Shop Pay vs PayPal on Shopify: Differences, Fees and Setup
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Shop Pay and PayPal are not the same thing. Shop Pay is Shopify’s accelerated checkout, included with Shopify Payments. PayPal is a separate wallet, and a store can offer both. In a Shop Pay vs PayPal setup, merchants in the United States and France add PayPal through PayPal Wallet in Shopify Payments.
Which should I offer?
Decide in this order. Check each point in your own admin before you rely on it (Shopify Help Center, checked October 2026).
- Offer Shop Pay first if you use Shopify Payments. Shopify says it is included as part of Shopify Payments and processed at your Shopify Payments rates.
- Add PayPal if your customers ask for it or your market expects it. US and France stores use PayPal Wallet inside Shopify Payments. Stores elsewhere set up PayPal Express Checkout.
- Check availability in your country under Settings, then Payments, before you plan around either one.
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Key takeaways
- Shop Pay is Shopify’s accelerated checkout. PayPal is a separate company’s wallet. A customer needs an email address at checkout to save Shop Pay details.
- Third-party payment methods such as PayPal are not available through Shop Pay. They are two separate options at checkout.
- PayPal Express Checkout is not offered as a separate gateway to merchants in France or the United States; they use PayPal Wallet in Shopify Payments.
- Shopify publishes no separate Shop Pay percentage. PayPal’s US page lists 3.49% + 0.49 USD for PayPal Checkout and 2.99% + 0.49 USD for standard cards (last updated October 1, 2026).
- On a 50 USD order, those two PayPal rates come to about 2.24 USD and 1.99 USD (hypothetical arithmetic).
How this comparison was built
- Shopify Help Center pages on Shop Pay, activating Shop Pay, PayPal, PayPal Wallet in the United States and PayPal Express Checkout setup
- Shopify Help Center page on Shopify Payments payouts for the United States
- PayPal business fees page, United States, USD
This comparison uses public pages only. No account was opened and nothing was tested at a live checkout. Region labels: Shopify Help Center pages are the English edition; the PayPal fees page is the United States page in USD. Where this guide says Shopify publishes no figure or does not describe something, it means the pages listed here. Shopify and PayPal can change rates and availability, so check the live pages.
Checked 2026-10-22.
Is Shop Pay the same as PayPal?
No. Shop Pay is Shopify’s accelerated checkout, and PayPal is a separate payment wallet run by PayPal. Both show up as quick payment options at Shopify checkout, but they have different owners and different setup.
| Question | Shop Pay | PayPal |
|---|---|---|
| What it is | An accelerated checkout option that saves customer details | A separate payment wallet |
| Who runs it | Shopify | PayPal |
| How the customer saves details | Enters an email address at checkout to save payment information | Uses a PayPal account (Shopify does not describe the PayPal customer flow) |
| What the merchant sets up | Tick Shop Pay under Shopify Payments | US and France: PayPal Wallet comes with Shopify Payments. Elsewhere: PayPal Express Checkout account |
| Does it carry the other? | Third-party payment methods such as PayPal are not available through Shop Pay | Separate option next to Shop Pay |
How do Shop Pay and PayPal differ at Shopify checkout?
At checkout, Shop Pay and PayPal are two separate options, and the shopper chooses one. For the customer, Shop Pay depends on an email address, and for the merchant it depends on Shopify Payments.
Customer side. Shopify’s Help Center says a customer needs to enter an email address at checkout to save their payment information. A customer who enters only a phone number is not prompted to save. Shop Pay supports credit and debit cards, plus some local methods processed by Shopify Payments. PayPal and Klarna are not available through Shop Pay. Shopify does not describe how a shopper pays with PayPal at checkout.
Merchant side. Shop Pay is included as part of Shopify Payments. For PayPal, the route depends on your country. A US store using Shopify Payments gets PayPal Wallet inside it, and the Help Center says all PayPal settings and transactions, including disputes and refunds, are managed in the Shopify admin. A store elsewhere sets up PayPal Express Checkout with a PayPal account.
What do Shop Pay and PayPal cost per sale?
Shopify publishes no separate Shop Pay percentage, while PayPal’s US page does list its rates. Shopify says Shop Pay transactions are processed at your Shopify Payments rates, which show in your admin.
| Item | Rate or fee | Where it comes from |
|---|---|---|
| Shop Pay | Processed at your Shopify Payments rates; no separate percentage published | Shopify Help Center, Shop Pay page |
| PayPal Checkout | 3.49% + 0.49 USD | PayPal US business fees page |
| PayPal standard credit and debit cards | 2.99% + 0.49 USD | PayPal US business fees page |
| PayPal Wallet in Shopify Payments (US) | Fees are shown in the Payments section of your Shopify admin; a 3% currency conversion fee applies when you accept a currency different from your payout currency | Shopify Help Center, PayPal Wallet page |
The PayPal rates above are the ones PayPal lists for US business accounts. A US Shopify store that offers PayPal through Shopify Payments should read the PayPal Wallet fees in its own admin, as the Help Center says, because they may not match PayPal’s page.
Worked example: one 50 USD order paid through PayPal (hypothetical)
Assumptions: a single 50 USD order, PayPal’s published US rates, no currency conversion.
| PayPal rate | Calculation | Fee |
|---|---|---|
| PayPal Checkout, 3.49% + 0.49 USD | 50 x 0.0349 = 1.745; 1.745 + 0.49 = 2.235 | about 2.24 USD |
| Standard cards, 2.99% + 0.49 USD | 50 x 0.0299 = 1.495; 1.495 + 0.49 = 1.985 | about 1.99 USD |
To see the Shop Pay side, open the Shopify Payments rates in your admin and run the same calculation.
Where are Shop Pay and PayPal available?
Availability depends on your store’s country, and the PayPal route changes between the United States, France and the rest of the world. Shopify’s Help Center says PayPal Express Checkout is not offered as a separate gateway to merchants in France or the United States; they use PayPal Wallet in Shopify Payments.
- PayPal in the United States and France: offer PayPal through PayPal Wallet with Shopify Payments as your payment processor. The US page says you must use the most upgraded version of Shopify Checkout and be a US business using Shopify Payments.
- PayPal elsewhere: PayPal Express Checkout. Shopify says you receive a PayPal Express Checkout account automatically when you create your store, and you should complete its setup.
- Shop Pay with Shopify Payments: included as part of Shopify Payments. Local payment methods inside Shop Pay vary by market.
- Shop Pay with a third-party gateway: possible only if your online store is located in Australia, France or the United States and meets the Shopify Payments requirements for that location.
Plan prices differ by country; see Shopify plans and prices compared.
Is Shopify Payments or PayPal better for my store?
Shopify Payments vs PayPal comes down to country. In the US and France, Shopify Payments carries Shop Pay and PayPal Wallet in one place; elsewhere, PayPal Express Checkout is a separate account. For other comparisons, read Shopify Payments versus Stripe or choosing a payment gateway.
| Criterion | Shopify Payments (with Shop Pay and, in the US, PayPal Wallet) | PayPal Express Checkout (outside the US and France) |
|---|---|---|
| Account | Set up in the Shopify admin; US stores receive a PayPal Wallet account automatically | A PayPal account; completing PayPal account setup is needed for full functionality (refunds, manual capture) |
| Where fees are published | Shopify Payments rates in your admin; Shop Pay is processed at those rates | PayPal’s fees page; Shopify adds that additional fees might apply |
| Payouts and disputes | Payouts section and disputes handled in the Shopify admin (PayPal Wallet) | See PayPal’s own pages; Shopify does not cover them |
What about disputes and payouts?
PayPal lists its dispute fees on its US page, and Shopify documents its own payout timing for US stores. PayPal’s US business fees page (last updated October 1, 2026) lists a chargeback fee of 20 USD, a standard dispute fee of 15 USD and a high-volume dispute fee of 30 USD.
For Shopify Payments, the US payouts page says payouts typically arrive in your bank account within 3 to 5 business days after a customer’s payment is captured, and the minimum settlement time is 3 business days in the United States (checked 2026-10-22). The PayPal Wallet page says payouts for PayPal Wallet transactions appear in the Payouts section of your Shopify admin, and disputes are managed in the admin. PayPal’s own payout timing is not covered here, so it is left out.
How do I turn on Shop Pay and add PayPal to my Shopify store?
Turn on Shop Pay under Shopify Payments, then add PayPal by the route for your country. The steps below are from Shopify’s Help Center (checked 2026-10-22); menu names can change, so follow your own admin.
Shop Pay (desktop). Based on activating Shop Pay:
- From your Shopify admin, go to Settings, then Payments.
- In the Shopify Payments section, click Manage.
- In the Shop Pay section, check Shop Pay.
- Click Save.
Shopify says that if you do not complete Shopify Payments setup within 21 days of receiving your first payment through Shop Pay, all payments are automatically refunded to the customer. Read the page for the full rule.
PayPal in the United States or France. The PayPal Wallet page lists no separate activation click path. It says you automatically receive a PayPal Wallet account when you set up Shopify Payments, and it requires the most upgraded version of Shopify Checkout. Manage it in the Payments section of your admin.
PayPal in other countries (desktop). Based on setting up PayPal Express Checkout:
- Go to Settings, then Payments.
- In Additional payment methods, click “Setup incomplete” next to PayPal.
- Click “Complete setup” and enter your PayPal account email.
- Follow the prompts for your business details and click “Go back to Shopify” on the confirmation page.
- Make a test transaction to confirm the setup.
If you want to remove Shop Pay from a product page, see removing Shop Pay from product pages. To add another wallet, read adding Apple Pay. For a comparison with a buy now pay later option, see Shop Pay versus Afterpay, and for Shop Pay itself, what Shop Pay is.
FAQ
Sources
- Shopify Help Center, Shop Pay: help.shopify.com/en/manual/payments/shop-pay and /shop-pay/shop-pay, checked 2026-10-22.
- Shopify Help Center, activating Shop Pay: help.shopify.com/en/manual/payments/shop-pay/activating-shop-pay, checked 2026-10-22.
- Shopify Help Center, PayPal: help.shopify.com/en/manual/payments/paypal, /paypal/set-up-paypal and /paypal/supported-providers, checked 2026-10-22.
- Shopify Help Center, PayPal Wallet (United States): help.shopify.com/en/manual/payments/shopify-payments/supported-countries/united-states/paypal-wallet, checked 2026-10-22.
- Shopify Help Center, Shopify Payments payouts (United States): help.shopify.com/en/manual/payments/shopify-payments/supported-countries/united-states/payouts, checked 2026-10-22.
- PayPal, business fees (United States, USD, last updated October 1, 2026): paypal.com/us/business/paypal-business-fees, checked 2026-10-22.
