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.
When choosing a payment 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.
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 a third-party that will take payments on behalf of your business, charging transaction and processing fees accordingly, and then later transfer the money into your bank accounts.
What’s interesting about Stripe is that they’ve 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.
All in all, Stripe is ideal for businesses who want an easy-to-setup payment processing tool they can have running quickly.
As a flexible solution, Stripe is a great starting point for businesses that don’t use Shopify to handle their eCommerce business.
Check out: Stripe Reports: What Is and Isn’t Available
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 if 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.
If you’re already using a Shopify plan, Shopify Payments is a simple, streamlined way to process payments in your Shopify store.
Related: Shopify Markets: What Shopify Partners Need to Know
Since Shopify Payments runs on Stripe, both have very similar fee structures and accept practically the same payment methods.
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.
See Also: Stripe vs Gumroad: Features, Pricing, Reviews, and More
Another factor to consider as you compare and contrast Shopify vs. Stripe is the implementation process.
The complexity of the Stripe implementation process depends on your company’s needs. While some startups can simply integrate Stripe for payment processing on their website, other companies may need to use the API to build custom integrations.
For example, according to Stripe, implementing Stripe Payments can take anywhere from a week to three months. Luckily, Stripe offers in-depth implementation guides for all of their services that you can use as support.
If you’re already using Shopify as your online storefront, implementing Shopify Payments is seamless. However, if you’re not using Shopify, you’ll need to migrate before using Shopify Payments, which can be a complex task if you’re already established.
Just like any other platform, both Stripe and Shopify Payments have their pros and cons. Here’s a quick overview of those advantages and disadvantages.
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Related Read: Stripe Analytics Alternative
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 make 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.
See Also: Shopify Marketplace Kit: What it is and How to Use it
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.