Stripe vs Shopify, A Comprehensive Comparison for Your Online Store

When deciding on the best payment processing solution for your online business, the choice between Stripe vs Shopify is a common dilemma. Both platforms offer robust tools to accept payments online, but they differ in features, fees, and flexibility. This article delves into the key aspects of Stripe and Shopify Payments to help you make an informed decision for your Shopify store or any other online store.

Overview of Stripe and Shopify Payments

Stripe is a standalone payment processor widely recognised for its flexible payment solution and extensive support for various payment methods. Setting up a Stripe account for your online business is straightforward; you can sign up quickly online without needing banking details initially, making it accessible for many merchants. Stripe allows businesses to process payments seamlessly across multiple channels, including online transactions and in person payments via tools like Stripe Terminal.

On the other hand, Shopify Payments is an in house payment processor built directly into the Shopify platform. It integrates tightly with your Shopify account, enabling merchants to accept payments directly without relying on third party payment gateways. This means Shopify Payments can accept payments without the need for additional third party processors, simplifying the payment flow. Shopify Payments simplifies the checkout experience by supporting popular digital wallets like Shop Pay, Google Pay, and Apple Pay, and it also supports in person transactions through Shopify's POS hardware, making it suitable for physical stores as well.

Payment Processing Features

Stripe excels in offering a comprehensive suite of features tailored for online transactions. Its advanced developer tools enable businesses to customise payment flows, automate billing, and handle subscription services efficiently. Additionally, Stripe supports fraud detection and prevention mechanisms to enhance security and reduce chargebacks. The platform also offers features such as payment links, invoicing, and integration with various accounting and CRM systems, making it a full-fledged payment ecosystem.

SumUp emphasises simplicity and ease of use. Its portable card readers connect via Bluetooth to smartphones or tablets, allowing quick card payments anywhere, whether in-store or on the go. SumUp also provides basic invoicing and reporting tools, suitable for businesses that require straightforward payment acceptance without complex integrations. Its native POS software and hardware kits offer an all-in-one solution for small retailers and hospitality businesses. SumUp also offers card machines with 4G connectivity, providing greater flexibility for businesses operating in areas with limited Wi-Fi or Bluetooth access.

Pricing and Fees

Both Stripe and Shopify Payments provide a comprehensive payment processing system that supports major credit card payments, debit cards, and local payment methods. Stripe is known for its highly customisable payment solutions, allowing developers to tailor the checkout experience and integrate with various payment service providers. For example, merchants can easily integrate Stripe payment links into their ecommerce platforms to streamline the checkout process.

Shopify Payments, while less customisable, offers a streamlined setup ideal for merchants who want to start accepting payments quickly without dealing with complex configurations. It supports multiple accepted payment methods and automatically handles currency conversion for international payments, making it convenient for global online businesses. For small ecommerce platforms, Shopify Payments offers significant advantages such as easy setup, integrated fraud protection, and simplified management within the Shopify dashboard.

Fees and Transaction Costs

Understanding transaction fees and payment processing fees is crucial when comparing Stripe vs Shopify Payments. Stripe charges a transparent fee per transaction, typically 1.4% + 20p for European cards and 2.9% + 20p for non-European cards in the UK, with no monthly fees or cancellation fees. However, fees may vary depending on the payment methods Stripe supports and whether you use additional services like merchant cash advance service.

Shopify Payments also charges competitive payment processing fees, which depend on your Shopify plan. For example, the Shopify Basic plan charges 1.9% per transaction, while the regular Shopify plan charges 1.8%, and the Advanced Shopify plan charges 1.6%. Managing credit card processing fees on the Shopify Basic plan involves understanding these tiered rates and leveraging Shopify Payments to avoid additional transaction fees that Shopify applies when using third party payment processors. By choosing Shopify Payments, merchants can avoid these hidden fees and simplify their billing.

Supported Payment Methods

When it comes to accepted payment methods, both platforms cover a wide range. Stripe supports numerous international payment methods, including bank debits, manual payment methods, and popular digital wallets such as Google Pay and Apple Pay. This makes Stripe a versatile option for businesses targeting diverse markets, especially in the UK where these payment methods are widely used.

Shopify Payments also supports these payment options and integrates seamlessly with Shop Pay, Shopify’s own accelerated checkout method. Additionally, Shopify enables merchants to accept in person payments through compatible hardware, which is beneficial for businesses operating both online and offline.

Integration and Ease of Use

Stripe offers powerful APIs and developer tools, making it an excellent choice for businesses that require a highly customisable payment solution. Its integration capabilities extend beyond e-commerce to subscription services, marketplaces, and more. For merchants wondering how to integrate Stripe payment links into their ecommerce platform, Stripe provides flexible options to embed payment forms or share payment links easily.

Conversely, Shopify Payments is designed for ease of use within the Shopify platform. Merchants with a Shopify subscription can quickly access Shopify Payments without separate account setup. This integrated approach reduces friction and allows merchants to manage their entire online payment ecosystem from a single dashboard.

Payout Schedule and Fund Access

Both Stripe and Shopify Payments have reliable payout schedules, typically disbursing funds to your linked bank account within a few business days. In the UK, Stripe generally processes payouts within two business days, with options for daily, weekly, or monthly schedules, allowing merchants flexibility in managing their cash flow.

Shopify Payments also offers consistent payouts, typically transferring funds two business days after a sale. Since it is integrated into the Shopify dashboard, merchants can easily track customer payments and reconcile transactions without switching platforms, making financial management straightforward.

International Capabilities and Currency Support

For businesses operating globally, handling international payments efficiently is vital. Stripe excels in this area by supporting a broad array of international payment methods and currencies, along with transparent currency conversion rates.

Shopify Payments supports multiple currencies and automates currency conversion for your Shopify store, simplifying the checkout process for international customers. However, the availability of Shopify Payments varies by country, which might necessitate using third party payment processors in some regions.

How Payment Aggregators Differ

Understanding how payment aggregators like Stripe and Shopify Payments differ is key. Stripe operates as a standalone payment aggregator that supports a wide range of platforms and offers extensive customisation, making it suitable for businesses seeking flexibility and control. Shopify Payments, while powered by Stripe’s infrastructure, is an integrated payment aggregator designed specifically for Shopify users, offering simplicity and seamless integration within the Shopify ecosystem.

Shopify Payments Pros and Cons

Shopify Payments offers several advantages that make it an attractive choice for Shopify merchants. Its seamless integration with the Shopify platform means merchants can manage their store and payment processing in one place, reducing complexity and saving time. The easy setup process allows merchants to start accepting payments quickly without technical expertise. Additionally, Shopify Payments includes built-in fraud protection tools such as Fraud Filter, AVS, and CVV checks, helping to safeguard transactions.

However, Shopify Payments is limited to merchants using the Shopify platform and is available only in select countries. The platform offers less customisation compared to Stripe, which may be a drawback for businesses with complex payment needs. Merchants using third party payment gateways alongside Shopify Payments may also incur additional transaction fees.

Head-to-Head Comparison, Stripe vs Shopify Payments

Final Verdict Choosing Between Stripe and Shopify Payments

Both Stripe and Shopify Payments offer robust payment solutions that can empower your online business to accept payments efficiently and securely. By evaluating factors such as transaction fees, supported payment methods, integration ease, and international capabilities, you can select the best payment provider for your needs. Whether you lean towards the customisable payment solutions of Stripe or the integrated convenience of Shopify Payments, understanding the nuances of Stripe vs Shopify will ensure your payment processing system supports your business growth effectively.

For businesses looking to optimise their payment processing costs further, leveraging the expertise of Compare Card Fees can be a game-changer. Our service helps you compare and select the most cost-effective card processing solutions, tailored to your unique business requirements, so you can save money on card processing fees without compromising on service quality.

FAQs About Stripe vs Shopify Payments

References & Citations
Stripe UK
Shopify Payments
Compare Card Fees – Choosing a Payment Provider