Shopify Payments vs Paypal - which is the better choice?

February 14, 2023


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Why do people all over the world run a business? That's right, to get the dividends. Shopify store owners are no exception, that is why eventually they will face a question — how to integrate a transaction system for online payments intake? In this review, Shopify vs PayPal payments is compared.


In the world of money, eСommerce is still in its early stages, but there is a huge list of systems you can work with. Should you use proven PayPal, Stripe or Or is it better to focus on new market players such as Shopify Payments? The complete list can be found here. Our experts introduce you to two popular systems - PayPal and Shopify Payment and discuss their pros and cons.

The review focuses on:

  •   Shopify Payments solutions;
  •   PayPal on Shopify;
  •   PayPal vs Shopify.

Shopify Payments solutions

The most convenient option, in terms of use, is the Shopify Payments platform for eСommerce. According to statistics, the payment system handles more than 30% of purchases on the Shopify platform. Shopify provides full integration with the store, including a wide range of mechanisms for analysis and business management.


  • no need to configure the third-party payments service, which in its turn simplifies the buying process;
  • in the "Basic Shopify", "Shopify" or "Advanced Shopify" plans, there are small transaction fees from 0.5% to 2% for each sale. If you use Shopify solution, these commission fees will be completely canceled, so that it will increase the profits (more money in your pocket);
  • full Shopify Paypal integration with the shop provides the opportunity to see the clients’ payments directly in the Shopify admin panel in real-time as well as the full synchronization of orders and transactions, making it easier to see how much you get for your order;
  • compared to other services, the frequency of the payments received is quite low - every 3 days;
  • for chargeback, the system will collect evidence and send it to the credit card company within the prescribed time limit. It is also possible to add additional data to the Shopify admin panel. Once the evidence is presented, the decision will be taken after 60 days;
  • to protect customers, Shopify Payments provides access to fraud analysis tools.

The possibility that Shopify service usage may be unavailable is the only disadvantage worth noting. To check whether you can use Shopify solution, study the list of businesses prohibited for the country where your company operates: Australia, Canada, Ireland, New Zealand, Singapore, the United States, the United Kingdom, etc. For more information, please refer to the Shopify Payments Terms of Service (TOS).

Setting up Shopify Payments

After the shop is set up, you can work with the main types of credit cards in your country of operation. In the United States, they work with debit and credit cards such as Visa, Mastercard, American Express, JCB, Discover, and Diners Club. The companies in Canada, the UK, Ireland, Australia, New Zealand, and Singapore can accept both debit and credit Visa, Mastercard, and American Express cards.

Can you use Paypal on Shopify?

The alternative to Shopify service is PayPal. According to Wikipedia, PayPal is the largest debit electronic system that allows customers to pay bills and make purchases, and to send and receive money orders. The range of distribution payment services is impressive - as of 2023, offices have been opened in more than 200 countries (although, in some countries, the set of services is limited). Moreover, PayPal guarantees security for all participants - both sellers and buyers. Due to global popularity, PayPal is one of the most commonly used transaction systems in the Shopify platform.

Add Paypal to Shopify

PayPal is one of the default providers in Shopify. Once you open the store, you will be given a PayPal Express Checkout account with the email address you used to get registered in Shopify. Before you receive payments for orders made with PayPal, you need to set up your PayPal account.

The features of this system are:

  • PayPal handling charges are based on the amount of monthly income. If you earn less than $5000 per month, you will be charged a transaction fee of 5.4% + 45 cents for each order. This exceeds the Shopify commission fee of 0.5-2% + 30 cents. It means that 3.4% + 45 cents will be waived per order if you use the Basic Shopify plan, which sells less than $5000 per month. In addition, PayPal has some hidden fees if the transaction is carried out with a foreign country, which add up if you sell abroad;
  • the frequency of receiving payments is quite high compared to Shopify solution (within 5 -7 working days);
  • providing vendor protection for every suitable transaction. When submitting an application, the funds are withheld. You also need to provide PayPal with proof of the transaction. PayPal also prefers to use a tracked delivery, which proves where and when the goods have been delivered;
  • if you pay via PayPal, the customer is redirected directly to the website of the transaction system. This process can be confusing for people unfamiliar with the payment services;
  • the system has a wide range of tools for data protection and analysis in real-time, working around the clock and without days off.


Since eСommerce is still in its early stages, both companies benefit from developing demographically, and they both are developing steadily. Shopify Payments have an advantage in system usability as well as the price. In its turn, PayPal wins due to such components as system functionality and transaction security. Of course, the final choice is up to the investor, since Shopify range is limited now. If taken as a whole, both payment systems have enormous potential for generating income in the future. People who are looking for more risky investments, with a chance to get high dividends, might choose Shopify Payments, while an investor looking for less risk and a safer financial base may prefer PayPal. The main criteria for comparing PayPal with Shopify are convenience, functionality, safety, cost, and potential.

For a detailed analysis of the state of the business as well as further assistance in choosing a transaction system, or if you want to accept PayPal on your Shopify store, contact the experienced and skilled experts from Makebecool. Our company experts will help you make choices based on the needs of both your customers and your business.

Alexander, our seasoned Project Manager at MakeBeCool since 2021, with four years of eCommerce growth expertise. A planning pro and team wizard, he's our go-to strategist. Outside work, Alexander's an AI fan, language lover (currently at B1 in German), and an adventurous traveler exploring places like Costa Rica. With a passion for coffee, he kicks off his mornings in style!

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