Stripe VS Shopify

Stripe and Shopify are very popular with new business owners because they offer easy, out-of-the-box solutions that include all the major features necessary to sell products or services and accept payments. Both companies focus primarily on the eCommerce sector but can also work in a retail setting. At the same time, they’re two very different companies, and choosing between them will often come down to the specific needs of your business.

In this Stripe vs. Shopify comparison, we’ll show you how Stripe and Shopify compare in terms of pricing and features and give you some pointers to help you determine when one company might be a better solution than the other for your business.

Because Stripe doesn’t offer an integrated web store builder comparable to Shopify’s, we’ll focus primarily on each company’s payment processing services.

Stripe VS Shopify: At A Glance

In comparing Stripe VS Shopify, the first thing to consider is that both companies offer payment processing. However, Shopify also includes an extensive online store, allowing businesses to obtain every feature they need from a single vendor — and without having to do any programming.

Stripe Overview

Stripe Payments is ideal for an ecommerce-only business or one that only occasionally needs to accept an in-person payment. Newly-launched businesses can use Stripe’s basic payment gateway features out of the box without the need for technical skills. However, you’ll need a developer or your own coding knowledge to take full advantage of Stripe’s many advanced customization features.

Stripe offers a simple, predictable pricing structure for new businesses, but you can also obtain a customized pricing quote that will probably save you a lot of money on processing costs once your monthly processing volume reaches a higher level.

Shopify Overview

Shopify Payments — which is actually powered by Stripe — is Shopify’s built-in payment processing service. You can also use Shopify with a third-party processor of your choice. However, you’ll have to pay additional fees to Shopify for every transaction you process if you choose this option. For most small businesses, it’s easier and more affordable to stick with Shopify Payments if you’re going to sign up with Shopify.

Like Stripe, Shopify offers true month-to-month billing with no long-term commitment. While the Shopify Payments processing service is included for free with your Shopify account, Shopify itself requires a monthly subscription fee. Shopify Payments uses a flat-rate pricing plan that’s very similar to Stripe, which will make your monthly statements easy to understand and keep your overall processing costs predictable.

What’s The Difference Between Stripe & Shopify?

At first glance, Stripe and Shopify appear to offer similar products and features, with both companies providing all-inclusive payment processing systems that include a payment gateway and robust credit card processing services.

However, there are important differences that will make one company a better choice for specific business cases than the other.

In general, Stripe works better for online-only businesses that don’t want to pay a monthly subscription fee and need access to alternative payment methods, such as ACH transfers. On the other hand, Shopify is a better choice for businesses that want a completely prebuilt web store solution and have a retail channel in addition to an online presence.

Get Started with Stripe Payments

or

Get Started With Shopify

Both Stripe & Shopify Offer…

Only Stripe Offers…

Only Shopify Offers….

Stripe VS Shopify Pricing

The key difference in pricing between Stripe and Shopify is that Shopify charges a monthly subscription fee for its online store, whereas Stripe accounts come with no monthly fee. Transaction processing costs are nearly identical, although Shopify offers lower rates if you choose a more expensive monthly plan.

In determining which provider will be less expensive for your business overall, you’ll also have to factor in the cost of any optional add-ons that you need. Shopify’s monthly subscription fees aren’t cheap, but they may save you the expense of hiring a developer if you can’t customize Stripe’s many options on your own. At the same time, Stripe offers customized pricing for high-volume businesses, whereas Shopify does not. Customized pricing usually includes lower processing rates but may also come with additional monthly fees.

For more detailed pricing information, check out our complete guide to Stripe pricing and our guide to Shopify pricing.

Stripe VS Shopify Features

Stripe and Shopify offer fully-featured integrated payment platforms that handle all your online payment processing needs.

In terms of support for in-person transactions, however, Shopify emerges as a clear winner.

Stripe has recently begun to offer support for retail transactions, but its current Stripe Terminal service requires you to build your own customized checkout using precertified third-party card readers. On the other hand, Shopify offers mobile card readers and POS software systems that work right out of the box. With Stripe’s recent acquisition of terminal manufacturer BBPOS, we anticipate that the company will expand its in-person offerings in the near future, and these current limitations will become a thing of the past. For now, however, Shopify offers a much more convenient way to accept in-person payments.

Which Is Best For My Business Needs: Stripe Or Shopify?

As we’ve seen above, deciding between Stripe and Shopify will usually come down to choosing the provider that best meets the needs of your business. Shopify, for example, lacks support for certain features such as invoicing and ACH payments, thus making it a poorer choice than Stripe for businesses that rely on those features.

At the same time, the need for technical skills to fully implement Stripe’s advanced features can make Shopify a better choice for merchants who lack those skills. In making a final decision between these two providers, consider the following:

Choose Stripe If…

Choose Shopify If…

Choose Stripe Payments

or

Choose Shopify

Stripe VS Shopify Comparison: The Final Verdict

Both Stripe and Shopify have a lot to offer to any e-commerce business that also has a retail sales channel. Shopify focuses on offering a simple solution that works right out of the box, whereas Stripe excels at offering advanced customization options to merchants with the skills and knowledge to implement them. With both companies offering complete payment processing systems that don’t require a long-term contract and very similar pricing, choosing between them will often come down to selecting the provider that offers the specific features your business needs the most.

As a very general rule, we recommend Shopify to new business owners who need a simple, all-in-one solution to accept payments.

For more sophisticated users with specialized needs, Stripe offers a more powerful and customizable platform — if you have the technical skills to take advantage of its advanced features. For more in-depth information on Stripe and Shopify, please refer to the following articles:

• How Does Stripe Work? The Complete Guide To Stripe For Business
• What Is Shopify & How To Use Shopify In 2022

FAQs: Stripe VS Shopify