Shopify Payment Providers: Quick Intro

Are you planning on setting up an online store on Shopify? If so, one essential factor you need to consider is your payment options. Without a well-rounded understanding of Shopify’s range of payment options, you may unintentionally inconvenience your customers or limit your potential sales. That’s why it’s crucial for every merchant to scrutinize and choose the right mix of payment solutions. In this post, we’ll explore various payment options offered by Shopify, discuss their pros and cons, and guide you on selecting the best combination for your e-commerce store.

Payment providers can be divided into two categories: Shopify Payments and alternative payment gateways.

  1. Shopify Payments

Shopify Payments is the built-in and most recommended credit card payment option provided by Shopify itself in partnership with Stripe. It allows you to accept payments directly with no additional setup fees, payouts, or transaction fees (other than basic credit card processing fees). Here are some advantages of using Shopify Payments:

  • Seamless integration: Managing payments becomes easy, as you only have to deal with Shopify Dashboard.
  • No additional transaction fees: Your sales won’t incur extra charges besides standard credit card fees.
  • Faster checkout experience: Customers never leave the online store during the whole checkout process.

However, it’s essential to note that Shopify Payments is only available in certain countries like United States, Canada, United Kingdom, Australia, New Zealand, and a few others. Also, some products may not qualify for Shopify Payments due to restrictions.

  1. Alternative Payment Gateways

If you can’t access or opt not to use Shopify Payments for any reason, there are numerous alternative payment gateways compatible with the platform:

a) PayPal – A widely known option among consumers worldwide that sports a recognizable brand name. The quick checkout feature simplifies transactions and reduces cart abandonment rates. On the downside, some businesses might find PayPal fees relatively high compared to other gateways.

b) Amazon Pay – Dependable for Shopify store owners who aim to tap into Amazon’s vast customer base. Purchasers can check out using their Amazon credentials and saved payment details. However, Amazon’s dominance in the e-commerce space could mean greater competition for your business.

c) Stripe – Stripe offers a robust API, which enhances user experience for both developers and customers. However, since Shopify Payments runs through Stripe, there’s little reason to opt for Stripe as an individual payment gateway.

Other notable alternative payment gateways include Authorize.Net, 2Checkout, Braintree, and more. Choosing the right payment gateway depends on your target audience, location, and fees associated with each service.

  1. Adding Local Payment Methods

Diversifying your payment solutions attracts wider demographics of customers. Some popular local payment methods are Alipay (China), Klarna (Europe), iDEAL (the Netherlands), and QuickPay (Scandinavia). By utilizing local methods, you’re likely increasing trust among your customers by presenting familiar options.