Shopify Payment Gateways: Understanding Your Options
When launching an online store, selecting a reliable payment processor is crucial. A payment gateway is a service that connects your online store to the customer's bank, allowing them to make purchases without leaving their computer.
As one of the most widely used eCommerce platforms, Shopify gives its customers many different gateways to choose from when accepting payments. In this piece, we'll analyse the various Shopify payment gateways in detail, discussing the benefits and drawbacks of each.
Every Shopify store automatically connects with Shopify Payments. You don't need to create a separate account because it's integrated with Shopify.
Shopify Payments is the most user-friendly payment gateway on the market. All that's required is the input of your company details. There won't be any need for any other payment processors, either.
One more perk of using Shopify Payments is that it works seamlessly with the rest of Shopify. That's because Shopify records all of your sales and purchases in one central location, so you can monitor and control everything from one screen.
There are, however, a couple drawbacks to using Shopify Payments. It's only available in select countries, which is a major limitation. Shopify Payments also has somewhat higher costs compared to other payment gateways.
Third-Party Payment Providers
You may choose to use a different payment processor if Shopify Payments isn't available in your location, or if you'd like to save money. The Shopify platform supports a number of external payment gateways, including as Stripe, PayPal, and Square.
Use of a third-party payment processor allows you to compare prices from different providers, which is a major perk. When compared to Shopify Payments, the costs charged by other suppliers can be far more reasonable.
Third-party payment processors also offer additional benefits, such as the ability to schedule recurring payments and pay in instalments.
While employing a third-party payment processor has its advantages, it also has certain drawbacks. Setting up and maintaining individual accounts with each service provider is a major burden. You should also be aware that some external payment processors may tack on additional costs on top of the transaction fees.
Shopify Payment Providers
Here are some of the best third-party payment providers for Shopify:
Shopify Recurring Payments
With Shopify's recurring payments, you may bill clients on a repeating schedule, such as monthly or yearly. This is especially helpful for companies that sell memberships, software, and periodicals by subscription.
Recurring payments can be set up for your store using Shopify Payments or a third-party payment processor because recurring payments are supported natively by the Shopify platform.
When Shopify Payments are used, the recurring payment system is completely integrated with the Shopify software. All of your transactions will therefore show up in your Shopify dashboard, making it simple to keep track of and manage your sales.
You must create a unique account for every third-party payment source you use while using them. Furthermore, you may need to take into account any additional fees or charges that some third-party payment providers may impose.
Shopify Installment Payments
Customers can divide the cost of a purchase into several instalments with Shopify instalment payments. Customers who might not have the money to pay in full for a significant purchase can benefit from this option.
Affirm, Sezzle, and Klarna are just a few of the third-party payment processors that Shopify accepts instalment payments from. Customers can choose the instalment payment option when using these providers and then spread out their payments over a predetermined time period.
Utilizing Shopify instalment payments has a number of advantages, one of which is that it can boost sales by facilitating the purchase of more expensive items by clients. As shoppers would have the option to pay for the item over time, it can also aid in lowering the risk of cart abandonment.
However, using Shopify instalment payments has a few drawbacks. Its potential to increase the likelihood of missed payments is one of its key downsides. The third-party payment provider may also charge you extra costs for providing this service.
In conclusion, Shopify gives its users access to a variety of payment gateway choices. Whether you decide to utilise a third-party payment processor or the built-in Shopify Payments, it's crucial to weigh the benefits and drawbacks of each choice and pick the one that best suits your needs.