If you’re an online store owner looking for a payment processor to help you accept credit cards, you have likely come across two of the biggest names in credit card processing: Shopify Payments and Stripe.
No, Shopify Payments is not the same as Stripe—but they are closely related. Shopify Payments is powered by Stripe’s payment infrastructure behind the scenes, meaning Stripe handles the actual card processing, fraud checks, and security. However, Shopify Payments is a separate product available exclusively to Shopify store owners, with its own tiered pricing, built-in ecommerce integration, and support channels.
When you look at Stripe vs Shopify Payments, from the start it seems like those two providers are competing head-to-head with each other. They have different names, signing up is a different process, and–most obviously–Shopify Payments is linked directly to Shopify stores and its users. However, they’re not all that different but also not exactly the same, even though at first glance they both seem to offer a lot of similar features.
Shopify Payments vs. Stripe
In any Shopify Payments vs Stripe comparison, it’s important to outline what each service is, what they have in common, and how they differ so you can make an educated decision on which one is best for your online store.
But when it comes to choosing between Stripe and Shopify Payments, which one is the better fit for your business? The answer to that question depends on various factors, including your business’s size, its specific needs, and the geographical locations of your customers.
Stay tuned as we unravel the complexities of online payment processing, making it easier for you to navigate the world of eCommerce and digital transactions.
What is Shopify Payments?
Shopify Payments is the in-house payment processing gateway of Shopify, one of the world’s leading eCommerce platforms. It allows you to accept credit cards (Visa, MasterCard, American Express/AMEX, Discover), debit cards, Apple Pay, Google Pay, Shop Pay, and other digital wallets on your ecommerce store. As you can infer from the name, it’s dedicated to Shopify users and integrates with Shopify-specific seller tools.
The major advantage of Shopify Payments lies in its seamless integration with a business’s Shopify store. When using this gateway, business owners don’t have to set up and maintain third-party payment service providers or merchant accounts, thus eliminating the potential complications and delays in receiving and accepting payments. Shopify Payments is automatically set up when you create your Shopify store, which simplifies the setup process significantly.
Shopify Payments also includes features like automatic fraud analysis, making it a secure option for businesses and their customers alike. Furthermore, the platform provides in-depth financial reports, giving merchants valuable insights into their sales and transaction history.
While Shopify Payments is most beneficial for businesses that operate on the Shopify platform, it’s worth noting that its use is mandatory for Shopify users in supported regions unless they opt for another payment gateway and accept the additional transaction fees (ranging from 0.6% to 2%, depending on your Shopify plan).
What is Stripe?
Stripe is also a payment solution. Launched in 2010 by Irish entrepreneurs Patrick and John Collison, Stripe started as a software payment platform aimed at simplifying online credit card payments for businesses of all sizes. Over the years, it has evolved into a comprehensive economic infrastructure for the internet, powering billions of dollars’ worth of transactions annually.
Stripe’s core business revolves around providing APIs (Application Programming Interfaces) that enable businesses to accept and process payments online. Its services cater to a wide array of small businesses, from small startups to large corporations, providing them with the tools they need to handle online transactions seamlessly. Stripe focuses on providing the simplest experience possible for accepting all forms of payment, from credit cards and Apple Pay to digital wallets and local payment methods.
Stripe is even easier than Shopify Payments to integrate into your own site because Stripe isn’t an e-commerce platform like Shopify. It focuses solely on payment services. Its customer portfolio includes big names such as Amazon, Slack, and Lyft, but its scalable solutions make it equally suitable for smaller businesses and startups.
Beyond payment processing, Stripe offers additional services like Stripe Atlas (for starting a business), Stripe Capital (for business loans), and Stripe Radar (for fraud detection), which can help businesses streamline their operations.
What do Stripe and Shopify Payments have in common?
Great question. When comparing Stripe vs Shopify Payments, you’d first be interested to know that Shopify Payments is powered by none other than Stripe. That’s right—Stripe’s payment infrastructure handles the actual card processing, fraud checks, and security behind the scenes, while Shopify wraps it in a native experience inside your store. But even though it’s powered by Stripe, it still has some differences as well as similarities. Here, we’re covering what they have in common.
Fees
Both of these credit card payment processors share the same base transaction fees. The standard 2.9% + $0.30 per transaction is the same on both platforms at their entry levels. They both also have different and additional fees for types of payments being processed, including higher rates for international cards and alternative payment methods.
Easy Registration
Both services require no merchant account to apply for, which saves about a week of time. You simply sign up and start processing after about a day. Both services make it really simple to register for, whether you choose a Shopify account or Stripe account, making them equally user-friendly and accessible.
Types of Payment
Stripe and Shopify Payments accept the same payment types. You can accept all of the same payment methods on Stripe as you can on Shopify, which include credit cards, debit cards, digital wallets (Apple Pay and Google Pay/Wallet), Shop Pay, ACH, and wire transfers. Not all of these payment options come out of the box, but they are all possible.
Online and In-Person
Stripe and Shopify Payments offer point of sale (POS) terminals, card readers, and mobile apps to accept payments. Merchants can use these services to accept in-person payments with their devices or by using their mobile phone to scan a QR code at checkout. Both platforms require you to purchase a card reader for offline transactions.
Security
Both Stripe and Shopify Payments are PCI Service Provider Level 1 certified—the highest level of certification in the payment card industry. All transactions are encrypted using Secure Socket Layer (SSL) technology, and both platforms provide fraud detection tools. Stripe offers Stripe Radar, which uses machine learning to detect and prevent fraudulent transactions. Shopify provides its own fraud analysis tools, including Fraud Protect for Shopify Payments for eligible U.S. merchants, which automatically identifies and protects merchants from fraudulent chargebacks.
Chargeback Fees
Both platforms charge a $15 chargeback fee per disputed transaction. This cost can be reimbursed if the merchant wins the dispute. Both Stripe and Shopify Payments encourage merchants to adopt efficient risk management techniques and uphold a high standard of customer satisfaction to minimize chargebacks.
How do they differ?
As you can see, the general concept for both third-party payment providers overlaps. But in any Shopify vs Stripe comparison, they do differ in many ways, too.
Tiered Pricing vs. Flat Rate
Shopify Payments offers tiered pricing based on volume and transaction type. They offer a Basic Shopify Plan which is the same rate as Stripe, at 2.9% + 30 cents for online transactions. Then they offer a Shopify plan (previously called the “Grow” plan), which lowers the percentage down to 2.6% + 30 cents. And then they offer an Advanced Shopify Plan, which lowers it even further to 2.4% + 30 cents.
For in-person transactions, Shopify Payments rates also vary by plan: 2.7% for Basic, 2.5% for Shopify, and 2.4% for Advanced.
On top of these credit card processing fees per transaction, you have to essentially subscribe to Shopify. This is because it’s an entire ecommerce platform and the only way to access Shopify Payments is if you use and pay for Shopify. That will cost you from $39 per month (Basic) up to $399 per month (Advanced), though annual payment can save about 25%.
If you use Stripe, you’ll be charged 2.9% + 30 cents per online transaction and 2.7% + 5 cents per in-person transaction, regardless of the size of your ecommerce business or the type of purchase being made. Stripe offers a flat rate pricing model to keep its terms simple, making it as easy as possible to sign up. Stripe also offers customized pricing for businesses with large volume or unique business models.
Platform and Ease of Use
This one is arguable depending on your level of savvy when it comes to technology. Shopify makes it easy to set up a shop with ready-to-go themes and simple design tools, along with a gateway to process payments via Shopify Payments or Stripe out of the box. You can start accepting payments in minutes without having to edit any code or worry about keeping up with security updates. This is because Shopify Payments is only available if you’re using Shopify’s integrated point of sale system. If you’re looking for an all-in-one solution with a wider breadth of functionality, then this may be what you need.
Stripe uses an API that you must integrate into your own website manually — if you don’t know what an API is and how to use it, this might be a deal breaker for you. With Stripe, you are not limited to any ecommerce hosting platform. You can integrate it into any site (including Shopify). This makes Stripe better if you don’t want to use the Shopify platform. Stripe is highly favored by developers due to its extensive APIs and comprehensive documentation.
User Experience and Interface
Shopify Payments provides a seamless and user-friendly experience, especially for businesses already using Shopify. Everything is pre-integrated into the Shopify admin panel, making it easy to manage transactions, refunds, and payout reports from a single dashboard. Stripe, while not difficult to use, requires a bit more technical knowledge, especially for customization.
Worldwide Availability
Both of these payment processing companies differ in where they are available throughout the world. Shopify Payments is available in over 33 countries and supports over 130 different currencies. Be aware of your customer base and make sure that if you want to use Shopify Payments that it’s available in the places you need.
Stripe, on the other hand, is available in 46 countries and supports over 135 different currencies. This service is much more widespread, making it a more suitable choice for businesses with a significant international customer base.
Payout Times
Stripe typically offers a two-business-day payout time for most transactions, which helps merchants maintain a healthy cash flow. Shopify Payments processes payouts made on Fridays, Saturdays, and Sundays (UTC) as a single payment. You can also withdraw money from Shopify Balance in a single business day.
Integrations and Partnerships
Both Stripe and Shopify Payments offer a variety of integrations. Stripe has an edge with its compatibility with a vast number of platforms, allowing businesses to incorporate it into virtually any website or app. Shopify Payments, however, is deeply integrated into the Shopify ecosystem and pairs exceptionally well with other Shopify services, such as Shopify POS and Shopify’s online store builder.
Customer Support
Shopify Payments’ customer support is provided through Shopify’s support channels, which include 24/7 phone and chat support—a significant advantage for businesses that need immediate assistance. They also offer email support, a Help Center, community forums, and a range of educational resources such as guides, tutorials, and webinars.
Stripe offers comprehensive support resources including a detailed Knowledge Base and documentation that answers most queries and provides extensive guidance for developers. For direct support, customers can reach out via email or chat. Stripe doesn’t offer phone support, which may be a downside for some businesses. However, Stripe has an active community where users can share experiences and solutions.
Stripe vs. Shopify Payments: Which One is Right for You?
Choosing between Stripe and Shopify Payments—whether you frame it as Shopify vs Stripe or Stripe vs Shopify—depends largely on your business’s specific needs and the eCommerce platform you’re using. Here’s a general guide to help you decide.
Choose Stripe If:
- Customization is Key: Stripe’s robust APIs make it highly customizable, offering flexibility that can be vital for unique business models. If you have specific requirements for your payment process and have the technical resources to implement them, opening a Stripe account is a compelling choice.
- You Operate Internationally: Stripe operates in more countries (46 vs. 33+) and supports more currencies than Shopify Payments. If you’re looking to cater to a diverse, global customer base, Stripe may be the more fitting option.
- You’re Not on Shopify: If you’re using an eCommerce platform other than Shopify, or if you’re not running an eCommerce business, Stripe’s compatibility with a wide range of platforms and apps makes it a versatile choice.
Choose Shopify Payments If:
- You Use Shopify: If your business is already using or planning to use a Shopify account as its eCommerce platform, Shopify Payments offers seamless integration, simplifying your payment process.
- You Prefer an All-in-One Solution: Shopify Payments is tightly integrated with other Shopify services, providing a holistic solution for your eCommerce needs.
- You Want to Avoid Extra Transaction Fees: When using Shopify Payments, you avoid the additional transaction fees (0.6%–2%) that Shopify charges when using other payment gateways.
- You Want 24/7 Phone and Chat Support: Shopify Payments, through Shopify’s support channels, offers round-the-clock phone and chat support.
Both Stripe and Shopify Payments Are Viable Solutions for Low-Risk Merchants ONLY
No matter which side of the Shopify Payments vs Stripe debate you land on, please be aware that both are terrible solutions for high-risk merchants. When working with a high-risk merchant, the main concerns are reducing fraud and chargebacks.
High-risk merchants are more common than you might think, especially with online businesses. Supplements, subscription boxes, therapy/advice, coaching, dropshipping, adult entertainment, nutraceuticals, and CBD are just some of the more popular high-risk industries out there.
Stripe and Shopify Payments provide a convenient way to take online payments, but they don’t provide adequate coverage for these types of merchants, and here’s why.
Restrictions on Certain Business Types
Both Stripe and Shopify Payments have restrictions on certain business types and products as per their terms of service. Businesses dealing in high-risk categories might not be able to use either platform—or worse, may find their accounts frozen or terminated after they’ve already started processing.
They Aren’t White Label
Many high-risk merchants want to white label their payment processor in order to protect their brand reputation. Neither Stripe nor Shopify Payments allow for white labeling; instead, you have to use their logos on your site and pay them for the privilege of using their platform.
A high-risk merchant account provider like DirectPayNet will get you a PCI-compliant, white-label payment processor.
They Have Bad Currency Conversion
While both services are available internationally, they don’t offer a friendly currency conversion to consumers or to you. The rates are terrible and it often results in chargebacks. Currency conversion fees can range from 1.5% (U.S. stores) to 2% or more for international stores, adding up quickly. In order to exchange currencies with Stripe or Shopify Payments in a better way, you spend thousands of dollars on software integration with them. In the end, it just isn’t worth it.
With your own high-risk merchant account, you can use a variety of ways that work in your favor to process foreign currencies.
They Don’t Give You a Merchant Account
There are a lot of misconceptions out there about Stripe and Shopify Payments. The most common is that Stripe and Shopify Payments are creating merchant accounts for people. That’s false. The confusion stems from the fact that Stripe and Shopify Payments have some controls that can be used to emulate a merchant account, but they’re not technically a merchant account.
Both services allow you to sign up so quickly because you don’t have to apply for a merchant account. They simply tack you on as a sub-merchant to their own account. This is also why they are so limited in who they can offer service to, i.e., only low-risk merchants.
Potential for Account Holds
Like many payment processors, both Stripe and Shopify Payments review transactions for fraudulent activity. If a transaction or your business raises flags in their system, there can be holds or delays on funds—a potentially devastating outcome for high-risk merchants with higher chargeback rates.
Frequently Asked Questions
Is Shopify Payments the same as Stripe?
No. Shopify Payments is powered by Stripe’s infrastructure, but they are separate products. Stripe handles the backend card processing, fraud detection, and security, while Shopify wraps it in a native checkout experience exclusive to Shopify stores. They differ in pricing structure, country availability (Stripe supports 46 countries vs. Shopify Payments’ 33+), platform requirements, and customer support options.
Does Shopify Payments use Stripe?
Yes. Shopify Payments runs on Stripe’s payment processing infrastructure in most supported countries. This means Stripe’s technology powers the actual transaction processing, encryption, and fraud checks behind every Shopify Payments transaction—but merchants interact with Shopify’s interface, not Stripe’s.
Can I use Stripe on Shopify instead of Shopify Payments?
Yes, you can use Stripe as a third-party payment gateway on Shopify. However, Shopify will charge an additional transaction fee of 0.6% to 2% per sale on top of Stripe’s standard 2.9% + $0.30 processing fee. Most Shopify merchants choose Shopify Payments to avoid these extra fees.
Which is cheaper, Stripe or Shopify Payments?
At the base level, both charge 2.9% + $0.30 per online transaction. However, Shopify Payments offers lower rates on higher-tier plans—down to 2.4% + $0.30 on the Advanced plan. Keep in mind that accessing Shopify Payments requires a Shopify subscription ($39–$399/month), while Stripe has no monthly fee. For high-volume Shopify merchants, Shopify Payments is typically cheaper. For non-Shopify businesses, Stripe’s flat-rate model with no subscription cost is more economical.
Is Stripe or Shopify Payments better for international sales?
Stripe has the edge for international businesses. Stripe operates in 46 countries and supports over 135 currencies, compared to Shopify Payments’ 33+ countries and 130+ currencies. Stripe also offers broader support for local payment methods across different regions. If you sell to customers in many countries, Stripe provides wider coverage.
Do I need technical skills to use Stripe or Shopify Payments?
Shopify Payments requires no technical skills—it’s automatically set up when you create a Shopify store and is managed entirely through the Shopify admin dashboard. Stripe requires API integration into your website, which typically needs developer resources. If you don’t have technical expertise, Shopify Payments is the easier option.
Are Stripe and Shopify Payments safe?
Yes. Both are PCI Service Provider Level 1 certified, the highest security standard in the payment card industry. Both encrypt all transactions with SSL technology and offer fraud detection tools—Stripe uses Stripe Radar (machine learning-based), and Shopify offers built-in fraud analysis with Fraud Protect available for eligible U.S. merchants.
Can high-risk merchants use Stripe or Shopify Payments?
No. Neither Stripe nor Shopify Payments is suitable for high-risk merchants, including businesses in industries like supplements, CBD, dropshipping, adult entertainment, or subscription boxes. Both platforms restrict high-risk business types and may freeze or terminate accounts. High-risk merchants should seek a dedicated merchant account provider like DirectPayNet for PCI-compliant, white-label payment processing.
