Best Shopify Payments Alternatives for 2024 Comparison Guide

Note: This is the second part of our series on Shopify Payments. If you haven’t read it yet, be sure to check out our first article on Shopify Payments: Shopify Payments 2024 Guide: How to Optimize Your eCommerce Payment Options.‍

As an eCommerce merchant running a business on Shopify, offering flexible and reliable payment options is crucial to maximize conversion rates and ensure customer satisfaction. While Shopify Payments provides a seamless and easy-to-integrate solution, it may not be the perfect fit for every business. Depending on your goals – whether you’re looking to expand internationally, manage complex payment structures, or cater to specific customer preferences – you might need to explore alternative payment processors that offer greater flexibility.

In this guide, we’ll uncover the best Shopify Payments alternatives for 2024, comparing their features, costs, and ideal business types. By the end, you’ll have a clearer understanding of which payment processor best aligns with your business needs and operational goals. 

Why Consider Alternative Payment Options?

While Shopify Payments offers convenience and seamless integration for many merchants, there are times when a third-party processor may be a better fit. Depending on your business’s needs, maybe you’re looking to expand internationally or manage complex payment types such as additional payment methods, alternative payment processors provide unique benefits that Shopify Payments may not.

Here are some reasons why you may consider alternative payment options:

• International Expansion and Customization: If you are a business expanding on an international level, Stripe provides ample global support and customization options that are well-suited for managing currencies and specific payment methods in different countries.
• Special Functions: Some businesses might need certain functions such as buy now, pay later which Klarna as well as Afterpay do offer. Such offers can sharply drop the rate at which carts get abandoned and also attract young clients who care much about their finances.
• Enhanced Security and Fraud Defense: Certain industries or merchants classified as high risk may require stronger fraud detection and prevention measures than others; these are available through processors like Adyen.
• Customer Preferences: In some cases, customers may prefer commonly known payment solutions such as PayPal due to it being a consumer protection program, or other people choose to pay with Cryptocurrency as it is what they find more convenient; therefore it is imperative to provide alternative ways of payment this will help meet their requirements.

This comparison below will help you decide whether Shopify Payments or third-party processors best suit your business needs. You can learn more about comparing payment processors here. 

Popular Payment Options for Shopify

Here is a summary of the pros and cons, including fees, accepted payment  methods, and who each is best suited for:

Stripe 

Overview: Stripe offers a highly versatile payment processor with a robust API, global reach, and extensive customization capabilities. Stripe is an excellent choice for businesses looking to scale quickly and internationally, but keep in mind it does have additional fees for international transactions. Also, some technical knowledge may be required to fully integrate its features, especially for developers looking for full customization.

‍Accepted Payment Methods: Credit and debit cards, Apple Pay, ACH transfers, and more.

‍Pricing: 

• Transaction Fees: 2.9% + 30¢ per successful card charge (may vary by country). Additional fee: 0.5% for manually entered cards.
• International Fees: 1.5% fee for international cards, and 1% for currency conversion.

‍Best suited for businesses looking to scale with extensive customization needs.

PayPal

Overview: PayPal is globally recognized and trusted, for its easy-to-use platform. Its extensive buyer protection and support make it a strong candidate for eCommerce businesses, however, their transaction fees are higher compared to other platforms, specifically those for international payments.   

‍Accepted Payment Methods: PayPal balance, credit and debit cards, bank transfers, PayPal Credit, Venmo (only U.S.), and Alternative Payment Methods (APM) like local bank transfers. 

‍Pricing:

• Standard Transaction Fees (U.S.): 2.99% + $0.49 per transaction.
• International Fees: 4.4% + fixed fee based on the currency received.

‍Best suited for merchants looking for a widely recognized and trusted payment method with robust buyer protection.

Square

Overview:  Square is an excellent option for small to medium-sized businesses, especially those operating both online and offline. Easily integrated with Shopify and is simple to use. However, its global availability is a drawback for businesses with an international customer base. 

‍Accepted Payment Methods: Credit and debit cards, Apple Pay, Google Pay.

‍Pricing:

• Online Transaction Fees: 2.9% + $0.30 per transaction.
• In-Person Fees: 2.6% + $0.10 per transaction for in-person payments.

‍Best suited for U.S. merchants looking for a payment processor for both physical and online stores. 

Klarna

Overview: Klarna is a highly flexible payment solution that offers its customers “buy now, pay later” or installment payment options. This is a popular choice among younger consumers which helps reduce cart abandonment rates. Particularly popular in Europe where Klarna is a market leader. 

‍Accepted Payment Methods: Pay later, installments, direct payments via credit/debit cards.

‍Pricing:

• Merchant Fees: Varies depending on country and payment option. Typically, 2.9% to 5.99% per transaction.

‍Best suited for merchants targeting Millennials and Gen Z consumers, mainly in European markets, and looking for flexible payment options.

Adyen

Overview:  Adyen supports a wide variety of payment methods and currencies, making it an ideal solution for large enterprises with international customers. It's a great payment processor for large enterprises looking to scale with a global presence. With comprehensive fraud protection and advanced reporting tools, it is a strong choice for businesses with complex payment needs. Due to its scalability, Adyen is better suited for larger companies. However, its pricing structure can be complex due to variable interchange fees.

‍Accepted Payment Methods: Credit and debit cards, local payment methods, Apple Pay, Google Pay, bank transfers, and more.

‍Pricing:‍

• Transaction Fees: $0.13 per transaction plus interchange fees, which are set by Visa and Mastercard. These vary based on factors like card type, country, and payment method.

• Interchange Fees: Determined by the card networks, these fees vary depending on specific transaction characteristics. For more details, see Adyen’s knowledge hub.

‍Best suited for large enterprises with international customers with complex payment needs looking for a robust, scalable solution with comprehensive fraud protection.

Afterpay

Overview: Afterpay offers interest-free installment payments, making it a popular choice for the budget-conscious such as Millenials and Gen Z. With increased conversion rates merchants enjoy Aferpay’s flexibility in payment options. However, their higher transaction frees are a downside 

‍Accepted Payment Methods: Credit and debit cards for installed payments. 

‍Pricing:

• Merchant Fees: Generally between 4% and 6% per transaction.
• Customer Fees: 0% interest for customers; for missed payments late fees may apply.

‍Best suited for merchants wanting to attract budget-conscious shoppers such as Millennials and Gen Z, and improve conversion rates with installment payments. 

Cryptocurrency

Overview:  It is an emerging trend to accept cryptocurrency, especially among trend-savvy consumers. Bitcoin and Ethereum for instance offer decentralized payment options and appeal to a niche market. However, because of the limited mainstream adoption and volatility of cryptocurrency values, this is a popular option among businesses looking to experiment or expand into decentralized payments. 

‍Accepted Payment Methods: Bitcoin, Ethereum, Litecoin, as well as other popular cryptocurrencies. 

‍Pricing:

• Transaction Fees: Generally 1% per transaction through processors like Coinbase Commerce or BitPay.

‍Best suited for businesses looking to attract tech-savvy customers and looking to expand into decentralized payment methods. 

For more information on the pros and cons of each payment processor, check out this comprehensive guide on the best payment processors for your eCommerce store. 

Setting Up and Managing Payment Options on Shopify

One of the crucial requirements for providing customers with the optimal shopping experience is to offer them a diverse option of payment methods. With Shopify, merchants can integrate multiple payment methods enabling their customers to customize options according to their preferences. Chargeflow also integrates many of these payment services, ensuring chargebacks are effectively managed regardless of the payment method.

Setting up and managing your new payment option on Shopify is simple. Here’s how you can do it: 

‍Stripe: 

To add Stripe to Shopify:

1. Go to Settings > Payments in your Shopify admin 
2. Select "Alternative Payment Methods.”
3. Choose Stripe from the list.
4. Follow the instructions to complete the setup.

Adyen:

To add Adyen to Shopify:

1. Go to Settings > Payments in your Shopify Admin.
2. Select "Alternative Payment Methods.”
3. Choose Adyen from the list.
4. Follow the instructions to complete the setup.

Klarna: 

To add Klarna to Shopify:

1. Go to Settings > Payments in your Shopify Admin.
2. Select “Alternative Payment Methods.”
3. Choose Klarna from the list.
4. Follow the instructions to complete the setup.

Afterpay: 

To add Afterpay to Shopify:

Go to Settings > Payments in your Shopify Admin.

Select "Alternative Payment Methods.”

1. Choose Afterpay from the list.
2. Follow the instructions to complete the setup.

‍Square: 

To add Square to Shopify:

1. Go to Settings > Payments in your Shopify Admin.
2. Select "Alternative Payment Methods.”
3. Choose Square from the list.
4. Follow the instructions to complete the setup.

‍Cryptocurrency: 

To add Cryptocurrency to Shopify:

1. Go to Settings > Payments in your Shopify admin.
2. Select "Alternative Payment Methods."
3. Choose your preferred Cryptocurrency processor (e.g., Coinbase Commerce or BitPay).
4. Follow the instructions to complete the setup.

If you’d like more information on setting up alternative payment methods on Shopify, please visit Shopify’s Help Center. 

Summed Up

The right payment processor for your Shopify Store can impact everything from customer satisfaction to your bottom line. It’s true that Shopify Payments is a convenient and integrated solution for many merchants, but alternative payment processors also offer unique advantages based on your business model, needs, and customer base. 

Whether you’re into flexible installment payments with Klarna or Afterpay are looking to expand internationally with Stripe, or just want to cater to tech-savvy consumers with Cryptocurrency, knowing the features, fees, as well as limitations of each option, can help you make the best decision for your business. 

And lastly, Chargeflow can seamlessly integrate with all of these payment methods which will not only help simplify chargeback management but also improve your overall payment operations. Automating dispute management with AI-driven insights allows you to focus on growing your business and minimizing revenue loss from chargebacks.

So, if you’re ready to take your Shopify payments to the next level, then it’s time to get started with Chargeflow today!