Shopify payments vs PayPal: Which one is better for your e-commerce store? 

Online payment methods are considered to be a crucial part of customer experience. The suitable method is not only profitable for the business but also develops trust in the users. Merchants spend hours deciding the right service provider. 

Shopify merchants often get confused between Shopify payments vs PayPal.

Both of them are effective invoice methods but here is a list of comparisons that will help you select the best for your business. 

But first, you should know what is the necessity of selecting the perfect online invoice method for your Store:

  • Digital bill service provider is faster and saves the efforts and time of the customers.
  • Digital Invoice saves time for the merchant also.
  • It saves money spent on physical transactions and reduces the amount of paper used and printed for invoices. 

Shopify Payments 


More than a billion businesses use this e-Commerce platform. The platform itself offers numerous invoice methods but one of the most popular ones is its integrated payment solution known as Shopify payment.

There are a lot of pros and cons of this payment method and the most relevant one is that it is limited to a few countries only but it can help you save 0.5 % to 2% fees on transactions. 

Shopify payments reviews are unmatchable but the other alternatives are also reliable for the digital invoice. 


In terms of usability, it is one of the best payment methods for an e-commerce store. It is very easy to use and the setup process does not take much time. 

You can activate it by clicking on the settings of your dashboard and then moving to the payment provider. Now select the Shopify payment setup option and fill in all the necessary details such as personal information and product information then your payment method will switch instantly. 


The payout usually takes 3 business days in the US but it can take longer depending on the merchant’s location. But you can track your payment using the Shopify dashboard in real-time. 

Protection & Prevention

Shopify payment method uses strict protection and prevention methods to avoid any kind of fraud while transactions. You need to be careful of the chargeback rules and Pay dollar 15 for each chargeback fee but if the dispute reclaims rises again and again your store and money will be lock indefinitely.

Pricing & Plans

Different monthly plans have different rates for credit cards, but the plus point is that they do not charge transaction fees (except in a few countries).

PayPal Payments 


Paypal holds a Monopoly over the e-wallet market. It is the largest e-wallet which is integrated with numerous international e-commerce websites as a payment provider.

80% of the global online shoppers prefer paying with PayPal over any other payment method. It is mostly preferred by the company’s auction site, online businesses, and other corporate clients.


The installation provider process is a bit hectic in Shopify but it won’t take more than a day. You can take the help of a freelance Web developer for installing it on your website.

It is a default payment service provider of e-commerce giant Shopify so the setup process is not that complicated. But to use these payment methods, customers have to redirect to Paypal’s official website and complete their transaction which may be a bit time-consuming and annoying.


The payout requires 5 to 7 business days and you can also track your payment or check data analysis using the transaction system on a 24/7 basis.

Protection & Prevention

Just like Shopify, PayPal also has strong rules for the protection and prevention of fraud. If any claim or dispute arises you can prove your innocence and provide evidence within 10 days until then your fund will be placed on hold.

It can take up to 75 days to resolve an issue between the merchant and the customer. The amount of money will be also charged considering it as chargeback fees around $20.

Pricing & Plans

There is no fixed monthly transaction fee for PayPal. It depends on the monthly revenue of an online store. For instance, if you earn around $5000/month then you will have to pay a transaction fee of 5.4 % + 45 cents on each order. It also has hidden charges in it. 

Which one to use: Shopify payments or PayPal?

The striking difference between them is its pricing, transaction fees, and setup process. Paypal is good if you want to grow globally because its rival, Shopify is limited to a few countries only. 

You can also add both these options to offer choices and variety to your users. They will simplify your work and the users will have an alternative while paying a bill. Taking the help of a freelance Shopify developer for the whole setup process is recommended. 

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