Shopify Payment Methods: Which Payment Gateways to Offer in 2026

Payment Method Breadth Directly Affects Conversion Rate

9% of checkout abandonment is caused by “no suitable payment method available” (Baymard Institute). Every payment method you don’t offer is a segment of buyers you’re not converting. The cost of adding an extra payment method is minimal; the cost of not having it is every sale that doesn’t complete because the buyer’s preferred payment option isn’t available. Start with Shopify Payments, add PayPal, add BNPL, then consider local methods for your primary markets.

Shopify Payments

Shopify Payments is Shopify’s native payment processor (powered by Stripe). Advantages: no additional transaction fees (only standard card processing fees), fastest checkout flow (Shop Pay accelerated checkout), unified payouts and reporting in Shopify Admin, automatic fraud protection. UK rates: 1.7% + 25p (Shopify plan), 1.6% + 25p (Advanced). The main limitation: not available in all countries (check Shopify Payments eligibility for your region).

PayPal

Despite its age, PayPal remains essential: 400 million active accounts globally, one-tap checkout for returning PayPal users, trusted brand that converts hesitant buyers. Enable PayPal Express in Shopify Admin → Settings → Payments. Note: PayPal charges its own transaction fees (1.2–2.9% depending on volume) which stack on top of your payment gateway fees. Still worth it — the conversion uplift from offering PayPal more than covers the fees.

Buy Now Pay Later (BNPL)

• Klarna — “Pay in 3” (UK), “Pay Later” (30 days). 18–35 demographic, fashion and electronics particularly strong. Klarna charges merchants ~5.99% + 20p
• Clearpay/Afterpay — 4 interest-free instalments. Lower merchant fee than Klarna, good for fashion and beauty
• Laybuy — 6 weekly instalments, popular in Australia and NZ, growing UK presence
• BNPL typically increases AOV by 15–30% because buyers feel the psychological impact of large prices less when split into instalments

Apple Pay and Google Pay

Dynamic checkout buttons (Apple Pay, Google Pay, Shop Pay) are enabled automatically with Shopify Payments. They appear on product pages and cart — allowing one-tap purchase for qualifying devices. These reduce mobile checkout friction dramatically and have measurably higher conversion rates than traditional form-fill checkout. Ensure they’re enabled in Shopify Admin → Settings → Payments → Accelerated checkouts.

Need payment gateway advice or configuration for your Shopify store? Our team sets up the right payment stack for your market and audience. Get in touch.