Shopify Payments Overview
Native payment processing for Shopify merchants, eliminating third-party gateway fees with integrated checkout experiences.
Shopify Payments is the native payment processing solution built into the Shopify e-commerce platform. It eliminates the need for third-party payment gateways and the additional transaction fees associated with them. For merchants evaluating Shopify Payments, the key advantage is zero additional gateway fees — saving 0.5–2% per transaction compared to third-party gateways like Stripe or PayPal.
Key Features
- Native integration with zero additional gateway fees (saving 0.5–2% per transaction compared to third-party gateways)
- Global payment methods including Shopify-supported local payment methods across markets
- Shop Pay one-click checkout with accelerated conversion rates up to 1.72x higher than guest checkout
- Installments powered by Affirm, Afterpay, and Klarna for BNPL options
- Fraud analysis with machine-learning-based fraud detection and chargeback protection
- Multi-currency support with automatic currency conversion and local pricing presentation
Technical Specifications
| Parameter | Details |
|---|---|
| Geographic Coverage | US, Canada, UK, Australia, New Zealand, Ireland, select European markets |
| Pricing Model | Flat-rate transaction pricing (varies by Shopify plan) |
| Standard Pricing (Online) | Basic: 2.9% + $0.30; Shopify: 2.6% + $0.30; Advanced: 2.4% + $0.30 |
| In-Person Pricing | Basic: 2.6% + $0.10; Shopify: 2.4% + $0.10; Advanced: 2.2% + $0.10 |
| Additional Gateway Fees | None (third-party gateways incur 0.5–2% additional fee) |
| BNPL Providers | Affirm, Afterpay, Klarna |
Shopify Payments vs Stripe vs PayPal
| Feature | Shopify Payments | Stripe | PayPal |
|---|---|---|---|
| Setup | Pre-integrated with Shopify | API integration required | Redirect or popup checkout |
| Gateway Fees | None | None | None |
| Shopify Additional Fee | None | 0.5–2% on non-Shopify gateways | 0.5–2% on non-Shopify gateways |
| Shop Pay | Included | Not available | Not available |
| Checkout Optimization | 1.72x conversion lift (Shop Pay) | Stripe Elements optimization | PayPal trust factor |
| Best For | Shopify merchants | Non-Shopify, custom builds | Brand trust, secondary checkout |
Pros and Cons
Pros
- Zero gateway fees: The most cost-effective option for Shopify merchants — eliminates the 0.5–2% additional fee charged to third-party gateways.
- Shop Pay: One-click checkout with a 1.72x conversion lift over guest checkout, giving Shopify merchants a measurable advantage.
- Unified platform: Fraud analysis, multi-currency, BNPL, and reporting all integrated within the Shopify ecosystem.
- No development required: Enable from Shopify admin with zero coding.
Cons
- Shopify-locked: Only available to merchants on the Shopify platform — cannot be used on custom or non-Shopify sites.
- Geographic limitations: Available in limited countries — merchants outside supported regions must use third-party gateways.
- Higher online rates: Shopify Basic online rates (2.9% + $0.30) are comparable to or slightly higher than Stripe's standard pricing.
- Limited customization: Checkout customization is constrained by Shopify's Checkout Extensibility framework compared to Stripe's full API control.
Geographic Availability
Shopify Payments is available in the United States, Canada, United Kingdom, Australia, New Zealand, Ireland, and select European markets. Merchants outside these regions must use third-party gateways (Stripe, PayPal, Adyen) and will incur the 0.5–2% additional Shopify gateway fee.
FAQ
What is Shopify Payments?
Shopify Payments is the native payment processing solution built into the Shopify e-commerce platform. It eliminates the need for third-party payment gateways and charges no additional transaction fees beyond the standard Shopify plan pricing (2.9% + $0.30 for Basic, 2.6% + $0.30 for Shopify, 2.4% + $0.30 for Advanced).
Does Shopify Payments charge extra fees?
No. Shopify Payments charges no additional gateway fees. Third-party gateways (Stripe, PayPal, Adyen) incur an additional 0.5–2% transaction fee on top of the gateway's own processing fees. This makes Shopify Payments the most cost-effective option for Shopify merchants.
Is Shopify Payments available outside the US?
Shopify Payments is available in the United States, Canada, United Kingdom, Australia, New Zealand, Ireland, and select European markets. Merchants outside these regions must use third-party gateways and will incur the 0.5–2% additional Shopify gateway fee.
How does Shop Pay improve conversion?
Shop Pay is Shopify's one-click checkout that stores consumer payment details and shipping information. Shopify reports that Shop Pay delivers a 1.72x higher conversion rate compared to guest checkout. Consumers who have used Shop Pay at any Shopify merchant can pay at your checkout with a single click.
References
- Shopify — Payments Documentation: help.shopify.com
- Shopify — Shop Pay Conversion Data: shopify.com/shop-pay
- Shopify — Pricing Plans: shopify.com/pricing