Picking the right Shopify payment gateways is a big deal for any online business. This choice directly impacts your bottom line by dictating transaction fees, available features, and even how shoppers pay online. It can be tough figuring out which payment provider is best for you.
This detailed guide will cover everything you need about Shopify payment gateways, from the basics to picking the perfect fit for your Shopify store.
What Are Shopify Payment Gateways?
Think of a payment gateway as the bridge between your online store and the financial world. When a customer buys something, the gateway securely authorizes the payment. Then, it moves the money from their account to yours. Think of it as the online version of a cash register.
It handles credit card processing, debit card transactions, and other payment options your ecommerce website offers. This makes it easier for customers to pay you and helps you manage your finances more effectively.
Why Shopify Payment Gateways Matter?
If you aren’t using a proper payment gateway, you’re likely missing out. They help boost sales by streamlining checkout, offering diverse payment methods, and safeguarding against issues like friendly fraud, which sadly costs businesses a whopping $48 billion yearly.
Plus, offering a variety of payment options can reduce cart abandonment rates significantly. One study found 59% of consumers abandon their carts if their favored method isn’t there.
The right payment gateway can make all the difference in your sales and customer satisfaction.
Popular Shopify Payment Gateways
Not all payment gateways are created equal. While Shopify offers its own native solution (Shopify Payments), let’s explore three popular options: Shopify Payments, PayPal, and Stripe.
Shopify Payments
The most straightforward option, Shopify Payments seamlessly integrates into your Shopify store. You get to skip extra setup steps, plus you’re all set to accept credit cards and every major payment method from the get-go.
This option lets you sell in various currencies and manage everything within your Shopify admin. You also save money since there are no third-party transaction fees if an order goes through them, Shop Pay, Shop Pay Installments, or PayPal Express.
PayPal
Widely known and trusted, PayPal is super simple to set up on your Shopify store — no contracts or starting fees required.
Their special One Touch feature is a big win. It makes checkout faster and more secure by streamlining the process without repeatedly asking shoppers for their details.
Stripe
Stripe is in a league of its own, boasting advanced features ideal for online shops, subscription-based businesses, and marketplaces.
What really sets it apart? Their machine learning fraud system called Radar dynamically learns and adapts to protect your business from fraud. This makes it a robust and secure option for businesses of all sizes.
Factors To Consider When Choosing a Payment Gateway
You want to choose the best Shopify payment gateways that aligns with where your customers shop, so keep transaction fees, card types, and target locations in mind.
It’s essential to assess your business needs and target audience to determine the most suitable options for your online store.
Transaction Fees
These are fees associated with each transaction processed. They vary among providers, so it’s important to compare pricing structures. Consider factors such as transaction volume and average order value to find the most cost-effective option for your ecommerce business.
Card Types
Not all gateways work with every kind of card, like Visa, Mastercard, Amex, and Discover. You’ll want a provider supporting the ones most common in your target markets.
Target Locations
Doing business globally means making sure your provider operates where your customer base is. Ensure your chosen payment gateway supports the countries and regions you plan to target. Consider currency compatibility and any regional regulations or restrictions.
Conclusion
Choosing the right Shopify payment gateways is important to any growing business. Carefully consider the available options, their features, and associated costs to make an informed decision.
With careful thought you’ll easily find the best fit for your needs.
Frequently Asked Questions
What are the different types of Shopify payment gateways?
Shopify works with numerous payment providers, broadly categorized into two types:
External Providers: Customers are redirected to a different site to finish payment, like with PayPal. These gateways often offer additional features or benefits.
Direct Providers: Customers can check out right on your Shopify store without going to a third-party page. Shopify Payments is a prime example. They allow for a seamless checkout experience.
Can I use Shopify in any country?
Shopify is available in many countries, but their payment services might have restrictions. Double-check they support your region and chosen currency. Be sure to review Shopify’s website for the most up-to-date list of supported countries and payment options.
Are Shopify payments secure?
Absolutely. Shopify Payments Gateways use top-notch security features like encryption to safeguard your customer’s data throughout the entire payment process.
They comply with the highest industry standards like PCI DSS, ensuring the security of sensitive information. Shopify also implements fraud prevention measures to mitigate risks.
