Comparisons

Which Payment Method Is Better for Shopify UK Merchants:
Pay-by-Bank or PayPal?

Choosing the right Shopify payment method affects your profit margins, customer trust, and cash flow. While PayPal is widely known, its high fees, slow payouts, and chargebacks can reduce your margins.
Pay-by-Bank by Wallid offers a lower-cost, faster, and more secure alternative—powered by open banking.

What Are the Shopify Payment Fees for PayPal vs Pay-by-Bank in the UK?

Pay-by-Bank by Wallid costs up to 70% less than PayPal per transaction on all Shopify UK plans.

Example Fee Breakdown for £100 Order

Note: PayPal fees may vary and are provided for informational purposes based on publicly available data. Depending on your integration and plan Shopify may apply third party payment fees. Last updated: 31.03.2025

Which Payment Method Offers the Best Value on Shopify?

  • Payout Speed
    • PayPal: Typically 2−3 business days (manual withdrawal)
    • Pay-by-Bank (Wallid): Instant or same-day payouts directly to your business bank account
  • Chargebacks & Fraud
    • PayPal: High exposure to chargebacks and fund holds
    • Pay-by-Bank (Wallid): No chargebacks; all payments are bank-authenticated push transactions
  • Checkout Experience
    • PayPal: Redirects to external login flow
    • Pay-by-Bank (Wallid): Seamless, embedded checkout experience inside Shopify with no login step
  • Security & Biometric Identification
    • PayPal: Offers consumer protection but relies on legacy login systems
    • Pay-by-Bank (Wallid): Built on open banking standards with biometric authentication through trusted banking apps

Payment Fees Thoughts

If you're a UK-based Shopify merchant looking to reduce costs, streamline your checkout, and access funds faster, Pay-by-Bank by Wallid is a compelling alternative to PayPal.

It’s secure, frictionless, and built for ecommerce.
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FAQ
PayPal vs Pay-by-Bank on Shopify

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Wallid Products

Pay-by-Bank Payment App

Wallid’s Pay-by-Bank app integrates directly with Shopify checkout, enabling instant bank payments, significantly lower transaction fees, and zero chargebacks.
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Pay-by-Bank Express Checkout

Wallid’s Pay-by-Bank Express Checkout delivers a fast, frictionless experience by connecting directly to customers’ bank accounts — increasing conversion rates while lowering fees
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