Shopify payments vs Paypal for optimizing checkout currency conversion rates?

If your main concern is conversion rates I suggest you offer both Shopify payments and Paypal and let the clients choose. Paypal has many advantages but the checkout process can be confusing for people unfamiliar with PayPal. The option to pay using Paypal without logging in can easily be missed and you will lose some clients if Paypal is the only available payment method. Besides conversion rates, there are other important differences between Shopify payments and Paypal that you should be aware of - Shopify store integration, transaction fees, currency conversion fees, payout schedule, chargebacks protection and prevention, fraud protection and more. For most Shopify stores the best practice would be using both payment methods.

The two hot payment methods for Shopify nowadays are Shopify payments vs PayPal.

Shop Pay vs PayPal

Here is a concise breakdown of Shop Pay vs PayPal for you:

1. Shopify Payment comes with full integration with the store. Paypal provides the default payment method.
2. You'll receive payment in 3 days through Shopify Payment and 5-7 days through Paypal.
3. Shopify gives chargeback through efficient processes and strict rules. Conversely, Paypal consumes time and charges hefty fees on chargeback.
4. Shopify vs PayPal fees: Shopify charges 1.5% to 2% for multi-currency orders depending on your country. On the contrary, Paypal charges a 3.5% currency conversion fee to USD or Canadian dollars and a 4% fee for other currencies.

Final Verdict

Shopify Payments is the best payment mode in terms of convenience, affordability and security. However, if you aren't eligible for this payment method, go for the second-best option — Paypal.