Top Payment Gateways for Shopify and WooCommerce

The smoothness of the payment process on your Shopify and WooCommerce websites can make or break your sales. With on-the-go shopping increasing by the day, consumers demand quick, flexible, and secure transaction platforms. That’s why it’s important to choose the right payment gateway or processor for your store.

In this post, we share the top payment gateways for online stores set up on Shopify and WooCommerce.

Best payment gateways for Shopify and WooCommerce

Digital payments today make for almost US$17.72tn of transactions today. With a growth rate of 15.71%, it’s projected to amount to  US$36.75tn by 2029. While there are several payment modes adding to this, here are the ones that actually make transactions seamless for both businesses and consumers:

1. Shopify Payments

Built for Shopify users, Shopify Payments is directly integrated into the ecommerce platform. It simplifies setup and avoids additional third-party transaction fees, helping brands save on costs in the long run. The payment gateway supports most credit cards including Visa, MasterCard, American Express, Discover, and other popular payment modes.

Shopify Payments charges between 0.6-2% card rate on third-party payment providers based on your plan. It is also restricted to some regions and requires you to meet the defined eligibility criteria.

2. PayPal

Another widely used payment gateway for Shopify and WooCommerce is PayPal. Considering its global usage, ease of setup, and buyer protection, it’s highly recommended for stores with international customers.

However, PayPal does charge a higher transaction fee of 2.9% +$0.30 per transaction – and this may vary based on the volume of payments and region. So it’s not the best-suited payment platform for stores that see smaller transactions.

3. Stripe

A developer-friendly payment gateway, Stripe offers the most amount of customization to Shopify and WooCommerce users. It’s ideal for businesses that want to offer a branded checkout experience while supporting multiple payment methods including credit and debit cards, Apple Pay, Google Pay, and more.

While Stripe offers multi-currency support, it does charge 2.9% + $0.30 per transaction with additional charges in certain regions. It also could take time to set up as it requires in-house developer resources.

4. Square

Another good payment gateway for businesses with both physical and online presence is Square. The payment gateway is perfect for omnichannel sales and offers inventory sync for better order management. It provides seamless integrations with both Shopify and WooCommerce but may require added developer resources to complete the setup.

While the hardware is pretty affordable, Square charges 2.6% + $0.10 for in-person transactions, and 2.9% + $0.30 for online transactions. Its functionality is limited to regions outside the US.

4. Klarna

Another payment gateway that has gained popularity among younger consumers for its flexible payment options like Buy Now, and Pay Later, is Klarna. It is best suited for businesses targeting younger demographics, letting them spread out payments for purchases made online over a defined period of time. This also helps the stores encourage making larger purchases.

Klarna typically charges 3.29% + $0.30 per transaction which may lead to payment delays. Although the setup on both WooCommerce and Shopify is easy.

5. Authorize.net

Another good payment gateway for established businesses with high transaction volumes on Shopify and WooCommerce is Authorize.net. It offers extensive security features including fraud protection and address verification service (AVS), and advanced features like recurring billing.

The payment gateway comes at a monthly fee of $25 in addition to 2.9% + $0.30 per transaction. The monthly fees can add up for smaller businesses, making it less appealing.

Additional payment integrations

Apart from the payment gateways above, we do recommend integrating the following modes to offer consumers more flexibility:

1. Apple Pay and Google Pay

If you’re targeting a majority of mobile shoppers, Apple Pay and Google Pay are becoming increasingly popular. They can be integrated with Stripe, Square, and other processors easily, and offer security features like encryption and biometric verification.

2. Amazon Pay

If you’re targeting Amazon customers, integrating with Amazon Pay can boost your conversions owing to its familiarity. While it charges 2.9% + $0.30 per transaction, it is not available in all regions and offers very limited customization options for those seeking to offer branded experiences.

How to choose the right payment gateway

When selecting a payment gateway, we recommend considering the following:

• Transaction fees – Understand the cost structure, per-transaction fees, monthly charges, and potential hidden fees.
• Support payment methods – Check for the payment methods it supports in your target market.
• Ease of integration – Look for gateways that integrate easily with the platform with minimal technical resource assistance.
• Payment communication – Check for features like automated WooCommerce confirmation emails or Shopify transaction updates for improved customer experiences.
• Security features – Evaluate features like fraud protection, SSL certification, and compliance with PCI-DSS regulations.
• Global reach and usage – Choose a gateway that supports multiple currencies and regions if your business sells internationally.

Conclusion

The payment gateway you choose impacts the customer’s experience and your bottom line. So ensure that you evaluate each of the options above based on your target market, ideal customer persona, and purchase behavior, while keeping in mind your average order value and overall business revenue.

Additionally, it’s always better to start with a payment gateway that seamlessly integrates with your ecommerce platform with low to no developer dependency.