Shopify Payments: The Pros, Cons, and Best Alternatives in 2024

For Shopify store owners, Shopify Payments is a straightforward and convenient way to manage online and in-store payments directly on your website. It seamlessly integrates with your store and Shopify POS, offering a variety of payment methods, making the entire process a breeze.

Although it is easy to use, it is only available in some countries. Therefore, businesses need to opt for other payment processors to handle local transactions.

In this guide, we’ll take a closer look at Shopify Payments, its benefits and drawbacks, and explore the best alternatives for your business in 2024. 

What Is Shopify Payments?

Shopify Payments is a payment processor developed by Shopify to help merchants accept both online and in-store payments. It simplifies the payment process by eliminating the need for third-party gateways or merchant accounts. Currently, Shopify Payments is accessible in 23 countries, including the US, UK, Canada, and Australia.

The system supports a wide range of payment methods, such as credit and debit cards, Apple Pay, and Google Pay, based on the customer's location. By using Shopify Payments, merchants avoid third-party transaction fees, lowering costs. However, it has some limitations, including availability in specific regions and restrictions on certain business types.

Transaction Fee: Shopify's payment processing fees range from 2.4% - 2.9%, with an additional 30¢ per transaction, depending on your plan.

Shopify Payments: Pros and Cons

Let’s break down the pros and cons of using Shopify Payments:

Pros

• Quick setup: Shopify Payments is easy to set up, especially when compared to traditional payment processors. You don’t need to apply for a merchant account or go through a third-party provider. Once activated, your payments, orders, and inventory are automatically synced between your Shopify store and your payment processor.
• Fully integrated system: Shopify Payments keeps everything within your Shopify store. This means that customers can complete their transactions without being redirected to another site (like PayPal). Plus, you can directly link all payments to your orders, which simplifies your bookkeeping.
• transaction fees: With Shopify Payments, you won't incur any extra transaction fees, unlike when you use third-party providers. For merchants using other payment gateways, transaction fees can be significant—ranging from 0.6% to 2%, depending on your Shopify payment plans.
• payment options: Shopify Payments offers various payment options, such as credit, debit cards, Apple Pay, and Google Pay. It also integrates seamlessly with Shopify’s Point of Sale (POS) system, allowing you to unify online and in-store sales data in one place.

Cons

• globally available: Shopify Payments is not available in every country, especially in Asia, so if it isn't supported in your location, you must use third-party payment providers. However, using third-party providers incurs additional costs, with transaction fees ranging from 0.6% to 2%, depending on your Shopify plan. These fees can add up, making Shopify Payments a more cost-effective option if it's available in your country​.
• Limited product selection: Shopify imposes strict restrictions on what can be sold, particularly items that could violate payment network regulations or legal laws. This includes a long list of prohibited items, such as adult content, counterfeit goods, and illegal services.
• Chargeback fees: Shopify payment fees include a charge of approximately $15 for each chargeback. If you win the dispute, you will get the refund, but the process can be time-consuming and stressful. Shopify offers a Fraud Filter app to help merchants reduce chargebacks, but they remain an unavoidable risk when launching your eCommerce business.
• Account freezing: In cases of suspicious activity, Shopify Payments can freeze your account while it investigates the issue. However, this can lead to significant delays in receiving your payouts.

5 Shopify Payment Alternatives for 2024

If Shopify Payments isn’t available in your country or you want to explore other options, there are plenty of good alternatives. These payment processors offer various features and benefits that might suit your business better. Here are some of the best alternatives to Shopify Payments for 2024:

1. Stripe

Stripe is one of the most popular and trusted Shopify payment gateways worldwide, used by millions of businesses, from small startups to large corporations. Its seamless integration with Shopify makes managing both online and offline payments easy and efficient. With features like automatic billing, fraud protection, and one-click payments, Stripe helps streamline the transaction process.

offering such robust capabilities, Stripe ensures businesses can focus on growth rather than managing complex payment systems. Moreover, Shopify POS with Stripe integration takes this efficiency a step further by guaranteeing consistent payment management across all platforms. This integration eliminates the risk of double entries and simplifies financial tracking, helping businesses save time and reduce errors.

Pros:

• Global reach: Stripe is available in over 46 countries, including Brazil, India, Mexico and South Africa.
• Developer-friendly: Stripe provides powerful APIs and customization features.
• Multi-currency support: Stripe enables businesses to process payments in more than 135 currencies.

Cons:

• International fees: Stripe charges an extra 1.5% fee for payments from international cards.
• Technical setup: While it’s easy for most merchants, advanced customization might require some technical know-how.

Best for: Merchants seeking a global payment solution with flexibility.

2. PayPal

PayPal is one of the most well-known payment platforms and is trusted by millions worldwide. It’s easy to set up and supports a variety of payment methods, making it a great choice for international transactions. Many businesses consider it one of the best Shopify payment alternatives, especially for those seeking flexibility and reliability.

This payment service provider offers both paid and free plans. The paid plan includes chargeback protection, recurring billing, and fraud detection.

The free plan is ideal for small businesses just starting, as it provides all the basic features needed to process payments in your store.

Pros:

• Widely accepted: PayPal has over 400 million active users and is present in more than more than 200 countries and regions, making it easy for customers to pay.
• Fast setup: Integrating PayPal with Shopify is simple, and there are no setup fees.
• Multi-currency support: You can accept payments in over 25 currencies.
• Buyer protection: PayPal offers buyer protection, which can reduce fraud risks.

Cons:

• Account freezes: PayPal has been known to freeze accounts unexpectedly, which can disrupt business operations.

Best for: Merchants looking for a fast, trusted payment solution, especially for international customers.

3. Authorize.Net

Authorize.Net is a trusted payment processor offering robust security and fraud protection. It supports recurring payments, customer data management, and customizable invoicing, ensuring smooth transactions.

As a Visa-owned service, it integrates seamlessly with Visa merchant accounts, making it a reliable choice for businesses. When looking at Shopify payment gateways, Authorize.Net stands out for its flexibility and ease of use, making payments secure and efficient for customers.

Pros:

• security: Authorize.Net is known for its top-notch fraud detection and security features.
• Recurring billing: Great for businesses that offer subscription-based products or services.
• 24/7 support: You can access customer support around the clock.

Cons:

• Monthly fees: The $25 monthly fee can be a disadvantage for small businesses with low sales volumes.
• Limited international reach: Authorize.net is available in just three countries—US, Canada, and Australia—while Stripe operates in 47 countries, offering broader global reach.

Best for: Businesses with recurring billing or those needing strong fraud protection.

4. Adyen

Adyen is a reliable Shopify payment gateway that is a good fit for firms with global audiences. Established in 2006 in the Netherlands, it enables users to accept more than 100 payment options. It also can process transactions in over 180+ currencies.

Microsoft and Uber trust Adyen as a leading payment gateway provider, as it offers a comprehensive payment solution for e-commerce, in-app purchases, and point of sale (POS) through a single interface. Moreover, Adyen provides powerful analytical tools, enabling businesses to track real-time data and integrate seamlessly with popular platforms. It also prioritizes security by offering robust fraud protection features.

Pros:

• Numerous payment services are available: Assist with Apple Pay, Paywalao, Zelle, and MasterCard payments.
• Quick transaction settlement: Guarantee that transactions will be settled within a business day.
• Integration is effortless: It easily integrates into the primary eCommerce sites, including Shopify, Magento, and WooCommerce, via SDKs and APIs.
• Excellent support & security: Support clients 24 hours a day, is PCI DSS v3.2 compliant, and has top-tier fraud protection features.

Cons:

• Pricing is complicated: Complex pricing systems have become more frustrating due to interchangeable fees.

Best for: Suitable for mid-to-large size businesses that require multi-currency support and better analytics.

5. Amazon Pay

Amazon Pay is a top payment provider for online retailers, offering easy checkout through customers' existing Amazon accounts. It integrates with platforms like BigCommerce, Shopify, WooCommerce, and others, simplifying payments.

By using Shopify payment integrations, merchants can take advantage of Amazon's credibility, allowing customers to skip entering payment info manually. Amazon Pay auto-fills details from Amazon accounts but is only available in 16 countries, including the US, UK, and Germany. Payments are processed in 12 currencies, with transfers to merchant accounts taking 3-5 business days.

Pros

• Easy integration: Amazon Pay plugins are compatible with many e-commerce platforms, enabling quick setup.
• Global customer support: Amazon serves a large international customer base, offering 24/7 support and secure payment processing.
• Quicker checkout: Merchants can offer a one-click payment option, making the checkout process faster and more convenient for customers.

Cons

• Longer sign-up process: It can take up to 48 hours to verify credit or debit card information.

Best for: Businesses looking to use Amazon's brand to boost conversions and trust.

Conclusion

Shopify merchants may need to seek alternatives to Shopify Payments due to limited payment options, higher transaction fees, or geographic restrictions.

When choosing a suitable alternative, merchants should consider criteria such as payment processing fees, supported countries, ease of integration, and customer support.

considering these factors, merchants can ensure a smooth Shopify payment processing experience.

For more insights and solutions tailored to your Shopify store, visit Mavenbird to explore our tools and services designed to help you grow your business effortlessly.