additional 1.5% fee for international payments.

4. Account Freezes: There have been instances where PayPal has unexpectedly locked merchant accounts and frozen funds, which can disrupt business operations.

Pricing

PayPal charges a transaction fee of 3.49% + 49¢ per transaction. For international payments, an additional 1.5% fee applies, along with specific costs depending on the currency involved.

PayPal offers a Pro plan for larger businesses at $30 per month, providing additional features and support.

Authorize.Net: Reliable Choice for Established Businesses

Best for: Retailers with a Visa merchant account and established businesses seeking security and extensive integrations.

Authorize.Net, owned and operated by Visa, is a highly reliable payment gateway ideal for established businesses. It offers a range of features designed to support secure and efficient transactions, making it a popular choice among merchants. 

Pros of Authorize.Net’s Payment Gateway

1. High Uptime Rates: Ensuring that your payment gateway is always available to process transactions, which is critical for maintaining a smooth customer experience.

2. User-Friendly: Despite its extensive features, Authorize.Net is accessible to non-technical merchants. This ease of use can be a significant advantage for businesses looking to simplify their payment processes.

3. Versatile Payment Options: The gateway accepts payments through a variety of methods, including credit and debit cards, checks, PayPal, and Apple Pay, providing flexibility for both you and your customers.

4. Advanced Fraud Detection: Authorize.Net includes fraud detection tools to block fraudulent transactions, protecting your business and your customers’ sensitive information.

5. Invoicing Capability: You can send invoices directly through the payment gateway, streamlining your billing process.

6. Customizable Payment Forms: Merchants can customize their payment forms to better match their brand’s look and feel, enhancing the overall customer experience.

7. Excellent Customer Service: Authorize.Net is known for its responsive and helpful customer support, ensuring that any issues are resolved quickly.

Cons of Authorize.Net’s Payment Gateway

1. Monthly Subscription Fee: There is a $25 monthly subscription fee, which might be a consideration for smaller businesses or those with tighter budgets.

2. Outdated Interface: Some users find the interface to be less modern compared to other payment gateways, which might affect the user experience.

3. Potential Technical Glitches: While generally reliable, there have been reports of occasional technical issues during transactions.

4. Complexity for Small Businesses: The comprehensive set of tools and features can be overwhelming for small businesses or beginners, potentially complicating the setup and management processes.

Pricing

Authorize.Net offers different pricing models depending on your needs:

• Payment Gateway Only: $25 monthly fee plus 10¢ per transaction and an additional 10¢ daily batch fee.

• All-in-One Option (Payment Gateway and Merchant Account): 2.9% + 30¢ per transaction.

• Payment Gateway and eCheck: eCheck transactions at 0.75%, with credit card transactions at 10¢ per transaction plus a 10¢ daily batch fee.

Adyen: Versatile Option for International Omnichannel Sales

Best for: Large online businesses focused on international and omnichannel sales.

Adyen is a global payment gateway known for its scalability and support for omnichannel selling.

It allows merchants to process payments in multiple currencies and countries, making it an excellent option for businesses with a significant international presence.

Pros of Adyen’s Payment Gateway

1. Wide Range of Payment Options: Adyen supports various payment methods, including digital payments, local payment options, and all major credit cards. This flexibility is crucial for processing international payments.

2. Omnichannel Support: Adyen’s platform enables merchants to take payments across multiple regions via a single integration, whether online, through mobile apps, or in physical stores.

3. 24/7 Customer Support: Adyen provides round-the-clock customer support, ensuring that any issues can be addressed promptly.

4. Branded Physical and Digital Cards: Merchants can create branded payment cards, enhancing brand visibility and providing additional options for customers.

5. AI-Powered Risk Analysis: Adyen employs an AI-powered risk analysis system to protect businesses against fraud.

6. Support for Subscriptions and Recurring Payments: The gateway supports subscription billing and recurring payments, making it suitable for businesses with these revenue models.

7. Tokenization for Secure Transactions: Adyen ensures secure transactions across all channels by using tokenization, which protects sensitive payment information.

8. Customizable Dashboard: Merchants can track and manage payments across all channels through a customizable dashboard, providing a comprehensive view of financial data.

Cons of Adyen’s Payment Gateway

1. Limited Customization Features: While Adyen offers a robust set of features, it has limited customization options compared to some other payment gateways. This might be a constraint for businesses looking for highly tailored solutions.

2. Complex Pricing Model: Adyen’s pricing structure can be more complicated than other gateways, as it depends on the customer’s issuing bank and the payment method. This variability can make it challenging to predict costs.

3. Not Ideal for Smaller Businesses: Adyen requires a minimum monthly invoice, which might be prohibitive for smaller businesses or those with lower transaction volumes.

4. Complex Setup: Setting up and integrating Adyen with existing systems can be complex, potentially requiring more technical expertise and time.

Pricing

Adyen does not charge setup or monthly fees. The payment processing fees vary based on the payment method and location:

• JCB (Global): €0.11 + 3.75%

• ACH Direct Debit (U.S.): €0.11 + $0.27

• WeChat Pay (China): €0.11 + 3%

These fees highlight the need for businesses to carefully consider their transaction volumes and payment methods to understand the total cost of using Adyen.

Klarna: The Buy Now, Pay Later Giant

Best for: Merchants targeting younger demographics or selling higher-priced items, who want to offer flexible payment options.

Klarna has taken the e-commerce world by storm with its "Buy Now, Pay Later" (BNPL) model. This Swedish fintech company offers several payment options, allowing customers to split their purchases into interest-free installments or delay payment entirely.

Pros of Klarna

• Increased Conversions: BNPL options have been proven to increase average order values and reduce cart abandonment, particularly among younger shoppers.

• Seamless Checkout: Klarna's one-click checkout experience simplifies the purchasing process, potentially boosting sales.

• Multiple Payment Options: Klarna offers Pay in 4 (four interest-free payments), Pay in 30 days (deferred payment), and Financing (longer-term payment plans).

• Strong Brand Recognition: Klarna is a well-known and trusted brand, especially among millennials and Gen Z.

• Merchant Protection: Klarna assumes the credit risk, meaning you get paid upfront even if the customer pays later.

Cons of Klarna

• Potentially Higher Fees: Klarna's fees can be slightly higher than some other gateways, especially for smaller businesses.

• Customer Service Concerns: Some merchants report issues with Klarna's customer service responsiveness.

Pricing

Klarna's pricing structure can vary depending on your location and the specific payment plan you choose. 

Generally, they charge a percentage of the transaction amount, plus a small fixed fee per transaction.

Boodil: The Fast, Secure Pay by Bank Solution

Best for: UK and European merchants seeking a fast, secure, and cost-effective alternative to traditional card payments.

Boodil is the payment gateway with its focus on "Pay by Bank" transactions. By allowing customers to pay directly from their bank accounts, Boodil simplifies checkout and eliminates the need for card details, improving security and potentially increasing conversions.

Pros of Boodil

• Enhanced Security: Boodil utilizes your customers' existing bank security, removing the risk of storing sensitive card data on your site.

• Frictionless Checkout: Customers enjoy a seamless payment experience with just a few clicks, directly from their bank accounts.

• Instant Settlements: Receive your funds instantly, improving cash flow and financial management.

• Lower Transaction Fees: Boodil's fees are often lower than those of traditional card payments, making it a cost-effective option.

• Rewarding for Customers: Boodil's rewards program incentivizes customers to choose your store, fostering loyalty and potentially boosting repeat business.

• Quick Integration: With their easy-to-use SDK (Software Development Kit), you can integrate Boodil into your Shopify store in a matter of minutes.

Cons of Boodil

• Limited Geographic Availability: Boodil currently serves the UK, Netherlands, France, Spain, and Portugal.

• Newer Player: Being a relatively new entrant in the market, some merchants may be hesitant about Boodil's long-term stability.

• Customer Familiarity: While growing in popularity, "Pay by Bank" might not be as widely recognized as traditional card payments in some markets.

• Industry Restrictions: Boodil isn't available for certain high-risk industries like alcohol, tobacco, gambling, and others.

Pricing

Boodil typically charges a flat transaction fee, which is often lower than standard card processing fees. Contact Boodil directly for detailed pricing tailored to your specific business needs.

Shopify Payment Gateway Comparison Table (tl;dr)

Headless Commerce & Headless Shopify Solutions - Payment Flexibility for Your Store

Headless commerce, and specifically headless Shopify, offers a unique advantage when it comes to payment options. 

In a traditional setup, your e-commerce platform and front-end (the customer-facing website) are tightly linked. This can limit your choices and make it difficult to experiment with different payment gateways.

With headless architecture, the front-end and back-end are decoupled. This means you have the freedom to choose any payment gateway that suits your needs and integrate it seamlessly through APIs.

Key Advantages:

• Wider Selection: You're not limited to the gateways pre-integrated with Shopify. Explore niche providers, local payment methods, or cutting-edge solutions that cater to specific customer preferences.

• Customization: Tailor the checkout experience to match your brand perfectly. Create a unique flow, add personalized elements, and optimize for conversions without being constrained by the platform's limitations.

• Easy Testing and Experimentation: The decoupled architecture makes it simpler to test different payment gateways and see how they impact your sales, without disrupting your entire store.

• Agility and Innovation: Stay ahead of the curve by quickly adopting new payment technologies as they emerge, making sure your customers have access to the latest options.

How Does This Benefit You?

• Reduced Cart Abandonment: Offer the payment methods your customers prefer, minimizing friction during checkout.

• Increased Conversions: A tailored checkout experience can lead to higher sales.

• Competitive Edge: Differentiate your store with unique payment options and a checkout flow that stands out.

• Future-Proofing: Easily adapt to changing payment trends and technologies, so your store remains competitive.

Factors to Consider When Choosing Your Shopify Payment Provider

Choosing the right payment provider isn't just a technicality; it's a strategic decision that can significantly influence your Shopify store's operational efficiency, customer satisfaction, and bottom line.

Here are the key considerations:

Transaction Fees - Know What Fees You Have To Include!

1. Standard Transaction Fees: These are the basic fees charged per transaction, which typically include a percentage of the transaction amount plus a fixed fee (e.g., 2.9% + 30¢).

2. International Fees: Additional fees for processing payments from customers outside your home country, which can add around 1-1.5% to the transaction cost.

3. Currency Conversion Fees: If your business deals in multiple currencies, a fee for converting foreign currency into your local currency is often charged (e.g., 1%).

4. Manually Entered Cards Fees: Additional charges (e.g., 0.5%) when card details are manually entered rather than swiped or tapped.

5. Chargeback Fees: Fees incurred when a customer disputes a transaction and it is reversed.

6. Monthly Fees: Some providers charge a monthly fee for using their gateway, which can range from $25 to $30 or more.

How to Calculate Costs?

To determine the total cost of using a payment provider, consider all applicable fees. For instance, if you process $50,000 annually with a provider charging 2.9% + 30¢ per transaction, your total transaction fees would be approximately $1,450.

Payment Methods & Popular Options in the Markets You Want to Explore

1. Credit and Debit Cards: Standard payment methods that should be supported universally (e.g., Visa, MasterCard, American Express).

2. Digital Wallets: Increasingly popular, digital wallets like Apple Pay, Google Pay, and PayPal offer quick and secure transactions.

3. Buy Now, Pay Later (BNPL): Services like Klarna and Afterpay allow customers to split their payments, boosting conversion rates.

Different regions have preferred payment methods. For example:

• China: WeChat Pay and Alipay are widely used.

• Europe: SEPA direct debit is common.

• US: Credit and debit cards dominate, but digital wallets are growing in popularity.

Choosing a provider that supports a variety of payment methods can reduce cart abandonment.

Security Concerns

1. PCI Compliance: Ensures that the payment gateway meets the Payment Card Industry Data Security Standard, protecting sensitive card data.

2. Encryption: Securely encrypts transaction data to prevent interception by unauthorized parties.

3. Tokenization: Replaces sensitive card information with a unique identifier or token, enhancing security.

4. Fraud Prevention Tools: Advanced features like AI-powered risk analysis and fraud detection filters to identify and prevent fraudulent transactions.

5. Chargeback Handling: Efficient systems to manage and dispute chargebacks, minimizing financial losses.

Integrations & Compatibility

1. Shopify Apps: Ensure the payment gateway integrates seamlessly with Shopify and its apps for smooth operation.

2. Accounting Software: Integration with accounting tools like QuickBooks can streamline financial management.

3. Inventory Management: Syncing with inventory management systems helps maintain accurate stock levels.

4. POS Systems: If you also sell in physical locations, compatibility with point-of-sale systems is crucial.

5. Analytics Tools: Integrate with analytics platforms to gain insights into transaction data and customer behavior.

6. Headless Commerce Compatibility: Verify to what extent your payment gateway is adaptable to the headless and composable architecture. Does it communicate through API? How does the API communication work? What possibilities for further customization do integrations give?

Reliability

1. Uptime: High uptime ensures your payment gateway is always available, preventing lost sales due to technical issues. Aim for providers with 99.9% uptime or higher.

2. Customer Support: Reliable and accessible customer support can resolve issues quickly, minimizing disruption to your business.

3. Handling Outages: Check the provider’s protocol for handling outages and how they communicate with merchants during such events.

Customer Experience

1. User Interface: A clean, intuitive interface improves the checkout experience, reducing cart abandonment rates.

2. Mobile Optimization: Ensure the payment gateway is optimized for mobile devices, as mobile commerce continues to grow.

3. Guest Checkout Options: Allowing customers to checkout without creating an account can simplify the process and boost conversions.

4. Trust Signals: Displaying PCI compliance logos and other security badges can reassure customers about the safety of their transactions.

5. Checkout Customization Capabilities: Check how well the payment platform can be personalized during the checkout process. Verify its possibilities in terms of design, UX/UI, branding, and additional features like promotions, upselling, and product recommendations.

tl;dr - What Questions Should I Ask Before Choosing The Payment Options for My Shopify Store?

1. What are the chargeback fees and dispute resolution processes?

2. Does the provider offer any value-added services, such as fraud prevention tools or recurring billing options?

3. What is the provider's reputation and track record in the industry?

4. What level of customer support does the provider offer, and is it available 24/7?

5. Does the provider have experience working with businesses in my industry or of my size?

6. What is the onboarding process like, and how long does it typically take to get started?

7. Are there any early termination fees or hidden costs associated with the provider?

8. What are the payout schedules, and how quickly can I access my funds?

9. How does the provider handle international transactions and currency conversions?

10. Does the provider offer any customization options for the checkout experience?

11. Does it go well with headless and composable commerce?

What's The Difference Between Shopify Payments and Third-Party Payment Methods?

What Payment Method Suits My Industry Best - Naturaily's Recommendations

Different industries have unique needs, challenges, and customer expectations, which should factor into your decision. 

Here's our take on the best payment options for various sectors:

Remember, these are suggestions. The best payment gateway for your business will depend on your specific requirements. 

Naturaily's experts can help you navigate this choice and implement a payment solution tailored to your needs.

Custom Shopify Payments App - Why It Could Be The Ideal Option For Your E-commerce Store?

A custom-built Shopify website or app with a dedicated payment gateway can be designed to perfectly match your platform's unique features and functionality, offering numerous advantages over standard Shopify payment methods - especially when you’re considering looking at headless Shopify solutions.

Benefits of a Custom Shopify Payments App

1. Tailored Integration: A custom app can integrate with your existing Shopify setup, ensuring smooth operation and compatibility with your specific business needs.

2. Enhanced User Experience: Customizing the payment flow can improve the user experience by making it more intuitive and aligned with your brand's aesthetic.

3. Flexibility: Custom apps allow for flexibility in payment methods, including support for local payment options and emerging technologies such as cryptocurrency.

4. Advanced Reporting: Gain access to detailed, customizable reports that provide insights into your transactions, helping you make informed business decisions.

5. Scalability: A custom app can scale with your business, adapting to increased transaction volumes and expanding to support new markets and payment methods.

6. Security: Implement advanced security features tailored to your business, including PCI DSS compliance, encryption, and fraud detection tools.

Developing a custom payments app for Shopify involves several steps, but it ensures that the final product is perfectly suited to your e-commerce store:

1. Assessment of Needs: Identify the specific payment requirements and preferences of your business and customers.

2. Development: Work with experienced developers to create a custom app that integrates smoothly with your Shopify store.

3. Testing: Thoroughly test the app to ensure it functions correctly and securely across all devices and scenarios.

4. Deployment: Launch the app on your Shopify store, offering customers a reliable payment experience.

5. Support and Maintenance: Provide ongoing support and updates to ensure the app remains secure and functional as your business evolves.

With over 10 years of experience in web design and development services, Naturaily is a trusted partner for e-commerce businesses looking to develop their Shopify stores.

By choosing our experts for your custom Shopify payments app, you are investing in a solution that will grow with your business, provide exceptional user experiences, and ensure the highest level of security and functionality.