Best Payment Gateways for Shopify in 2026

Why Your Payment Gateway Choice Matters

Your payment gateway is the invisible infrastructure behind every sale. It authorises 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 optimising 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 operating in the UK must comply with PCI DSS (Payment Card Industry Data Security Standard) and Strong Customer Authentication (SCA) requirements under PSD2 regulations. These aren't optional. Any gateway you choose must handle 3D Secure authentication and tokenise card data to protect your customers and your business.

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 authorisation. 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 UK merchants vary by plan. On Basic Shopify, you'll pay 2.2% + 20p per online transaction. Standard Shopify brings this down to 1.9% + 20p, and Advanced Shopify reduces it further to 1.6% + 20p. Shopify Plus merchants can negotiate custom rates that often fall below 1.5% for domestic card transactions. Payouts typically arrive within three 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 free 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 UK merchants. If you're only going to use one gateway, this should be it.

PayPal

PayPal remains one of the most recognised 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 UK merchants sit at 1.99% + 49p for domestic payments and 3.49% + 49p for international transactions. 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 programme is both a strength and a consideration. Customers trust PayPal because disputes are handled through PayPal's resolution centre, which can be a selling point. However, PayPal's dispute process tends to favour buyers, so merchants need to keep thorough order records and tracking information.

Best for: Stores wanting to maximise 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. While you can't add Stripe as a separate gateway in countries where Shopify Payments is available (including the UK), understanding Stripe matters because it's the engine running your Shopify Payments transactions.

For merchants in regions where Shopify Payments isn't available, Stripe offers a standalone integration with Shopify. It supports over 135 currencies and more than 100 payment methods, making it one of the most versatile options for international selling. Standard rates are 1.4% + 20p for European cards and 2.9% + 20p for non-European cards.

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 card readers starting from £49 for the basic mobile reader and £179 for the touchscreen terminal. In-person transaction rates are typically lower at 1.4% + 10p for European cards.

Best for: Merchants in regions without Shopify Payments, or those who need Stripe's advanced features like Connect for marketplace models or Radar for enhanced fraud prevention.

Klarna

Klarna has become a major force in UK ecommerce 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 three payment models on Shopify: Pay in 3 (split the cost into three interest-free instalments), Pay in 30 (try before you buy with 30 days to pay), and financing for larger purchases with up to 36 months to pay. 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 instalments, Klarna absorbs the risk. Your revenue is protected.

Merchant fees start at 1.9% + 20p per transaction for Pay in 3, with rates reducing as your volume increases. 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, homeware, 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 instalment option (Shop Pay Instalments) 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. Given that an estimated 56% of UK households have an Amazon account, this provides a familiar and trusted payment experience for a large 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.

To use Amazon Pay on Shopify, you'll need an Amazon Professional Seller account, which costs £25 per month (excluding VAT). Transaction fees are 2.9% + 25p for domestic web payments and 3.9% + 25p 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 programme, which provides buyer protection but can occasionally lead to disputes that favour 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 ASOS, 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 European cards, this typically works out at around 0.6% to 1.2% plus a fixed processing fee. While this can be cheaper than flat-rate providers at higher volumes, the pricing structure is more complex and requires careful analysis.

The platform includes advanced risk management through Adyen's RevenueProtect tool, which uses machine learning to balance fraud prevention with conversion optimisation. 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 1.4% + 25p for online payments, with competitive in-person rates. Square's free POS app and affordable card readers make it accessible for smaller merchants.

Opayo (formerly Sage Pay): Opayo by Elavon processes over £40 billion in card payments annually and has a strong presence in the UK market. It offers a hosted payment page option that handles PCI compliance for you, though the setup process is more involved than cloud-native alternatives. It's worth evaluating if you're already in the Elavon ecosystem.

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 tokenised 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.

Open Banking (Pay by Bank): A growing option in the UK, open banking payments bypass card networks entirely by transferring funds directly from the customer's bank account. Providers like Atoa offer this on Shopify with lower fees (around 0.6% to 0.8%) and instant settlement. The trade-off is that adoption is still building, and the checkout experience is less familiar to many customers. It's worth watching as the technology matures.

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 favour 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? UK customers increasingly expect BNPL options and digital wallets. International customers may need local payment methods that only certain gateways support. If you're selling internationally, multi-currency support becomes essential.

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. Open banking options offer instant settlement, which is worth considering if cash flow is a priority.

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 UK 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 Instalments for buy now, pay later. This covers the vast majority of UK 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 and Shop Pay Instalments are the two strongest options, and there's no reason not to offer both since they serve slightly different customer preferences.

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 maximises conversions while keeping costs under control.

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