Shopify Vs Paypal: Which One is Better For You?

Last updated on March 27th, 2022 at 09:48 pm

It is stated that for eCommerce businesses, the payment process is the”Make-or-Break” step, and it decides whether the order will succeed or not. It is that Shopify store owners are spending long hours pondering the various payment options that Shopify offers.

This article will delve into the distinctions between two commonly used payment methods offered by Shopify and Paypal.

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Let’s explore what the pros  and cons of each technique with us are!

An overview of Shopify Payment


One of the most admired eCommerce platforms worldwide, Shopify always tries to provide the most enjoyable user experience for store owners and customers. They also made an active effort to improve the process of paying with their integrated payment system known as Shopify Payment.

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If you are an owner of an online shop, If you’re situated in either the US, UK, or Canada, Shopify Payment allows you to connect to your account quickly and let your customers pay with credit cards. With the removal of the third party supplier, Shopify Payment could help you avoid paying 0.5 per cent up to 2 per cent transaction fee.

Through this payment method, it allows you to try different business and analytical solutions.

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A brief overview of Paypal


Today, Paypal is known as the biggest e-wallet available on the market. It is integrated with numerous international eCommerce sites for online payments. Additionally, it is also a digital wallet offering many different utilities and various attractive rewards to users.

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More than 80% of the online stores worldwide have an integrated Paypal payment gateway, assisting customers to complete the transaction of buying and selling products. If you are purchasing an item on an international online store, it is necessary to select “Pay via Paypal” to avail the quick and straightforward payment option using Paypal.

It is an electronic payment or money transfer system which replaces traditional methods, such as conventional checks made with paper. Paypal typically earns profits from conducting customer transactions for corporations, auction websites, online businesses, and other corporate customers.

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 Shopify vs. Paypal: Who is superior?

Before getting into the specifics first, let’s take a brief glance at the table below.


It is fully integrated into the store.

One of the payment providers used by default of Shopify


The average time to receive the payment is three days.

The average frequency of receiving payment is between 5 and 7 days.


A speedy chargeback procedure, however, strict chargeback rules.

A lengthy process that is accompanied by high costs


High-level security measures

High-level security measures


2.4-2.7 30% + 30c per purchase for credit card fees

5.4 % + 45c transaction cost on each purchase (If you make less than $5000 per month)

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Shopify Vs. Paypal Usability


The Shopify Payment gateway integration into your store’s online presence is simple and easy, which will not take a lot of your time. On the Shopify dashboard, select “Setting” and then “Payment Service Providers.” Select “Shopify Setup Payment” and complete all the necessary details, such as your personal information, your products as well as other information.

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The setup of Paypal takes longer; however, it won’t last longer than one day. Because it is one of the payment providers that is used by default for Shopify, Paypal permit you to set up its payment gateway within your website. But, to make use of Paypal in the Shopify shop, users need to go to the official site of Paypal to complete their transactions. It can be a lengthy process and maybe a hassle for some customers.

Shopify Vs. PayPal: Payment

Electronic transfer via Shopify Payment usually takes about three business days for merchants located in the US.

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It may take longer dependent on the location you live in. On Shopify’s dashboard Shopify Dashboard, you can keep track of your transactions in real-time.

However, Paypal requires you to wait for 5 to seven business days before receiving the payment. You can also use this system of transactions to review the data analysis on a 24-hour basis.

Shopify vs. Paypal: Chargebacks –Prevention & Protection 


If there is a claim, Shopify Payment is willing to investigate the claims, collect evidence from two parties (both the sellers and the customers), and then decide within 60 days. The possibility is to state that the process is executed quickly and efficiently

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If your client wins the chargeback case and receives the reimbursements, you are required to endure the penalty of $15 per chargeback. If this occurs more than once or repeatedly, the store and funds in your accounts for sale will become blocked indefinitely.

Therefore, you should be aware of the strict chargeback guidelines that are enforced by Shopify Payment.

In addition, if you are using Paypal, you can also respond to any complaint or dispute that comes up during the transaction. If a dispute arises, you will have ten days to prove the claim before your funds are put on hold. The process could take up to 75 or more days to resolve the issue between you and your customers.

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Like Shopify Payment, you will be charged a lump sum of money, which is thought to be chargeback charges of $20. If, however, your transactions are eligible, PayPal’s Seller Protection program offered by Paypal will pay this cost for you.

Shopify Vs. Pay Pal: Security


Overall the two Shopify Payment vs. Paypal is a good choice for security.

If you are a retailer, You can access powerful tools such as fraud Block within Shopify stores to satisfy the security requirements of your website.

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PayPal and Seller Protection offer the Buyer Protection program that allows users to safely and securely use.

Shopify Vs. PayPal: Fee

shopify plan

Shopify Payment has a significant advantage over Paypal by removing completely 0.5 % – 2 % transaction charges for transaction fees. If you choose this payment method, you will be charged 2.4-2.7 30% + 30 cents for each order to cover the credit card charge.

Exceptionally if you choose to use the Shopify plan for $79.90 instead of the Basic plan, which is $29, the credit card charge will be reduced from 2.7 % + 30 cents down to 2.5 30% + 30 cents.

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Your Shopify store can be accessed using two types of currencies. The currency used in the store is the one which is displayed, for example, the cost of goods to customers.

Shopify Payment will make use of Payout currency that is based on the address of your store when you transfer funds in your banking account.

Let’s say that the Shopify store is in the US However, the majority of your customers come from Europe. In this scenario, your store’s currency will be EUR, and the payout currency is USD. Shopify Payment will deposit money into your EUR account, which is found in the US.

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Shopify will apply the latest rates of exchange for foreign currency.

In addition, the transaction fees charged by Paypal are based on the sales of your online store every month. If you earn less than $5000 per month, you will be paid the 5.4 % + 45 cents transaction cost on every transaction more fantastic than the commission charge for Shopify Pay (0.5-2 % + 30 cents). If you choose the Basic Shopify plan and earn less than $5000 per month, you can save 3.4 % + 45 cents.

Be aware that Paypal also charges additional costs if you conduct transactions from overseas.

Paypal lets users manage multiple currencies automatically or manually. But, as the owner of an online store, you’ll often receive multiple currencies from clients around the world. Therefore, we strongly recommend the option of Auto Accepting Payments of Paypal.

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If foreign currency funds are transferred in US dollars account, Paypal will convert them to USD.

The exchange rate is updated every day twice, which means the rate at which you are currently (when you receive your funds) will determine the amount you will receive.

Usage of Paypal over Shopify

Based on the information from the previous section depending on the last part, you will gain a more precise understanding of the benefits and drawbacks of Shopify Payments and Paypal and make your own decision.

However I’ll demonstrate a different way to get there.

Why don’t we set up two different payment methods? Customers will be happy when they can choose diverse payment options according to their preferences when shopping. It’s easy to integrate a Paypal gateway to your store online.

Step 1: On the Shopify dashboard, click Settings > Payments.
Step 2: In the PayPal section, you will see a Deactivate button. Make sure to click Deactivate again to confirm.
Step 3: Select PayPal Express Checkout. Then click activate > type in the email address of your PayPal account, proceed to the next step, enter your password, and click Sign In
Step 4: On the PayPal access page, click I Grant Permission
Step 5: Return to Shopify

set up paypal on shopify

Take note that the email address you use to register your store and to create an account with a Paypal login is identical to the one you use for the store. Additionally, to integrate Paypal into the functionality of your Shopify store, you’ll need to change existing accounts to the company account.

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We hope that this post will help you gain valuable and helpful information about the best way to optimize the performance of your Shopify store, specifically your payment processing.

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