Setting up a reliable and efficient payment system is a cornerstone of any successful Shopify store. This guide provides a thorough overview of the main payment channels available on the platform, helping you choose the best options for your business and region.
Understanding Shopify's Payment Ecosystem
Shopify integrates with a vast array of payment providers, allowing you to accept everything from major credit cards and digital wallets to local payment methods and even cryptocurrencies. The right mix of options can significantly boost your conversion rates by meeting customer preferences.
The platform categorizes payments into two main types: automated and manual. Automated payment providers process transactions instantly at checkout, while manual methods require you to verify and approve payments yourself before fulfilling an order.
PayPal: The Global Online Wallet
PayPal is a leading digital wallet, operating in over 200 countries with more than 430 million active accounts. It boasts a user coverage rate of over 90% in key markets like North America, the UK, Germany, and Australia.
For cross-border sellers, PayPal is often one of the easiest payment gateways to set up. However, maintaining a good account standing is crucial. High dispute rates, infringement complaints, or suspicious activity can trigger risk controls, potentially leading to account limitations or a 180-day funds hold.
Key details for accounts based in Mainland China:
- Application Requirements: Business license, legal representative's ID, corporate or personal bank account.
- Transaction Fee: 4.40% + $0.30 USD per transaction.
- Settlement Time: New accounts may have a 21-day hold; settled accounts typically see funds in 3-5 business days.
Shopify Payments: The Native Solution
Shopify Payments is the platform's built-in payment processing solution, powered by Stripe. It supports major payment methods like Visa, Mastercard, American Express, Discover, Diners Club, Apple Pay, Google Pay, and Shop Pay. A significant advantage is that using it waives Shopify's additional transaction fees on other gateways.
Currently, Shopify Payments is not available to businesses based in Mainland China. Access typically requires a business entity in supported regions like the United States, United Kingdom, Hong Kong, or Australia.
Rates and requirements vary by country:
| Registered Location | United States | Hong Kong | United Kingdom | Australia |
|---|---|---|---|---|
| Requirements | US company, EIN/SSN, US bank account | Business Registration Certificate, HK bank account | UK company, UK bank account | ABN/ACN, Australian bank account |
| Transaction Fee | 2.9% + 30¢ USD | 3.3% + 2.35 HKD | 2% + 25p GBP | 1.75% + 30¢ AUD |
| Settlement Currency | USD | HKD | GBP | AUD |
| Forex Fee | 1.5% | 2% | 2% | 2% |
👉 Explore more strategies for setting up your payment gateway
Third-Party Credit Card Gateways
For sellers who cannot use Shopify Payments, numerous third-party providers offer robust credit card processing. These services often support a wider range of credit/debit cards, digital wallets, and local payment options.
A comparison of popular gateways for international sellers:
| Provider | Stripe | Airwallex | Oceanpayment |
|---|---|---|---|
| Entity Requirement | Overseas/Hong Kong | Overseas/Hong Kong | Mainland China accepted |
| Other Fees | $0 | $0 | Annual fee: ¥5,000 |
| Transaction Fee | 3.4% + 2.35 HKD | 3.30% + 2.35 HKD | 2.9% + $0.30 USD (negotiable) |
| Settlement Time | T+2 ~ T+7 | As fast as T+3 | T+10 ~ T+15 |
| Key Advantage | Widest global coverage | All-in-one acquiring & forex | Accepts Mainland China entities |
Other notable global providers include 2Checkout and Authorize.net. For sellers with a Mainland China entity, local providers like LianLian Global, PingPong, and Asiabill are excellent alternatives, though they may charge setup or annual fees.
Buy Now, Pay Later (BNPL) Options
Buy Now, Pay Later (BNPL) services allow customers to split their purchases into interest-free installments. This payment method is highly popular with younger consumers (18-35) in Europe, North America, and Australia.
While BNPL integration standards are high and often require a strong sales history, many payment gateways have built-in partnerships with leading providers.
- Shop Pay Installments: Available for US-based merchants using Shopify Payments.
- Gateway Integrations: Stripe and Airwallex often integrate with Klarna and Afterpay.
- PayPal: Offers its own "Pay in 4" and "Pay Monthly" solutions.
| Provider | Entity Requirement | Key Regions | Typical Fee |
|---|---|---|---|
| Shop Pay Installments | US Entity | USA | 2.9% + 30¢ USD |
| Klarna | Overseas Entity | Europe, North America, Australia | 3% - 6% + fixed fee |
| Afterpay (Clearpay) | Overseas Entity | North America, UK, Australia | 4% - 6% |
| Affirm | US/Canada Entity | USA, Canada | 3% - 8% (varies) |
| PayPal Pay Later | Overseas Entity | Europe, USA, Australia | 4.99% + $0.49 USD |
Manual Payment Methods
Shopify also supports manual payment methods, which are useful for specific business models like B2B or local deliveries. With these methods, you receive payment outside of Shopify and then manually mark the order as paid in your admin.
| Method | Bank Transfer | Cash on Delivery (COD) | Check |
|---|---|---|---|
| Process | Provide info to customer -> They transfer funds -> You confirm payment | Customer orders -> You ship -> Logistics partner collects cash -> You get paid | Customer mails check -> You deposit it -> Confirm payment in admin |
| Best For | B2B, large orders | Southeast Asia, Middle East markets | B2B, traditional business |
Cryptocurrency Payments
For stores looking to tap into emerging trends, Shopify supports integration with several cryptocurrency payment gateways. These allow you to accept digital currencies like Bitcoin, Ethereum, and various stablecoins.
Popular crypto payment providers include:
- Solana Pay: For near-instant, low-cost transactions in USDC.
- Crypto.com: Accepts over 20 cryptocurrencies.
- BitPay: Supports 14 cryptocurrencies, with settlement in fiat currency.
- Others: DePay, OpenNode, Strike, Lunu, Bit2Me Commerce, IBEX Pay.
It is important to note that using these third-party gateways will incur Shopify's standard transaction fee (0.6% - 2.0%). As cryptocurrency regulations vary greatly by country, it is essential to understand the legal and financial risks involved before implementation.
Frequently Asked Questions
Can a business based in Mainland China use Shopify Payments?
No, currently Shopify Payments is not available for entities registered in Mainland China. Businesses typically need an entity in a supported region like Hong Kong, the US, or the UK.
Will only offering PayPal hurt my conversion rate?
Yes, it likely will. Many customers prefer to pay directly with credit cards or use local payment methods. Offering multiple trusted options reduces checkout friction and can increase sales.
How do I get my money into a domestic bank account?
You can use cross-border payment tools like Payoneer, WorldFirst, or Airwallex. These services provide you with foreign bank account details to receive payments, which you can then convert and withdraw to your local bank, usually for a fee.
What should I do about credit card chargebacks?
- Prevention: Have a clear return policy, always retain proof of shipment, and use Shopify’s fraud analysis tools to screen orders.
- Response: If a chargeback occurs, respond through your payment gateway promptly by submitting all evidence, such as tracking numbers and customer communication records.
How can a domestic seller apply for an international credit card gateway?
Choose a provider that accepts Mainland China entities, such as OceanPayment, LianLian Global, or Asiabill. They will guide you through their specific application and verification process.
Is it difficult to set up multiple payment methods?
No, Shopify's admin panel makes it relatively straightforward to activate and manage multiple payment providers. You can enable several options and they will all appear at checkout for your customers to choose from. 👉 Get advanced methods for optimizing your checkout page