Best Payment Gateways for Shopify in 2026

Why Your Payment Gateway Choice Matters

Your payment gateway is the invisible infrastructure behind every sale. It authorizes transactions, encrypts sensitive card data, and moves money from your customer's account to yours. Get it right and checkout feels seamless. Get it wrong and you lose sales to abandoned carts, excessive fees, or failed transactions.

Recent data shows that 10% of online shoppers abandon their carts because the store doesn't offer enough payment methods. That figure climbs higher for international customers who expect local payment options. For a store doing $500,000 in annual revenue, even a 2% improvement in checkout conversion can mean an additional $10,000 in sales, often more than enough to offset the cost of optimizing your payment stack.

Beyond conversion, your gateway choice affects your bottom line through transaction fees. The difference between a 1.5% and 2.9% fee rate might seem small, but on $1 million in annual sales that's a $14,000 gap. For Shopify Plus merchants processing higher volumes, negotiated rates can reduce this even further.

Security matters too. All payment gateways must comply with PCI DSS (Payment Card Industry Data Security Standard). Any gateway you choose must handle tokenization and encryption of card data to protect your customers and your business. In the US, ensuring compliance with state-level data protection regulations adds another layer of importance to choosing a reputable gateway provider.

How Shopify Payment Gateways Work

Understanding the basics helps you make a better decision. When a customer enters their card details at checkout, the payment gateway handles a multi-step process in seconds. The customer's card information is encrypted and sent to the gateway, which forwards it to the card network (Visa, Mastercard, etc.) for authorization. The issuing bank checks the customer has sufficient funds and runs fraud checks before approving or declining the transaction. The gateway relays this response back to your store.

On Shopify, payment gateways fall into two categories. Shopify Payments is the native, first-party gateway powered by Stripe. It's fully integrated into the platform with no additional setup. Third-party gateways like PayPal, Amazon Pay, or Adyen require separate accounts and typically incur an additional transaction fee from Shopify on top of the gateway's own charges.

This additional fee is worth understanding. If you use a third-party gateway without Shopify Payments activated, Shopify charges 2% on Basic plans, 1% on standard Shopify plans, and 0.5% on Advanced plans. These fees are waived when you use Shopify Payments as your primary gateway. That's why most merchants keep Shopify Payments active even if they also offer alternatives like PayPal or Klarna.

Shopify Payments

Shopify Payments is the default gateway for most Shopify merchants, and for good reason. It eliminates third-party transaction fees, integrates directly into your Shopify admin, and supports all major credit and debit cards alongside digital wallets like Apple Pay and Google Pay.

The gateway is powered by Stripe's infrastructure, which means you get enterprise-grade payment processing without needing a separate Stripe account. All transaction data, including orders, payments, and payouts, is managed from within Shopify's admin panel. This makes reconciliation significantly easier compared to managing external gateway dashboards.

Card rates for US merchants vary by plan. On Basic Shopify, you'll pay 2.9% + 30¢ per online transaction. Standard Shopify brings this down to 2.6% + 30¢, and Advanced Shopify reduces it further to 2.4% + 30¢. Shopify Plus merchants can negotiate custom rates that often fall below 2.0% for domestic card transactions. Payouts typically arrive within two business days.

Shopify Payments also includes built-in fraud analysis tools that flag suspicious orders using machine learning. You can review risk indicators before fulfilling orders, which helps reduce chargebacks. For in-person sales, Shopify provides card readers for merchants using its Point of Sale system, making it a strong all-in-one option for businesses selling both online and in store.

Best for: Most Shopify stores. The combination of competitive rates, zero third-party fees, and native integration makes it the default choice for US merchants. If you're only going to use one gateway, this should be it.

PayPal

PayPal remains one of the most recognized payment brands globally, with over 430 million active accounts worldwide. For Shopify merchants, offering PayPal at checkout provides an instant trust signal that can reduce hesitation, particularly for first-time buyers unfamiliar with your brand.

Integration with Shopify is straightforward. PayPal Express Checkout is available as a default gateway, and a PayPal Business account is automatically created using the email associated with your Shopify store. Customers can pay using their PayPal balance, linked bank account, or saved cards without leaving the checkout flow.

Transaction fees for US merchants sit at 3.49% + 49¢ for standard commercial transactions. International transactions carry higher fees. These are higher than Shopify Payments, so it's worth keeping Shopify Payments as your primary gateway and offering PayPal as an additional option. This way, you avoid Shopify's extra third-party gateway surcharge while still capturing customers who prefer PayPal.

PayPal's buyer protection program is both a strength and a consideration. Customers trust PayPal because disputes are handled through PayPal's resolution center, which can be a selling point. However, PayPal's dispute process tends to favor buyers, so merchants need to keep thorough order records and tracking information.

Best for: Stores wanting to maximize checkout trust, particularly those selling to international customers or in categories where buyer hesitation is common.

Stripe

Stripe is a developer-friendly payment platform that powers Shopify Payments behind the scenes. In the US, Stripe is available as the backbone of Shopify Payments, but it also offers standalone integrations for merchants who need more advanced payment configurations.

Stripe supports over 135 currencies and more than 100 payment methods, making it one of the most versatile options for international selling. Standard rates are 2.9% + 30¢ per successful card charge for domestic transactions, with an additional 1.5% for international cards and 1% for currency conversion.

Where Stripe stands out is its suite of additional tools. Stripe Radar provides advanced fraud detection using machine learning trained on data from millions of global businesses. Stripe Connect handles complex marketplace payment flows. And Stripe's reporting and analytics tools offer deeper transaction insights than most competing gateways.

For in-person sales, Stripe offers the BBPOS WisePOS E terminal and other hardware options. In-person transaction rates are typically lower at 2.6% + 10¢ for tap, dip, or swipe payments.

Best for: Merchants who need advanced payment features like Connect for marketplace models, Radar for enhanced fraud prevention, or custom payment flows that go beyond standard Shopify checkout.

Klarna

Klarna has grown rapidly in the US market by offering buy now, pay later (BNPL) options that give customers flexibility at checkout. For Shopify merchants, adding Klarna can increase average order value and conversion rates, particularly for higher-priced items where customers appreciate the option to spread payments.

Klarna offers several payment models on Shopify: Pay in 4 (split the cost into four interest-free installments over six weeks), Pay in 30 (try before you buy with 30 days to pay), and financing for larger purchases with extended terms. The customer chooses their preferred option at checkout, and the merchant receives the full payment upfront minus Klarna's fee.

This is a key point that many merchants miss. With Klarna, you get paid immediately regardless of the customer's repayment schedule. If a customer defaults on their installments, Klarna absorbs the risk. Your revenue is protected.

Merchant fees vary but typically start around 3.29% + 30¢ per transaction for Pay in 4. Setup is handled through the Shopify App Store, and Klarna provides marketing assets to promote BNPL options across your store.

Best for: Stores with average order values above $50 where customers benefit from payment flexibility. Fashion, home goods, electronics, and lifestyle brands typically see the strongest uplift from BNPL options.

Shop Pay

Shop Pay is Shopify's accelerated checkout solution, and it's become one of the platform's strongest conversion tools. It allows returning customers to save their email, payment details, and shipping address for a one-tap checkout experience across any Shopify store.

The performance numbers are compelling. Shopify reports that Shop Pay increases checkout conversion by up to 50% compared to guest checkout. This speed matters because every additional step or form field in the checkout process is an opportunity for the customer to abandon their cart.

Shop Pay also offers an installment option (Shop Pay Installments) that works similarly to Klarna. Customers can split purchases between $50 and $3,000 into four interest-free payments. There are no late fees, no interest charges, and no impact on the customer's credit score for the basic Pay in 4 option. The merchant receives full payment upfront.

A significant advantage of Shop Pay over standalone BNPL providers is that it's fully integrated within Shopify's checkout. Customers don't get redirected to a third-party site, which reduces friction and keeps the checkout experience consistent with your brand. Shop Pay is automatically available to all merchants using Shopify Payments.

Best for: All Shopify stores using Shopify Payments. There's no reason not to enable Shop Pay given it's free and demonstrably improves conversion rates.

Amazon Pay

Amazon Pay lets customers use their existing Amazon account details to check out on your Shopify store. With over 200 million Amazon Prime members in the US alone, this provides a familiar and trusted payment experience for a massive portion of your potential customers.

The primary benefit is speed and trust. Customers don't need to create a new account or enter their payment and shipping details. They simply log in with their Amazon credentials and the transaction is processed using their stored payment method. This can significantly reduce friction for first-time buyers who haven't purchased from your store before.

Transaction fees are 2.9% + 30¢ for domestic web payments and 3.9% + 30¢ for cross-border transactions. These fees are higher than Shopify Payments, so Amazon Pay works best as a supplementary option rather than your primary gateway.

One consideration is settlement timing. Payments processed through Amazon Pay can take several business days to reach your account, which may affect cash flow for smaller businesses. Amazon also has its own fraud protection and A-to-z Guarantee program, which provides buyer protection but can occasionally lead to disputes that favor the customer.

Best for: Stores targeting demographics with high Amazon adoption, or those selling products where brand trust is a barrier to first-time purchase.

Adyen

Adyen is an enterprise-grade payment platform used by major brands like eBay, Spotify, and McDonald's. For Shopify merchants, it offers a comprehensive solution that supports over 250 payment methods across 150+ currencies, making it particularly strong for international and omnichannel businesses.

Unlike simpler gateways, Adyen provides a unified commerce platform that handles online payments, in-store POS terminals, and mobile payments through a single integration. This gives merchants a consolidated view of all transactions regardless of channel, which simplifies reporting and reconciliation.

Adyen's pricing uses an interchange-plus model, which means you pay the actual card scheme fee plus a fixed Adyen markup. For US domestic cards, this typically works out more favorably than flat-rate providers at higher volumes. While the pricing structure is more complex and requires careful analysis, the total cost per transaction can be significantly lower for merchants processing substantial volume.

The platform includes advanced risk management through Adyen's RevenueProtect tool, which uses machine learning to balance fraud prevention with conversion optimization. Unlike basic fraud filters that simply block suspicious transactions, RevenueProtect can be tuned to match your risk tolerance, reducing false declines that cost merchants legitimate sales.

Best for: High-volume Shopify Plus merchants selling internationally who need a single platform for online, in-store, and mobile payments. Adyen's pricing advantage kicks in at higher transaction volumes.

Other Gateways Worth Considering

Square: Square offers a clean integration with Shopify and is particularly strong for businesses that combine online and in-person sales. Transaction rates sit at 2.9% + 30¢ for online payments, with competitive in-person rates at 2.6% + 10¢. Square's free POS app and affordable card readers make it accessible for smaller merchants. It's especially popular with US-based businesses that operate both physical retail locations and online stores.

Authorize.net: A long-established US payment gateway owned by Visa, Authorize.net charges 2.9% + 30¢ per transaction plus a $25 monthly gateway fee. It supports a wide range of payment methods and has a strong reputation for reliability and customer support. It's a solid choice for businesses that need advanced features like recurring billing or customer profiles, particularly subscription-based Shopify stores.

Apple Pay and Google Pay: These aren't standalone gateways but rather digital wallet payment methods that work through your existing gateway. When you activate Shopify Payments, Apple Pay and Google Pay are automatically available at checkout. They use tokenized card data and biometric authentication (Face ID, fingerprint), which speeds up checkout and reduces fraud. Given they require zero additional cost or setup through Shopify Payments, there's no reason not to offer them.

Afterpay: Owned by Square (Block, Inc.), Afterpay has strong brand recognition in the US BNPL market. It lets customers split purchases into four interest-free installments. Merchant fees are around 6% + 30¢, which is higher than some alternatives, but Afterpay's consumer brand awareness and marketing support can drive new customer acquisition for the right store.

How to Choose the Right Gateway for Your Store

The right payment gateway depends on your specific business context. Here are the key factors to evaluate.

Transaction volume and average order value: If you're processing over $100,000 per month, the difference in fee structures becomes significant. Interchange-plus pricing (like Adyen) tends to favor higher volumes, while flat-rate pricing (like Shopify Payments) is simpler and often better for smaller merchants. Calculate your actual cost per transaction across different providers before committing.

Customer demographics: Where are your customers and how do they prefer to pay? US customers increasingly expect BNPL options and digital wallets. If you're selling internationally, multi-currency support becomes essential. Offering familiar payment methods reduces friction and increases conversions.

Payout speed: Some gateways settle funds in one to two business days, others take up to five. For businesses with tight cash flow requirements, faster settlement can be a deciding factor. Shopify Payments offers among the fastest payout times in the US market.

Fraud and chargeback management: Different gateways offer different levels of fraud protection. Shopify Payments includes basic fraud analysis. Adyen and Stripe offer more sophisticated machine learning tools. If you sell in categories with higher chargeback rates (electronics, fashion, digital goods), robust fraud prevention can pay for itself quickly.

Omnichannel needs: If you sell both online and in person, you'll want a gateway that handles both channels through a single platform. Shopify Payments, Square, and Adyen all offer unified online and POS solutions. Running separate systems creates reconciliation headaches and makes it harder to get a single view of your customers.

Using Multiple Payment Gateways

Most successful Shopify stores don't rely on a single gateway. A well-configured payment stack typically includes Shopify Payments as the primary gateway (to avoid third-party transaction fees) alongside one or two additional options to capture customers who prefer alternatives.

A strong starting configuration for US merchants would be Shopify Payments for card transactions (with Apple Pay and Google Pay enabled automatically), PayPal for customers who prefer it, and Klarna or Shop Pay Installments for buy now, pay later. This covers the vast majority of US customer preferences without overcomplicating the checkout.

For stores with higher average order values or those targeting younger demographics, adding a BNPL option is almost essential. Klarna, Shop Pay Installments, and Afterpay are the strongest options in the US market, and offering at least one gives customers the flexibility they increasingly expect.

Avoid offering too many payment options at checkout. Research consistently shows that too many choices create decision fatigue and can actually reduce conversion. Three to four well-chosen options is typically the sweet spot. If you need help configuring the right payment setup for your store, our Shopify Plus team can help you design a checkout that maximizes conversions while keeping costs under control.

For a broader view of optimizing your Shopify store's performance, see our complete Shopify SEO guide and our Shopify SEO checklist.