Shopify Payments Vs Stripe: Which One is Better for E-commerce Business
Shopify's payments and Stripe are among the major players in the e-commerce payment solutions market. Each payment gateway option offers unique features. For instance, Stripe offers a wide array of customisable digital payment tools. This makes it an ideal option if you're looking for customisable payment solutions.
Conversely, Shopify payments is an in-house payment processor for online giant Shopify, thus a popular payment solution for ecommerce businesses that use Shopify to build one store. But is there a comparison between Shopify payment and Stripe? Let's navigate through the features, similarities, and differences of these payment solutions.
Stripe Quick Overview
Stripe offers its customers customisable payment solutions to businesses around the globe. Merchants can access high-grade APIs for advanced customisation of checkout portals. So, if you're seeking a payment service with a flexible infrastructure, Stripe is your ideal option.
This payment solution also provides in-person payment through its POS platform terminal. Although most Stripe merchants are focused on their online tools, the provider offers them cash advance service if you're looking for early cash flow. Stripe directly supports 46 countries, so it's suitable for ecommerce businesses with a global presence.
Shopify Payments Quick Overview
As mentioned, Shopify payments is an integrated payment process service provided by Shopify. It's quite popular since Shopify commands 20% of the online business market share. Shopify Payments is the default payment option when creating a Shopify account, but you can select other payment gateways in the platform settings dashboard.
Shopify Payments option provides numerous on-site payment options, ensuring customers can easily enter card details and purchase items.
With the Shop Pay platform, you can save payment details for future use, speeding up the transaction process for business owners. Shopify's payments are currently available in 23 countries. It accepts major credit cards, and the pricing fee varies based on the Shopify plan you use to sell your items. If you're on the premium plan, you will benefit from lower transaction processing costs. So, if you have a large business, you achieve significant savings just by subscribing to Shopify's higher tiers.
Who can use Shopify Payments?
Shopify Payments was set up by Shopify for their users to easily accept card payments from buyers. Keep in mind: Only e-commerce businesses with a Shopify account can use Shopify Payments to sell their products. This makes Shopify Payments a suitable option for businesses that sell physical products, like online clothing and home goods stores. It's also good for fashion, cosmetics, and more. These businesses usually need a website to showcase their products. They also need a payment gateway on their checkout pages for customers to pay.
Who can Use Stripe?
Shopify payments can only be used by e-commerce businesses that set up a Shopify account. However, Stripe can be used by a variety of businesses. Stripe is an open platform that can be used by businesses with a website and businesses without a website. Businesses from all kinds of niches, such as consulting, construction, affiliate marketing, digital marketing, digital products, physical products, web development, and many others, can use Stripe to accept payments online.
Even if your business has no website, you can still use Stripe to accept payments from your customers. You can do this by creating products on Stripe, payment links or sending invoice that will get to your customer email to pay with their card.
Stripe is far more flexible than Shopify Payments. It is an open platform for many types of e-commerce businesses.
Stripe vs Shopify Payments for E-commerce :Deep Comparison
Accepted Payment Methods
Stripe leads in payment methods available for its users. It offers a list of popular credit card providers, including:
- Visa
- Mastercard
- American Express
- Discover
The merchants can accept payment transfers from
- Apple Pay
- Google Pay
- Buy now, pay later services
Additionally, there are numerous location-specific payment solution options, such as customers in China who can pay via WeChat pay and union pay.
Conversely, Shopify Payments also accepts major credit cards and Google Pay, Apple Pay, etc. Compared to Shopify payments, Stripe offers a wider variety of flexible payment options than Shopify payments. Moreover, both online payment solutions offer POS systems, card readers, and in-person payment tools for companies operating in physical locations.
Sign-up and Payout Set-up
Both payment options provide an easy sign-up process since they are both payment aggregators and not merchant account providers. There is no lengthy underwriting process, meaning the sign-up process takes a few minutes. However, you may find initial account limits that need a solid track record to establish.
The payout set-up Shopify payment sends the cash to your bank in two days, although if you’re a new merchant, it may take longer than a few weeks. With Stripe, payouts are delayed too, sometimes even up to 14 days, to minimize exposure to fraudulent new accounts.
Implementation and Easy to Use
In implementation and ease of use, Shopify payments is tailored with user-friendly features, thus surpassing the Stripe payments option. One of the main Shopify payment primary selling points is the default payment option after the creation of a Shopify store. However, if you want your company to integrate a third-party account provider, you can easily change it on the Shopify website.
Stripe is also easy to integrate with a wide array of e-commerce platforms, but customising it to meet your business-specific needs is complex. For instance, you can simply go to the Shopify admit setting dashboard and change Stripe as your third-party payment option. Remember, it's easy to set up Stripe core products but challenging to customise them to meet your business needs—most Stripe users use third party developers to customise its features and payment portals.
Chargebacks and Fraud Filters
Businesses accepting online credit card payments face significant threats from chargebacks since online transactions are inherently card not present. This makes them prime targets for fraudsters. That’s why there’s a crucial need for payment processing providers equipped with strong fraud filters.
Shopify's payments provides an extensive range of fraud prevention tools, such as fraud filters. This helps users pinpoint any suspicious charges requiring further verification. With it, you can block a suspicious customer and review charges using the fraud indicators. The platform also offers an address verification system and card verification value system, thus reducing exposure to fraudulent charges.
Stripe is also committed to combating fraud through various measures. It has fraud protection tools, Stripe radar, and an advanced machine learning anti-fraud system designed to detect fraudulent charges. Stripe also offers Dynamic 3D secure, a feature that automatically prompts additional verification for risky transactions.
Stripe vs Shopify Payment: Pricing and Transaction Fees
Shopify Payments and Stripe offer different pricing models. Let's dig into each below
Stripe vs. Shopify Payments: Distinct Features
Stripe vs Shopify Payment: Pros and Cons
Stripe
Shopify payment
Winding Up
Shopify Payments and Stripe provide crucial payment tools for companies seeking quick ecommerce transactions. Although Stripe offers a wider range of payment solutions and better optimisation features, Shopify Payments has an easier set process that requires no technical experience. Both payment gateways allow clients to input credit card information and process the payments. However, you must know these platforms are not ideal for companies operating in high risk. You are to make a choice on which platform suits your business best.
With Incorpuk you can start your e-commerce business in the UK from anywhere in the world and setup Stripe or Shopify payments as your payment gateway.