Choosing the right payment processor for your online store is like selecting the right type of coffee—get it wrong, and the experience can leave a bitter taste. Both Shopify payment and Stripe are leaders in the payment processing game, but which one is the better fit for your business?

In this detailed comparison of Shopify vs Stripe, we’ll dive into their key features, fees, customization options, and benefits, helping you make the best decision for your e-commerce needs. Whether you’re running a small business or managing a growing enterprise, picking the right processor can streamline your operations and even boost your profits.

What Is Shopify Payments?

Shopify Payments is Shopify’s native payment gateway, integrated directly into its e-commerce platform. It’s designed to make payment processing simple for Shopify users, eliminating the need for third-party payment gateways. With Shopify Payments, you manage everything from your orders to your payouts all from one dashboard.

Key Perks of Shopify Payments:

• Seamless Integration: Fully integrated with Shopify’s platform, so no additional third-party setup is needed.
• Supports All Major Payment Methods: Accepts credit and debit cards, as well as digital wallets like Google Pay and Apple Pay.
• Quick Setup: As soon as you sign up for Shopify, you can activate Shopify Payments within minutes.
• Built-In Fraud Protection: Features such as Address Verification Service (AVS) and Card Verification Value (CVV) checks help reduce fraud.

One of the biggest advantages of Shopify Payments is that it helps users avoid the additional transaction fees that come with using third-party payment processors like Stripe or PayPal.

What Is Stripe?

Stripe is a powerful, developer-friendly payment processor that supports a wide range of payment methods and currencies. While not exclusive to Shopify, Stripe is highly customizable and can be integrated into various platforms. It’s especially known for its ability to handle complex payment flows, making it ideal for businesses with more advanced needs.

Key Perks of Stripe:

• Global Reach: Accepts payments in over 135 currencies and supports businesses in 36+ countries.
• Advanced Customization: Offers a flexible API for developers to create custom payment solutions tailored to their specific business needs.
• Comprehensive Fraud Protection: Features such as Stripe Radar and 3D Secure provide robust fraud detection and prevention tools.
• Recurring Payments: Stripe handles recurring billing and invoicing, making it a go-to for subscription-based businesses.

Stripe is an excellent option for businesses that need global payment solutions and customization capabilities, but its advanced features can be a bit more complicated for those who aren’t tech-savvy.

Shopify vs Stripe: A Detailed Comparison

Now that we’ve covered the basics, let’s break down how Shopify Payments and Stripe compare across key areas:

Availability and Global Reach

Availability and Supported Currencies

Shopify Payments supports businesses in 18 countries and allows transactions in 85 currencies. However, its global reach is somewhat limited compared to Stripe, which operates in 36 countries and supports payments in 135 currencies.

If you plan on expanding internationally or serving a global customer base, Stripe’s wider availability and multi-currency support make it the clear choice. Shopify Payments, on the other hand, is more restrictive in terms of where it operates, but it’s a great fit for Shopify-centric businesses operating in eligible countries.

Transaction Fees and Hidden Costs

Both Shopify Payments and Stripe charge similar transaction fees, but there’s more to the story when it comes to additional costs.

Shopify Payments Fees:

• Basic Shopify Plan: 2.9% + $0.30 per transaction.
• Shopify Plan: 2.6% + $0.30 per transaction.
• Advanced Shopify Plan: 2.4% + $0.30 per transaction.

If you use Shopify Payments, there are no additional transaction fees. However, if you use an external payment processor like Stripe, Shopify imposes an extra fee of 0.5% to 2%, depending on your plan. This can significantly add to your costs if you’re processing a high volume of sales.

You can find more details on Shopify’s pricing by visiting their pricing plans.

Stripe Fees:

• Online Transactions: 2.9% + $0.30 per transaction.
• International Payments: 3.9% + $0.30, with an additional 1% fee for currency conversion.

If you choose to use Stripe with Shopify, you’ll need to factor in Shopify’s additional fees on top of Stripe’s transaction fees. This can make Stripe a pricier option for Shopify users, especially if you’re on the Basic Shopify Plan, where you could be paying up to 4.9% in fees for international transactions. You can find Stripe’s full pricing details on their official pricing page.

When to Choose Shopify Payments

For Shopify store owners, Shopify Payments is often the easiest and most cost-effective solution.

Key Benefits of Shopify Payments:

• No Extra Fees: Shopify Payments saves you from paying the extra fees Shopify imposes on third-party gateways like Stripe.
• Seamless Integration: Everything is managed from one dashboard, from orders to payouts.
• Simplified Setup: Shopify Payments is ready to go as soon as you sign up for Shopify. No complex integrations required.

If you’re a small to mid-sized business with a primary focus on Shopify, using Shopify Payments makes a lot of sense. It’s convenient, simple to use, and saves you money on extra fees.

When to Choose Stripe

Stripe is perfect for businesses that need a bit more than the basics.

Key Benefits of Stripe:

• Custom Checkout Experience: Stripe offers a fully customizable checkout experience through its APIs, allowing businesses to create tailored payment flows.
• Global Reach: If you have an international customer base, Stripe’s support for over 135 currencies and its presence in 36 countries make it ideal.
• Recurring Payments: For subscription-based businesses, Stripe’s built-in invoicing and recurring billing features are a major advantage.

If your business is scaling and requires more control over the checkout experience or handles global transactions, Stripe is the better option.

Payout Times: Shopify vs Stripe

Payout times are critical to maintaining a steady cash flow for your business. Here’s how Shopify Payments and Stripe compare:

• Shopify Payments: Typically, Shopify Payments releases funds within 2 business days for U.S.-based merchants. The process is automatic and managed directly through Shopify’s dashboard.
• Stripe: Stripe also offers a 2-day payout window for most merchants. However, your first payout may take up to 7–14 days due to Stripe’s account verification process.

While both platforms offer relatively quick payouts, Stripe’s verification process can delay the first payment, which might be an inconvenience for new users. Shopify Payments offers a more streamlined experience since the verification process is typically faster and integrated directly within Shopify.

Why Having a Backup Payment Processor Is Smart

Even the most reliable payment processors can run into issues—be it technical difficulties, account reviews, or unforeseen disruptions. This is where having a backup payment processor comes in handy.

Imagine launching a new product or running a big promotion, only to have Shopify Payments flag your account for review. Your sales could come to a standstill while your account is being verified. Having a backup processor like Stripe or PayPal ensures that your revenue stream stays active during such periods.

This is where using tools like AzLytics can also make a difference, providing insight into your payment performance and helping you make better decisions.

Final Thoughts: Shopify Payments vs Stripe—Which One Is Right for You?

In the battle between Shopify Payments vs Stripe, the best option ultimately depends on your business needs:

• If you’re already using Shopify and value simplicity and cost savings, Shopify Payments is the best choice.
• If you need global reach, advanced customization, or manage recurring payments, Stripe is your go-to.

Remember, it’s always a smart idea to have a backup payment processor in place, so you’re not caught off guard during account reviews or technical difficulties. Optimizing your payment strategies with tools like AzLytics can also help you stay ahead of any challenges and maximize your profits

FAQs

Which payment processor is cheaper: Shopify Payments or Stripe?
For Shopify users, Shopify Payments is generally cheaper as it avoids the extra transaction fees charged when using third-party processors like Stripe.

Can I use Stripe with Shopify?
Yes, but Shopify charges an additional transaction fee of 0.5%-2% if you use Stripe instead of Shopify Payments. Learn how to connect Stripe to Shopify.

How long do payouts take with Shopify Payments and Stripe?
Both platforms offer a payout time frame of 2 business days. However, Stripe’s first payout may take up to 7–14 days for verification.Is a backup payment processor necessary?
Yes! Having a backup like Stripe or PayPal ensures that you don’t lose sales if your primary processor encounters issues or is temporarily unavailable.