Introduction
One of the first decisions every new online seller faces is: how do I actually get paid? With dozens of payment platforms available worldwide, it can be overwhelming to know where to start. This guide breaks down the most popular payment methods and platforms, what they cost, and how to choose the right one for your ecommerce store.
The Two Types of Payment Solutions
Before diving into specific platforms, it helps to understand the two main categories:
- Payment Gateways — These process the transaction between your customer’s bank and your store. Examples: Stripe, PayPal, Square.
- Payment Processors / Merchant Accounts — These hold and transfer the funds to your bank account. Many modern platforms combine both functions into one.
For most beginners, an all-in-one solution (gateway + processor) is the easiest starting point.
The Most Popular Payment Platforms
1. Shopify Payments
Best for: Shopify store owners
Countries: Australia, USA, UK, Canada, and more
Fees: 0% transaction fee (on eligible plans) + card processing rates from ~1.4%–1.75% + 30¢ per transaction (varies by plan and country)
If you’re selling on Shopify, Shopify Payments is the simplest option. It’s built directly into the platform, requires no third-party setup, and eliminates the additional transaction fee Shopify charges when using external gateways. It supports credit/debit cards, Shop Pay, Apple Pay, Google Pay, and Afterpay.
2. PayPal
Best for: Global reach and customer trust
Countries: 200+ countries
Fees: ~2.6% + fixed fee per transaction (varies by country)
PayPal is one of the most recognised payment brands in the world. Many customers feel more comfortable buying from a store that accepts PayPal because they don’t have to enter their card details directly. It also offers PayPal Pay Later (buy now, pay later) in several markets. Downsides: funds can be held or frozen if PayPal flags unusual activity, and fees can add up.
3. Stripe
Best for: Developers and customisable checkout experiences
Countries: 46+ countries
Fees: 1.7%–2.9% + 30¢ per transaction (varies by country)
Stripe is the developer’s favourite. It’s highly customisable, supports dozens of payment methods, and has excellent documentation. It’s the backbone of many ecommerce platforms (including Shopify Payments, which is powered by Stripe). If you want full control over your checkout experience, Stripe is hard to beat.
4. Square
Best for: Sellers who operate both online and in-person
Countries: Australia, USA, UK, Canada, Japan, Ireland
Fees: 1.6%–2.2% per transaction (in-person); 1.9%–2.2% online (varies by country)
Square started as a point-of-sale (POS) solution and has grown into a full ecommerce platform. If you sell at markets, pop-ups, or a physical store as well as online, Square makes it easy to manage everything in one place. It also has a free online store builder built in.
5. Afterpay / Clearpay
Best for: Increasing average order value with buy now, pay later
Countries: Australia, New Zealand, USA, UK, Canada (known as Clearpay in the UK)
Fees: ~4%–6% per transaction (merchant pays; no cost to customer if paid on time)
Afterpay lets customers split purchases into 4 fortnightly interest-free installments. Studies consistently show that offering BNPL (buy now, pay later) increases conversion rates and average order values — particularly for purchases over $100. The trade-off is higher merchant fees.
6. Klarna
Best for: European markets and flexible BNPL options
Countries: 45+ countries (strong in Europe, USA, Australia)
Fees: Varies by market and product (~2.49% + 20¢ per transaction in the USA)
Klarna offers multiple BNPL products: pay in 3, pay in 30 days, and longer-term financing. It’s particularly dominant in Scandinavia and Germany, making it essential if you’re targeting European customers. Klarna also has a strong consumer app with a built-in shopping discovery feature.
7. Zip (formerly Quadpay)
Best for: Australian and US BNPL alternative to Afterpay
Countries: Australia, USA, New Zealand, UK, South Africa
Fees: ~2%–4% per transaction
Zip is a strong Afterpay competitor, particularly in Australia. It offers both short-term (Zip Pay) and longer-term (Zip Money) credit products, giving customers more flexibility for larger purchases.
8. Apple Pay & Google Pay
Best for: Mobile shoppers and reducing checkout friction
Countries: Widely available globally
Fees: No additional fees beyond your existing payment gateway
These are not standalone payment platforms — they’re digital wallets that sit on top of your existing gateway (e.g., Stripe or Shopify Payments). They allow customers to check out with a single tap or Face ID on mobile, dramatically reducing cart abandonment. If your gateway supports them, enable them immediately.
9. Wise (formerly TransferWise)
Best for: Receiving international payments with low conversion fees
Countries: 70+ countries
Fees: Low mid-market exchange rate + small percentage fee
Wise isn’t a traditional payment gateway, but it’s invaluable for international sellers. It lets you hold and receive money in multiple currencies (USD, EUR, GBP, AUD, etc.) with far lower conversion fees than traditional banks. Ideal if you’re selling to overseas customers and want to avoid losing money on currency exchange.
10. 2Checkout / Verifone
Best for: Selling digital products and software globally
Countries: 200+ countries
Fees: ~3.5% + 35¢ per transaction
2Checkout (now Verifone) specialises in global digital commerce and subscription billing. It handles tax compliance across multiple jurisdictions, making it popular with SaaS businesses and digital product sellers who need to collect VAT/GST in different countries automatically.
Key Fees to Understand
When comparing platforms, watch out for these fee types:
- Transaction fee: A percentage of each sale (e.g., 1.75%)
- Fixed fee: A flat amount per transaction (e.g., 30¢)
- Platform transaction fee: Some ecommerce platforms (like Shopify on non-native gateways) charge an additional fee on top of your gateway’s fees
- Currency conversion fee: Charged when a customer pays in a different currency to your payout currency
- Chargeback fee: Charged when a customer disputes a transaction (typically $15–$25 per dispute)
- Monthly/setup fees: Some enterprise gateways charge these; most beginner-friendly platforms do not
How to Choose the Right Platform
Ask yourself these questions:
- Where are my customers? If you’re selling globally, prioritise platforms with wide country support (PayPal, Stripe, Klarna).
- What platform is my store on? Use the native payment solution where possible to avoid extra transaction fees (e.g., Shopify Payments for Shopify stores).
- What’s my average order value? Higher AOV? Add a BNPL option like Afterpay or Klarna to reduce purchase hesitation.
- Do I sell in person too? Square or Shopify POS are worth considering.
- Am I selling digital products or subscriptions? Look at Stripe Billing or 2Checkout for recurring billing and tax compliance.
Security & Compliance Basics
All reputable payment platforms are PCI-DSS compliant — this is the global security standard for handling card data. As a merchant, using a hosted payment gateway (where the customer enters card details on the provider’s page, not yours) means most of the compliance burden sits with the provider, not you.
Key things to always do:
- Use HTTPS on your store (SSL certificate)
- Never store customer card details yourself
- Enable fraud protection tools offered by your gateway (e.g., Stripe Radar, PayPal Seller Protection)
- Set up 3D Secure / Strong Customer Authentication where required (mandatory in the EU/UK)
Recommended Setup for Beginners
If you’re just starting out, here’s a simple, low-risk setup:
- Primary gateway: Shopify Payments (if on Shopify) or Stripe
- Alternative checkout: PayPal (many customers prefer it)
- Digital wallets: Enable Apple Pay and Google Pay through your gateway
- BNPL (optional but recommended): Afterpay or Klarna depending on your market
This covers the vast majority of customers and keeps your setup manageable.
Final Thoughts
You don’t need to offer every payment method on day one. Start with a solid primary gateway, add PayPal for trust, enable digital wallets for mobile, and consider BNPL once you’re generating consistent sales. As your store grows, revisit your payment stack to optimise for your specific customer base and markets.
The best payment platform is the one your customers actually use — so know your audience, keep fees in check, and make checkout as frictionless as possible.
