Comparisons
Pay-by-Bank vs
Shop Pay on Shopify
When setting up your Shopify store in the UK, choosing the right payment method is more than a technical step—it's a strategic business decision.
Two standout options are Pay-by-Bank Transfers, an open banking method gaining momentum, and Shop Pay, Shopify’s fast and familiar checkout layer. In this guide, we compare these methods across multiple categories so you can choose what’s best for your customers and your bottom line.
What Is Pay-by-Bank?
Pay-by-Bank enables customers to pay directly from their bank accounts via open banking rails. No cards, no intermediaries—just secure, real-time transfers. Tools like Wallid’s Pay-by-Bank app plug directly into your Shopify checkout and offer a frictionless experience.
Key Benefits
Key Benefits
-
Low fees
Typically around 0.7% -
No chargebacks
Customer-initiated push payments -
Instant settlement
Funds arrive in seconds -
Stronger cash flow
Daily liquidity -
Secure
PSD2 compliant and bank-authenticated
What Is Shop Pay?
Shop Pay is Shopify’s native card payment method, available only when Shopify Payments is enabled. It routes card and wallet transactions (such as Visa, Mastercard, Apple Pay, Google Pay) through Shopify’s own infrastructure, powered by Stripe.
Key Benefits
Key Benefits
-
Card compatibility
Supports all major credit and debit cards -
Built-in with Shopify Payments
No extra setup required -
Centralised processing
Managed fully within Shopify admin
What Is Shop Pay?
Shop Pay is Shopify’s native card payment method, available only when Shopify Payments is enabled. It routes card and wallet transactions (such as Visa, Mastercard, Apple Pay, Google Pay) through Shopify’s own infrastructure, powered by Stripe.
Key Benefits
Key Benefits
-
Card compatibility
Supports all major credit and debit cards -
Built-in with Shopify Payments
No extra setup required -
Centralised processing
Managed fully within Shopify admin
Shopify Payments Plan-Based Fees
Shop Pay transactions are processed through Shopify Payments, and the fees vary depending on your Shopify subscription tier
Note: Fees may vary and are provided for informational purposes based on publicly available data. Last updated: 31.03.2025
Real Cost Comparison
£100 Order Paid by Visa
Conclusion
Pay by Bank’s structure offers a more predictable cost advantage—especially for higher volumes or margin-sensitive stores. With instant settlements and no chargebacks, the operational benefits often outweigh the difference in pure cost. Remember, depending on your integration and plan Shopify may apply third party payment fees.
Fraud, Chargebacks, and Settlement Speed: What Merchants Need to Know
-
Fraud Risk
- Pay-by-Bank (Wallid): Low – secure authentication through customers’ banks.
- Shop Pay: Moderate – protected by Stripe but vulnerable to card fraud.
-
Chargebacks
- Pay-by-Bank (Wallid): None – push-based payments can’t be reversed.
- Shop Pay: Possible – subject to card network dispute rules.
-
Settlement Speed
- Pay-by-Bank (Wallid): Instant – improves liquidity and cash flow.
- Shop Pay: 3–5 business days – standard Shopify Payments delay.
Payment Methods Thoughts
Pay-by-Bank and Shop Pay serve distinct roles in your Shopify store’s payment strategy.
Pay-by-Bank
offers a low-fee, real-time settlement option ideal for merchants focused on reducing transaction costs and improving cash flow.
Shop Pay
(via Shopify Payments) supports traditional card transactions with centralised management and wide customer recognition.
Many UK merchants benefit by offering both options: Pay-by-Bank for savings and efficiency, and Shop Pay for card coverage and familiarity.
Ready to enhance your payment stack?
Add Pay-by-Bank alongside Shop Pay to offer customers more choice and reduce your transaction costs today. Tools like Wallid Pay-by-Bank make integration seamless.
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.
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