Stripe vs Shopify: Choose the Best for Your Business

Introduction

Stripe and Shopify are two of the most popular options, but they serve different purposes. While Stripe is a payment processing platform, Shopify is a complete eCommerce solution. This article will compare Stripe and Shopify, highlighting their features, advantages, and best use cases to help you decide which is right for your business.

What is Stripe?

Stripe is a payment processing platform designed to handle online transactions. It enables businesses to accept payments from credit cards, digital wallets, and bank transfers. Stripe provides powerful APIs that developers can use to integrate payment processing into websites, mobile apps, and custom applications.

Via Stripe

Key Features of Stripe

• Customizable Payment Processing via API – Provides powerful APIs for businesses to create tailored payment solutions.
• Supports Multiple Payment Methods – Accepts credit/debit cards, Apple Pay, Google Pay, ACH transfers, and more.
• Global Support with Over 135 Currencies – Enables businesses to accept payments from customers worldwide.
• Subscription and Recurring Billing Capabilities – Built-in tools for managing recurring payments and subscriptions.
• Advanced Security Features and Fraud Detection – Includes AI-powered fraud prevention and encryption for secure transactions.
• Integration with Various eCommerce Platforms – Works seamlessly with platforms like Shopify, WooCommerce, and Magento.

What is Shopify?

Shopify is an all-in-one eCommerce platform that allows businesses to create, manage, and scale online stores. It provides built-in tools for website design, product management, marketing, and payment processing through Shopify Payments (which is powered by Stripe).

Via Shopify

Key Features of Shopify

• Drag-and-Drop Website Builder – Easily create and customize an online store with user-friendly design tools.
• Integrated Payment Processing – Shopify Payments allows seamless transactions without third-party fees.
• Inventory and Order Management – Track stock levels, process orders, and manage fulfillment in one place.
• Multi-Channel Selling – Sell on Amazon, Facebook, Instagram, and other platforms from one dashboard.

Comparison: Stripe vs Shopify

Primary Function

Stripe is primarily a payment processing platform, meaning it specializes in handling online transactions and payments for businesses. In contrast, Shopify is a comprehensive eCommerce platform that enables businesses to create, manage, and run online stores, including payment processing as part of its services.

Ease of Use

Stripe requires some level of technical knowledge, particularly for businesses that want to integrate its payment solutions into their websites or apps. Shopify, on the other hand, is designed for ease of use and does not require any coding knowledge.

Customization

Stripe offers extensive customization options through its APIs, allowing businesses to build tailor-made payment solutions. This makes it ideal for companies that want full control over their payment processing experience. Shopify, while offering customizable themes, is more limited in customization compared to fully custom-built websites. 

Payment Processing Fees

Both platforms charge a standard fee of 2.9% + 30¢ per transaction in the U.S. However, Shopify offers lower rates for businesses that subscribe to its higher-tier plans, which can be beneficial for larger merchants processing high volumes of transactions.

Support for Subscriptions

Both Stripe and Shopify support subscription-based payments. Stripe has built-in subscription management tools, making it a strong choice for SaaS businesses and services that rely on recurring billing. Shopify also supports subscriptions, but users typically need to rely on third-party apps like Recharge to implement this functionality.

Best For

 Stripe is ideal for developers, SaaS businesses, and marketplaces that need a flexible and highly customizable payment solution. Shopify, on the other hand, is best suited for small to medium-sized eCommerce businesses looking for an all-in-one solution to set up and manage an online store without the need for extensive technical expertise.

Stripe vs Shopify: Pricing Comparison

Stripe Pricing Explained

Via Stripe

Stripe follows a simple pay-as-you-go pricing model with no monthly subscription fees. It charges 2.9% + 30¢ per transaction (for U.S. cards), making it cost-effective for businesses that primarily need payment processing. For businesses processing high volumes, Stripe offers custom enterprise pricing with potentially lower rates. International payments may incur additional fees, and chargebacks cost $15 per dispute, though this is refundable if the dispute is won. Since Stripe includes built-in support for subscription payments, businesses offering recurring billing can use it without additional costs.

Shopify Pricing Explained

Shopify operates on a tiered subscription model, with pricing starting at $39 per month for the Basic Shopify plan. Higher plans, such as Shopify ($105/month) and Advanced Shopify ($399/month), offer lower transaction fees and more features. Shopify also charges the same 2.9% + 30¢ per transaction on the Basic plan, but the rate decreases with higher-tier plans.

If a business chooses not to use Shopify Payments, an additional fee of 0.5% – 2% per transaction applies for third-party payment gateways. Businesses needing enterprise-level features can opt for Shopify Plus, which starts at $2,300 per month. Additionally, Shopify does not include native subscription billing, requiring third-party apps like Recharge, which come at an extra cost. Chargeback fees are $15 per dispute, and unlike Stripe, this fee is non-refundable.

Pros & Cons of Stripe

Via Stripe

Pros

• Highly Customizable – Offers powerful APIs for tailored payment solutions.
• Global Reach – Supports multiple currencies and international transactions.
• Great for Subscriptions – Built-in recurring billing for SaaS and memberships.
• Developer-Friendly – Ideal for businesses needing deep payment integrations.
• Transparent Pricing – Simple per-transaction fees with no hidden costs.

Cons

• Requires Technical Knowledge – Best suited for developers; not beginner-friendly.
• No Built-in eCommerce Features – Needs to be integrated with a separate store platform.
• Limited Customer Support – Mainly relies on documentation and email support

Pros & Cons of Shopify

Pros

• All-in-One eCommerce Solution – Provides everything needed to create and manage an online store.
• Easy to Use – No coding required; beginner-friendly interface.
• Integrated Payment ProcessingI – Shopify Payments simplifies transactions.
• Extensive App Ecosystem – Thousands of apps to expand store functionality.
• Great for Small to Medium Businesses – Ideal for entrepreneurs and growing brands.

Cons

• Limited Customization – Less flexible than custom-built websites.
• Transaction Fees (if not using Shopify Payments) – Extra charges for third-party gateways.
• Subscription Features Require Apps – Needs third-party apps like Recharge for recurring billing.
• Costs Can Add Up – Monthly fees, transaction fees, and paid apps increase expenses.

When to Choose Stripe?

Choose Stripe if you need a highly customizable and developer-friendly payment processing solution. It is ideal for businesses that require full control over their payment system, such as SaaS companies, marketplaces, and subscription-based services. If you have technical expertise or a development team, Stripe’s powerful APIs allow seamless integration into websites, apps, and platforms. Additionally, Stripe is a great choice for businesses operating globally, as it supports multiple currencies and international transactions. To explore a full comparison, read Shopify Payments vs. Stripe.

When to Choose Shopify?

Choose Shopify if you want an all-in-one eCommerce platform that makes it easy to build, manage, and scale an online store without technical expertise. It’s perfect for small to medium-sized businesses looking for a hassle-free way to sell products online, with built-in tools for inventory management, marketing, and secure checkout. Shopify’s user-friendly interface, customizable themes, and extensive app ecosystem make it ideal for entrepreneurs who want to launch quickly.

Can You Use Both Stripe and Shopify Together?

Yes, you can use both Stripe and Shopify together, but with some limitations. Shopify does not allow direct integration with Stripe as a payment processor if you are using Shopify Payments (which is Shopify’s in-house payment system powered by Stripe). However, if Shopify Payments is unavailable in your country or you prefer Stripe’s features, you can add Stripe as a third-party payment gateway—though this will incur an additional 0.5% to 2% transaction fee depending on your Shopify plan.

Final Verdict

Choosing between Stripe and Shopify depends on your business needs. If you need a powerful and flexible payment processing system, especially for SaaS, marketplaces, or subscription-based services, Stripe is the better option. On the other hand, if you want an easy-to-use, all-in-one eCommerce solution, Shopify is the ideal choice. It provides a complete platform to create and manage an online store.

Conclusion

If your focus is eCommerce with minimal technical effort, Shopify is the best choice. But if you prioritize custom payment processing and flexibility, Stripe is the way to go. You can also use both together, but Shopify Payments (powered by Stripe) is the most seamless option for Shopify store owners. However, if you need Stripe’s advanced features, integrating it as a third-party gateway is possible—though it may incur additional fees.

FAQs