The 7 Best Payment Gateways for Dropshipping Stores in 2024

Are you setting up your dropshipping store and looking for payment gateways?

Then you've come to the right place.

This article covers the seven best payment gateways to use, as well as the best combinations!

7 Best payment gateways for dropshipping

These are the seven best payment gateways for dropshipping:

1. Shopify Payments

If you have your dropshipping store set up on Shopify, then Shopify Payments is one of the best payment gateways to use.

Shopify Payments is completely integrated with the Shopify platform:

It takes just a few clicks to set it up!

Note: Recently, Shopify has also made their own payment gateway app called Shop Pay. You can read more about them here. You can activate Shop Pay through Shopify Payments. Shop Pay will remember important details, so your customers can focus on filling their carts instead of forms!

Pros

• Extremely easy to set up with your Shopify store
• Completely integrated with Shopify
• Accepts all major credit cards
• Supports some country-specific payment methods
• Payouts every 3 business days
• Only pay the credit card issuer's rate, no additional transaction fees
• If enabled, it removes the extra 2% transaction fee for other payment gateways enabled on your store

Tip: Have you already created your Shopify account? If not, sign up by clicking this link here to get a free 3-day trial + 1 month for $1!

Cons

• Shopify Payments deducts 15$ for each chargeback you get. However, if you win the chargeback, you get it back
• Only available in certain countries
• Some types of businesses and services are not permitted to use Shopify Payments
• Only available on Shopify

Tip: If you want to win your chargebacks, consider using Chargeflow. It's a company that uses AI to fight your chargebacks for you.

Chargeflow offers an industry-leading win rate, and you only pay when they successfully recover a chargeback, so it's worth checking out!

Pricing

The credit card rates start at 2.9% + 30¢ for the Basic Shopify plan, lower to 2.6% + 30¢ for the Shopify plan, and are the lowest at 2.4% + 30¢ for the Advanced Shopify plan.

Related article: Shopify Payments: The Definitive Guide (2024)

2. PayPal

Who doesn't know PayPal, this might be the most popular payment gateway for both dropshippers and the general public!

Although not always perfect, the fact that many people know and trust this payment provider makes it a great addition to your dropshipping store.

Pros

• Very well-known and trusted all around the world
• Available in more than 200 countries and supports 25 currencies
• Supports all major credit cards
• No startup costs, no termination fee, no monthly fees
• Withdraw your money at any time & for free (assuming it isn't on hold)

Cons

• Poor customer service
• For no apparent reason, your money can be put on hold for up to 180 days. If you are struggling with PayPal holds or don't want this to happen to you, check out our article about Using PayPal for Dropshipping: How to Not Get Banned.
• High fee (3.5-4 %) when converting currencies (e.g. if you have USD on your account, but want to convert it to EUR for your payout)
• In general, relatively high transaction fees

Pricing

The transaction fees depend on the country you're from. If you are from the US, and you receive funds from a PayPal account inside the US, you will pay 2.9% + 30¢.

But, if you receive funds from a PayPal account outside the US, you will pay 4.4% of the transaction amount plus a fixed fee based on the currency.

Tip: If you're using PayPal, get an order syncing app like Proveway to automatically sync your tracking numbers with PayPal and avoid money holds!

3. Stripe

Stripe is a payment gateway, which is a popular alternative to Paypal.

It also has strong partnerships and integrations with Shopify.

Stripe actually provides Shopify with their Shopify Payments gateway! It's US-based and currently available for businesses in 40 countries.

Important: For those that are wondering if you can use Stripe while dropshipping, check out this article here for more information.

Pros

• Modern user interface
• Flexible and customizable
• Supports 135+ currencies
• Automatically transfers the funds to a bank account
• Transparent pricing

Cons

• Requires a little programming knowledge to customize
• Transaction fees are similar to PayPal's
• Transactions & payout speed could be faster
• In comparison to the number of currencies, merchant accounts can only be created in a limited amount of countries.

Pricing

Similar pricing to Paypal. See this page for Stripe's detailed pricing.

For international payments, they charge 2.9% + €0.25, and if currency conversion is required, an additional 2% fee will apply.

4. Amazon Pay

Who doesn't know Amazon, the giant technology company that just keeps growing?

Amazon Pay is its own payment gateway, which means that people who are familiar with the brand will trust it.

In the US alone, Amazon Prime already has 112 million users, and it's growing every day.

Amazon Pay is convenient as well; consumers can just log into their Amazon account and use their pre-saved payment information to buy your product.

Pros

• Low-barrier payment method for Amazon users, they know and trust Amazon Pay's interface and their payment information is saved
• Available on all devices
• Excellent fraud protection
• Offers extra features like voice shopping

Cons

• Not the cheapest, Amazon Pay's transaction fees are similar to PayPal's
• Programming knowledge is required to set up Amazon Pay on your online store unless you use Shopify (in that case, Amazon Pay is integrated with Shopify Payments)
• Sometimes, you will have to pay extra fees like domestic processing fees and cross-border processing fees

Pricing

For a US domestic transaction, Amazon Pay charges a transaction fee of 2.9% + $0.30, while they charge a transaction fee of 3.9% + $0.30 for cross-border transactions.

For detailed information about Amazon Pay's pricing per country, check out this page.

5. Google Pay

Google Pay is another payment gateway from a trusted and well-known brand, perfect for your dropshipping store!

If you have ever used Google Pay yourself, you will know that it is a very fast, easy, and convenient payment method.

It also lets you store and save your credit card on your Google account, which makes paying online for a product, app, or service even faster.

Pros

• Fast, convenient, and cheap transactions
• Integrated within Shopify Payments (for those with a Shopify store)
• Protects your payment info with industry-leading security technologies
• Loyalty programs, rewards, and cashback available for customers
• Free bank transfer and debit card transactions
• Can save your payment information & address

Cons

• For some phones and countries, the features of Google Pay are limited
• While rising, the number of people using Google Pay is still relatively low

Pricing

Bank transfers and debit card transactions are free. However, if use credit cards or PayPal through Google Pay, you will be charged 2.9% of the transaction amount in total as a fee for the credit card issuer or PayPal.

6. Apple Pay

As a dropshipping payment gateway, Apple Pay has similar characteristics to Google Pay.

The main difference is that Apple Pay targets Apple users.

Besides being awesome for internet purchases, Apple Pay is the most popular payment gateway for mobile wallet transactions. In this study, they account for 77% of mobile wallet transactions.

Pros

• Let your customers pay without having to create an account or fill out lengthy forms
• Secure payments just take one touch with Touch ID
• Beautiful & simple user interface
• Integrated with Shopify Payments (for those with a Shopify store)
• Accepts all major credit & debit cards

Cons

• Only available for Apple product users

Pricing

Apple Pay only charges a fee to the credit card's issuer and doesn't charge a fee on top of that for themself. For a standard credit card transaction, the fee will be the industry average of 2.9%.

7. Crypto Payments

Next up is something that you might not expect; crypto payments!

Yes, that's right. You can also start accepting crypto payments in your dropshipping store.

We wrote an awesome article about this where we cover three crypto payment gateways, and we cover the reasons why people start accepting cryptocurrencies:

How To Accept Bitcoin (& Other Crypto Payments)?

The only thing is that the article is focused on Shopify, but if you're not using Shopify, then don't worry!

They all integrate with other ecommerce platforms as well, so check out the article here.

Bonus: Wise (Formerly TransferWise)

As a bonus, we will cover Wise!

Wise is a relatively new PayPal competitor that offers a solution to customers who want to pay via bank transfer.

This money transfer service is specialized in making cheap and fast international transactions.

It is specifically made for people who make lots of international transactions, and it claims to be 19x cheaper than PayPal:

So, if you send money abroad often (for example, to pay your supplier), then definitely check out Wise!

Don't forget that Wise isn't a payment gateway, but we added it here because it can save you a lot of money if you need to send money to, for example, your supplier.

Pros

• Fast and cheap transactions. Thanks to their real exchange rate system, you could save 75.21 EUR when making a 1000 EUR payment to a GBP account. Also, the payment arrives in seconds. Compare their transaction cost with Paypal's here
• They are well-known and trusted for international transactions, having over 8 million customers
• Transparent pricing
• Support for over 50 currencies with their multi-currency account service

Cons

• Not many extra features like recurring billing
• Can only be used for bank transfers

Pricing

At Wise, the transaction fee is different for each transaction.

You can experiment with their fees yourself here.

One thing is for sure, though: You will pay less than you would with PayPal!

Bonus #2: Juni.co

As a bonus tip related to payments, we would like to tell you about Juni.

It's a product you simply must know about if you are worried about how you will manage all these different payment gateways!

Juni (juni.co) is a fintech solution made for digital entrepreneurs operating in the UK, Europe, and Norway.

With Juni, you can connect your ad networks (Google Ads, FB Ads, etc.), payment gateways (PayPal, Stripe, etc.), and bank accounts in one place.

The benefit?

You will be able to track the ROI across all your business's activities and improve cash flows!

If you’re running multiple Shopify stores, Juni makes creating this financial overview effortless with its Shopify integration.

Simply follow the steps below to activate it:

One of Juni's most significant perks is that you can get up to 1% cashback on all eligible card spending. This may not seem much, but when scaling your business, it can really add up!

Other benefits include:

• Virtual cards. With Juni, you can generate as many virtual cards as you need in GBP, USD, and EUR.
• Get savings relevant to your business. For example, as Juni's customer, you can get a 20% discount on the Loox Shopify app or a 15% discount on the BeProfit Shopify app.

So, what does all of this cost?

Turns out, not much!

Juni tried to eliminate as many fees as possible, as you can see on their pricing page.

As a result, you can sign up, get insights, create IBAN accounts, and generate all the virtual Juni cards you need for free!

The only thing that isn't free on Juni's pricing page is the account transfer FX fees, which can cost up to 0.25% of the transferred amount.

If all of this sounds interesting, you can find more about Juni on their website here!

3 Best payment gateway combinations for dropshipping

Implementing just one payment gateway on your dropshipping store is often not good enough, especially if you're selling internationally.

Hence it makes sense to use a combination.

Below you can find the best combinations to start with:

1. Shopify Payments and PayPal
2. Stripe and PayPal
3. PayPal, Google Pay, and Apple Pay

1. Shopify Payments and PayPal

One of the best combos you can use for your dropshipping store is Shopify Payments with PayPal.

This combination can really help your business grow!

Shopify Payments is the default payment gateway for Shopify stores. It's super convenient because you don’t need to set up a third-party service.

You can get started with just a few clicks and there's no need to deal with complicated integrations.

Besides that, you've got PayPal, which is one of the most trusted names in online payments.

Using Shopify Payments with PayPal gives you the best of both worlds. Here’s why:

• Flexibility for customers. Some customers prefer paying directly with their credit card (Shopify Payments), while others trust PayPal more.
• Boost in sales. When customers see multiple payment options, it can lead to higher conversion rates.
• Smooth operations. Both gateways are reliable and widely used. This means fewer technical issues and smoother transactions for you and your customers.
• Professional image. Offering multiple payment methods makes your store look more professional, which can build trust and credibility.

2. Stripe and PayPal

While Shopify Payments with PayPal is a great combo, some people (mainly those who don't use Shopify) set up Stripe with PayPal instead.

This combination also gives the following benefits:

• Greater flexibility. Stripe is known for its flexibility and offers extensive customization options. If you have some technical knowledge or a developer on your team, you can create tailored payment experiences that fit your business needs perfectly.
• Global reach. Stripe operates in more countries than Shopify Payments, making it a better choice for dropshippers targeting a truly global market.

3. PayPal, Google Pay, and Apple Pay

Another awesome payment gateway combo to consider for your store is PayPal, Google Pay, and Apple Pay.

This trio can cover all bases:

• Cater to different preferences. By offering these three payment options, Android users can use Google Pay, Apple users can use Apple Pay, and everyone else can use PayPal.
• Increase sales. Offering multiple payment methods can reduce cart abandonment and increase your sales conversion rates. Customers are more likely to complete their purchase if their preferred payment method is available.
• Enhanced security. All three payment gateways offer robust security features, protecting both you and your customers from fraud and unauthorized transactions.
• Convenience for mobile shoppers. Many people shop on their mobile devices. Google Pay and Apple Pay provide a seamless mobile shopping experience, making it easier for customers to buy from your store.

Things to consider before choosing a payment gateway

When choosing a payment gateway for your dropshipping store, you can't just pick one and expect it to work.

Here's a short list of things to consider:

Does it work with the country and currency of your target audience?

One of the first things to consider is which countries you will be selling to.

Make sure to check that your payment gateway supports those countries and also supports any different currencies used in those countries.

Ideally, you should pick a payment gateway that people in your target country will recognize (the more popular payment methods in that country).

Note: This list is more internationally orientated. If you are planning to target a specific country, always research what the most popular payment method in that country is beforehand.

For example, Klarna is a very popular payment gateway in Germany, and adding it to your dropshipping store will increase your conversion rate if you have customers in Germany.

If you want to learn more about payment gateways in your country or region, you can get payment information sorted by country here!

And if you're not sure yet which country you're going to target, then take a look at this article here with plenty of examples. That article even contains countries that are better to avoid when dropshipping.

Does it support dropshipping?

Some payment gateways will reject you once they learn that you are dropshipping.

They claim that dropshippers get many chargebacks and therefore associate everyone who is dropshipping as part of a "high-risk" group. For this reason, they generally don't want to do business with dropshippers.

Other payment gateways have restrictions for certain product groups, like here:

In general, most payment gateways don't have an explicit rule in their terms of service stating that dropshippers are not allowed. Often, they just do not like working with dropshippers.

However, if you make sure to keep your customers happy and the number of chargebacks low, you will rarely have problems with your payment gateway.

If you want to keep your customers happy, check out our complete customer service guide for dropshipping stores!

What are the transaction fees?

If you are planning to scale your store, this is an important point to consider.

When dealing with large volumes of orders, an extra percentage point in transaction fees can impact your profit quite significantly.

Under certain conditions, some payment gateways offer free transactions, while the expensive ones can charge up to 4.9%!

How is the customer service?

For your own peace of mind, it's better to pick a payment gateway with excellent customer service.

I often hear horror stories about people claiming that their whole account has been set on hold while customer service doesn't reply:

Sometimes, they even have to stop their advertisements because their cash flow has stopped.

In conclusion, a good payment gateway puts your money on hold less quickly, and if it happens, should have great customer service to resolve the issue with you.

Conclusion

Picking a payment gateway for your dropshipping business can be a hard task.

As I mentioned at the beginning of the article, there are quite a few things to consider.

Each payment gateway has its pros and cons!

If you are just starting out, I recommend you not to look at things like pricing too much.

The most important factor is that your customers will be able to pay using their preferred payment method!

This will increase your sales, which will more than compensate for the extra transaction fees.

So, first, find out which countries you would like to sell to and what the most popular payment methods are in those countries. Then, I recommend picking the most popular methods, such as Shopify Payments and PayPal.

If you have trouble with those, you can always try and test some of the smaller ones.

If you have any questions, please leave a comment down below.

Want to learn more about dropshipping?

Ready to move your dropshipping store to the next level? Check out the articles below:

• 9 Best Payment Gateways for International Transactions
• How Do You Pay a Dropshipping Supplier for Their Products?
• Dropshipping Payments: Everything You Need to Know in 2024

Plus, don’t forget to check out our in-depth guide on how to start dropshipping here!