If you’re scaling your ecommerce store, choosing the right payment setup is more than just a technical decision; it can directly impact overall profitability, conversion rate and how your customers trust your business. In this ultimate guide to Shopify Payment Gateways, we’ll break down everything you need to know, from how Shopify payments work to comparing the best payment gateways for stores in the UK and beyond.
What is Shopify Payments, and how does it work?
Shopify Payments is a built-in payment gateway and processor, which allows merchants to accept payments directly through their stores without an external provider. Shopify Payments supports major payment methods, and because it’s native, there's no need for separate payment integration, as everything is already available.
Payment Transaction Fees
Understanding fees is crucial when choosing the best Shopify payment gateway for your business. With Shopify Payments, fees are typically structured as:
- Card rate fee (a percentage and fixed fee per transaction)
- No additional Shopify transaction fee (unlike some third-party gateways)
For Shopify Payments in the UK, fees vary depending on your tier:
- Basic Shopify: Higher transaction percentage
- Shopify: Mid-range fee
- Advanced: Lower fees
If you choose a third-party provider instead, Shopify will charge an additional transaction fee, unless you’re using Shopify Plus.
To utilise the Shopify Payments gateway, you will need to check if your country is supported by Shopify Payments. It is currently available in 23 countries; here is the full list.
There are also other specific requirements for using Shopify Payments in the United Kingdom that you must meet to ensure compliance and seamless payment processing. This includes the following:
- Prohibited businesses: Certain business types are not permitted to use Shopify Payments. It's essential to review the list of prohibited business categories specific to the UK to ensure your business qualifies.
- Bank Account Type: You need a full current account with a bank in the United Kingdom
- Currency: The account must operate in GBP (£).
- Transfer Compatibility: Ensure your account is eligible for Faster Payments Service (FPS) transfers.
- Identity Verification: Due to regulatory requirements aimed at preventing financial crimes, you're required to provide documentation to verify the identities of individuals associated with the business – passport, driver's licence, residence permit, citizen card or electoral ID; Validate UK.
- Adherence: Ensure that your business operations comply with Shopify Payments' Terms of Service and Acceptable Use Policy.
Regional Requirements and UK Eligibility
When setting up Shopify Payments, it’s important to understand that availability and features depend on the location of your business and regulatory requirements. For UK merchants, Shopify Payments is fully supported, but businesses must meet certain eligibility requirements. This typically includes having a registered UK business entity, a UK bank account in GBP, and complying with identity verification requirements. Shopify may also request documentation to confirm businesses' details, directors and ownership details as part of the compliance process.
Regional requirements also influence which ways to pay with Shopify are available; for example, while UK merchants can accept major debit and credit card payments, additional payment methods may vary depending on customer location, currency and local preferences. It’s also worth noting that not all Shopify payment processors or integrations are available in every country. Shopify Payments simplifies this by bundling commonly used payment methods into a single payment gateway, which reduces the need to source and manage multiple providers across different regions. For businesses scaling internationally, understanding these regional differences is key to offering the right checkout experience while staying compliant with local payment regulations.
Why Use Shopify Payments
Shopify Payments is a convenient and streamlined payment solution for businesses to accept payments directly from their online store without reliance on third-party providers. By seamlessly integrating with your Shopify dashboard, Shopify Payments simplifies the entire checkout process, reduces transaction costs and allows merchants to manage orders, payments and payouts all in one place.
Integrated Ecosystem vs. Third-Party Fragmented Solutions
One of the main reasons merchants choose Shopify Payments is that it removes the need for a Shopify payment getaway or external providers. Instead of bringing together multiple integrations, everything comes together inside one unified dashboard.
With many Shopify payment processors, you often deal with separate logins, reporting tools and support teams, and this fragmentation can slow down troubleshooting and make financial tracking more complicated. Shopify Payments, by contrast, keeps track of orders, payments, refunds and customer data in one place, reducing technical overheads and making it easier to manage your day-to-day operations smoothly.
ShopPay and Accelerated Checkout
ShopPay is a major advantage when it comes to paying with Shopify. This native accelerated checkout is designed to reduce friction and increase conversion rates by securely storing customer data, such as shipping and billing information. This allows returning customers to complete their purchase in just a few clicks. ShopPay also supports instalment payments in certain markets, giving customers more flexibility when they checkout.
For merchants using Shopify Payments, ShopPay is seamlessly enabled without additional integrations, unlike other third-party accelerated checkout systems that may require extra setup or fees.
Multi-currency and International Localisation
For businesses targeting a global audience, Shopify Payments simplifies the international selling process by supporting multi-currency transactions that allow customers to browse and buy wherever they are. So, for merchants who are expanding abroad, rather than relying on separate payment processors for different regions, Shopify Payments automatically handles currency conversions and local payment preferences.
Shopify Payments also integrates with the platforms' localisation tools, which helps merchants present region-specific pricing, languages and checkout experiences all within one system.
Integrated Payouts and Simplified Reconciliation
Another key benefit of Shopify Payments is how the system handles payouts. Funds from sales are automatically deposited into your bank account on a regular schedule, with full visibility inside your Shopify admin. This makes reconciliation significantly easier compared to using multiple payment integrations.
With Shopify Payments, reporting is also centralised, so merchants can track sales, fees, refunds and payouts without exporting data from multiple sources. This can save time and reduce accounting errors across the business.
The Plus Advantage
For larger or scaling businesses, Shopify Plus enhances what Shopify Payments can do. Benefits for merchants include greater customisation tools and control over the checkout experience, including more flexibility in how ways to pay with Shopify are presented. This can be especially valuable for high-volume stores that want to optimise conversion through tailored payment flows or region-specific options.
Shopify Plus also supports more advanced payment integrations, allowing businesses to combine Shopify Payments with additional payment processors needed, without losing the benefits of a centralised system.
Another key advantage for Plus merchants is scalability, as Shopify Payments is designed to handle high transaction volumes efficiently, and when paired with Plus, merchants can manage large traffic spikes and sales without needing to reconfigure their payment gateway setup.
This combination of Shopify Payments and Plus offers a unique balance between simplicity and advanced functionality by keeping operations streamlined while still allowing for global growth and more complex transactional strategies.
Why Use Shopify Plus
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Sell anywhere: It is a unified payment solution. If a brand is on Shopify, they can process payments on retail POS (point of sale), social and the Shop channel.
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Convert buyers faster: Shopify checkout converts 15% better on average than other solutions. It also gives access to 27 million shoppers in EMEA with the Shop Pay digital wallet.
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Integrate seamlessly: run your entire business, including payments, orders, fraud and inventory. It also gives access to tools to help grow your business, which we will cover later.
Examples of Shopify Payments Transaction Fees
Shopify Payments charges a percentage-based transaction fee which varies depending on your Shopify pricing plan and the nature of the transaction.
Online Credit Card Rates:
- Basic Shopify Plan: 2.9% + 30¢ per transaction.
- Shopify Plan: 2.6% + 30¢ per transaction.
- Advanced Shopify Plan: 2.4% + 30¢ per transaction.
For in-person transactions using Shopify POS, the rates are slightly lower:
- Basic Shopify Plan: 2.7% per transaction.
- Shopify Plan: 2.5% per transaction.
- Advanced Shopify Plan: 2.4% per transaction.
If you use a third-party payment gateway instead, Shopify adds additional transaction fees (e.g., 2.0% on Basic Shopify).
How Does Shopify Payments Work?
When a customer makes a purchase, Shopify Payments processes the transaction securely. It supports major credit and debit cards (Visa, Mastercard, American Express) and alternative payment methods (Apple Pay, Google Pay, Shop Pay, etc.). Payments are automatically deposited into your business bank account. By using Shopify Payments, merchants avoid extra transaction fees from external gateways, benefit from faster payouts, and access an integrated payment processing system directly within Shopify.
Benefits Of Using Shopify Payments For Merchants
1. Simple and Integrated
Shopify Payments is the fastest and easiest way to accept payment on Shopify, and can be enabled in one click from the admin panel. All major payment cards, Shop Pay and digital wallets are accessible in one click.
There’s no contract – it can be switched on and off as needed by the merchant.
It has a blended rate for payments: there are no hidden charges or scheme fees, etc. This means you never have to worry about multiple charge types like the following:
- transaction charges
- premium charges - for intra-regional sales, for example
- other miscellaneous charges for things like admin fees, PCI compliance fees
Sometimes other providers can be misleading and will give a rate of, say, 0.4%, but when looked into thoroughly, it becomes apparent that there are additional charges that cumulatively make it much higher than 0.4%.
Shopify Payments allows businesses to expand their payment offering with over 1,000 integrated payment methods, meaning it’s possible to mix and match to create the perfect offering based on that business’ needs. For example:
- choose a main payment gateway for credit cards and digital wallets
- add instalment and financing payment methods via a third party payment gateway
- enable additional local payment methods via a third payment gateway
The system allows for simplified reconciliation – this minimises the need to switch between systems, reducing manual errors and saving time.
It also streamlines processes with seamless integration between order management and payment processing, plus everything is automated to save time.
Finally, Shopify Payments includes real-time reporting – any refunds are processed and are instantly visible, for example.
2. Built to Convert
Shopify Payments offers tools that give access to a network of over 25 million known buyers who are ready to buy.
Shopify believes that guest checkouts are dying, with ‘identity-driven experiences’ on the rise. Last year, Shop Pay had 50% year-on-year growth.
Shopify Payments vs Shop Pay
Shopify Payments is not the same product as Shop Pay.
- Shopify Payments is an integrated payment processing service that lets businesses accept credit cards and other methods of payments after setting up a Shopify account and activating the feature.
- Shop Pay relies on Shopify Payments or third-party providers to process transactions.
- Shopify Payments is a payment processor
- Shop Pay is a digital wallet and accelerated checkout
- Shopify Payments - the customer enters their contact, shipping and billing info at the checkout. They do not know who is the processing payment
- Shop Pay - automatically remembers and applies the customer payment information
Shop Pay has one-tap checkout – this is a great conversion tool. Offering an accelerated payment method like Shop Pay increases conversion.
Studies have shown that even when not used, the mere presence of Shop Pay gives 5% higher conversion, with a 50% conversion lift when Shop Pay is used.
What is ‘Shop’?
Not to confuse things, but as well as Shopify Payments and Shop Pay, there is also Shop. Shop is a shopping destination and delivery tracking app that's available to customers on iOS and Android. Customers can use the Shop app to track packages, discover new stores and products, make purchases using Shop Pay, and engage with your brand.
Shop could be best summarised as an integrated shopping experience designed to reach and retain more mobile customers. It has more than 147,000 active shops in the UK, with 2 million monthly active users. For brands with a lot of mobile traffic, this is a free and easy way to capture that more effectively. Shopify Payments brands can use this too.When users create an account in Shop, their details are saved and the information can then be used in the main online store.
3. Flexibility and Control
What extra features do you get with Shopify Payments?
Shopify Payments is more than just a gateway – it has tools to help to generate more demand, scale online businesses and protect your money. Some of its features include:
- Extended fraud control
- Vaulted cards for pre-orders, subscriptions and B2B
- Integrated POS (point of sale) payments Shop Pay, Google Pay and Shop
- Shopify Capital (in the UK) - founder-friendly capital - 100% online with minimal paperwork and no personal credit checks
- Multicurrency price lists for B2B and D2C
Fraud protection is included free for all merchants, but those with Shopify Payments have enhanced features as listed here:
Fraud Features: Free to All Merchants
- The algorithm has been trained to detect fraud with over 10B transactions
- Fraud analysis with a score
- 3D secure - avoid fraudulent chargebacks
- Fraud insights
- Flexible rules
- Allow and block lists
Fraud Features: Shopify Payments Exclusive
- In-checkout rules – filter and block fraudulent checkouts based on rules you define
- Card testing protection
- Advanced fraud insights
4. Go International
Shopify uses Markets which enables businesses to go international from a single Shopify store. Some features are available to all merchants, while some are only for those with Shopify Payments.
It’s the preferred payments solution for over 100,000 merchants in EMEA, and it enables businesses to sell and process payments in over 135 local currencies.
Combining Markets with Shopify Payments means additional benefits:
- domain redirection
- multi-currency from single store
- included local payment methods such as Klarna and Bancontact
- dynamic tax-inclusive pricing
- automatic/manual conversion, rounding and price breakdown
It’s easy to build a flexible international payments strategy using Shopify’s payments ecosystem. It’s possible to choose from hundreds of integrated payment providers like Stripe, Braintree, SagePay, eWAY, Worldpay, PayU and many others.
5. Credible and Reliable
The platform is secure and compliant for peace of mind and covers all 6 PCI standard categories. Support for 3DS 1.0 and 2.0 is included for free. It’s worth bearing in mind, when adding 3DS via third-party providers, this can cost additional money per transaction.
- The platform has a fast and reliable infrastructure with 99.99% platform uptime
- Up to 4% higher rate of card authorisation success rate
- 87% transaction success rate
- 99.7% acceptance rate on orders
- 0.1 to 0.4% chargeback rate
Keeping your chargeback rate low is important for maintaining a healthy store. For a practical guide to preventing and managing disputes, read our Shopify chargeback dos and don'ts.
6. Streamlined Checkout
Shopify enhances the checkout experience for your customers by making the process faster and more streamlined, which can boost conversion rates. The solution has built-in fraud analysis to detect suspicious transactions and is fully integrated within Shopify, ensuring a smooth checkout. Shopify Payments also supports multiple payment methods, including the Shop Pay option that allows customers to make secure, one-tap purchases by auto-filling saved payment and shipping details. It's designed to simplify the checkout process for online shoppers and reduce cart abandonment. A streamlined checkout is one piece of the conversion puzzle. For a broader look at how we help Shopify merchants turn more visitors into customers, take a look at our conversion rate optimisation service.
7. Easy To Setup And Manage
Shopify Payments is fully integrated within Shopify’s dashboard, making setup and management simple. There is no need for third-party accounts or separate logins to track payments, and funds are deposited directly into your bank account within 2–5 business days (varies by country). You don’t need to worry about transferring funds manually from an external payment processor.
8. Security and Protection
Shopify Payments is secure because Shopify is certified Level 1 PCI DSScompliant, and all Shopify stores are automatically PCI compliant. PCI DSS stands for Payment Card Industry Data Security Standard. This means that Shopify uses the strictest standards to protect businesses that use its platform. The standard was created to reduce fraud by increasing controls around payment data.
Comparing the Most Popular Shopify Payment Gateways in 2026
PayPal
Pros
- Globally recognised and trusted brand
- Built-in buyer and seller protection
- Supports multiple currencies and international payment methods
- No monthly fees
- Quick setup
Cons
- Higher transaction fees
- Risk of account holds and frozen funds if reported by merchants
- Redirect-style checkout can disrupt user experience
- Customer support can be inconsistent
Best suited for:
New or growing Shopify stores that are looking for instant consumer trust and global reach, especially when targeting international markets.
Adyen
Pros
- Strong international capabilities
- Omnichannel opportunities
- Advanced fraud protection methods
- Easily scalable for high-volume businesses
Cons
- Not beginner-friendly
- Complex pricing structure
- Typically requires higher processing volume
Best suited for: Enterprise or scaling brands doing high volume and international sales.
Amazon Pay
Pros
- Ability to leverage huge user-base of Amazon
- Fast checkout using stored details
- Reduces friction for first-time buyers
Cons
- Higher fees than Shopify Payments
- Slower payout times
- Limited acceptance on non-Amazon sites
- More complex dispute resolutions
Best suited for: Brands targeting Amazon-heavy audiences or looking for extra trust for first-time buyers.
Opayo (formerly Sage Page)
Pros
- Good reputation in the UK market
- Strong security and fraud prevention tools
- Reliable for card payments and subscriptions
Cons
- High monthly fees and transaction costs
- Less modern UX compared to newer payment gateways
- Limited global reach
Best suited for: UK-based businesses want a stable, traditional payment provider with strong compliance security.
Swipesum
Pros
- Payment optimisation and cost-reduced focus
- Merchants can compare and reduce fees
- Consultancy + gateway solution
Cons
- Not a standalone solution
- Less recognised brand
- May require extra setup from merchant
Best suited for: Established businesses looking to optimise payment costs and performance.
Checkout.com
Pros
- Global payments platform
- Good for scaling and enterprise-level use
- High adaptability and fast performance
Cons
- Requires technical setup and developer resources
- Limited third-party integrations
- Not suitable for smaller merchants
Best suited for: High-growth Shopify stores focused on maximising conversion rate globally.
ShopPay
Pros
- One-click checkout system
- Fully integrated with Shopify
- Free with Shopify Payments
Cons
- Only available with Shopify Payments
- Limited control and customisation options
Best suited for: All merchants using Shopify Payments, especially those focused on conversion-led optimisation.
Verifone
Pros
- Long-established global payment provider
- Supports in-store, online and omnichannel payments
- Advanced security and fraud protection
Cons
- Higher price points when compared to other payment gateways
- Complex setup and integration
- Not suitable for smaller businesses
Best suited for: Mid-sized merchants that need a reliable, omnichannel payment solution, especially those operating internationally or with physical stores.
How To Set Up Shopify Payments Gateway
1. Log into to your Shopify admin
2. Go to Settings > Payments
3. Under Shopify Payments, click Activate Shopify Payments
4. Enter your business details
5. Provide a GBP bank account relevant to the currency for your country
6. Verify your identity
7. Configure your payment methods
8. Set up your payout schedule
9. Click save and you’re all set
Conclusion
You should now have a clear understanding about what Shopify Payments is and how it works. As a final note on costs, if your business generates over £6m in annual revenue, it’s probably a better financial decision for you to have your store on Shopify Plus with Shopify Payments, thanks to lower fees and greater scalability. If you're unsure about which setup is right for your business, get in touch with our team, and we can help you choose the plan and configuration that makes most financial sense for your store.