Shopify Payments vs Stripe: Which One to Choose? | A Comprehensive Comparison

Shopify Payments vs Stripe: Which One to Choose? | A Comprehensive Comparison

Confused between Shopify Payments and Stripe? Read our comprehensive comparison to discover which payment solution is right for your Shopify store. Learn about features, pros, and cons to make an informed decision.
Shopify Payments vs Stripe: Which One to Choose? | A Comprehensive Comparison
Edvaldo Gjonikaj | CTO
Edvaldo Gjonikaj | CTO
February 9, 2024

What is Shopify Payments? The basics

Wha is shopify payments?
Shopify Payments

Shopify Payments is an integrated payment solution offered by Shopify, the leading e-commerce platform. It allows merchants to accept payments directly through their Shopify store, streamlining the checkout process for both customers and businesses. With Shopify Payments, users can manage their store and track their finances all within the Shopify dashboard, eliminating the need for third-party payment gateways. 

Key features of Shopify Payments

  • Seamless integration: One of the standout features of Shopify Payments is its seamless integration with the Shopify platform. Unlike third-party payment gateways that may require additional setup and configuration, Shopify Payments is built directly into Shopify, ensuring compatibility and reducing the likelihood of technical issues.
  • Enhanced security: Security is paramount in e-commerce, and Shopify Payments doesn't disappoint. With built-in fraud detection tools and robust encryption protocols, you can rest easy knowing that your customers' sensitive information is protected from unauthorized access and fraudulent activity.
  • Automatic deposits: Say goodbye to manual payouts and lengthy processing times. With Shopify Payments, your sales revenue is automatically deposited into your bank account within a matter of days. This streamlined payout process means you can focus on growing your business without worrying about cash flow.
  • Customer convenience: Happy customers are repeat customers, and Shopify Payments helps enhance the shopping experience for your audience. By offering a variety of payment methods, including credit cards, debit cards, and alternative payment options like Apple Pay and Google Pay, you can cater to the preferences of a diverse customer base.
  • Integrated analytics: Understanding your sales performance is crucial for making informed business decisions, and Shopify Payments provides valuable insights into your transaction data. With intuitive reporting tools and real-time analytics, you can track sales trends, identify opportunities for growth, and optimize your marketing efforts.

What is Stripe? Intro

Stripe vs Shopify

Stripe is a popular payment processing platform that enables businesses to accept online payments securely and efficiently. Unlike Shopify Payments, which is built specifically for Shopify users, Stripe is a standalone service that can be integrated into various e-commerce platforms, including Shopify. Stripe offers a wide range of features and customization options, making it a versatile solution for online businesses of all sizes.

Key features of Stripe

  • Flexible integration: Whether you're running a Shopify store, a custom-built e-commerce platform, or a mobile app, Stripe offers flexible integration options to suit your needs. With a robust set of APIs and developer-friendly documentation, you can seamlessly integrate Stripe into your existing workflow with minimal hassle.
  • Global reach: In today's interconnected world, reaching customers across borders is essential for business growth, and Stripe makes it easy to do just that. With support for over 135 currencies and a wide range of payment methods, including credit cards, digital wallets, and local payment options, you can cater to customers around the globe without missing a beat.
  • Customizable checkout: Your checkout experience is often the final touchpoint between your brand and your customers, and Stripe gives you the tools to make it memorable. With Stripe Elements, you can create a fully customized checkout flow that reflects your brand identity and enhances the user experience, resulting in higher conversion rates and increased customer satisfaction.
  • Advanced fraud prevention: Protecting your business from fraud is a top priority, and Stripe provides advanced fraud prevention tools to help you stay one step ahead of malicious actors. From machine learning algorithms that detect suspicious activity to customizable rules and thresholds that allow you to control risk, Stripe empowers you to minimize chargebacks and safeguard your revenue.
  • Transparent pricing: With Stripe, what you see is what you get. There are no hidden fees, setup costs, or monthly minimums – just a simple, transparent pricing structure that scales with your business. Whether you're processing $100 or $1 million in transactions, you'll always know exactly what you're paying for, giving you peace of mind and predictability.

Shopify Payments vs Stripe: Pro & Cons

Pros and Cons of both Shopify payments and Stripe
Pros and Cons of both Shopify payments and Stripe

Let’s analyze both Shopify Payments and Stripe range of features and benefits, as well as drawbacks and cons.

Shopify Payments Pros

  • Seamless integration: Shopify Payments is built directly into the Shopify platform, making it easy to set up and manage.
  • Unified dashboard: Merchants can access payment information and manage their store from one central dashboard, simplifying the workflow.
  • Automatic deposits: Funds from sales are deposited directly into the merchant's bank account within a few business days, reducing wait times.
  • Fraud protection: Shopify Payments includes built-in fraud analysis tools to help merchants detect and prevent fraudulent transactions.

Shopify Payments Cons

  • Limited availability: Shopify Payments is not available in all countries, which can be a limitation for international merchants.
  • Transaction fees: While Shopify Payments offers competitive transaction fees, some merchants may find cheaper alternatives, especially for high-volume sales.

Stripe Pros

  • Versatility: Stripe can be integrated into various e-commerce platforms, giving merchants more flexibility and control over their payment processing.
  • Customization: With Stripe Elements, merchants can create a fully customized checkout experience to match their brand's aesthetics.
  • International support: Stripe supports payments in over 135 currencies and offers multi-currency functionality, making it ideal for global businesses.
  • Transparent pricing: Stripe has straightforward pricing with no setup fees or monthly charges, making it cost-effective for businesses of all sizes.

Stripe Cons

  • Integration complexity: Integrating Stripe into a Shopify store may require some technical knowledge or assistance from a developer, especially for customizations.
  • Account stability: Some users have reported account freezes or suspensions due to Stripe's stringent fraud prevention measures, which can disrupt business operations.

Shopify Payments vs Stripe: Which One to Choose?

Shopify Payments vs Stripe: Which One to Choose?
Shopify Payments vs Stripe: Which One to Choose?

When it comes to choosing between Shopify Payments and Stripe, there's no one-size-fits-all answer. Both platforms offer a range of features and benefits that cater to different business needs and preferences. Choosing between Shopify Payments and Stripe ultimately depends on the specific needs and preferences of the merchant. 

Criteria to Choose Shopify as Payments Method

  • Simplicity: Shopify Payments is designed specifically for Shopify users, offering a seamless integration and unified dashboard experience.
  • Security: With built-in fraud analysis and chargeback protection, Shopify Payments provides peace of mind for merchants concerned about security.
  • Convenience: Managing payments and tracking finances within the Shopify dashboard streamlines the workflow and saves time for busy merchants.

However, for most Shopify users, Shopify Payments offers a convenient and reliable solution that seamlessly integrates with their store. With its seamless integration, enhanced security, automatic deposits, customer convenience, and integrated analytics, Shopify Payments offers a comprehensive solution that simplifies payment processing and streamlines business operations. Plus, with ongoing updates and improvements from Shopify, merchants can rest assured that they're always getting the latest and greatest features to help them succeed in the competitive world of e-commerce.

Criteria to Choose Stripe as Payments Method

  • Personalization: customization options and international support
  • Adaptability: flexible integration with existing tech stack
  • Flexibility: global reach in 30 countries and 135 currencies

Stripe emerges as the superior choice for businesses looking for a versatile, reliable, and scalable payment processing solution. With its flexible integration options, global reach, customizable checkout experience, advanced fraud prevention tools, and transparent pricing. While Stripe offers its own set of advantages, some merchants may find the integration complexity and account stability issues to be potential drawbacks. 

Ultimately, the decision between Shopify Payments and Stripe will depend on factors such as business size, target audience, geographical location, and specific requirements. In conclusion, whether you choose Shopify Payments or Stripe, the key is to evaluate your business needs carefully and choose the solution that best aligns with them.