Comparisons
Shopify UK and EU: Should You Use Pay-by-Bank or Shop Pay?
Choosing the right payment method for your Shopify UK and EU store isn’t just a technical decision—it directly impacts your fees, payout speed, and customer trust.
In this guide, we compare
- Pay-by-Banka low-cost, real-time payment method using open banking
- Shop PayShopify’s native card wallet backed by Stripe
You’ll learn:
- Which option offers instant vs delayed settlement
- How transaction fees differ across plans
- Why offering both options may maximize customer experience and profit
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
1% + 25p per transaction -
Almost zero 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
| Shopify Plan | Card Rate (UK) |
|---|---|
| Basic Shopify | 2.0% + 25p |
| Shopify | 1.7% + 25p |
| Advanced Shopify | 1.5% + 25p |
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
| Shopify Plan | Shopify Payments Fee (Visa) | Pay-by-Bank Fee |
|---|---|---|
| Basic | £2.25 (2.0% + 25p) | £1.25 (1% + 25p) |
| Grow | £1.95 (1.7% + 25p) | £1.25 (1% + 25p) |
| Advanced | £1.75 (1.5% + 25p) | £1.25 (1% + 25p) |
Conclusion
For Shopify UK and EU merchants, Pay-by-Bank offers a clear cost advantage—especially for high-volume or margin-sensitive businesses.
- Instant settlement boosts cash flow
- Almost zero chargebacks reduce risk
- Almost zero chargebacks reduce risk
While Shop Pay offers familiarity and card coverage, Pay-by-Bank's operational savings often outweigh the difference in pure cost.
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 and EU merchants benefit by offering both options: Pay-by-Bank for savings and efficiency, and Shop Pay for card coverage and familiarity.
What Our Clients Say About Us
* Shopify 3rd party fees may apply.
FAQ
Shop Pay vs Pay-by-Bank on Shopify
Shop Pay vs Pay-by-Bank on Shopify
Yes, Pay-by-Bank typically charges 1% + 25p, while Shop Pay may range from 1.5% to 2.0% + 25p per transaction.
No, Pay-by-Bank uses push payments, which are irreversible.
Pay-by-Bank settles instantly; Shop Pay settles in 3–5 business days.
Yes, many merchants offer both to improve customer choice and cost control.