When it comes to setting up an online store, one of the biggest decisions to make is which payment processor to use. Both PayPal and Shopify Payments offer their own benefits and drawbacks, and it can be difficult to decide which one is the best option for your business. In this article, we’ll look at the differences between PayPal and Shopify Payments to help you decide which is the better option for your budget.

Shopify Payments

Shopify Payments is the payment processor built into the Shopify platform. It allows you to accept payments from customers without needing to set up a third-party payment processor, and it integrates with the rest of the Shopify platform for a seamless checkout experience.

Using Shopify Payments, you will pay credit card fees for each transaction depending on your plan: 2.4% to 2.9% plus 30c. You can also accept payments from customers in over 100 currencies and in various payment methods, such as Visa, Mastercard, and ApplePay.

PayPal

PayPal is a third-party payment processor that is widely used and accepted. It allows customers to pay with their PayPal account or with a credit or debit card, and it supports over 200 countries and 25 currencies.

Using Paypal, you’re charged 2.9% of the transaction amount plus a US$0.30 flat fee. PayPal also offers additional features such as fraud protection and dispute resolution, which may be beneficial for some businesses.

Conclusion

Ultimately, both PayPal and Shopify Payments offer their own advantages and disadvantages. Shopify Payments can be a better option for your budget compared to using PayPal, but PayPal may be a better option for businesses that need additional features such as fraud protection and dispute resolution. Consider your business needs and budget to determine which payment processor is the best option for you.