Stripe vs Shopify Payments: Deep Dive Comparison for eCommerce Business

Stripe and Shopify Payments are prominent players in the $6.1 trillion global eCommerce industry. These two payment processors are top-of-mind for merchants, each offering distinct features for different use cases.

Stripe is a full-stack, customizable digital payment service with essential features for businesses seeking personalized payment solutions. On the other hand, Shopify Payments is an embedded payment processor designed for Shopify merchants.

So, is Stripe better than Shopify Payments? Which payment method is best for your eCommerce business? This Stripe vs Shopify Payments deep dive will answer all your questions. You will get an accurate comparison of both solutions, including their features, pricing, suitability for various business types, and when to choose either option.

Let’s jump right in!

Stripe Features and Overview at a Glance

Stripe’s unique selling proposition is offering robust APIs that are easy to integrate and customize. Such an API-first approach makes Stripe a developer-centric company. And it works. The fintech giant achieved unicorn status in about three years of launch and surpassed $1 trillion in total payment volume 10 years faster than PayPal.

Stripe is also known for its obsessive focus on user experience. Many merchants consider it the rebel company on a mission to "right the wrongs" in payments. Stripe facilitates card-present payment through POS terminals and offers cash advances to SMEs struggling with early cash flow. They keep raising the bar on the user interface and developer tools to streamline payment processes and reduce friction.

Stripe currently commands a 21% market share of the global payments industry. As of recent Stripe statistics, the payment giant is one of the most valuable private fintech companies worldwide, boasting a valuation of $64 billion. The Stripe system is said to offer a 99.99% uptime, which is exceptional in every sense.

Stripe’s Key Features

Stripe gives you a feature-rich payment suite to simplify online transactions – from sign-up to scale-up. The service has several tools to help you easily manage subscriptions, optimize revenue, prevent fraud, and expand globally. Stripe caters to businesses at all stages, and you can integrate their service into more than 450 platforms and extensions. Notable Stripe features include the following:

• Seamless integration options (APIs, SDKs).
• Payment acceptance and processing offline or through customizable checkout on mobile, laptop, and desktop.
• Support for 100 payment methods like cards, bank debits, bank redirects, bank transfers, BNPL, real-time payments, vouchers, and wallets.
• Ability to build feature-complete payment products and localize experiences across 118 countries.
• Support for 135+ local and international currencies.
• Custom revenue and financial automation tools like Sigma, Atlas, and Stripe Billing for reporting, incorporation, revenue recognition, tax and VAT automation, invoicing, and billing.
• Customizable embeddable components for seamless checkout on desktop, mobile, or tablet devices.
• Data protection, fraud prevention, and regulatory compliance for favorable business operation.

All business types can use Stripe, regardless of whether they operate online or offline. The platform also supports various niches. You can use Stripe to accept payments by creating checkout pages and payment links or sending invoices directly to customers via email.

Stripe Pricing

Stripe seamlessly integrates with multiple eCommerce platforms. They do not charge any subscription for payment processing. You pay a commission for every transaction processed:

1. The standard payment processing fee is 2.9% of the transaction + 30 cents (for domestic cards).
2. Stripe offers custom pricing options for enterprise clients.
3. Stripe Radar for Fraud Teams charges 2 cents for each screened transaction.

Stripe’s Advantages

The payment aggregation solution has fantastic upsides:

1. Streamlined workflow for flexible integration.
2. Developer-friendly tools with extensive documentation.
3. PCI DSS compliant, with robust customer authentication requirements.
4. Robust tools for managing recurring payments and subscriptions.
5. Reputable moderate pricing strategy and customer service.
6. Global reach and currency support.

Stripe’s Disadvantages

Every platform has downsides you should look into for informed decision-making. For Stripe, the reported downsides include:

1. Set up may require some technical expertise.
2. Strict fraud and chargeback policy may not favor all merchants.
3. Limited in-person payment with Stripe terminal.

Shopify Payments’ Overview and Features at a Glance

Shopify Payments is an in-built payment processor designed to help Shopify merchants collect and process payments natively. The payment solution is included in your Shopify plan. You don’t have to integrate a third-party payment service. Shopify partnered with Stripe to launch the payment gateway in 2013 as a white-labeled solution.

Most eCommerce platforms did not include a point-of-sale (POS) solution or an in-house payment processor back then. Hence, integrating Shopify Payments as part of the subscription package was a genius idea. Retailers benefited from seamless checkout experiences. It eliminated the need to hire developers or design storefronts.

Alongside Shopify Payments, Shopify launched a POS solution for brick-and-mortar businesses. Merchants could accept debit and credit card payments on an iPad, seamlessly integrated with their online store’s data. These twin initiatives took the eCommerce behemoth to even greater heights.

With over 2,000,000 businesses currently using the platform, Shopify Payments is the default platform for many merchants. The payment solution is accessible in ~23 countries. Shop Pay, a checkout tool that allows shoppers to swiftly transact with phone numbers, keeping payments and sales data unified within the Shopify ecosystem, also has significant users.

Shopify Payments’ Features

Shopify Payments extends the many incredible benefits of using the Shopify platform. Few companies have impacted eCommerce more than Shopify. Although Shopify Payments runs on Stripe infrastructure, there are distinguishable Shopify Payments features that make the platform exceptionally attractive to retailers big and small:

• Bundled into the Shopify commerce platform plan, you just create an account and start selling.
• Supports notable payment options like credit and debit cards, digital wallets, online payment tools, manual payments with card reader tools, and terminals.
• Supports local and international payment methods in 23 countries with more than 130 currencies.
• Seamless integration with over 100 payment providers and various kinds of Shopify stores – your product options are unlimited.
• You can overhaul your digital cart and checkout page and integrate purchase buttons into existing Shopify websites.
• Extensive data analytics and reporting tools.
• Secured checkout with Address Verification Services and Card Verification Value fraud filters.
• Shopify Payments transfers funds from sales to your bank account on your preferred schedule (typically daily).
• Excellent abandoned cart recovery email workflows and discount codes for better conversion rates.

Only businesses using the Shopify platform can use Shopify Payments to process payments. The centralized payment suite has all you need as an SME or a major retailer. You can effortlessly process online and offline payments from either your traditional Shopify checkout page, Shopify purchase links, social media channels, or Shopify-approved card readers, terminals, and POS tools.

Shopify Payments’ Pricing

There are no subscription fees required to use Shopify Payments. You get the payment system as part of your all-in-one Shopify commerce subscription. Even so, Shopify allows you to use the eCommerce platform at no cost and enjoy your first month for $1. Paid options start at $24 monthly for Shopify Basic. Depending on your Shopify plan, expect the payment processing fees to be as follows:

1. 2.4%–2.9% and $0.30 per card-not-present payment.
2. 2.4%–2.7% and $0.05 per card-present payment.
3. Merchants offering in-person transactions must purchase a Shopify-approved card reader at $59 or $299.

Shopify Payments’ Advantages

Shopify Payments is the default choice for many businesses because it natively integrates with your platform. This simplifies customers’ checkout experience, boosting sales and ensuring smooth inventory management across online and physical stores.

• It requires no third-party integrations.
• There are no incremental or hidden costs.
• The UI is clean, and the platform is intuitive to use.
• It comes with Shopify’s security system; you know what’s going on with your transactions.
• You can collect payments however customers want and in different currencies.
• The service is included in your subscription package, meaning you pay no extra setup fees.
• With one-click integration, you can quickly start accepting payments without hassle.

Shopify Payments’ Disadvantages

If you’re not using Shopify Payments, you will pay a fee to use third-party payment gateways in addition to your platform subscription. The price points vary. They charge 2% for the basic subscription, 1% for the Shopify Plan, and 0.6% for the Advanced subscription.

• Shopify Payments is not currently available in all countries.
• Unlike Stripe’s stand-alone payment solution, Shopify Payments only works for Shopify merchants.
• You pay a premium to use advanced features like custom reports and analytics.
• The strict chargeback and fraud policy means certain businesses can’t use the service.

Stripe vs Shopify Payments: Key Differences to Note

As you can see from the preceding overview of both payment providers, Stripe and Shopify Payments have so much in common. But there are also key differences that may impact your decision.  Let’s outline the differences to help you understand which option suits your needs.

Integration and Setup

Setting up Stripe Payments requires more technical knowledge than Shopify Payments integration. However, this depends on the nature of your business. Some companies can swiftly integrate Stripe for payment processing on their website. Others might require the API for creating custom integrations. Stripe says the payment integration process can range from one week to three months. Shopify Payments comes natively in your platform package. You only need to turn it on and start collecting payments.

Features and Capabilities

Both solutions have rich features for all kinds of eCommerce businesses. They support extensive payment options, have excellent security protocols, and can be customized to your brand. The one key distinction is that Shopify Payments specifically serves merchants using the Shopify eCommerce platform. At the same time, Stripe is a payment suite for any business, irrespective of the platform they built their website on.

Pricing and Fees

Stripe and Shopify Payments have equally transparent pricing and fee structures. The key distinguishing factor is that you must have Shopify membership to use Shopify Payments. In contrast, Stripe does not charge a standard account connect fee. Instead, they charge either $2 monthly for Stripe Express, for marketplaces or Stripe Custom, for white-label payment processing.

Stripe Fees:

• 2.9% + $0.30 per card-present transaction.
• 2.7% + $0.05 per card-not-present transaction.
• Stripe requires you to purchase a card reader for offline transactions, which costs $59 or $299.

Shopify Payments Fees:

• Requires Shopify eCommerce platform subscription, starting at $24 monthly.
• 2.9% + $0.30 per card-present transaction.
• 2.7% + $0.05 per card-not-present transaction.
• Shopify Payments requires you to purchase a Shopify-approved card reader for offline, which costs $59 or $299.

Both platforms charge a $15 chargeback fee and a 1% cross-border fee on sales made with credit cards issued from other countries for businesses operating in the US.

Suitability for Different Businesses

Both platforms are suitable for startups and more established businesses. With Stripe, you can build feature-complete payment products and localize experiences across 118 countries. They support 135+ local and international currencies.

Shopify Payments supports local and international payment methods in 23 countries with over 130 currencies available. The system seamlessly aligns with over 100 payment methods and various kinds of Shopify stores. As previously mentioned, accessing Shopify Payments requires that you are already using the Shopify platform.

Stripe vs Shopify Payments: The Final Verdict

Stripe and Shopify Payments make payment processing effortless for eCommerce merchants. They’re safe to use, feature-rich, and moderately priced. But if you’re looking at Stripe vs Shopify Payments and wondering which option is best for your business, here’s our final verdict:

When to Choose Stripe

If your business is seeking a highly customizable and scalable stand-alone solution, Stripe is your best bet. It is especially beneficial to the following:

• Marketplaces: Platforms that need to manage multiple sellers and complex payment flows.
• Businesses with Complex Payment Needs: Major retailers that require advanced payment features and integrations.
• SMEs with International Companies: Supports global operations accepting multiple currencies and payment methods.

When to Choose Shopify Payments

Shopify Payments is a good choice for merchants within the Shopify ecosystem. The seamless integration reduces overhead costs. It’s especially beneficial for:

• Shopify Store Owners: You pay no transaction fees, which you’ll ordinarily incur with third-party payment processors.
• New Store Owners: Easy way to minimize setup costs and streamline operations.
• Merchants in Favor of an All-In-One Solution: Offers built-in payment processing and an all-encompassing eCommerce platform.
• Businesses Not in Favor of Third-Party Payment Processors: Helps simplify the checkout process and reduce the need for additional integrations.

How Chargeflow Can Help

Chargeflow provides native apps for Stripe and Shopify, helping you win and prevent chargebacks without lifting a finger. With Chargeflow, you only pay for cases won, and our dispute win rates have consistently exceeded industry averages. Take control of your chargebacks today. Our advanced technology, seamless integration, and performance-based pricing are ideal for eCommerce businesses looking to optimize payment processes and protect revenue. Here’s how to get started.