Shopify vs Stripe: Which is Best for Online Payments? (2024)

You will likely come across Shopify vs Stripe when choosing the suitable payment service provider for your online business. While both offer excellent payment processing solutions, they cater to slightly different needs. For those new to the platform, understanding how does Shopify work can help clarify why Shopify Payments offers such a streamlined experience compared to other third-party processors.

In this guide, we’ll break down the difference between Stripe and Shopify Payments and what they offer to help you decide which suits your business best.

Shopify vs Stripe: The Difference Between Stripe and Shopify Payments

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Shopify Payments

Shopify Payments is Shopify’s built-in payment gateway that allows store owners to accept payments without using third-party payment processors. It is integrated into your Shopify account and lets you avoid transaction fees seamlessly.

Shopify Payments supports major payment methods, including credit cards, debit cards, and digital wallets like Apple Pay and Google Pay. It’s built specifically for Shopify users, making it easy to set up and manage payments directly from your store.

Stripe

Stripe is a well-known third-party payment processor that works with a wide range of businesses, not just Shopify stores. It allows you to accept customer payments online and in person, making it versatile.

Stripe is also developer-friendly, meaning it’s customizable and works well with various business models. You get access to a vast range of payment options like credit cards, ACH transfers, and even local payment methods across multiple countries.

Shopify Payments vs Stripe: Quick Comparison of Features

Now that we’ve introduced Shopify Payments and Stripe, let's break down their core features in more detail. This comparison will help you understand how they differ in key areas like pricing, ease of use, payout times, and security.

By the end, you'll have a clear picture of which payment solution best fits your e-commerce platform.

Stripe vs Shopify Payments: Detailed Comparison of Features

Choosing the effective and efficient payment processor is a critical decision for your business. Whether you’re a Shopify store owner or looking for a more flexible solution like Stripe, understanding how each option performs in specific areas can help you make a decision you won’t regret.

In this section, we’ll break down the key features of Stripe vs Shopify payments—from availability and pricing to security and payout times. So, you can decide which one suits your business needs.  

Availability: Stripe Wins

When choosing a payment processor for your online business, knowing where it's available is essential. You must know if it's available in your area before purchasing it.

In this section, we will explore the geographical reach of Shopify Payments and Stripe to see which one supports your business location.

Shopify Payments

Shopify Payments is available in a limited number of countries as follows:

• North America: Canada, United States
• Asia: Hong Kong SAR, Japan, Singapore
• Oceania: Australia, New Zealand
• Europe: Austria, Belgium, Czechia, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Portugal, Romania, Spain, Sweden, Switzerland, United Kingdom

Shopify Payments is specifically designed for Shopify users. So if you’re in a region where Shopify Payments isn’t available, you’ll need to use a third-party payment provider like Stripe.

Pros:

• Easy setup for Shopify users
• No involvement of third-party payment service providers

Cons:

• Limited availability

Stripe

Stripe is available in over 40 countries as follows:

• North America: Canada, Mexico, United States
• South America: Brazil
• Asia: Hong Kong, India (Invite only), Indonesia (Invite only), Japan, Malaysia, Singapore, Thailand, United Arab Emirates
• Oceania: Australia, New Zealand
• Europe: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Gibraltar, Greece, Hungary, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom
• Africa: Ghana (Extended network), Kenya (Extended network), Nigeria (Extended network), South Africa (Extended network)

Stripe is a global solution that works with almost any business platform, making it a preferred option for companies evaluating Shopify competitors. Whether you run an online store, offer services, or handle large transactions, Stripe supports a variety of payment methods and local currencies, appealing to a broader range of businesses.

Pros:

• Broad global availability
• Supports over 130 currencies

Cons:

• Not as streamlined for Shopify users

Stripe's wider availability makes it a better choice for eCommerce platforms operating in multiple regions or outside Shopify’s supported countries.

Shopify Payments, on the other hand, is a good option if you prefer to process payments seamlessly with your Shopify account.

Pricing and Fees: Shopify Payments Wins

Understanding the cost structure of a payment processor can make or break your decision. Let’s compare the pricing and fees of Shopify Payments and Stripe to see which offers the most value for your business.

Shopify Payments

One of the major advantages of Shopify Payments is that you do not need to pay third-party transaction fees for orders processed via Shopify Payments, Shop Pay Installments, Shop Pay, and Paypal Express, as well as bank transfers, cash, and cash on delivery (COD). This significantly reduces the overall cost of payment processing for Shopify store owners like you.

Pros:

• No additional transaction fees
• Transparent pricing

Cons:

• Credit card fees still apply

Stripe

Stripe charges 2.9% + 30¢ per successful card charge, with no additional fees for most payment methods. However, you don’t get the benefit of avoiding extra platform fees like with Shopify Payments, which could add up if you use Shopify as your main platform.

Pros:

• No hidden fees
• Simple and clear pricing

Cons:

• Additional Shopify platform transaction fees apply if you use Stripe on Shopify

Shopify Payments is the better deal for Shopify store owners regarding pricing and fees. This online payment processor doesn't require you to pay extra platform fees, making it a more cost-effective solution.

Ease of Use: Shopify Payments Wins

A smooth payment experience is key to running a successful store. Here’s how Shopify Payments and Stripe compare in terms of ease of use for business owners.

Shopify Payments

Shopify Payments is designed to integrate with Shopify’s dashboard seamlessly, making it user-friendly for store owners.

Pros:

• Simple setup
• Manageable within Shopify’s ecosystem

Cons:

• Limited settings if you want to customize payment options

How to Set Up Shopify Payments

• Go to your Shopify admin to access Shopify Payments.
• Click Settings.

• Choose Payments.
• Click Activate Shopify Payments.

• Follow the prompts to set it up, which can include important details about your store.
• Click Save.

Stripe

Stripe offers customizable payment solutions, but it is complex to set up at the same time. It’s a great option for developers who need flexibility, but for beginners, the learning curve can be steep.

Pros:

• Highly customizable
• Suitable for developers

Cons:

• It can be complicated for non-developers

How to Set Up Stripe in Shopify

• Create a Stripe account.
• Go to the Admin page of your Shopify account.
• Click Settings.
• Select Payments.
• Click Third-party payment providers.

• Choose Stripe.
• Sign in to your Strip account and set it up.

If simplicity and ease of use are your priority, especially within the Shopify environment, Shopify Payments remains the more straightforward and cost-effective option.

But if you have technical skills and can handle more complex integrations outside Shopify's ecosystem, you might enjoy using Stripe.

Integration and Customization: Stripe Wins

Flexibility is essential when you’re building a unique online store. Let’s look at howShopify Payments vs Stripeperforms in integration and customization.

Shopify Payments

Built exclusively for Shopify, Shopify Payments doesn’t offer as much flexibility when it comes to integrations with external platforms or customization. It works perfectly within Shopify’s environment but is somewhat limited outside of it.

Pros:

• Fully integrated with Shopify
• No need for third-party apps

Cons:

• Limited flexibility outside Shopify

Stripe

Stripe’s open API allows for endless customization, making it a favorite among online businesses that require more advanced payment workflows. You can integrate it with various platforms and customize payment flows, offering much more flexibility.

Pros:

• Highly flexible
• Integrates with numerous platforms

Cons:

• Requires developer knowledge

Stripe is the clear winner if customization is your priority as it provides more flexibility and adaptability, which is perfect for store owners with developer access or technical skills.

Shopify Payments is the better choice if you want a simple, all-in-one solution without managing complex integrations or advanced customizations.

Security and Fraud Prevention: Stripe Wins

Keeping transactions secure is a top priority for any online business as it will build customer trust and protect your business from fraud and chargebacks.

Let’s compare the security and fraud prevention features of Shopify Payments and Stripe to see which offers the best protection.

Shopify Payments

Shopify Payments comes with built-in fraud analysis tools that offer strong protection for store owners. Since it’s integrated with Shopify, you will get real-time alerts for suspicious transactions and a system to manage disputes.

Pros:

• Built-in fraud prevention tools
• Easy to manage disputes

Cons:

• Limited advanced fraud detection options

Stripe

Stripe is known for its advanced fraud detection capabilities, using machine learning and large-scale data analysis to detect fraudulent activity. It also provides businesses with detailed reporting to help them manage risk more effectively.

Pros:

• Advanced fraud detection feature
• Detailed reporting tools

Cons:

• It may require customization for optimal use

Stripe is the stronger option if you're looking for more advanced fraud prevention tools. It is good for handling larger volumes of transactions or sensitive data.

Shopify Payments is the better choice if you're looking for an easy, out-of-the-box solution to protect online transactions against fraud. It offers reliable security without requiring technical expertise.

Payout Times: Shopify Payments Wins

Getting your money quickly is essential for maintaining cash flow to keep your business operations running smoothly. Whether it's paying vendors, managing inventory, or handling day-to-day expenses, fast payouts can make a significant difference in your financial planning.

Here’s a comparison of the payout times for Shopify Payments and Stripe to help you decide which works best for your needs.

Shopify Payments

Payout times with Shopify Payments range from 1-5 business days, depending on your location. For most merchants, this timeline is fairly standard and reliable.

Shopify Payments also features scheduling so you can have more control over your cash flow.

Just follow these steps to schedule your payouts:

• Click Settings on your Shopify admin page.
• Select Payments.
• Click Manage in the Shopify Payments section.

• Locate the Payouts schedule in the Payouts section.
• Choose your preferred payout schedule.

• If you select Every Week, click the drop-down menu and choose the day of the week you wish to receive your payout.
• OPTIONAL: Select or deselect the option to be notified via email whenever you get your payout.

• Click Save.

Pros:

• Consistent payout times
• Scheduling payout times option

Cons:

• Limited flexibility in speeding up payouts

Stripe

Payout times with Stripe can range from 7-14 days, depending on the country you’re operating in and the payment method used. While Stripe does offer instant payouts for an additional fee, the regular payout schedule may be longer for some users.

Pros:

• Instant payouts are available (with a fee)
• More payout options

Cons:

• Payouts can take up to 7 days

If getting a quick payout is your top priority, Shopify Payments is the best option. Its ease of use and ability to schedule payouts offer added convenience, especially for those who prefer straightforward financial management.

Stripe may be better if your business operates in multiple countries or needs the ability to process large volumes of payments, but can afford to wait for longer payout cycles.

Conclusion: Which is the Best Payment Solution Between Shopify and Stripe?

Choosing between Shopify and Stripe ultimately depends on your business needs.

If you’re a Shopify store owner, Shopify Payments is the easiest and most cost-effective option, thanks to its seamless integration and the elimination of platform fees.

However, if you're exploring Shopify vs other platforms, like Shopify vs Etsy for your eCommerce platform, it’s essential to note that while Amazon offers extensive marketplace exposure, Shopify provides greater control over branding and store customization.

Both options offer strong security, reliable payouts, and user-friendly interfaces. Your decision should be based on the level of flexibility, customization, and geographical availability that your business requires.