Stripe vs Shopify Payments UK 2026: Fees, Features & Which to Choose

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Stripe and Shopify Payments are two of the most widely used online payment processors for UK businesses in 2026, but they serve very different purposes. Stripe is a standalone payment gateway and merchant account suitable for almost any business type, charging 1.5% per transaction for UK cards on its standard plan. Shopify Payments is built exclusively into the Shopify e-commerce platform, with transaction fees starting at 2% on the Basic plan and dropping to 0.5% on the Advanced plan. If you already sell on Shopify, Payments is hard to ignore. If you need flexibility across multiple sales channels or a custom-built site, Stripe wins by a wide margin.

Stripe vs Shopify Payments: Fee Comparison

What is Stripe?

Stripe is a payment technology company founded in 2010 and now one of the largest payment processors in the world. In the UK, it is authorised by the Financial Conduct Authority as an e-money institution (FCA reference 900461). Stripe gives businesses a complete payment stack: an online payment gateway, a merchant account equivalent, card terminals, invoicing, subscription billing, and a developer API that can be integrated into almost any platform. Its standard UK rate is 1.5% + 20p per transaction for UK and European personal Visa and Mastercard cards, rising to 3.25% + 20p for non-European cards. There is no monthly fee on the standard plan and no long-term contract.

Stripe's main appeal is flexibility. It supports over 135 currencies, works with platforms from WooCommerce to custom-built applications, and offers products like Stripe Radar for machine-learning fraud detection and Stripe Terminal for in-person payments. It is not the cheapest option for pure Shopify merchants, since using it on Shopify adds an extra 0.5% 2% Shopify transaction fee on top. For businesses that need more than just an online shop, though, Stripe's breadth is difficult to match. Read the full Stripe UK review for a deeper look at pricing and features.

What is Shopify Payments?

Shopify Payments is the built-in payment processor for the Shopify e-commerce platform, available to UK merchants since 2019. It is operated by Stripe under the hood, which means the same FCA e-money institution authorisation (reference 900461) applies. Rather than a standalone gateway, Shopify Payments is tied directly to your Shopify subscription. Transaction fees depend on your plan: 2% on Basic (£25/month), 1% on Shopify (£65/month), and 0.5% on Advanced (£344/month). Critically, using Shopify Payments removes the additional Shopify transaction fee entirely, which alone can justify the upgrade for busier stores.

The main limitation is that Shopify Payments only works within Shopify. You cannot use it on a WordPress site, a mobile app, or any platform outside Shopify's ecosystem. It is designed for simplicity: setup takes minutes, payouts land within two to three business days, and disputes are managed inside the Shopify dashboard. Support for Buy Now Pay Later through Shop Pay Instalments is available, and the checkout is already optimised for mobile conversion. For a business that is entirely built on Shopify and expects to stay that way, it is the most cost-effective route. Read the full Shopify Payments UK review for plan-by-plan cost breakdowns.

Stripe vs Shopify Payments: Features Compared

Payment Methods Accepted

Stripe accepts Visa, Mastercard, American Express, Apple Pay, Google Pay, PayPal (via a separate integration), BACS Direct Debit, and over 40 local payment methods including iDEAL, Bancontact, and SEPA. Shopify Payments accepts Visa, Mastercard, American Express, Apple Pay, Google Pay, and Shop Pay (Shopify's own accelerated checkout). Shopify Payments does not natively support BACS Direct Debit or the breadth of local European payment methods that Stripe offers out of the box. For businesses selling across multiple European markets, Stripe has a clear advantage in payment method coverage.

Hardware and In-Person Payments

Stripe sells its own card terminal, the Stripe Reader S700, priced at £299 + VAT in the UK as of June 2026. It uses the Stripe Terminal API, which means developers can build custom point-of-sale apps on top of it. Shopify Payments integrates with the Shopify POS system, which uses hardware including the Shopify POS Go (a standalone device) and card readers starting from around £49. Shopify POS is the more polished retail experience, with built-in inventory management, staff accounts, and loyalty integrations. Stripe Terminal is more flexible for custom in-person setups but requires more technical work to configure.

Integrations

Stripe integrates with over 600 third-party platforms including WooCommerce, Squarespace, Wix, Magento, Salesforce, and Xero. Its API is widely considered the most developer-friendly in the industry. Shopify Payments integrates exclusively with Shopify and the apps in the Shopify App Store. If your business uses accounting software, an ERP, or a custom back-end, Stripe's integration options are far broader. Shopify Payments is purpose-built for Shopify's own ecosystem and does not extend beyond it.

International and Multi-Currency Support

Stripe supports over 135 currencies and allows UK businesses to present prices in local currencies to international customers. It also supports automatic currency conversion and multi-currency payouts. Shopify Payments supports multi-currency selling through Shopify Markets, which is a strong feature for growing international Shopify stores. However, Shopify charges a 1.5% currency conversion fee when selling in a currency different from your payout currency. Stripe's currency conversion fee is 2% for standard accounts, so Shopify has a slight edge on conversion costs for international sales.

Fraud and Security Tools

Stripe Radar is a machine-learning fraud detection tool included at no extra cost on the standard plan (an enhanced version costs 5p per screened transaction). It analyses over 1,000 signals per transaction and blocked over $1 billion in fraud globally in 2023, according to Stripe's published figures. Shopify Payments benefits from the same underlying Stripe infrastructure for fraud screening, plus Shopify's own fraud analysis tools within the dashboard, which flag high-risk orders with a risk score. Both providers support 3D Secure 2 (3DS2) for Strong Customer Authentication under FCA rules. For advanced custom fraud rules, Stripe Radar gives more granular control.

Customer Support

Stripe offers 24/7 support via live chat, email, and phone for paying customers. Its documentation is extensive and widely praised by developers. Response times are generally fast for technical queries, though billing disputes can take longer to resolve. Shopify Payments support runs through Shopify's own support channels, which include 24/7 live chat and email. Phone support is available on higher Shopify plans. A common complaint about both providers is that account holds or freezes can be difficult to resolve quickly, with decisions sometimes taking several business days.

Pros and Cons

Stripe Pros and Cons

Pros

• No monthly fee on the standard plan, so low-volume businesses pay nothing unless they take payments
• Works with virtually any website, platform, or custom-built application
• Supports over 135 currencies and more than 40 local payment methods across Europe
• Stripe Radar fraud detection is included at no extra cost on the standard plan
• Instant payouts available to UK bank accounts for a 1% fee
• Extensive developer API with thorough documentation and a large developer community

Cons

• Using Stripe on a Shopify store adds an extra 0.5% 2% Shopify transaction fee on top of Stripe's own charges, making it an expensive combination
• Account holds and fund reserves can be applied with little warning, which is a known issue for newer or high-risk businesses
• Non-European card transactions cost 3.25% + 20p, which is high for businesses with significant US or international customer bases
• No dedicated account manager on standard plans; support is primarily self-serve documentation

Shopify Payments Pros and Cons

Pros

• Eliminates the additional Shopify transaction fee (0.5% 2%), which can save hundreds of pounds a month for busy stores
• Seamlessly integrated into the Shopify dashboard no separate gateway setup required
• Shop Pay accelerated checkout reduces cart abandonment and is one of the highest-converting checkouts available
• Shopify POS hardware integrates directly, making omnichannel retail straightforward
• 1.5% currency conversion fee for international sales is lower than Stripe's 2%

Cons

• Only available inside Shopify useless if you ever migrate to another platform
• Transaction fees are tied to your Shopify plan, so accessing the lowest 0.5% rate requires paying £344/month for Advanced
• Account suspensions have been reported by merchants in certain product categories, with limited recourse through support
• Limited support for local European payment methods compared to Stripe's native integrations

Which is Better For...?

Small Retail Businesses Selling Online and In-Store

If your business runs primarily through a Shopify store and you also sell in person at a market, pop-up, or fixed location, Shopify Payments paired with Shopify POS is the stronger choice. You manage inventory, payments, and reporting in one place. The hardware is affordable, and you avoid the double-fee problem of using Stripe on Shopify. Stripe Terminal is better suited to businesses building a custom POS application rather than using an off-the-shelf retail setup.

Online-Only E-commerce on a Custom Platform

Stripe wins clearly here. If your store runs on WooCommerce, Magento, a custom Laravel build, or any platform other than Shopify, Shopify Payments simply is not available to you. Stripe's API integrates with virtually any stack, supports every major payment method, and has no monthly fee. For a developer-built checkout, Stripe is the default choice for most UK e-commerce businesses.

High-Volume Shopify Merchants

At high volume, the maths decisively favour Shopify Payments Advanced. A merchant processing £100,000 a month on Shopify Payments Advanced pays 0.5% in transaction fees that is £500 a month plus the £344 plan fee, totalling £844. The same volume through Stripe at 1.5% + 20p costs roughly £1,500 in transaction fees, plus the additional 0.5% Shopify surcharge adds another £500, bringing the total to around £2,000. The difference is approximately £1,156 per month at that volume. The Advanced plan pays for itself many times over once you pass around £35,000 a month in sales.

Businesses Selling Across Multiple Channels or Platforms

Stripe is the better fit if you sell through a website, a mobile app, over the phone via MOTO payments, and in person. Its single integration covers all channels with consistent reporting and a unified dashboard. Shopify Payments is locked to Shopify's environment. Businesses that want to expand beyond Shopify in the future should factor in the cost and complexity of migrating payment infrastructure, since Shopify Payments cannot follow them to another platform.

Our Verdict

The right choice depends almost entirely on whether you use Shopify. For Shopify merchants, Shopify Payments is the logical default. It removes the punishing Shopify transaction surcharge and integrates natively with your store. The maths only improve as your volume grows. Moving to the Advanced plan at £344/month makes sense once you are processing above roughly £35,000 a month, at which point the fee savings outweigh the plan cost.

For everyone else, Stripe is the stronger, more flexible option. It works across platforms, supports a wider range of payment methods, has no monthly fee, and gives developers granular control over the checkout experience. The 1.5% + 20p UK card rate is competitive for a no-contract, no-setup-fee product. Just be aware that account holds can occur and that non-European card fees are on the high side at 3.25% + 20p.

Neither provider is right for every business, and both have genuine weaknesses worth weighing carefully. Compare Card Fees is a free, independent advisory service that has helped UK businesses find better card payment deals since 2012. Use the Compare Card Fees comparison tool to see whether Stripe, Shopify Payments, or another provider offers the best deal for your specific volume and business type.