Stripe vs. Shopify: Which Is Right for Your Business in 2026?
Shopify makes it easy to build an online storefront. Stripe is better for businesses that already have a website or prefer payment links.
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Updated · 1 min read
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Managing Editor Stripe and Shopify are both popular online payment processing services for businesses. But the products are inherently different.
Stripe primarily helps businesses accept online payments via checkout modules and payment links. Shopify is first and foremost an e-commerce platform. Yes, it lets you process online payments. But it also gives you the ability to create, customize and manage an online store.
Stripe is better for:
✔️ Service-based businesses.
✔️ No monthly fees.
✔️ Developer tools.
Shopify is better for:
✔️ Online processing discounts.
✔️ Prebuilt website templates.
✔️ Quickly growing online retailers.
Stripe pros and cons at a glance
Pros
No monthly fee.
Lots of customization options.
Supports online service-based and retail businesses.
Cons
May be difficult to customize without software development expertise.
Limited functionality for in-person businesses.
» MORE: Stripe fees
Shopify pros and cons at a glance
Pros
Variety of website templates.
Shipping and processing discounts.
POS tools for online and in-person selling.
Cons
Monthly plans can be expensive.
» MORE: Shopify plans and pricing
Stripe vs. Shopify: Head-to-head comparison
| Stripe | Shopify |
|---|---|
| Monthly POS software costs | |
| $0 per month. | $39 to $399 per month. |
| Payment processing fees | |
|
|
| Hardware costs | |
|
|
| Customer service | |
| 24/7 live chat. Phone and email support only available as add-ons. | 24/7 chat support in all plans. Phone support available for Plus and Retail plan subscribers. |
More details on Stripe's plans and pricing
Monthly POS software costs:
- $0 for standard services.
Payment processing fees:
- 2.7% plus 5 cents for in-person transactions.
- 2.9% plus 30 cents for online transactions.
- 3.4% plus 30 cents for manually keyed transactions.
- 4.4% plus 30 cents for international card transactions.
Hardware costs:
- $59 for Stripe Reader M2.
- $249 for BBPOS WisePOS E card reader.
- $349 for Stripe Reader S700.
More details on Shopify's plans and pricing
Monthly POS software costs:
Shopify e-commerce plans:
- $29 for Shopify Basic when billed annually (or $39 when paid monthly).
- $79 for regular Shopify when billed annually (or $105 when paid monthly).
- $299 for Shopify Advanced when billed annually (or $399 when paid monthly).
- $2,300 per month and up for Shopify Plus.
- Upgrading to POS Pro for brick-and-mortar businesses costs an extra $89 per location.
Shopify’s alternative solutions for mainly selling in-person:
- $5 for Starter plan.
Payment processing fees:
- For online payments made with standard cards: 2.5%, 2.7% or 2.9% plus 30 cents in Advanced, Shopify or Basic plan, respectively.
- For online payments made with business or American Express cards: 3.1%, 3.3% or 3.5% plus 30 cents in Advanced, Shopify or Basic plan, respectively.
- For in-person payments: 2.4%, 2.5% or 2.6% plus 10 cents for in-person payments in Advanced, Shopify or Basic plan, respectively.
Hardware costs:
- $49 for Tap & Chip card reader.
- $219 for Tap & Chip countertop kit (iPad not included).
- $349 for Shopify POS terminal.
- $459 and up for POS terminal countertop kits.
Where Stripe stands out
Customizability
Stripe is highly customizable. If you have developer experience, you can use its open API to build your own custom checkout flow. Or you can opt for its prebuilt checkout form and embed it into an existing website. Payment links are another option.
Isn't limited to retail businesses
Unlike Shopify, Stripe wasn't built specifically for businesses with online storefronts. Online retailers can definitely use it. But so can freelancers and service-based businesses that mostly transact through invoice or payment link.
Where Shopify stands out
E-commerce tools
Shopify and Stripe both specialize in online payments. But Shopify has more e-commerce tools than Stripe does. And lots of them don't require any developer experience.
For example, Shopify has more than 1,000 website themes to choose from. Most cost extra, but there are more than 20 free options as well. This makes it easy for anyone to create a professional-looking online storefront.
Online rate discounts
Shopify's processing rates decrease as you upgrade monthly POS plans. For example, you pay 2.9% plus 30 cents per online transaction in the Basic plan. If you upgrade to the Advanced plan, though, you'll pay 2.5% plus 30 cents. Granted, the Advanced plan is much more expensive at $399 vs. $39 per month. Shopify also provides shipping discounts (up to 87%), regardless of which plan you subscribe to.
Stripe vs. Shopify: Which is better for your business?
Shopify is better for online retailers that require an all-in-one e-commerce solution. It has all the tools you need to build an online store and accept the occasional in-person payment.
Stripe, on the other hand, is more ideal for businesses that only need an online payment processor. For example, maybe they already have their own website. They just have to embed a checkout module. Stripe can also accommodate service-based businesses, whereas Shopify does not.
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NerdWallet independently reviews payment processing companies before determining our top picks. We collect the data for our software ratings from products’ public-facing websites and from company representatives. Our editorial team reviews information on a regular basis for consistency and accuracy.
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These ratings are a guide, but fees, hardware, software and contract requirements can vary widely from business to business and provider to provider. We encourage you to shop around and compare several providers.
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