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    Shopify Payments vs Paypal – Which payment method to choose for the Shopify store?

    • June 28, 2023
    • 6 min

    Payment is the make-or-break phase for E-Commerce enterprises because it determines if your order will be successfully placed or not. This is why Shopify store owners spend hours researching the many payment methods that Shopify offers.If you are not using the most convenient, quick, and hassle-free choice for your business, you can be losing out on sales that you bring to the table. Your decision will not only affect the amount of money you make online but also your conversion rates.

    What is the main difference between Shopifpayments and Paypal?

    One of the biggest e-commerce platforms, Shopify, now has its own payment system called Shopify Payments. However, one of the most well-known and oldest reliable methods for online payments is PayPal.

    Shopify payment Overview:

    Shopify, which is used by millions of stores, is one of the most well-known ecommerce systems worldwide. The biggest and most significant Paypal substitute has been added by Shopify, and it is called Shopify Payments.

    It is not only used in the United States but also in 23 other countries.

    How Shopify Payments Works

    Integration directly into the Shopify platform is possible as Shopify Payments are powered by Stripe. With lower fees and other payment services, it allows ecommerce store owners to start accepting credit cards. Your customer’s payments can be accepted with Shopify Payments using :

    PayPal Payment Overview:

    One of the biggest and most well-liked payment options available globally is PayPal. By connecting bank accounts and credit cards to an account, PayPal functions as a “digital wallet,” making it simple for users to make payments for goods and services online. More than 200 countries are home to about 430 million PayPal users, and PayPal is accepted by millions of online shops and marketplaces.

    How Paypal works

    • Paypal allows big and small businesses to accept payments from consumers that use their “digital Wallet” through its own payment processing system. A faster, easier checkout process for shoppers is around the world through Paypal as it integrates with a large number of ecommerce platforms. Your client can pay you through PayPal by
      • Visa
      • Mastercard
      • American Express
      • Discover

    Before taking the decision let’s do a quick analysis of the terms like cost and fees, processing time and payout, charges and dispute resolution, and customer support.

    Shopify payment Vs Paypal: Fees

    Shopify Payments are just like other payment processors that include:

    • Processing fees per transaction: 2.4% – 2.9% + 30c USD for online credit cards.
    • Foreign exchange fees: For the U.S. it is 1.5% and for all other countries it is 2%.

    In order to use the services Shopify requires Businesses to pay a monthly fee. There are 3 options—- Basic, Shopify, and Advanced that range between $39 and $399 per month. The most expensive accounts provide lower rates.

    PayPal charges normal industry fees, just like the majority of other payment processors such as:

    • Processing fees per Transaction: 5.4% + 30 USD for online credit card purchases, and 2.29% – 3.49% + 9 USD for in-person credit/debit card purchases.
    • Foreign exchange fees: 4.5 percent The integration of PayPal into your e-commerce platform is free. You only pay when transactions are processed, not on a monthly basis.

    Shopify payment Vs Paypal: Payout

    Shopify Payment generally takes 3 days to reflect the money in your bank account by electronic transfer. However, it may even vary depending on your location.

    On the other hand, Paypal normally takes 5 to 7 working days to reflect the money no matter where your business or account is located.
    So in this case again Shopify Payment has an edge due to less processing time.

    Shopify payment Vs Paypal: Charges and Dispute Resolution

    If there is a disagreement with Shopify Payments, Shopify will consider the claims of both parties and reach a conclusion within 60 days. If the customer’s allegation is more compelling, they might get their money back while you might get hit with a $15 fine. Your account may be locked if the problem persists, which could have an impact on sales and consumer loyalty.

    On the contrary, if a chargeback occurs, PayPal disputes can also take up to 75 days to resolve and cost store owners $20. Money in the account is frozen while PayPal makes its decision, and customers and retailers have 10 days to provide supporting documents. So again Shopify payment is the winner.

    Shopify payment Vs Paypal: Customer Support

    Customer support is available 24/7 in a variety of ways in Shopify. You can get help anytime not only from its vast online knowledge base and forum support but also in the form of chat and live phone. Even your billing inquiry will be entertained via email.

    On the other side, Paypal offers support via chat, email, forum, FAQ, and knowledge base but does not provide 24/7 phone support. Its resources are limited to documentation only. So again Shopify payment wins.


    Don’t complicate the process of payment. The easier and faster it is for your customers to pay, the faster your bank account will grow.
    Why limit yourself to just one payment option, such as Shopify Payments or Paypal, when there are multiple others accessible for your convenience? Finally, the decision is yours, as both of these options serve your purpose.


    Which payment method is easier to set up on Shopify Store?
    Shopify Payments is built directly into the Shopify platform, making it simple to set up and utilize. PayPal integration with Shopify is similarly simple, but it involves the creation of a PayPal Business account and the configuration of the integration settings.
    Are there any additional features or services offered by Shopify Payments or PayPal?
    Shopify Payments includes features such as built-in fraud detection and chargeback protection. PayPal provides consumer and seller safety and dispute resolution.
    Are Shopify Payments as safe as Paypal?
    Yes, Shopify has many of the same security features just as Paypal like Fraud filter, SSL Certificate, and PCI compliance.
    Which is better to use Shopify Payments or Paypal?
    Shopify payment is a better option for your budget as compared to Paypal.
    Which payment method supports more countries and currencies?
    Shopify Payments is available in United States and 23 other countries whereas PayPal is widely accepted throughout the world and supports 200+ countries.

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