Blog Post

Shopify Payment Gateways: A Comparative Analysis

August 5, 2023

Payment gateways can significantly affect your customers’ buying experience and, ultimately, your store’s conversion rate. For those using Shopify, a variety of payment gateways are available. In this piece, we’ve broken down a comparative analysis of the most popular Shopify payment gateways: Shopify Payments, PayPal, Stripe, and Authorize.Net. However, before we start we must note that the choice of the right gateway is less about finding the ‘best’ one and more about identifying the one that is most compatible with your specific business needs. With that in mind, let’s now continue, starting with Shopify Payments.

Shopify Payments

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Shopify Payments, powered by Stripe, is the platform’s in-house solution and as such is probably the most convenient option. What makes Shopify Payments particularly appealing is the seamless integration with Shopify. This means no need for setting up third-party redirects during checkout or worrying about additional transaction fees on top of the credit card rates.

The rates themselves are competitive, particularly for Shopify Plus members. For others, the rates start at 2.9% + 30¢ per transaction, reducing as your plan upgrades. Moreover, Shopify Payments supports multiple currencies which is always a plus whilst it also allows for integration with various other systems, including point-of-sale systems, mobile stores, Facebook shops and more.

Despite all this, there are major downsides also. One of these in particular is the fact that it is unavailable in several countries as of now so depending on where you are from it may not even be an option. Moreover, Shopify Payments has a list of prohibited business types, although this shouldn’t be an issue with most niches.


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PayPal’s universal recognition and reputation make it a consumer favourite and often a must-have for online merchants. Offering a PayPal checkout option can increase your conversion rates, especially among PayPal loyalists who trust this platform for all their online transactions. PayPal is available in over 200 countries and supports 25 currencies, offering incredible reach to global businesses. Thankfully, you can have Paypal as a payment gateway along with others on this list so it really is a no-brainer.

The slight downside with this option is that you may have the occasional dispute or chargeback. PayPal is known for siding with buyers in case of a dispute, even where it may be invalid. Furthermore, PayPal’s infamous account holds can be a serious issue for some people. This is where Paypal essentially holds your money until the buyer has received the item, meaning you are not paid instantly.


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Stripe is the powerhouse behind Shopify Payments but also stands as a robust payment gateway in its own right. Its feature-rich platform and smooth user interface can make it an attractive option if you are tech-savvy. With a strong API, Stripe allows for extreme customization, catering to your unique business needs. Its rates are of course in line with that of Shopify Payments.

There is not much else to say about Stripe due to its similarities with Shopify Payments. If you are a non-technical person then you may as well stick to Shopify’s option.


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Authorize.Net is another payment gateway that is a favourite among Shopify sellers due to its security features and excellent customer support. With advanced fraud detection, secure customer data management, and 24/7 support, Authorize.Net’s transaction fees are on par with other gateways at 2.9% + 30¢, although it does charge a monthly gateway fee of $25.

However, it offers a suite of fraud detection tools, making it an attractive choice for high-volume sellers where security is a priority. Still, the additional cost and technical demands of setting up Authorize.Net can be a barrier for new or smaller sellers. The advanced features of Authorize.Net also come with a steeper learning curve compared to other gateways discussed in this article.


All these gateways bring their own strengths and weaknesses to the table. As said at the start of the article, it’s not about what’s “best” here but rather what is “right”. To make the right choice, you must understand your business, your customer base, your technical capacity, and your future growth plans. There’s no harm in starting with a simpler gateway and gradually moving to a more feature-rich one as your business grows and your requirements change.