Shopify Payments Vs PayPal (A Comparison)

If you have an online store that relies on online payments for an income, you better choose the right payment platform. 

Your decision will impact your conversion rate and the amount of money you can make online.

This article will compare two of the most popular payment platforms available to eCommerce merchants. We’ll compare Shopify Payments vs PayPal.

While both platforms are highly accredited, we hope to make it easier for you to decide which platform is best for your online store.

An Overview Of Shopify Payments

Shopify Payments Expands to New Regions

Shopify Payments is currently one of the most up-and-coming eCommerce payment platforms globally. It’s quickly rising in popularity, and it’s easy to see why.

The developers have put in a lot of time and effort to make its online payment process as easy and efficient as possible.

 In fact, it’s an integrated payment solution that you can quickly activate on your Shopify dashboard. 

Shopify Payments allows customers to pay you directly via their credit cards without having to browse away from your online store.

This feature not only removes a third party like a bank from the payments process but will also save you a lot of time and money on transaction fees.

User Friendliness

Shopify Payments have an easy-to-follow integration process. 

When you follow Shopify Payment’s application procedure, you can easily integrate Shopify Payments with your online store.

We find that Shopify Payments is easy to use and lets you quickly offer customers several convenient payment options online.

While it’s a fantastic payment portal, you’ll still have to reconcile your Shopify sales

Knowing what’s happening in your business makes it easier to grow your business and make more money.

Processing Time

Shopify Payments have a relatively quick processing time. 

It would take, on average, 3 business days for an electronic transfer to reflect in your account. 

However, this waiting period may vary depending on where you’ve registered your business and bank account. 

For instance, if you didn’t register your online business and bank account in the U.S., it may take longer than 3 days for the money to reflect.

Dispute Resolution

Suppose there is a dispute between you and a customer relating to a specific transaction with Shopify Payments. In that case, the claiming procedure is reasonably smooth and effective.

Shopify will first listen to the claims of both parties. 

They’ll analyze the evidence supporting these claims and make a decision based on their findings. It usually takes less than 60 days after you’ve filed the dispute for Shopify Payments to make a decision.

In the case that Shopify Payments feels that the customer’s claim is more substantial than yours, it’ll award them a refund. In contrast, you’ll be fined $15 for each monetary claim.

If Shopify Payments feels this is a recurring event, your account stands at risk of being locked for an indefinite period. 

When Shopify Payments locks your account, you won’t be able to offer Shopify Payments as a payment option to your customers. Your sales may drop, and customers could leave your online store.


Shopify Payments will charge you around 2.4 - 2.7% + 30c per order for the credit card fee.

We find that Shopify Payments offers one of the lowest overall rates that not many other payment gateways can’t compete with.

How To Use PayPal With Shopify | 2021 Guide

An Overview Of PayPal

PayPal arose as a convenient alternative to traditional payment methods and is a great alternative to Shopify Payments. It is a service that accommodates electronic payments and money transfers to make your user experience as easy and comfortable as possible. 

In 2020, PayPal had a whopping 29 million active merchant accounts. This figure makes PayPal currently the largest e-wallet platform in the eCommerce industry.  

Let’s look at the pros and cons of using PayPal on your online Shopify store.

User Friendliness

Most online stores offer PayPal as a payment option. Since it’s so incredibly popular, you’ll think that integrating PayPal into your website is relatively quick and easy. 

However, when we compared the integration process of PayPal Vs. Shopify Payments, we found that PayPal is more complicated than Shopify Payments. You’ll find that it takes longer to integrate PayPal with your store.

Although PayPal is one of the default payment platforms available on Shopify, your customers will have to browse the PayPal website to make a payment to you. 

This process makes payments a hassle and can complicate the user experience. When customers find this process too irritating and possibly even too complicated, they may abandon the sale.

You don’t want your customers to abandon a sale because you end up losing money!

Processing Time 

It typically takes 5-7 business days for a customer’s electronic transfer to reflect in your bank account.

This time is pretty standard, regardless of where you’ve registered your business or bank account.

Dispute Resolution

PayPal has an effective dispute resolution procedure to deal with any claims.

When a claim is filed, both parties will have 10 days to provide evidence supporting their claim.

In sharp contrast to Shopify Payments, it takes PayPal up to 75 days and possibly even longer to reach a decision. During this time, PayPal will freeze the disputed amount in your account.

PayPal also charges you a chargeback fee of $20. Like with Shopify Payments, recurring disputes can lead to PayPal locking your account. 


PayPal bases the fees they charge your business on the amount of revenue your business generates in a calendar month. 

For example, If you earn under $5000 per month, PayPal will charge you a 3.4% + 45c transaction fee for each order.

Shopify Payments vs PayPal - So Which Is Best? 

Overall, it should be clear that Shopify Payments and PayPal are both very effective online payment portals for eCommerce merchants.

Each of these platforms has its benefits and downfalls. Luckily, you can make a practical compromise that can leave your customers smiling and your bank account growing.

This compromise consists of integrating both of these two platforms with your online store. 

When you use Shopify Payments and PayPal simultaneously, you’ll be giving your customers various convenient payment options. Giving your customers a choice between Shopify Payments and PayPal will make them feel valued. 

When your customers feel appreciated, they’ll quickly complete the electronic transaction process.


You don’t want to complicate the payment process. The faster and easier you make it for customers to pay you, the quicker your bank account will grow. 

Instead of choosing just one payment platform, like Shopify Payments or PayPal, you can always opt for several platforms to provide customers with unrivaled convenience. But ultimately, the choice is yours and both of these options are excellent choices. 

Remember, you’ll still need to reconcile your Shopify payments. Luckily, there are ways to save time, letting you enjoy the things you do best.

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