Shopify Payments vs Stripe: Which One Is Right for Your Business?
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When choosing a payment solution for your eCommerce store, Shopify Payments and Stripe are two of the most prominent options. Both offer powerful features designed to streamline transactions for online businesses, but each has unique advantages depending on your needs.
In this article, Nextsky will compare Shopify Payments and Stripe in detail to help you determine which option is best suited for your business.
Shopify Payments vs Stripe: Overview
When it comes to online payment solutions, two of the most well-known options are Shopify Payments and Stripe. Both are widely used by eCommerce businesses, but they offer distinct features that can suit different needs. Here's an overview of both to help you understand which might be the better choice for your business.
| Shopify Payments | Stripe |
| Shopify Payments is Shopify’s native payment processing solution, fully integrated into the Shopify platform. This means that if you are using Shopify for your online store, you can start accepting payments almost immediately after signing up, without needing to set up a third-party payment processor. Shopify Payments allows you to manage your payments, orders, and fraud protection all within the Shopify dashboard, making it a seamless and convenient option for Shopify store owners. | Stripe, on the other hand, is a third-party payment processor that integrates with multiple eCommerce platforms, including Shopify. Stripe is known for its flexibility and developer-friendly tools, allowing businesses to create customized payment solutions tailored to their specific needs. It supports a wide range of payment methods, including credit cards, bank payments, and Buy Now Pay Later (BNPL) options, and operates in over 30 countries. |
Pros of Shopify Payments
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Pros of Stripe
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Cons of Shopify Payments
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Cons of Stripe
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Key Differences
One of the main differences between Shopify Payments and Stripe is their level of integration. Shopify Payments is the default choice for Shopify store owners, making it the easiest option for those who want a hassle-free payment solution. However, Stripe is more versatile, offering deeper customization for businesses that want to build their own payment systems or use more advanced payment options.
Shopify Payments vs Stripe: A Detailed Comparison
Shopify vs Stripe: Pricing And Fees
| Shopify Payments | Stripe |
| Monthly Fees | |
Included in Shopify Subscription. Shopify Payments is integrated into Shopify's monthly subscription plan. No additional monthly fee for using Shopify Payments. Subscription plans range from:
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No monthly fees for using Stripe's core payment processing. However, there is a $10/month fee if you want to use a custom domain for your checkout page. Additional costs may apply for advanced features and services. |
| Payment Processing Fees | |
| Standard Processing Fees: For the Basic Shopify plan the fees are: - 2.9% + 30¢ per transaction for online payments made via credit or debit cards.For Shopify, Advanced Shopify, and Shopify Plus plans, the rate is reduced to 2.6% + 30¢ and 2.4% + 30¢ respectively.Shopify Payments also includes the same fees for card-present transactions via POS, but the rates vary slightly based on the Shopify plan. |
Standard Processing Fees: For US-based businesses, Stripe charges:
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| Additional Fees | |
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Accepted Payment Methods
| Shopify Payments | Stripe |
|---|---|
| Supports credit and debit cards (Visa, Mastercard, American Express, Discover, JCB, Diners Club, Elo). | Supports credit and debit cards (Visa, Mastercard, American Express, Discover, JCB, Diners Club). |
| Supports digital wallets (Apple Pay, Google Pay, Amazon Pay, Facebook Pay). | Supports digital wallets (Apple Pay, Google Pay, WeChat Pay, Microsoft Pay). |
| Supports PayPal (requires a separate PayPal account connection). | Does not support PayPal directly (requires third-party integration). |
| Supports local and international payment methods (varies by country). | Supports a broader range of local and international payment methods. |
| Supports manual payment methods (Cash on Delivery, Bank Transfer, Money Order). | Does not support manual payments. |
| No built-in Buy Now, Pay Later (BNPL) options. | Supports BNPL options such as Afterpay and Klarna. |
| Supports payments in 130+ currencies across 23 countries and regions. | Supports payments in 135+ currencies across 195 countries. |
Implementation
| Shopify Payments | Stripe |
|---|---|
| Automatic integration with every Shopify subscription. Simply activate your Shopify Payments account to start accepting payments. | Multiple integration options for different needs. You can customize the payment process to match your business requirements. |
| Accept payments directly from your Shopify store with a customizable checkout. | Use a pre-built or custom payment form on your site. |
| Accept payments through Shopify’s additional online sales channels (e.g., Facebook and Instagram). | Accept payments via shared link or custom payment page. |
| Use a Shopify card reader paired with a smart device (iOS or Android) to accept in-person payments. | Use Stripe Terminal to build a point-of-sale system and accept payments in person. |
| Seamless integration within the Shopify ecosystem without the need for technical setup. | More flexibility in customization, but may require technical skills for integration and setup. |
| No additional setup for Shopify users—simply sign up and activate. | Various integrations for custom e-commerce setups, including pre-built integrations for platforms like WooCommerce and Adobe Commerce. |
Payout Time
| Shopify Payments | Stripe |
|---|---|
| Payout Frequency: Typically once or twice a week, depending on your location. | Payout Frequency: First payout typically takes 7-14 days for review, followed by regular payouts every 2-3 days. |
| Payout Process: Payments are processed directly to your bank account based on your location. | Payout Process: Payments are transferred to your bank account after an initial review period. |
| For businesses in USA or Australia, payouts are typically processed every 2 days. | After the review period, businesses in USA or Australia can expect payouts every 2 days. |
| For businesses in most other countries, payouts are processed every 3 days. | For most other countries, payouts are processed every 3 days. |
| Faster payouts if you are located in the USA or Australia. | Longer initial payout period due to business review, especially for higher-risk industries. |
| The speed of receiving funds may also depend on your bank’s processing time. | Stripe may delay payouts based on your business risk assessment. |
Other Factors
| Factor | Shopify Payments | Stripe |
|---|---|---|
| Integrations | Over 450 integrations available with Shopify. However, not all third-party apps are compatible with Shopify Payments. | Over 4000 apps available to integrate with Shopify, offering more flexibility for external integrations. |
| High Chargeback Rate | Shopify may suspend your entire store if there are chargeback issues. | Stripe can suspend or ban your Stripe account, limiting only the payment gateway, not your whole store. |
| Fraud Protection | Provides Address Verification System (AVS) and Card Verification Value (CVV) to reduce fraud risk. | Includes advanced fraud protection with Stripe Radar, Dynamic 3D Secure, and Dispute Handling. |
| Customer Support | 24/7 support via live chat and phone. Integrated within Shopify. | 24/7 customer support via phone, chat, or email. Extensive documentation and resources available. |
Stripe vs. Shopify Payments: Which is Better for Your Business?
For Shopify store owners, Shopify Payments is the best option, offering seamless integration and no extra transaction fees (if available in your region). It’s ideal for those looking for an easy and cost-effective solution.
On the other hand, Stripe is great for businesses needing more flexibility and customization. It works with various platforms and offers advanced features, making it perfect for those not on Shopify or with specific payment needs.
If you're using Shopify but prefer not to use Shopify Payments or need more customization, you can still opt for Stripe. However, keep in mind that transaction fees will be higher, ranging from 1% to 2%.
In conclusion, both Shopify Payments and Stripe have their advantages. Shopify Payments is perfect for Shopify users seeking easy integration and lower fees, while Stripe offers more customization and global reach. Choose the one that best aligns with your business needs, whether it’s simplicity, flexibility, or scalability.
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