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Shopify is a popular eCommerce platform, loved by many merchants due to its efficient shopping cart solutions. Once your Shopify account is up and running, it is easy to set up payment collection modes. Though you can use various payment providers on this platform, Shopify payments is the most convenient and prominent method to receive your money.

What is Shopify Payments?

We have already established that Shopify is an eCommerce platform, allowing merchants to sell their products. The platform has an in-house payment provider to process your store's sales. This in-built integrated Shopify payment gateway linked to your Shopify store is called Shopify Payment

Whenever a customer pays with his credit card, Shopify payment manages the entire payment process, ensuring that money is transferred to your bank account. Although Shopify Payment is supported by Stripe technology, merchants favor it more than Stripe since it is integrated with your Shopify store dashboard. If you just want to sell offline or in-person, you should take a look at Shopify Lite Plan.

Is Shopify Payments free?

Although Shopify payment eliminates several fees merchants would have paid when using a third-party payment gateway, you will still incur some fees to use Shopify payment. 

Transaction fee

Most eCommerce platforms cut a certain percentage of your sales as transactions, and the same is true with Shopify. The transaction fees depend on your Shopify plan, the order value, and the number of purchases

For instance, the Basic Shopify plan ($29/month) has a Shopify fee of 2.9% + $0.30 for every online transaction (purchases). Every physical purchase will attract a 2.7% transaction fee, and if you are using a payment gateway apart from Shopify payment, you will incur an additional 2% fee on every transaction. 

These transaction costs reduce with higher Shopify plans. Shopify plan, which costs $79 monthly, has a Shopify fee of 2.5% + $0.30 for every credit transaction (purchases). Every in-person transaction attracts a 2% transaction fee, and if you adopt a payment gateway different from Shopify payment, you will pay a 1% fee on every transaction. 

Advanced Shopify plan ($299/month) charges a 2.4% + $0.3 for both debit card and in-person transactions. If you use a third-party payment service, you will pay a 0.5% fee. 

To know which plan you should choose, here is a calculator.

Why use Shopify payments?

There are several advantages of setting up Shopify payment when you have a store on this platform. Here are some of them:

It easy and quicker to set up Shopify Payments

Since this payment method is in-built in your store, it is straightforward to set up. Before processing your payments, you do not need merchant account approval or connect with a third-party payment gateway. Furthermore, it syncs your finances, sales, and inventory, thus providing a full report for your store.

Shopify Payments is Integrated into your website.

This means that your customers will stay on your website until they complete the transaction. However, if you use third-party payments providers like PayPal, your customers are redirected to these platforms to complete the payment. Such complexity can inconvenience your customers. 

Shopify Payments support offline sales.

You can integrate your Shopify payment with the platform’s POS since in-store and online stores are unified. Offline sale is a major advantage over many Payment platforms. 

Shopify Payments gives customers several options to pay

If your Shopify store uses Shopify Payments, it does not mean other payment providers are unavailable for your customers. You can allow customers to use any payment provider available on Shopify. 

Shopify Payments vs. Stripe

Apart from using Shopify Payments, Stripe is also a popular payment provider on the Shopify platform. It is one of Shopify Payment's greatest rivals, but which one is the best for your store?

We highlight the differences between these two payment giants:


Shopify Payments is the best and most convenient payments provider if you have a Shopify store. It enables Shopify merchants to sell products easily and manage their revenue. Shopify Payments cuts down credit card rates and transaction costs, making it cheaper than third-party gateway payment providers. It is easy to set up and convenient to use since it is consolidated on one Shopify dashboard.   

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