When I first set up my Shopify store, one of the biggest challenges I faced was selecting the right payment method. There are so many options, each with its own benefits and drawbacks. Over time, I’ve come to understand how crucial it is to choose a payment plugin that suits your business needs. In this article, I’ll walk you through the different payment plugins available for Shopify, comparing them based on various criteria, and providing some insights into how to choose the best one for your store.
Understanding Payment Plugins for Shopify
Shopify is a powerful platform that helps you run your online store. One of the core elements of running any online store is managing payments. Shopify itself provides a native payment solution called Shopify Payments, but you can also integrate third-party payment gateways using various plugins. These plugins enable you to accept payments from customers in a way that works for your business model.
As a store owner, it’s essential to understand the differences between the available payment plugins, as each comes with its own features, fees, and functionality. I’ll break down some of the most popular payment plugins for Shopify, explaining how they work and how to choose the best one for your store.
Types of Payment Plugins Available on Shopify
When exploring Shopify payment plugins, you’ll notice that there are different types of solutions. They can generally be categorized into:
- Native Shopify Payment Gateway: Shopify Payments is Shopify’s in-house payment solution. It offers integrated support for credit cards, Apple Pay, Google Pay, and more. Shopify Payments is the most seamless option, as it requires minimal setup, and it integrates directly with your Shopify account.
- Third-Party Payment Gateways: These are plugins from external providers, like PayPal, Stripe, or Authorize.Net. They typically offer additional features, like multi-currency support or international payment options. The setup process may be a little more involved, but they are ideal if you want more customization and flexibility.
- Payment Integrations for Specific Regions or Needs: Some plugins are designed to serve specific regions or types of businesses. For instance, there are plugins that support cryptocurrency payments or mobile payments.
Let’s take a deeper dive into some of the most commonly used payment plugins for Shopify, comparing them based on features, fees, and ease of integration.
Comparison Table: Key Features of Popular Shopify Payment Plugins
Below is a comparison of some popular Shopify payment plugins based on various factors like transaction fees, supported countries, and payment methods.
| Payment Plugin | Transaction Fees | Supported Countries | Supported Payment Methods | Setup Difficulty | Additional Features |
|---|---|---|---|---|---|
| Shopify Payments | 0% (for Shopify plans) | 17+ countries | Credit cards, Apple Pay, Google Pay, Shopify Pay | Easy | Integrated with Shopify, faster payouts |
| PayPal | 2.9% + $0.30 per transaction | 200+ countries | PayPal balance, Credit/debit cards, PayPal Credit | Easy | Wide global reach, easy integration |
| Stripe | 2.9% + $0.30 per transaction | 40+ countries | Credit cards, Apple Pay, Google Pay, ACH | Medium | Supports recurring billing, custom checkout |
| Authorize.Net | 2.9% + $0.30 per transaction | 30+ countries | Credit cards, Debit cards, eChecks | Medium | Advanced fraud protection, invoicing options |
| Square | 2.6% + $0.10 per transaction | U.S., Canada, Australia, Japan | Credit cards, Apple Pay, Google Pay | Easy | Ideal for offline payments, integrated with POS |
| Klarna | Varies by merchant | 10+ countries | Buy now, pay later, Credit cards | Easy | Flexible payment plans, popular in Europe |
| WorldPay | 2.75% + $0.10 per transaction | 40+ countries | Credit cards, Debit cards, PayPal | Medium | Customizable payment solutions for large businesses |
Shopify Payments: The Simplest Solution
Shopify Payments is the default payment gateway for Shopify stores, and for good reason. It’s easy to set up, doesn’t require you to use a third-party provider, and integrates seamlessly with your store’s checkout process. Since Shopify Payments is built directly into the Shopify platform, you get access to a host of features, including fraud protection, faster payouts, and a streamlined user experience.
One of the key benefits of Shopify Payments is that it doesn’t charge transaction fees beyond the regular credit card processing fees, which can range from 2.9% + $0.30 per transaction (for U.S.-based businesses). Shopify also offers lower fees for businesses that subscribe to higher-tier plans. For example, on the Advanced Shopify plan, the transaction fee drops to 2.6% + $0.30 per transaction.
Shopify Payments supports a variety of payment methods, including credit cards, Apple Pay, and Google Pay. It’s available in 17 countries, including the U.S., Canada, U.K., and Australia. If your store operates in one of these countries, Shopify Payments is definitely worth considering.
However, one limitation is that Shopify Payments isn’t available in all countries. If you operate in a country where Shopify Payments isn’t available, you will need to use a third-party payment gateway.
PayPal: A Trusted Payment Solution
PayPal is one of the most widely used online payment systems in the world. With PayPal, customers can pay using their PayPal balance, linked credit or debit cards, or PayPal Credit. This widespread availability makes PayPal an excellent choice if you’re looking to tap into a global market.
The integration with Shopify is relatively simple. You’ll need to link your PayPal account to your Shopify store, and you’re good to go. PayPal charges a standard fee of 2.9% + $0.30 per transaction for U.S.-based sellers, but the fee may vary depending on the country.
One major benefit of PayPal is its vast global reach. It supports over 200 countries and offers multiple languages and currencies, making it a strong choice for international businesses. Additionally, PayPal has built-in fraud protection, which can help protect your business from chargebacks.
That said, PayPal’s fees can add up quickly. If you have a high volume of transactions, you might want to explore other options that offer lower transaction fees or better terms.
Stripe: Great for Customization
Stripe is another popular payment plugin for Shopify. It’s a flexible payment processor that supports a wide range of payment methods, including credit and debit cards, Apple Pay, Google Pay, and ACH transfers. Stripe is particularly well-suited for businesses that need to customize their checkout experience, as it provides access to a wide range of APIs and developer tools.
Stripe’s fees are generally the same as PayPal’s, with a charge of 2.9% + $0.30 per transaction for U.S.-based businesses. The platform supports recurring billing, which is a great feature for subscription-based businesses.
Stripe is available in over 40 countries, so it’s an excellent choice for businesses with international customers. The downside is that setting up Stripe can be a bit more complex than Shopify Payments or PayPal. However, if you need more control over your payment processing or plan to use custom checkout options, Stripe might be the right fit.
Authorize.Net: Advanced Features for Large Businesses
Authorize.Net is one of the oldest and most trusted payment processors in the industry. It supports a variety of payment methods, including credit and debit cards, eChecks, and digital payment methods like PayPal.
One of the standout features of Authorize.Net is its advanced fraud protection tools, which help reduce the risk of fraudulent transactions. Additionally, it offers invoicing options and the ability to set up recurring billing for subscription-based businesses.
The downside of Authorize.Net is its complexity. It’s not as user-friendly as Shopify Payments or PayPal, so it might not be ideal for small businesses that are just starting out. Additionally, the fees can be slightly higher, depending on the payment methods you choose to enable.
Square: A Good Option for Physical Stores
Square is known for its point-of-sale (POS) solutions, and it offers an easy-to-use payment gateway for Shopify stores. Square charges a fee of 2.6% + $0.10 per transaction for online payments, which is slightly lower than PayPal and Stripe.
Square is a good option if you operate both online and physical stores. It allows you to accept payments in-person and online, with seamless integration between your POS system and Shopify store. However, Square is only available in a limited number of countries, including the U.S., Canada, Australia, and Japan.
Klarna: Flexible Payment Plans
Klarna is a popular buy-now, pay-later (BNPL) payment plugin. It allows customers to split their payments into installments, which can increase conversion rates by offering flexibility at checkout. Klarna is available in over 10 countries and is especially popular in Europe.
The integration with Shopify is straightforward, and Klarna doesn’t charge merchants any additional fees beyond the standard transaction costs. However, Klarna’s flexible payment options may come with additional risks, as the payment provider may charge interest if the customer doesn’t pay on time.
Choosing the Best Payment Plugin for Your Shopify Store
Choosing the best payment plugin depends on a few key factors:
- Your location: Shopify Payments is a great option if it’s available in your country. However, if you’re located in a country where Shopify Payments isn’t supported, you’ll need to consider third-party payment gateways like PayPal or Stripe.
- The countries you sell to: Some payment gateways, like PayPal, have a global reach, while others, like Square, are more region-specific. Consider where your customers are located.
- Transaction fees: Look at the fees charged by each payment plugin. Lower fees may be more advantageous if you have a high transaction volume.
- Payment methods: Some plugins offer more payment options, such as Buy Now Pay Later, recurring billing, or mobile wallets. Consider what payment methods are most relevant to your customers.
- Customization and support: If you need a highly customized checkout experience, platforms like Stripe may be a better fit. However, if ease of use is your priority, Shopify Payments and PayPal are great choices.
In conclusion, selecting the right payment plugin for your Shopify store depends on your business needs and customer base. I hope this article has given you a better understanding of the available options and helped you make an informed decision.
