Shopify Payments vs PayPal
Use both. Shopify Payments should be your main payment method because it has lower card fees and no extra Shopify transaction fee. PayPal should be added alongside it, because many UK shoppers trust and prefer it. Using PayPal alone means paying Shopify's third-party fee on top of PayPal's own fees.
By Abdullah Ashraf, Shopify expert · Last updated: October 2026
Side-by-side comparison
| Shopify Payments | PayPal | |
|---|---|---|
| UK online card fees | 2% to 1.5% + 25p by plan | PayPal's own rates, usually higher |
| Shopify transaction fee | None | None if Shopify Payments is also on; otherwise 0.6% to 2% |
| Customer trust | Standard card checkout, Shop Pay | Very well known |
| Payouts | To your bank account | To your PayPal balance |
Costs in the UK
Shopify Payments charges 2% + 25p on Basic, 1.7% + 25p on Grow and 1.5% + 25p on Advanced for UK online cards. PayPal charges its own fees per transaction; check PayPal's UK business fees page.
Prices change. Check each provider's current UK pricing page before deciding.
Which should you choose?
Choose Shopify Payments if…
- You want the lowest card fees
- You want Apple Pay, Google Pay and Shop Pay
- You want simple payouts
Choose PayPal (alongside) if…
- Your customers ask for it
- You want to offer PayPal Pay Later
- You sell to international buyers who prefer PayPal
Frequently asked questions
Can I use both?
Yes, and most UK stores should.
Why is my Shopify payout on hold?
How do I set up Shopify Payments?
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