What is a payment gateway?
A payment gateway is a type of technology that enables retailers to securely process payments from customers. It acts as a bridge between the customer and the e-commerce platform by encrypting and transmitting sensitive payment information, such as credit card numbers and billing addresses, from the customer’s browser to your online store.
This secure transaction process ensures that payment data is safely delivered for approval and helps protect both the merchant and the customer from fraud.
Reference: https://www.shopify.com/blog/best-payment-gateways
Shopify Payments
Shopify Payments is Shopify’s own payment gateway that allows ecommerce merchants to process online and in-person payments through a single platform.
Shopify Payments complies with the Payment Card Industry Data Security Standard (PCI DSS) to protect your customers’ data.
Reference: https://www.shopify.com/blog/best-payment-gateways#shopify-payments
Shopify’s payment gateway is compatible with a variety of sales channels, so you can take payments through Facebook, Instagram, and Google
Reference: https://www.shopify.com/blog/best-payment-gateways#shopify-payments
Shopify Payments is the simplest way to accept payments online. It eliminates the hassle of setting up a third-party payment provider or merchant account and having to enter the credentials into Shopify. With Shopify Payments, you’re automatically set up to accept all major payment methods as soon as you create your Shopify store.
Reference: https://help.shopify.com/en/manual/payments/shopify-payments
Requirement for setup up Shopify Payments:
- Shopify Payments is only available to stores that operate in certain countries and regions. Learn more about which countries and regions are supported.
- To use Shopify Payments, you must secure your account by setting up two-step authentication. Learn more about setting up two-step authentication and account security in general. If you decide to deactivate two-step authentication in the future, then you expose your account and financial information to potential criminal attacks.
Pros of Shopify Payments
- No additional software required to process online payments
- Have a complete view of your finances. Only with Shopify Payments can you track your orders and payments all in one place.
- 24/7 customer support is available
- Competitive payment processing fees
- Fully PCI DSS (Payment Card Industry Data Security Standard) and 3D secure checkout compliant to protect sensitive financial data
- Allows international payments in your customer’s local currency
- Supports multiple payment methods, including:
- Credit and debit cards
- Digital wallets (Apple Pay, Google Pay)
- Shop Pay, Buy Now, Pay Later, and PayPal
- Integrated, intuitive financial reporting tools in the Shopify dashboard
- Automatic payouts directly to your business bank account from your Shopify admin
- Don’t need to install any extension or app, or plugin like WordPress
Cons of Shopify Payments
- Only available to Shopify merchants and not used by any other e-commerce merchants
- Additional transaction fees apply when using third-party payment gateways (if not using Shopify Payments)
Pricing: Shopify’s payment processing fees differ depending on your Shopify plan. This varies between 2.9% and 2.4%, plus a 30¢ fee per transaction.
Reference: https://www.shopify.com/blog/best-payment-gateways#shopify-payments
Why use Shopify Payments?
When you use Shopify Payments, you aren’t charged third-party transaction fees for orders that are processed through Shopify Payments, Shop Pay, Shop Pay Installments, and PayPal Express, and you aren’t charged transaction fees on manual payment methods such as cash, cash on delivery (COD), and bank transfers.
Reference: https://help.shopify.com/en/manual/payments/shopify-payments
Other third-party Payment Gateways:
A third-party payment gateway is a service that allows businesses to accept online payments without needing to directly manage merchant accounts with banks. These gateways only process payments from customers and do not display orders, payments only at one place like Shopify Payments does.
Other third-party payment gateways: PayPal, Stripe, Razorpay, PayU, Adyen
Impact of Shopify plans if using Shopify Payments
Shopify Plans:
- Basic Plan: $17.95 (₹1,499) INR/month (billed once yearly).
- Grow Plan: $67.04 (₹5,599) INR/month (billed once yearly).
- Advanced Plan: $271.61 (₹22,680) INR/month (billed once yearly).
- Plus: $2,096.41 (₹1,75,000) INR/month (on a 3-year term).
- Third-Party Payment Gateways Fee: Additional fees apply on top of Shopify Payments, with varying percentages depending on the plan.
- Basic Plan: 2% (third-party gateway fee).
- Grow Plan: 1% (third-party gateway fee).
- Advanced Plan: 0.6% (third-party gateway fee
- Plus: Competitive rates for high-volume merchants
Conclusion:
Choosing the right payment gateway is critical for a smooth, secure, and seamless shopping experience. Shopify Payments stands out as a powerful, all-in-one solution that simplifies payment processing, enhances security, and eliminates the need for third-party integrations—especially for Shopify store owners. With features like automatic payouts, multiple payment method support, and no additional transaction fees for in-house payments, it’s an ideal choice for businesses looking to scale.
We offer end-to-end Shopify payment integration—whether it’s Shopify Payments or third-party gateways. From secure setup to multi-currency support and reporting optimization, Startbit IT Solutions ensures your store runs smoothly and securely.