Online sales represent a significant share, in some cases even the main share, of the overall turnover of many companies and knowing the best Shopify payments can further help boost sales.
Providing reliable payment methods is essential to accompany the customer to the end of the purchasing journey and to limit the percentage of abandoned carts. In this guide we are going to discover the best payment gateways for Shopify and their advantages.
Best Shopify payments: why are they important?
Companies should delve into the topic of the best Shopify payments for several reasons. In the following sections, we'll discover together the advantages that can be obtained by adding the most used payment methods by customers.
Increase in customer trust
Although the general level of trust in online purchases has increased compared to the past, when it comes to buying from an ecommerce for the first time there is always a fear of being scammed. By introducing some of the best payment gateways for Shopify, customer trust can be strengthened, leading to an increase in sales.
Improvement of checkout process
The final steps of the checkout process are a very delicate moment of the purchasing journey. Optimizing the checkout process means increasing the percentage of potential customers who convert into actual customers, reducing the cart abandonment rate and increasing the conversion rate.
Data shared by the Baymard Institute shows that e-commerce sites with a high volume of customers could achieve a 35.26% increase in the conversion rate by solving the main difficulties encountered by customers during checkout.
Even if we don’t know the exact percentage of improvement for small and medium companies, it’s possible to predict an improvement of conversion rate for these companies too.
Increase in average order value
Online stores that allow customers to choose from multiple payment methods and that offer reliable payment systems can achieve an increase in the average order value.
With reliable payment methods customers will feel more comfortable making purchases of expensive products or multiple purchases. Payment methods are therefore crucial to increase customers' average spending.
Management of transactions in different currencies
The main payment gateways allow for easy management of transactions in multiple currencies. This is useful for companies selling online in multiple countries: payment management is made immediate and usually additional fees for customers are avoided.
With access to multiple payment systems, customers who wish to pay in a currency different from the company's reference currency can compare the available solutions to identify the most advantageous one. Some payment gateways may charge extra fees: in this case, it might be convenient to find those without commissions.
Reducing abandoned carts
The phenomenon of abandoned carts has a negative impact on online sales. Referring once again to data collected by the Baymard Institute, abandoned carts account for 70.19% of cases. Companies should reflect on this data and strive to reduce the abandonment rate to boost sales.
The same analysts at the Baymard Institute have also shared the main reasons that lead customers to abandon their carts. Among the most frequent responses, four relate to payment methods: some customers do not feel comfortable sharing their payment card details, while others abandon carts because they cannot find the payment method they would like to use.
Scalability
Another advantage gained by introducing the best Shopify payments into ecommerce is the scalability of the business. Having only one payment method, sometimes not even perfectly integrated with the online store, can make transaction management difficult as sales volume increases.
Best payment gateways for Shopify
Understanding the reasons why companies should invest in reliable payment methods for online stores, let's now see what the best payment gateways for Shopify are.
Shopify Payments
One of the best tools for managing monetary transactions on Shopify stores was developed by the team behind this ecommerce software itself. It's called Shopify Payments, currently considered one of the best solutions available on the market.
Companies that choose to rely on Shopify Payments can easily integrate the best payment methods into their ecommerce with just a few clicks. The advantage is that the integration is simplified and companies do not have to interface with third-party tools.
Using Shopify Payments is also advantageous for optimizing fees. Third-party fees are not applied to orders processed with Shopify Payments, PayPal Express, Shop Pay Installments and Shop Pay.
Stripe
Stripe is a payment gateway chosen by numerous companies for its ability to be customized based on specific needs. For more detailed information on comparing with Shopify Payments, we recommend reading our guide Shopify Payments vs Stripe.
Pros
The modern graphical interface and frequently updated APIs are two strengths that make Stripe an excellent business tool.
Stripe also boasts specific features for transaction protection and limiting the possibility of digital fraud. It is also chosen as a payment gateway for online activities that involve subscription plans.
Cons
There are also some negative aspects to consider. Compared to other payment gateways, integration with Shopify can be more complex because there are more features to define.
For small companies with a reduced transaction volume, there may be better payment solutions in terms of costs.
Amazon Pay
Amazon Pay is the payment gateway that allows customers to complete purchases on Shopify stores using their Amazon account.
Pros
This payment system integrates with the Amazon account and saves time for customers. Buyers can use various payment methods, essentially all those accepted on Amazon.
In some countries, it is also possible to use Amazon credit obtained with gift cards, while in other countries the gift card balance cannot be used for payments with Amazon Pay.
Small businesses that choose to integrate Amazon Pay among the payment methods on Shopify can benefit from low fees.
Cons
It is not the ideal solution for all product categories. Companies specialized in the sale of high-risk products or services should not choose Amazon Pay as the main payment gateway because Amazon's policies may not accept transactions with these products.
PayPal
PayPal is one of the most widely used payment methods worldwide and is among the best Shopify Payments.
Pros
Millions of customers worldwide have a PayPal account, contributing to the widespread use of this payment system on Shopify stores. The fast integration and intuitive graphical interface are two important strengths of PayPal.
PayPal has recently introduced financing options for customers. Credit tools can be an advantage for ecommerce: customers can buy and pay in installments if they do not have the full amount immediately, potentially increasing the overall number of transactions.
Cons
Compared to other payment gateways, PayPal has longer transaction processing times. The fees that companies must pay to use this payment system are not the cheapest on the market. PayPal also applies some restrictions on the categories of products and services that can be sold, making it not the ideal choice for high-risk products.
Braintree
Braintree is a payment company that has been acquired by PayPal. This company is known for optimizing payments made through mobile applications and for its advanced payment features.
Pros
Braintree provides companies with advanced payment features and can handle transactions with various payment methods, including debit cards, credit cards, Apple Pay, PayPal and Google Pay.
The payment experience can be customized and transaction management is optimized for use through smartphone and tablet applications.
Cons
To properly manage all of Braintree's features and fully utilize its capabilities, greater technical expertise is required. The fees applied to transactions are higher compared to competing payment solutions.
WorldPay
WorldPay is one of the best solutions for payment processing, especially due to the ability to accept various payment methods.
Pros
Transactions are securely handled, developers have invested a lot of time in creating security methods to safeguard customers' sensitive data. WorldPay can currently be used in 140 countries and accepts over 120 different currencies.
Cons
The ease of use is lower compared to other payment management solutions. The costs applied to transactions could be high for small businesses.
Verifone
Verifone is a widely used payment tool worldwide, with customized solutions depending on the country.
Pros
The payment experience is customized based on the country where the purchase is made. Currently, Verifone supports approximately 180 payment methods and allows purchases in over 150 different currencies.
Cons
Integrating Verifone into the online store is more complex compared to other solutions. The fees applied vary depending on the geographic area and in some areas they are quite high.
Klarna
Klarna is a service that has gained popularity for its financing options and became famous with the slogan Buy now, pay later.
Pros
It can help businesses increase online sales through flexible payment offers. Customers can purchase and pay in multiple installments (usually three) without any interest on the financing received.
Cons
Paying in installments may not be the ideal choice for all businesses; it depends on the business model and the type of products sold. Klarna is not the ideal choice for businesses that do not need to offer customers a flexible payment option.
Adyen
Adyen is an excellent solution for companies looking for a flexible payment tool adaptable to various platforms.
Pros
Adyen can be used for payments on websites, mobile and tablet applications and even for in-store transactions. Accepted in over 150 countries, Adyen allows for managing transactions in more than 250 different currencies. Additionally, it integrates excellent additional features, particularly 3D Secure and recurring payments.
Cons
The fees applied to transactions are higher than other solutions. Properly managing all settings requires a higher level of technical knowledge.
Skrill
Skrill is a payment system specialized in managing transactions with low fees.
Pros
Skrill can handle various payment methods, including bank transfers, debit cards and credit cards. This payment system is widely used in Europe and the United Kingdom, so it is recommended for companies operating in these markets. It also utilizes advanced security systems to protect customers' sensitive information.
Cons
Although active in various countries, it is not yet widely used in some parts of the world. The fees applied are generally in line with competitors, but in some areas they are higher.
Optimizing Payments with an AI Chatbot
The best Shopify payments can be further optimized by integrating an AI chatbot into your ecommerce. TextYess is an AI shopping assistant that can seamlessly integrate with both Shopify and WhatsApp and send checkout links directly based on customers' queries and purchase intentions.
Customers can benefit from features of TextYess by chatting in real-time with the AI chatbot. They can inquire about products for sale, receive suggestions on other related products or services to purchase and ask about shipping and payment methods.
Regarding payments, this AI shopping assistant is perfect for conversational commerce. Customers can conclude their purchase directly in the chat, buying the products they want within the WhatsApp conversation. This form of payment is called Text-toBuy and is revolutionizing Asia from years with WeChat. It is now time to consider this option also in Europe, therefore don’t be afraid and test this TextYess AI chatbot able to bring customers from queries to sales in chat in a few messages for free. Check their Shopify App right here.
Which Payment Gateway is Right for You?
As you could guess,, there are many payment gateways for Shopify merchants. Each has its own strengths and weaknesses, so it’s important to choose the gateway that is best for your business needs.
The payment gateways we’ve discussed in this article are some of the most popular options around at the moment. They all offer a variety of features that can be helpful in making payments and running an online store and also bring the business forward to new ways of shopping online like with Text-to-Buy.
So to answer the question above, that depends on your business’ needs and obstacles. Do some research, try out a few gateways, and decide which one is best for your business!