This guide compares the top 8 third-party payment providers for Shopify beyond Shopify Payments to help reduce the 70% average cart abandonment rate.
We explain 10 key features to evaluate when selecting payment gateways and compare 8 top payment providers like Stripe, PayPal, Authorize.net, and 5 more.
Learn 10 Shopify payment best practices for diverse preferences, mobile optimization, PCI DSS compliance, fraud prevention, and several other major areas.
Get integration guidance, noting most providers offer Shopify apps or direct integration through API keys, typically installed from the Shopify App Store.
Let’s start with an alarming statistic: the average cart abandonment rate is around 70%. So, what can you, as an eCommerce business owner, do to tackle this? It might help to ensure the checkout process is smooth, starting with the payment gateways. For Shopify store owners, Shopify Payments offers a convenient starting point.
But are there any 3rd-party payment Providers for Shopify that could be better? That’s what we will explore through this blog. We’ll cover the top options preferred by Shopify experts and how to integrate them for better results. Let’s begin.
Features to Look for in a Shopify Payment Gateway
There are so many payment providers available for Shopify stores. So it can become confusing for some to select the perfect one. But you can evaluate the Shopify payment gateways by looking at these key features:
Transaction Fees: Understand the fee structure (per-transaction, monthly, etc.) and compare rates between providers to minimize costs.
Security: Ensure PCI DSS compliance and deploy robust fraud-prevention tools to protect sensitive data and prevent fraud.
Payment Methods: Offer a diverse range of payment options (credit/debit cards, digital wallets, local payment methods) to cater to customer preferences and expand your reach.
International Support: If selling globally, ensure multi-currency processing, local payment options, and competitive exchange rates for seamless international transactions. You can also change the currency in your Shopify store to match your target market and provide a localized shopping experience for global customers.
Integrations: Check for seamless integration with Shopify and other essential apps (accounting, marketing) to streamline operations and data flow.
Customer Support: Responsive, reliable support is crucial for troubleshooting and resolving payment-related issues promptly.
Checkout Experience: A smooth, intuitive checkout process minimizes cart abandonment and enhances customer satisfaction. Mobile optimization is essential.
Reporting and Analytics: Comprehensive reporting tools provide insights into sales trends, transaction data, and other key metrics to inform business decisions.
Scalability: Choose a gateway that can handle your current and future transaction volume as your business grows.
Settlement Time: Understand how long it takes for funds to be deposited into your account, impacting cash flow management.
If you need help selecting the right Shopify third-party payment providers, our eCommerce consulting services can help. We will evaluate your requirements and help you select the perfect gateway. But what kind of options are available?
Top 3rd Party Payment Providers for Shopify
Let’s look at the top payment providers for Shopify, other than the usual “Shopify Payments”.
Stripe
Stripe stands out for its ease of use and robust developer tools, making it ideal for businesses of all sizes, from tech startups to established enterprises. This platform offers a comprehensive suite of payment solutions, including recurring billing, subscriptions, and fraud prevention.
Transaction Fees: 2% for cards issued in India and 3% for cards issued outside India.
PayPal
PayPal boasts a massive user base and global reach, making it a familiar and trusted payment option for many customers. It offers a seamless checkout experience and buyer protection, promoting trust and higher conversion rates.
Renowned for its reliability and security, Authorize.net is a veteran in the payment processing industry. It caters to businesses of all sizes and offers a wide range of features, including recurring billing, mobile payments, and fraud prevention tools.
Perfect for businesses based in India, Razorpay provides a smooth integration with local payment methods and instant settlements. They offer competitive fees and a user-friendly platform for managing your online transactions.
Another strong contender in the Indian market, PayU Money is known for its high transaction success rates and affordable pricing plans. They offer a variety of payment options, including credit cards, debit cards, net banking, and mobile wallets.
Transaction Fees: 2% for domestic transactions & 3% for international transactions. (GST applicable on all transactions.)
Google Pay
A convenient option for mobile-first businesses, Google Pay lets customers pay with their existing Google accounts, streamlining checkout. It leverages Google’s robust security infrastructure to ensure safe and secure transactions.
Transaction Fees: Currently, there are no fees on commercial transactions on Google Pay.
Amazon Pay
A great fit for businesses already integrated with the Amazon ecosystem, Amazon Pay offers a familiar and trusted payment option for many customers. It benefits from Amazon’s brand recognition and offers features like fast checkout and easy refunds.
Transaction Fees:2.9% for domestic transactions & 3.9% for cross-border transactions.
Meta Pay
Capitalizes on the vast user base of Facebook, Instagram, and WhatsApp, making it a convenient payment option for customers who use these platforms. Meta Pay offers a secure and streamlined checkout experience.
Transaction Fees: Currently, there are no fees on commercial transactions on Meta Pay.
There are several other payment gateway options available for Shopify stores. But you can consult with our professional Shopify development company to get an idea of what would be suitable for you.
Shopify Payment Best Practices
Following the best practices is crucial for maximizing conversions, ensuring security, and providing a positive customer experience. Here are the key practices.
Offer Multiple Payment Options: Cater to diverse customer preferences by providing a range of payment methods, including credit/debit cards, digital wallets (PayPal, Apple Pay, Google Pay), and local payment methods relevant to your target markets.
Prioritize Mobile Optimization: Ensure your checkout process is seamless and user-friendly on mobile devices, as a significant share of online purchases is made on mobile devices.
Ensure PCI DSS Compliance: Adhere to Payment Card Industry Data Security Standard (PCI DSS) requirements to protect sensitive cardholder data and maintain customer trust.
Use Strong Fraud Prevention Measures: Implement robust fraud detection and prevention tools to minimize fraudulent transactions and chargebacks.
Provide Transparent Pricing and Fees: Clearly display all costs associated with each payment method, including transaction fees, currency conversion rates, and any other applicable charges.
Offer Secure Checkout with SSL: Use Secure Socket Layer (SSL) encryption to secure all transactions and protect customer data during transmission.
Streamline the Checkout Process: Minimize the number of steps required to complete a purchase and avoid unnecessary form fields to reduce cart abandonment.
Provide Clear Order Confirmation and Tracking: Send prompt order confirmations with detailed information, and include shipment tracking details to keep customers informed.
Offer Excellent Customer Support: Provide responsive, helpful channels (email, phone, chat) to promptly address payment-related issues or inquiries.
Regularly Review and Optimize: Regularly track your payment gateway’s performance, review transaction data, and keep informed about the newest security measures and technology updates to enhance your payment system and boost conversion rates.
If you need help ensuring the best results with these practices for your Shopify payment gateways, hire Shopify developers from our team. We will optimize your store and checkout to ensure the buyer’s shopping journey is seamless and delivers a good user experience.
Let’s Wrap Up
Choosing the right payment gateway is a pivotal decision for any Shopify store owner. While Shopify Payments offers a convenient starting point, there are 3rd-party payment providers that can optimize transactions.
You can consider third-party solutions like Stripe, PayPal, Authorize.net, Razorpay, etc., with respect to features like transaction fees, international support, integrations, payment methods, etc. But remember, the “best” provider is subjective and depends on your unique business requirements. If you need help with integrating these third-party solutions, let’s have a consultation today!
FAQs on 3rd Party Payment Providers for Shopify
Q1. What is a merchant account?
A merchant account is a bank account that allows businesses to accept credit and debit card payments. Some payment providers offer integrated merchant accounts, while others require you to have your own.
Q2. Which third party payment provider is best for Shopify?
There’s no single “best” provider. The ideal choice depends on your business needs, such as transaction volume, international sales, specific features required (e.g., recurring billing), and budget. Consider factors like transaction fees, supported payment methods, security, and customer support when making your decision.
Q3. How do I integrate a third-party payment provider with my Shopify store?
Most providers offer a Shopify app or direct integration. You typically install the app from the Shopify App Store or follow the provider’s integration instructions. That usually involves connecting your provider account to your Shopify store through API keys or similar methods.
