Comparisons
Which Payment Method Is Better for Shopify UK and EU 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.
| Shopify Plan | PayPal (UK) Fees | Pay-by-Bank (Wallid) Fees |
|---|---|---|
| Shopify Basic | ~2.9% + 30p | 1% + 25p |
| Growth | ~2.9% + 30p | 1% + 25p |
| Advanced Shopify | ~2.9% + 30p | 1% + 25p |
Example Fee Breakdown for £100 Order
| Shopify Plan | PayPal Cost (~2.9% + 30p) | Pay-by-Bank Cost (1% + 25p) |
|---|---|---|
| Shopify Basic | ~£3.20 | £1.00 + £0.25 = £1.25 |
| Growth | ~£3.20 | £1.00 + £0.25 = £1.25 |
| Advanced Shopify | ~£3.20 | £1.00 + £0.25 = £1.25 |
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): Almost zero 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.
It’s secure, frictionless, and built for ecommerce.
What Our Clients Say About Us
* Shopify 3rd party fees may apply.
FAQ
PayPal vs Pay-by-Bank on Shopify
PayPal vs Pay-by-Bank on Shopify
You can save £1.95 per £100 order against PayPal’s stated 2.9% + 30p fee. Wallid Pay-by-Bank fees are 1% + 25p per transaction.
Yes. Pay-by-Bank uses bank-level encryption and biometric authentication via trusted banking apps—there are no card details or passwords involved.
Yes. Pay-by-Bank is compatible with Basic, Growth, and Advanced Shopify plans. It works directly inside the checkout with no redirect required.









