Does Shopify Use Stripe? A Complete Breakdown of Shopify Payments

If you are researching payment gateways for your online store, one question comes up again and again: does Shopify use Stripe? The short answer is yes—but the full explanation matters, especially if you are choosing Shopify for the long term or planning to scale your business.

In this in-depth guide, we will clearly explain how Shopify uses Stripe, how Shopify Payments works behind the scenes, which countries are supported, what fees apply, and when Stripe may or may not be the right option for your store. Everything is written in simple, practical language so you can make the right decision with confidence.

What Is Shopify Payments?

Shopify Payments is Shopify’s built-in payment gateway. It allows merchants to accept credit cards and popular payment methods without needing to connect a third-party provider.

Instead of setting up a separate merchant account, Shopify Payments lets you:

• Accept major credit and debit cards

• Use local payment methods in supported countries

• Avoid extra transaction fees charged by Shopify

• Manage payments directly from your Shopify dashboard

This built-in solution is designed to make store setup faster, smoother, and easier for merchants of all sizes.

Does Shopify Use Stripe?

Yes, Shopify uses Stripe as the underlying payment processor for Shopify Payments.

Stripe operates behind the scenes and powers the technology that processes card payments, handles encryption, manages fraud detection, and transfers funds to merchants’ bank accounts. However, merchants using Shopify Payments do not create or manage a Stripe account directly.

In simple terms:

• Shopify Payments is the front-facing product

• Stripe is the technical infrastructure powering it

• Shopify controls the user experience, pricing, and setup

This distinction is important because it explains why Shopify Payments feels simpler than setting up Stripe independently.

How Shopify Payments and Stripe Work Together

When a customer enters their card details at checkout, several things happen instantly:

1. The payment information is securely encrypted

2. Stripe processes the transaction in the background

3. Fraud checks and authorization are completed

4. Funds are approved and scheduled for payout

5. Shopify displays the order as paid in your admin

All of this happens in seconds, without the merchant needing to manage payment APIs, security settings, or compliance requirements.

From a merchant’s perspective, everything is handled inside Shopify. From a technical perspective, Stripe is doing the heavy lifting.

Why Shopify Chose Stripe

Shopify chose Stripe because it is one of the most reliable and scalable payment processors in the world. Stripe is known for:

• Strong security standards

• PCI DSS Level 1 compliance

• Advanced fraud prevention

• High global acceptance rates

• Stable infrastructure for large transaction volumes

By using Stripe, Shopify can offer a secure and enterprise-grade payment system while keeping the merchant experience simple.

Countries Where Shopify Payments (Stripe) Is Available

Shopify Payments is not available in every country. Availability depends on where Stripe operates and where Shopify has enabled local compliance.

Some supported regions include:

• United States

• Canada

• United Kingdom

• Australia

• New Zealand

• Most European Union countries

• Japan

• Singapore

• Hong Kong

If Shopify Payments is not available in your country, Shopify will require you to use a third-party payment provider instead.

Fees: Shopify Payments vs. Stripe

Understanding fees is critical when choosing a payment solution.

Shopify Payments Fees

Fees depend on your Shopify plan:

• Basic plan: Higher card processing fees

• Shopify plan: Lower fees

• Advanced plan: Lowest standard rates

There are no additional Shopify transaction fees when using Shopify Payments.

Stripe Fees (Standalone)

If you use Stripe directly (outside Shopify Payments), you pay Stripe’s standard processing fees plus Shopify’s additional transaction fees.

This is why Shopify Payments is usually more cost-effective when available.

Can You Use Stripe Directly on Shopify?

Yes, but only as a third-party payment provider, not as Shopify Payments.

When you use Stripe directly:

• You must create and manage a Stripe account

• Shopify charges extra transaction fees

• Setup is more technical

• You lose some Shopify Payments features

For most merchants, Shopify Payments is the better choice when available.

Shopify Payments vs. Stripe: Key Differences

Shopify Payments

• Built into Shopify

• Powered by Stripe in the background

• No extra transaction fees

• Simple setup

• Limited customization

Stripe (Standalone)

• Independent payment processor

• Advanced customization options

• Supports complex billing models

• Extra Shopify transaction fees

• Requires technical configuration

The right choice depends on your business model, location, and technical needs.

Security and Compliance

One major advantage of Shopify Payments is security.

Because Stripe powers Shopify Payments:

• All card data is encrypted

• PCI compliance is handled for you

• Fraud detection runs automatically

• Chargeback management is simplified

Merchants do not need to worry about hosting sensitive payment data or meeting complex compliance requirements.

Shopify Payments and Fraud Protection

Shopify Payments includes built-in fraud analysis tools that evaluate each transaction in real time.

These tools:

• Flag high-risk orders

• Use machine learning models

• Reduce chargebacks

• Protect both merchants and customers

Stripe’s global fraud detection infrastructure strengthens this system even further.

When Shopify Payments Is Not the Best Option

Despite its advantages, Shopify Payments is not ideal for every store.

You may need alternatives if:

• Shopify Payments is not available in your country

• You sell restricted products

• You require custom billing logic

• You need advanced subscription workflows

In these cases, Stripe or other payment providers can still be used effectively.

Common Myths About Shopify and Stripe

Myth 1: Shopify Payments is not Stripe

False. Shopify Payments is powered by Stripe, but branded and managed by Shopify.

Myth 2: You need a Stripe account to use Shopify Payments

False. Shopify handles everything for you.

Myth 3: Stripe is always cheaper

Not always. Shopify Payments often costs less due to zero transaction fees.

Frequently Asked Questions

Is Shopify Payments the same as Stripe?

No. Shopify Payments is built on Stripe, but it is a separate product with its own pricing and rules.

Does Shopify own Stripe?

No. Stripe is an independent company.

Can I switch from Stripe to Shopify Payments?

Yes, if Shopify Payments is available in your country and your business is eligible.

Is Shopify Payments safe?

Yes. It uses Stripe’s enterprise-grade security and encryption.

Final Thoughts

So, does Shopify use Stripe? Yes—Stripe is the powerful engine behind Shopify Payments, providing security, reliability, and global payment processing while Shopify delivers a simplified merchant experience.

For most businesses, Shopify Payments is the easiest and most cost-effective way to accept payments on Shopify. However, choosing the right setup depends on your location, products, and growth plans.

At The Foldtech, we help businesses set up, optimize, and scale Shopify stores with the right payment architecture from day one. Whether you need Shopify Payments configured correctly, Stripe integrations, or a full Shopify optimization strategy, our team ensures your checkout is secure, fast, and conversion-focused.

If payment performance matters to your revenue—and it does—working with the right Shopify experts can make all the difference.