Are you looking forward to building your own eCommerce store on Shopify? Well, then this article will be of great help to you.
Here, we will be discussing one of the most important aspects of running an eCommerce store, i.e., payment gateways.
Selecting the right payment gateway is a crucial decision for any business. Let’s begin by understanding what Shopify payment gateways are, how they work, and a list of the best Shopify payment methods.
Shopify Payment Gateways are the payment solutions that allow your customers to make payments on Shopify whenever they purchase any product. These payment gateways ensure that you receive the transaction amount in a convenient and secure way.
This process starts when a customer initiates a transaction for buying a product on your Shopify store. Then the gateway further sends confidential information of the buyer to his/her bank that is being used to make the purchase. Next, the bank reverts to the gateway with a response of a successful or a failed payment.
Payment processing in Shopify works on a backend phenomenon called ‘Stripe Processing System’.
In this, all your payments are processed in real-time and reflected on Shopify’s dashboard itself. This allows you to look at the status of your payments on Shopify’s dashboard without logging into an external platform like Braintree or Authorize.net.
After checking the initiated payment for fraud, Shopify Payment provider deposits the payment into the seller’s account in a few working days, majorly depending on the country. For instance, in the US, the transfer takes about 2 days, whereas, in Sweden, it takes about 4 business days.
However, if the payment transfer takes longer than usual, we recommend you address and report the issue on time. This enables you to avoid payment delays or fraud.
The selection of a Shopify payment method is a crucial decision for you to make, and you really don’t want to miss any important points. Make sure you add the below factors to your checklist while looking for a Shopify payment gateways method.
Your Type of Business: Before selecting the payment method for Shopify, decide on the terms of sales and in what currency you are willing to accept payments.
Accepted Cards: To make payment options easy for your customers, ensure that your Shopify payment provider accepts all the popular types of cards. Some popular options include VISA, RuPay, MasterCard, and American Express.
Target Market: While selecting a payment provider for Shopify, make sure to check their availability in the geographical area of your target market. For example, PayPal is not available in countries like Iran, Afghanistan, or Bangladesh.
Security: To keep yourself and your customers secure, choose a Shopify payment method that offers a secure transaction experience with robust fraud detection features.
User Shopping Experience: Smooth, secure, and seamless payments play an integral part in enhancing the shopping experience for your customers. A pleasant experience on your platform will ensure customer retention and repeat orders.
Transaction Cost: The cost per transaction or annual fees charged by a Shopify payment app is an important factor to consider while choosing one. On this basis, you will decide your selling price and profit margins. You must also consider settlement, chargeback, statement, cancellation, anticipation, and any annual fees.
Suggested Read: Difference Between Payment Gateway vs Payment Processor
Let’s check few of the Shopify payment gateways available in India.
You can check out Shopify’s payment gateway– Shopify Payments available on its website directly. Shopify Payments allow you to set up a payment system within the Shopify store itself which is quite convenient for businesses to use.
Features of Shopify Payments
Pricing of Shopify Payments: Shopify Payments come with the Shopify Store.
Country Wise Popularity for Shopify Payments: China, United States, France, Australia.
Stripe Payment Gateway is a Shopify payment provider that is suitable for all types and sizes of businesses, starting from startups to huge enterprises.
Stripe payment systems work on machine learning models that help businesses increase their revenue and conversions. Its continuously improving features ensure that your transactions are fraud-free.
Features of Stripe:
Pricing of Stripe Payments: Stripe offers a pay-as-you-go policy. It charges 2% for Indian cards, and 3% for cards from outside India.
Country Wise Popularity for Stripe: Australia, Canada, India, Belgium
PayPal Payment Processor is one of the popular and trusted mediums for conducting global transactions. Using PayPal, you can deal in 100+ different currencies in 200+ markets across the globe.
To ensure customer loyalty, PayPal provides a hassle-free checkout experience with PayPal alternatives for accepting online payment methods that are also locally relevant.
Features of PayPal
Pricing of PayPal: PayPal charges different fees for commercial transactions in different countries. In India, it costs ₹3 INR per transaction.
Country Wise Popularity for PayPal: Germany, United Kingdom, USA
WorldPay payment gateway allows your business on Shopify to accept payments in more than 120 currencies. It simplifies order and accounts management with features like webhooks, order management, and real-time alerts.
Features of WorldPay
Pricing of WorldPay: WorldPay payment provider offers two plans – Gateway Standard, and Gateway Advanced, priced at ₹1886.18 and ₹4467.26 per month, respectively.
Country Wise Popularity for WorldPay: United Kingdom, USA, Hong Kong, Singapore
Shopify is one of the premier partners for Amazon Pay. The Shopify payment provider, Amazon Pay is available in more than 170 countries and claims to process transactions 49% faster as compared to your regular checkouts.
Features of Amazon Pay
Pricing of Amazon Pay: Amazon Pay charges 1.95% plus taxes as the processing fee.
Country Wise Popularity of Amazon Pay: USA, Japan, Spain, Germany
Suggested Read: What are eCommerce Payment Systems in India: Types, Examples & Advantages
Authorize.Net, as a popular Shopify payment provider, allows you to accept payments anywhere, anytime. It focuses on simplifying transactions for both businesses and customers while enhancing your checkout experience.
This Shopify payment app enhances repetitive customers’ shopping experience with smooth processing of instalment and recurring payments.
Features of Authorize.Net
Pricing of Authorize.Net: Authorize.Net offers two plans, Payment Gateway Only and an All-in-One option. Payment Gateway Only charges a monthly fee of ₹1895.64, a per-transaction fee of ₹758.44, and a daily batch fee of ₹758.44. However, the All-in-One plan charges a monthly fee of ₹1895.64 and a per-transaction percentage of 2.9% along with ₹274.27.
Skrill, a Shopify payment provider, offers a multi-currency account that enables your business to do transactions in 40+ currencies. Skrill offers a PCI-compliant payment gateway that ensures high standards for risk and fraud management. In addition, Skrill’s world-class technical support reaches you in your preferred language, no matter wherever you are.
Features of Skrill Payment Method
Pricing of Skrill: For local and global payment transfers, Skrill charges a transaction fee of 2.50%.
Country Wise Popularity of Skrill: USA, Australia, Germany, Ireland
Formerly known as 2Chekout, Verifone accepts all major types of advanced payment methods for eCommerce. This Shopify payment provider has successfully made transactions of more than $440 Billion through its global payment gateway globally. Verifone also assists you in generating reports for data-driven decision-making.
Features of Verifone
Pricing of Verifone: Verifone offers 3 paid plans, 2SELL, 2SUBSCRIBE, 2MONETIZE that charge 3.5% + ₹26.59, 4.5% + ₹34.19, and 6.0% + ₹45.58 per successful transaction respectively.
Country Wise Popularity of Verifone: Europe, Austria, Denmark, United Kingdom
Klarna, Shopify payment provider is considered a market leader in the category of ‘Buy Now, Pay Later’ services. Along with offering a set of modern payment methods, Klarna ensures smooth checkout focuses on enhancing the customer’s shopping experience.
Features of Klarna
Pricing of Klarna: Pricing available on request at the official website.
Country Wise Popularity of Klarna: Australia, Canada, United Kingdom, USA
Square allows you to receive payments from your online as well as offline stores. Being PCI compliant, Square payment provider offers robust dispute management and fraud prevention.
It also offers a complete suite of business solutions that can manage orders, teams, inventory, product catalog, etc., using API.
Features of Square
Pricing of Square: Square charges a fee of 2.9% + ₹2, 279.87 on card payments or 1% with a minimum of ₹76 per transaction on the invoice for ACH bank transfers.
Country Wise Popularity of Square: USA, Canada, Japan, Australia
Braintree which was acquired by PayPal in 2013, offers you a blend of innovation, experience, and scalability. The PayPal network of 130+ currencies and 45+ countries allows you to expand and tap onto newer markets. Braintree’s modern payments experience helps you boost your sales and boost your conversion rates.
Features of Braintree
Pricing of Braintree: Braintree charges a percentage of 2.59% and ₹37.23 per transaction for digital wallets and card payments.
Country Wise Popularity of Braintree: Canada, USA, Singapore, China
Suggested Read: List of Best International Payment Gateways in India | Free Shopify Alternatives
Adyen offers end-to-end payment solutions and helps you in the financial management of your business. In addition, it enables you to receive global payments and increase your customer base while expanding your business.
Features of Adyen
Pricing of Adyen: Adyen charges a processing fee of ₹8.29 per transaction with different payment method charges for different mediums.
Country Wise Popularity of Adyen: USA, Brazil, Australia, Canada
PayFast is Shopify payment gateway, enables you to accept and manage your financial transactions directly from your dashboard. The dashboard allows you to view your recent transactions, account balance, request payments, and generate reports. With PayFast, you can request payments with an email link, even if you don’t have an eCommerce website.
Features of PayFast
Pricing of PayFast: PayFast charges different fees for different payment methods ranging from 2% to 5.5%.
Country Wise Popularity of PayFast: South Africa
PayGate can be integrated into your business at any stage. The payment gateway allows you to accept international payments using cards, Master pass, Zapper, etc.
To keep your transaction secure, this payment gateway is PCI DSS Level1 Compliant, GDPR Ready, and fraud monitoring for suspicious transactions.
Features of PayGate
Pricing of PayGate: It offers two plans, Switch and Plus. PayGate Switch charges a base fee of 0.25%, and PayGate Plus charges 3.5% for every successful transaction.
Country Wise Popularity of PayGate: South Africa, Australia, Ireland, New Zealand, Saudi Arabia
To Conclude
You have multiple Shopify payment gateways option available out there. But before selecting one, be aware of your geographical target market to select the most suitable for your nature of business. Also, we highly recommend going through their security licenses and some reviews as well.
FAQs
The best payment gateways for Shopify are PayPal, Shopify Payments, Stripe, and Skrill because of their massive global presence.
Yes, it is possible for you to integrate a third-party payment gateway on Shopify. You can check some options like Verifone, AmazonPay, WorldPay that offer smooth and quick integration.
Yes, Shopify offers its in-built payment method, Shopify Payments. You add it to your business with a simple setup, and a transaction cost.
To add a payment gateway to Shopify, follow the steps, Payment Provider > Settings > Accept Payments > Add a Provider > Continue > Complete Account Setup.
Shopify supports an in-built payment provider – Shopify Payments. It also integrates with multiple third-party providers like AmazonPay, Klarna, Square, etc.
Shopify Payments platform is free as it doesn’t charge any transaction fee. However, any other third-party Shopify payment provider will charge a percentage on your successful transaction.
Related Categories: Payment Gateway | Order Management Software | Dropshipping Software
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