Payment providers (Shopify Payments, PayPal, etc.)

Understand how payment providers work in Shopify, including Shopify Payments, PayPal, and third-party options — plus the honest truth about transaction fees.

Choosing a payment provider is one of the most important decisions you make when setting up your Shopify store. It affects what fees you pay, which cards you can accept, and how quickly money reaches your bank account.

Quick summary

Shopify Payments is Shopify's own payment provider. Payments it processes carry no extra transaction fee from Shopify, and it is the simplest option. If you take payments through a third-party provider instead, Shopify charges an additional transaction fee on top of that provider's own fees. The rate depends on your plan: check shopify.com/pricing for current rates. Use Shopify Payments if it's available in your country.

What is a payment provider?

A payment provider (also called a payment gateway) is the service that processes your customers' card payments. When a customer enters their card number at checkout, the payment provider verifies the card, moves the money, and deposits it in your account.

Shopify gives you a choice of providers. The right one for you depends on your country, your business type, and your priorities.

Shopify Payments

Shopify Payments is Shopify's built-in payment provider, and the only one Shopify designs and operates itself. Stripe is its banking partner.

Why we recommend it (where available):

No third-party transaction fee from Shopify on payments it processes — you pay Shopify Payments' own rates instead, which depend on your plan
Payouts go directly to your bank account on the schedule you choose (daily, weekly, or monthly, though some countries limit these options)
Fraud analysis is built in, and with Shopify Payments you get fraud recommendations on any plan
Enables Shop Pay, Shopify's express checkout option
Works with Apple Pay and Google Pay at checkout (Google Pay through Shopify Payments isn't available in France)
All in one place — you manage everything inside Shopify

Card rates vary by plan. On Shopify's pricing page, higher plans have lower card rates. Check the current rates on the Shopify pricing page for your country, as they change over time.

Shopify Payments is not available everywhere

Shopify Payments is available in the US, UK, Canada, Australia, and many European countries — but not all. If your country is not supported, or Shopify Payments doesn't support your type of business, you will need to use a third-party provider. Check Shopify's list of supported countries for the current list.

Third-party payment providers

If Shopify Payments is not available in your country, or if you have a specific business reason to use another provider, Shopify supports over 100 third-party card payment providers. Which ones you can use depends on your country: Shopify's payment gateways page lets you filter them by region.

Examples include:

Provider	Notes
PayPal	Familiar to customers. In the US and France, PayPal is built into Shopify Payments rather than set up separately
Stripe	Only offered where Shopify Payments isn't available, because Stripe is Shopify Payments' banking partner
Authorize.net	An established card gateway that Shopify publishes its own setup guide for

The honest truth about transaction fees

When you take payments through a third-party provider, Shopify charges you an additional transaction fee on those sales — on top of whatever fee the provider charges you. This applies even if Shopify Payments is also switched on. The exceptions: manual payment methods (such as bank transfer) don't attract the fee, and when Shopify Payments is active, neither do Shop Pay or PayPal Express Checkout.

The rate depends on your Shopify plan: the higher the plan, the lower the rate. Shopify lists the current rates on its pricing page, so check there for current rates rather than relying on a figure you've seen elsewhere.

These fees add up quickly. For a sale taken through a third-party provider, you pay:

the provider's own processing fee
plus Shopify's third-party transaction fee

This is why we strongly recommend using Shopify Payments wherever it's available. Payments processed through Shopify Payments don't carry the third-party fee. Keep in mind that:

any other third-party provider you leave switched on still attracts the fee
on Shopify Plus, the fee is waived only when Shopify Payments is your only provider
on stores created on or after May 12, 2025, the fee also applies to the part of an order paid with store credit or gift cards

PayPal Express Checkout

Many Shopify stores offer PayPal Express Checkout as an additional option. It can appear as a Buy with PayPal button on product pages and as a payment option at checkout, letting customers pay with their PayPal account.

Shopify automatically creates a PayPal Express Checkout account for you when you create your store, using the email address you sign in with. For full functionality, including refunds and capturing payments manually, you need to finish setting it up with a PayPal business account. Go to Settings → Payments, find PayPal in the Additional payment methods section, click Setup incomplete, and then click Complete setup. Only the store owner can edit these PayPal details.

In the US and France, if you use Shopify Payments, PayPal is built into Shopify Payments instead of being a separate provider.

Connect your PayPal account

If you don't finish connecting your own PayPal account, you can't refund or manually capture PayPal payments from Shopify, and payments sent to an unverified PayPal account can show as pending until you verify that account's email address. Check your PayPal connection in Settings → Payments as soon as your store is live.

Shop Pay

Shop Pay is Shopify's express checkout option. It saves customers' email address, payment method, and shipping and billing details, so customers who have opted in on any Shopify store can check out faster.

Shop Pay is part of Shopify Payments. You switch it on from Settings → Payments by clicking Manage in the Shopify Payments section. Stores in Australia, France, and the US can also offer Shop Pay alongside a third-party provider.

Buy now, pay later

Buy-now-pay-later (BNPL) options let customers split their purchase into installments.

Shop Pay Installments is Shopify's own option, powered by Affirm. It is available to eligible stores in the US, Canada, and the UK that use Shopify Payments and Shop Pay. You receive the full payment (minus the fee) in your Shopify Payments payout, and Affirm collects the installments, so you aren't at risk if a customer stops paying.
Klarna is offered through Shopify Payments in many European countries, including the UK. Depending on the region, customers can pay straight away, by invoice, or in installments.

Other BNPL providers may be available as third-party options, depending on your country. You manage all of these from Settings → Payments.

Setting up your payment provider

Go to Settings. From your Shopify admin, click Settings.

Click Payments. You will see your current payment provider setup.

Set up Shopify Payments (if available). Click Activate Shopify Payments (or Switch to Shopify Payments if you already use another provider), enter your personal and business details, and submit them for verification. If you're switching from another provider, click Activate once verification is complete. Once your account is verified, connect the bank account you want payouts sent to.

Add PayPal. In the Additional payment methods section, finish setting up PayPal if you want to offer it. (In the US and France, PayPal is part of Shopify Payments.)

Add any other providers from the list of supported gateways if needed.

Test a payment. Use Shopify's Test payment gateway or Shopify Payments test mode, or place a real order and then cancel and refund it. Some fees on a real test order aren't returned.

Common questions

How quickly do I get paid?

With Shopify Payments, payout timing depends on your country and risk level, and on the payout schedule you choose (daily, weekly, or monthly, though some countries limit these options). Once a payout is sent, your bank can take another 1–3 days to show it. Third-party providers have their own payout schedules.

Can I use Stripe directly instead of Shopify Payments?

Usually not. In countries where Shopify Payments is available, Stripe isn't offered as a separate provider, because Stripe is Shopify Payments' banking partner. That stays true even if Shopify Payments won't accept your business: you would need a different third-party provider instead. Where Shopify Payments isn't available, check Shopify's payment gateways page for the providers in your country, and remember that Shopify's third-party transaction fee applies to them.

What happens if a payment fails?

If a payment is declined at checkout, the customer can try again or use a different payment method. Some non-card payment methods create the order before the payment finishes and show it as Payment pending until it clears. Payment isn't guaranteed at that point, so check those orders before you fulfill them.

Do I need a business bank account?

Shopify Payments pays out to a bank account. It must be a checking or current account that can receive transfers in a currency Shopify supports for your country, and savings accounts aren't accepted. We recommend a business bank account to keep your books separate, but check Shopify's bank account requirements for your country for the exact rules.

Need a hand?

If you're stuck, email support@chykalophia.com and we'll help. Include your website address and a screenshot if you can.