For all its growth globally, the world of eCommerce is still in its early stages when it comes to the transfer of money.  Still, there are many payment gateways that you can work with. The first one that comes to mind is PayPal. According to various sources, PayPal is the most popular and biggest electronic system that allows customers to make purchases and transfer the money to sellers. But now, there’s a new kid on the block who’s growing fast and becoming the preferred payment gateway for many digital stores: Shopify Payments.

eCommerce giant Shopify introduced its own payment gateway, which is a huge plus for their client eStores, though it’s available for other eCommerce portals as well. Since Shopify is growing into a viable alternative to PayPal, many store owners are wondering which is the better alternative between the two. This includes client stores of Shopify, digital stores using other payment gateways, and new eStores. Here is the full-scale comparison between Payment gateways.

Shopify Payments

Shopify Payments payment gateway makes the entire transaction process easy, quick, and hassle-free

Shopify Payments is the most convenient payment gateway for eCommerce, particularly for the eStores created by Shopify.  Shopify Payments provides full integration with eStores and includes a wide range of analytical and business management solutions. It removes the third-party service provider and the 0.5% to 2% transaction fees it entailed, increasing the profits of store owners.

Stores can easily access the Shopify Payments payment gateway on the existing dashboards without having to log-in to external websites every time they make a sale. They can track sales and revenue in real time and the sales proceeds are automatically transferred to your bank account in three days in the United States. The time varies for Shopify Payment in other countries.

Shopify Payments is extremely friendly when it comes to chargebacks. The system has all the information regarding the transaction and automatically sends the evidence to the admin panel and to the credit card company. Shopify also protects its eStore owners with its easily accessible tools for fraud analysis.

Shopify Payments is very particular about the products sold on its eStores. Check the list of businesses prohibited for stores run in different countries. Read the Shopify Payment Terms & Conditions carefully. If your eStore is accepted by Shopify Payments, you can work with all the main credit cards in your country of operation. Shopify Payments also works with debit cards in some countries.


PayPal is a popular and trusted payment gateway among many shoppers

As of last year, PayPal had offices in more than 200 countries, making it the largest payments distribution service in the world, though, in some countries, the service suite is limited. PayPal also guarantees protection for both sellers and buyers.

PayPal’s transaction fees are based on how much revenue individual account holders earn. If you earn less than $5000 per month, PayPal charges you 5.4% plus 45 cents for each sale. This is more than the commission fee of Shopify Payments. This means that eStores save 3.4% plus 45 cents per transaction by going directly with the Basic Shopify plan, which is for stores with a lesser monthly turnover than $5000. PayPal has some hidden fees for overseas transactions. PayPal takes between five and seven days to transfer your money.

PayPal provides vendor protection for every qualified transaction with a wide collection of tools for data protection and fraud analysis, which is accessible round-the-clock. In the case of chargebacks, eStore owners have to collect the details which prove that a legal sale was made. If you’re facing a chargeback, you have to physically log-in to and enter the information. This is a time-consuming process and is confusing to store owners not familiar with payment services. PayPal uses a tracked delivery system, which shows when and where the goods were delivered.


The field of eCommerce is still developing and so are PayPal and Shopify Payments, both demographically and technologically. Shopify Payments is superior in ease-of-use as well as costs. The advantage of PayPal is its system functionality, transaction security, and greater geographical reach. Both payment gateways have features that may be more suited for some businesses than others. For example, an eStore looking for usability and more profits may prefer Shopify Payments while someone looking for less risk and a safer financial base may opt for PayPal. These are the main criteria for choosing between Shopify Payments and PayPal: convenience, safety, cost, functionality, and future potential.