Choose the Best Payment Processor: Stripe vs Shopify Payments

Table of Contents

1. Introduction
2. Shopify Payments versus Stripe: A Comparison
3. Stripe Features and Availability
   • 3.1 Stripe's Currency Acceptance
   • 3.2 Stripe's Availability in Countries
   • 3.3 Average Payout Time and Customized Schedules
   • 3.4 Integration Options with E-commerce Platforms
   • 3.5 Customer Support
4. Shopify Payments Features and Availability
   • 4.1 Shopify Payments as Shopify's Own Payment Solution
   • 4.2 Limitations of Shopify Payments
   • 4.3 Integration Options with Shopify
   • 4.4 High Chargeback Rate and Store Shutdowns
   • 4.5 Customer Support
5. Pros and Cons of Stripe
6. Pros and Cons of Shopify Payments
7. Conclusion

Stripe versus Shopify Payments: Choosing the Ideal Payment Processor

When it comes to building an online store on Shopify, one of the crucial decisions business owners face is selecting the most suitable payment processor. In this article, we will compare two popular options, Stripe and Shopify Payments, to help you make an informed decision. We will analyze their features, availability in different countries, integration options, customer support, and more. By the end, you will have a clearer understanding of which payment processor is the winner for your online business.

2. Shopify Payments versus Stripe: A Comparison

Shopify Payments and Stripe are both trusted payment processors, but they have some notable differences. Shopify Payments, as the name suggests, is Shopify's own payment solution, while Stripe is a third-party solution designed for multiple e-commerce platforms. This distinction has implications for their functionality and availability.

3. Stripe Features and Availability

3.1 Stripe's Currency Acceptance

One of the major advantages of Stripe is its acceptance of a wide range of currencies. With Stripe, you can transact in over 135 countries, supporting 85 different currencies. This feature becomes highly valuable if you have a global customer base or if you plan to expand your business internationally.

3.2 Stripe's Availability in Countries

Stripe is also widely available in 37 countries, giving you the flexibility to operate your online store in different regions. This availability ensures that you can reach customers across the world and facilitate transactions smoothly.

3.3 Average Payout Time and Customized Schedules

Regarding payout time, Stripe is on par with Shopify Payments. Both payment processors offer an average payout time of two business days for US-based businesses. Additionally, Stripe allows for customized payout schedules, giving you more control over your cash flow.

3.4 Integration Options with E-commerce Platforms

With over 450 integration options, Stripe provides a decent selection of third-party apps and platforms that seamlessly integrate with its payment processing system. While this number is lower than Shopify Payments' available integrations, the majority of the popular e-commerce platforms work well with Stripe.

3.5 Customer Support

Stripe is known for its excellent customer support. Their team is prompt, knowledgeable, and helpful in assisting users with any payment-related issues or inquiries. With reliable customer support, you can ensure that your transactions are processed smoothly, and any potential issues are addressed promptly.

4. Shopify Payments Features and Availability

4.1 Shopify Payments as Shopify's Own Payment Solution

Unlike Stripe, Shopify Payments is an integrated payment solution specifically designed for Shopify users. If you choose to build your online store on Shopify, Shopify Payments will be an available option by default. This seamless integration may save you time and effort in setting up a third-party payment processor.

4.2 Limitations of Shopify Payments

However, one significant drawback of Shopify Payments is its limited availability. Currently, it is available in only 17 countries. If you are operating outside of these countries, you will need to consider an alternative payment processor like Stripe.

4.3 Integration Options with Shopify

Shopify Payments offers over 4,000 apps that integrate with the Shopify platform. However, it's essential to note that not all apps are compatible with Shopify Payments. This limitation may affect your ability to access certain features or functionalities offered by third-party apps.

4.4 High Chargeback Rate and Store Shutdowns

A notable concern with Shopify Payments is their high chargeback rate. Experiencing a significant number of chargebacks can lead to Shopify shutting down your entire store. This can have severe consequences for your business, as you will lose all your website data, customization, and customer information.

4.5 Customer Support

Shopify also provides reliable customer support to assist its users in navigating payment-related issues. While their support may not be at the same level as Stripe's, it is still considered effective and responsive.

5. Pros and Cons of Stripe

• Pros:

  • Accepts a vast range of currencies
  • Widely available in 37 countries
  • Customizable payout schedules
  • Extensive integration options
  • Excellent customer support

• Cons:

  • Limited availability of integration options compared to Shopify Payments

6. Pros and Cons of Shopify Payments

• Pros:

  • Easy integration with Shopify platform
  • Convenient for Shopify users
  • Wide range of apps available for integration

• Cons:

  • Limited availability in only 17 countries
  • High chargeback rate and store shutdown risks

7. Conclusion

After evaluating the features, availability, integration options, and customer support of both Stripe and Shopify Payments, it is clear that Stripe emerges as the winner in this debate. With its acceptance of numerous currencies, availability in more countries, greater integration options, and exceptional customer support, Stripe offers a robust payment processing solution for your online store. However, it's important to consider your specific business needs and the countries you operate in before making a final decision. Choose the payment processor that best aligns with your requirements and empowers your online business.

Once you've made your decision, you can confidently set up your payment processing system, ensuring a seamless checkout experience for your customers and ultimately driving your business's success.

Highlights

• Stripe and Shopify Payments are popular payment processors for online stores.
• Stripe offers a wider range of currencies and is available in more countries.
• Shopify Payments provides seamless integration with the Shopify platform.
• Stripe has a greater number of integration options and offers excellent customer support.
• Shopify Payments has a higher chargeback rate and store shutdown risks.

FAQ

Q: Can I use Shopify Payments if I don't use Shopify as my e-commerce platform? A: No, Shopify Payments is exclusively available for users of the Shopify platform.

Q: What happens if my store experiences a high chargeback rate with Shopify Payments? A: Shopify may shut down your entire store, resulting in the loss of data and customization.

Q: Can I integrate Stripe with other e-commerce platforms besides Shopify? A: Yes, Stripe is compatible with multiple e-commerce platforms, providing a wide range of integration options.