Best Payment Gateway for Small Business Shopify Stores
A Guide to Boosting Conversions
Starting an online business with Shopify can be an exciting journey, especially for small businesses and new e-commerce entrepreneurs. But choosing the right payment gateway is crucial for your success. In this article, we’ll help you navigate the market, understand payment methods, and create a focused strategy for your store.
Think payment gateway as a bridge between your store and your customers
A payment gateway is not just a technical tool—it’s a bridge between your store and your customers. It ensures secure transactions and builds trust. But more importantly, the right payment gateway can improve your conversion rates and increase your ROI.
For small businesses, finding the right payment solution isn’t just about convenience; it’s about aligning with your customers’ preferences. Offering the right payment methods can significantly impact your sales.
Start Small with a Niche-Focused Store
For new e-commerce entrepreneurs, starting with a simple and specific product niche is the smartest move. A focused store makes it easier to:
Target a specific market or audience.
Manage language and currency needs.
Have clear demographic.
Instead of trying to sell a wide range of products to multiple markets, narrow your focus. This approach simplifies operations and allows you to scale steadily, increasing ROI over time.
Understanding Your Target Market’s Payment Preferences
A common mistake small businesses make is relying only on conventional payment methods like credit and debit cards. While they are essential, they might not always drive conversions in every market. For instance:
Some customers prefer mobile wallets or buy-now-pay-later services.
Others might trust local or regional payment methods over global options.
Key takeaway: Research the Alternative Payment Methods (APMs) preferred by your target audience. Adapting to their needs can quickly increase trust and conversions.
15 Most Popular Alternative Payment Methods
- Klarna (EU,UK,CA,AU,US)
- iDeal - Netherlands
- Bancontact - Belgium
- Twint - Switzerland
- EPS - Austria
- P24 - Poland
- Blik - Poland
- PayPal - Germany
- Vipps - Norway
- MobilePay (Denmark & Finland)
- Trustly - (Nordics, UK and Baltics Regions)
- Alipay - China
- AfterPay & ClearPay (UK,CA,AU,US)
- Bizum - Spain
- We Chat Pay - China
- Venmo - US
By offering these methods alongside traditional credit/debit cards, you can cater to a wider range of customers, increasing your global appeal and ROI.
What to Look for in a Payment Gateway for Shopify
When choosing a payment gateway, keep these factors in mind:
Market Coverage
Does the gateway support the countries you target?
Currency Support
Can it handle multiple currencies seamlessly?
Transaction Fees
Are the fees competitive for small businesses?
Integration with Shopify
Is it easy to integrate and use on your Shopify store?
Security and Trust
Does it offer fraud prevention and secure transactions?
Popular options like Shopify Payments, Stripe, and PayPal often tick these boxes. However, don’t hesitate to explore region-specific gateways if you’re targeting a particular country.
Scaling with the Right Strategy
Once your Shopify store is live, it’s time to think about scaling. Here are some tips:
Start Local:
Build a strong presence in one region or country before expanding.
Leverage Data:
Use analytics to identify your top-performing products and markets.
Expand Payment Options Gradually:
As you grow, introduce more payment methods to cater to new audiences.
Invest in Marketing:
A niche store is easier to market effectively with targeted ads and content strategies.
FAQs About Payment Gateways for Shopify Stores
1. What is the best payment gateway for small businesses?
Shopify Payments, PayPal, and Stripe are great starting points due to their ease of use, integration, and global reach.
2. Are there hidden fees with payment gateways?
Yes, some gateways charge fees like transaction fees, currency conversion fees, or chargeback fees. Always read the fine print.
3. Can I use multiple payment gateways?
Yes, Shopify allows you to integrate multiple payment gateways. This can be useful for catering to different customer preferences.
4. How do I know which APM is best for my market?
Research your target market’s preferences or use Shopify’s analytics tools to track customer behavior and feedback.
5. How secure are payment gateways?
Most reputable payment gateways offer advanced security features like encryption and fraud detection. Choose one with PCI DSS compliance.