Shopify vs Stripe Payments: Your Essential Comparison Guide

Shopify is a complete store builder solution, unlike Stripe, which is a set of tools that let you facilitate payments. In our guide to Shopify vs Stripe, we will therefore do our primary comparison between the payment gateways, Shopify Payments and Stripe.

Shopify Payments and Stripe both do essentially the same thing. They handle your customers’ payments so you actually get paid when they purchase something.

Shopify Payments, integrated directly into the Shopify platform (and so only available within Shopify), is a payment gateway that provides you with a seamless and efficient way to process payments from your store. With Shopify Payments, you can accept a wide range of payment methods, including credit cards and digital wallets like Apple Pay and Google Pay. The service gives you competitive transaction fees based on your Shopify subscription plan, simplifying the payment process for both you and your customers.

Stripe is a versatile payment processor popular among businesses of all sizes due to its flexibility and advanced features. With Stripe, you have access to tools for managing subscriptions, handling international transactions, and preventing fraud. And you’re not limited to a Shopify store (though you CAN use Stripe with your Shopify store instead of Shopify Payments, for example).

Stripe boasts a developer-friendly API that allows you to easily customize and integrate with various e-commerce platforms and applications. Stripe’s transparent pricing structure makes it an attractive option if you’re looking to scale your business in the future.

Shopify Payments Features

Shopify Payments offers you a range of features that make it a popular choice for (Shopify) businesses looking for a seamless payment processing solution. One key requirement is its integration with the Shopify platform, allowing you to manage your online store and payments all in one place. This integration eliminates the need for third-party services or complex setups.

Setting up payment processing with Shopify is straightforward and user-friendly, making it accessible even if you don’t have a lot of technical expertise. You can quickly start accepting credit card payments through your online store without having to navigate through complicated payment gateways or APIs.

Security is paramount when it comes to online payments, and Shopify Payments prioritizes this aspect by offering the usual fraud protection measures. With features like chargeback protection and automated risk analysis, you can have peace of mind knowing that your transactions are secure. Shopify Payments is PCI compliant, ensuring that sensitive customer data is handled in accordance with industry standards to prevent data breaches and fraud incidents.

So if you’re looking for a reliable payment processing solution that prioritizes ease of use and data security and you don’t mind working within a Shopify store, you’ll find Shopify Payments to be an excellent choice for your online store needs.

Stripe Features

Stripe has extensive payment gateway capabilities. With support for over 135 currencies and various payment methods including credit cards, ACH transfers, and digital wallets like Apple Pay and Google Pay, Stripe provides you with the flexibility to reach your customers worldwide.

Stripe gives you powerful fraud prevention tools to help your business mitigate risks and protect against fraudulent transactions. Through machine learning algorithms and customizable rulesets, you can detect suspicious activities in real-time and automatically block potentially fraudulent transactions. This proactive approach not only helps safeguard your business from losses but also enhances trust with your customers by ensuring secure transactions.

Another key feature of Stripe is its subscription billing functionality. If your business offers subscription-based services or you want to implement recurring billing, Stripe makes it easy to set up and manage such subscriptions. You can customize billing cycles, trial periods, pricing tiers, and automated invoicing through the Stripe dashboard or API integration.

Shopify vs Stripe Pros and Cons

Shopify Payments Pros

1. Integration with the Shopify platform. If you’re considering Shopify Payments, you will also benefit from its seamless integration with the Shopify platform. One major advantage is the convenience of having everything in one place – from setting up an online store to processing payments. This streamlines your operations and makes it easier for you to manage your e-commerce business efficiently.
2. Competitive transaction fees. Shopify Payments offers competitive transaction fees, especially for users of Shopify’s higher-tier plans. This can give you cost savings over time if your business has a high volume of transactions.
3. Detailed analytics. Shopify provides you with access to detailed analytics and insights on your sales performance through the platform’s reporting tools. This data can be invaluable if you are looking to optimize your strategies and make informed decisions based on real-time information about customer behavior and sales trends within your e-commerce store.

We’ve also covered another great sales funnel tool: Shopify vs ClickFunnels.

Shopify Payments Cons

1. Lack of flexibility. One drawback of using Shopify Payments is the lack of flexibility in terms of payment options. While it supports major credit cards such as Visa and Mastercard, it may not support less common payment methods that some of your customers prefer to use. This could potentially result in lost sales opportunities if your customers are unable to use their preferred payment method at checkout.
2. Account freezes. Another consideration is the potential risk of account holds or freezes by Shopify Payments in cases where transactions are flagged as high-risk or suspicious. This could lead to disruptions in cash flow and affect your business’s ability to operate smoothly.

Shopify Payments does however offer built-in fraud protection measures that help mitigate risks associated with online transactions. You can take advantage of features such as chargeback protection and fraud analysis tools to safeguard your business against fraudulent activities.

For an alternative checkout service, see our recent Shopify vs SamCart comparison.

Stripe Pros

1. Integration with Shopify if you want. Stripe doesn’t limit you to a Shopify store, but you can use Stripe within a Shopify store.
2. Scaling your business. One of the key advantages of using Stripe is its flexibility and scalability. Whether you are running a small online store or managing a large e-commerce operation, Stripe can easily accommodate your needs. The service supports multiple payment methods, including credit cards, Apple Pay, and Google Pay, making it convenient for your customers to make purchases on your website.
3. Excellent security. Another notable advantage of using Stripe is its security features. With built-in fraud prevention tools and compliance with industry standards such as PCI DSS (Payment Card Industry Data Security Standard), Stripe ensures that your customers’ sensitive information is protected during transactions. This commitment to security helps build trust with your customers and reduces the risk of data breaches that could harm your business’s reputation.

Stripe Cons

1. Pricing structure. One potential drawback of using Stripe is its pricing structure. While it offers competitive rates for processing transactions, you may incur additional fees for certain services such as international payments or chargebacks. It’s important that you carefully review Stripe’s pricing details to understand all potential costs associated with using the platform.
2. Potential disruption. Some users have reported occasional issues with account holds or sudden changes in transaction limits, which can disrupt business operations and lead to customer dissatisfaction.

Usability and Customer Support

Both Shopify Payments and Stripe give you user-friendly interfaces that make it easy to navigate and utilize their features effectively. Shopify provides a straightforward dashboard where you can manage your products, orders, and customers seamlessly. The platform is designed with simplicity in mind, allowing even beginners to set up an online store with ease. Shopify as a whole offers a wide range of customizable templates and themes that make it simple for you to create a visually appealing storefront without the need for coding skills.

Stripe’s interface is also known for its clean design and intuitive layout. You can easily access important features such as payment processing, subscription management, and reporting tools from the dashboard. Stripe also offers you detailed documentation and resources to help you understand how to integrate your services into websites (including Shopify) or applications effectively.

Both Shopify and Stripe offer excellent services to assist you with any issues or questions you may have. Shopify provides 24/7 customer support through live chat, email, and phone support for all subscription levels. Their dedicated support team is knowledgeable and responsive, ensuring that you receive timely assistance whenever you encounter problems.

Stripe offers responsive customer support through email communication and a knowledge base that covers a wide range of topics related to their services. You can also access community forums where you can ask questions and interact with other users for additional support.

Your choice of Shopify vs Stripe will depend on your specific business needs and preferences regarding user experience and support services.

The Price Difference: Shopify vs Stripe

Shopify Payments Pricing

Shopify Payments integrates seamlessly and automatically with your new Shopify store. When a payment for an order goes through, you are charged a basic Shopify Payments fee in your currency to cover the processing cost. The fee amount depends on the type of card used and the location. Note that Shopify Payments is only available in supported countries.

If you make use of Shopify Payments, you won’t be charged a third-party transaction fee (which you will if you choose to integrate Stripe with your Shopify store). Third-party fees are to cover the integration with external payment providers, and will vary based on the plan you’ve chosen.

Shopify offers a range of pricing plans tailored to different business sizes and needs. The basic Shopify store plan starts at $29 per month and includes features such as a POS system, online store capabilities, and integration with various payment gateways including Shopify Payments.

As you scale up, you can opt for the Shopify Advanced plan at $299 per month which offers advanced reporting tools, real-time carrier shipping rates, and lower transaction fees.

Stripe Pricing

Stripe’s pricing structure is a little more straightforward but may involve additional costs depending on the services utilized. Stripe charges a standard fee of 2.9% + 30 cents per successful card charge for online transactions. For in-person transactions using Stripe Terminal or POS devices, you pay 2.7% + 5 cents per transaction.

While these fees are competitive in the payment processing industry, you should also consider any additional costs such as chargeback fees or currency conversion fees that may apply when using Stripe.

When comparing the price difference between Shopify Payments and Stripe, it is crucial for you to evaluate your specific needs and growth projections. While Shopify may offer a more comprehensive package with its integrated POS system and online store capabilities under one platform, you must consider if these features justify the monthly subscription costs compared to standalone payment processing services like Stripe. Then again, if you don’t have a Shopify store, you probably have other online costs related to your method of selling and the use of Stripe.

Factors such as transaction volume, average order value, and international sales can impact overall costs when choosing between Shopify Payments and Stripe for processing payments across different channels.

Final Verdict

While both services offer good features for online payments, their suitability depends on the specific requirements of your business.

Shopify Payments presents integration with their popular e-commerce platform, allowing you to manage your online store and payment processing in one place. This convenience can be particularly beneficial for small to medium-sized businesses looking for an all-in-one solution.

Stripe’s versatility lies in its ability to handle a wide range of industries and business models. With customizable options and developer tools, Stripe provides scalability and flexibility for businesses with unique payment processing needs.

Shopify Payments offers you competitive rates that may be appealing if your business has lower transaction volumes. Shopify’s transparent pricing model eliminates any hidden costs or additional fees.

While Stripe may have slightly higher processing fees, its pay-as-you-go structure can benefit businesses with fluctuating sales volumes or seasonal trends.

The final verdict for Shopify vs Stripe hinges on individual priorities such as ease of use, customization options, customer support quality, pricing transparency, and scalability.

If you’re looking for a user-friendly e-commerce platform integrated with payment processing capabilities, you may find Shopify Payments to be a convenient choice. If your business requires advanced customization options and developer tools, you might favor Stripe’s flexibility and versatility in meeting your specific needs.

Both platforms offer good solutions for online payments; the ideal choice depends on aligning your requirements with the strengths of each service.