When choosing a payments processor, businesses have a lot of goals in mind. In addition to keeping fees low, you want to make sure the service is reliable, fast, and able to offer your customers a smooth experience. So, when it comes to comparing platforms, major players like Stripe and Shopify Payments are likely to top your list.
Both of these platforms are excellent, particularly for budding startups, but are they the right fit if you want to scale up fast?
While they may not offer the same in-depth reporting and analytics as an advanced platform, such as Baremetrics, a side-by-side comparison will help you make an informed decision.
Get deep insights into your company's MRR, churn and other vital metrics for your SaaS business.
Stripe Overview & Features
Stripe is a payment service provider rather than a merchant account provider. Knowing the difference between these two types of providers is the first step in figuring out what your business needs.
A payment service provider like Stripe is basically a third-party who will take payments on behalf of your business, charging transaction and processing fees accordingly, and then later transfer the money into your business' bank accounts.
What's interesting about Stripe is that they've really tried to become an all-in-one platform for business payments.
They have over 450 integration options and offer services like a terminal for in-person payments, business financing, and more. Additional features include:
- Accept Apple Pay and Google Pay
- Accept all major credit cards and debit cards
- Accept local and international payments
- Accept ACH debit and wire transfers
- PoS (Point of Sale) system available
- Accept over 135 currencies
- Available in 36 countries
- Average payout time of 2 business days
- 24/7 support via chat, phone, or email
All in all, Stripe is ideal for businesses who want an easy-to-setup payment processing tool they can have running in under a day.
As a flexible solution, Stripe is a great starting point for businesses who don't use Shopify to handle their eCommerce business.
Shopify Payments Overview & Features
Shopify Payments is actually a payment gateway that runs on Stripe, which is why you'll see so many similarities between the two options.
In reality, the only reason a business will choose Shopify Payments is that they're already using Shopify to process their eCommerce sales in a seamless checkout experience. Shopify Payments also offers just about the same payment options as Stripe.
If you're just starting out, choosing Shopify Payments will allow you to bundle a payments processor (i.e., Stripe) with an eCommerce platform (i.e., Shopify) so that you don't have to worry about hiring developers or designing your storefront.
This makes launching an online store easy, although Shopify itself has its setbacks.
- Accept Apple Pay and Google Pay
- Accept all major credit cards and debit cards
- Accept local and international payments
- Accept over 85 currencies
- Available in 15 countries
- Average payout time of 2 business days
- 24/7 support via chat or phone
If you're already using a Shopify plan, Shopify Payments is a simple, streamlined way to process payments in your Shopify store.
Pricing & Transaction Fees
Since Shopify Payments runs on Stripe, both have very similar fee structures and accept practically the same payment methods. In fact, they're all but identical. The only real difference is that Shopify Payments requires you to factor in your Shopify membership, which is the only type of monthly fee you'll have to pay to use the service.
Stripe Fees
- 2.9% and $0.30 per online payment
- 2.7% and $0.05 per in-person payment
- In-person transactions require you to purchase a card reader, which Stripe sells for $59 or $299
Shopify Payments Fees
- Shopify monthly membership required, which starts at $29/month
- 2.9% and $0.30 per online payment
- 2.7% and $0.05 per in-person payment
- In-person transactions require you to purchase a card reader, which Stripe sells for $59 or $299
Which Platform is Best for Your Business?
Both of these solutions make the checkout process simple to set up and manage, with the ability to easily accept credit card payments and a variety of other options that will be sent straight to your Stripe account.
They also offer a PCI compliant payment process along with a high-risk detection functionality that will help prevent chargebacks — all of which makes them powerful business tools.
Stripe offers an easy-to-setup solution for small businesses, and Shopify Payments allows new store owners to bundle that easy payment solution with a point-and-click online store.
Of course, there comes a time when a business outgrows the offerings of Stripe and similar providers, and that's why Baremetrics exists.
Power Your Growing Business
Are you considering launching an online store? Do you already run a successful eCommerce business? If you've determined that Stripe or Shopify Payments can't offer the features you need, or if your plans to scale don't quite fit into the restrictions of these service providers, we encourage you to learn more about Baremetrics.
With in-depth reporting and analytics, Baremetrics will help you gain more insights into your customers through segmentation, forecasting, and benchmarks that will help you thrive.
Ready to get on the path to growth? Start your free trial today and see what Baremetrics can offer your business.
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