Payment Processing Affects Your Bottom Line
Payment gateway selection impacts transaction fees, customer experience, checkout conversion rates, and international selling capability. The right choice varies by business model, geography, and customer preferences. Our consultancy includes payment optimisation as part of store strategy.
Shopify Payments
Advantages
Zero additional transaction fees (beyond card processing). Deepest Shopify integration — Shop Pay, accelerated checkout, and native analytics. Simplest setup with no third-party account needed. Includes fraud analysis and chargeback management tools.
UK Rates
Online credit card rates start at 2.2% + 25p on the Basic plan, dropping to 1.6% + 25p on Shopify Plus. These rates are competitive with standalone payment processors for most store volumes.
Shop Pay
Shopify’s accelerated checkout saves customer details for one-click future purchases. Shop Pay converts 1.72x better than standard checkout according to Shopify data. It is the strongest argument for using Shopify Payments.
PayPal
Trusted by millions of consumers worldwide. Important for stores where customers prefer not to enter card details directly. PayPal Express Checkout reduces form friction. PayPal charges its own transaction fees on top of any Shopify transaction fees (if not using Shopify Payments).
Alternative Payment Methods
Buy Now, Pay Later
Klarna, Clearpay (Afterpay), and Shop Pay Instalments offer split-payment options. These increase conversion and AOV for higher-priced items. Younger demographics particularly favour BNPL options.
Apple Pay and Google Pay
One-tap mobile payments that bypass form filling entirely. These are included with Shopify Payments and dramatically improve mobile checkout conversion rates. Essential for mobile-first stores.
Local Payment Methods
International stores need local payment options — iDEAL (Netherlands), Bancontact (Belgium), Giropay (Germany). Shopify Payments supports many; third-party providers fill gaps for specific markets.
Reducing Payment Friction
- Display accepted payment methods early in the shopping journey
- Offer express checkout options prominently on product pages
- Save payment methods for returning customers (via Shop Pay)
- Match payment options to your target market preferences
- Ensure the checkout feels secure with visual trust indicators
Fees Comparison
Compare total cost including: gateway transaction fees, Shopify’s additional fees for third-party gateways (0.5-2%), monthly fees, chargeback fees, and international transaction surcharges. For most UK stores, Shopify Payments offers the best total cost.
Security and Compliance
All payment processing on Shopify is PCI DSS Level 1 compliant. Whether using Shopify Payments or third-party gateways, card data never touches your servers. This protects both you and your customers from payment data breaches.
Need payment optimisation? Our team configures the optimal payment setup for your store and markets.
