The Tl;dr Version

Which one is better? Shop Pay or PayPal. The truth is, that since they both have their advantages and limitations, it’s difficult to say which one is better for your eCommerce store.

While PayPal has been around for ages, Shop Pay is rather new and has already become the favorite of many merchants.

However, PayPal still has a much larger user base.

Let’s look at some key features firts:


  • It has been here for longer and has gained the trust of millions
  • It is more versatile than Shop Pay
  • Since it has been here for years, most merchants are already using it

Shop Pay

  • Shop Pay has overall lower transaction fees
  • It’s easy to install
  • It offers faster dispute resolution


If you want to chuck both Shop Pay and PayPal, you can go with Stripe, Apple Pay, or credit cards.

Overall rating

Shop Pay: ⭐ 4.7/5

PayPal: ⭐ 4.5/5

So you’re a merchant and want to know which payment gateway you should use for your eCommerce business – Shop Pay or PayPal. You know that both of them have their advantages and limitations.

While Shop Pay is relatively new, it’s giving strong competition to PayPal.

According to Wappalyzer, Shop Pay is primarily popular in the United States and Canada. It has largely grown in popularity since 2020 and several merchants use it as their ecommerce payment platform. Does that mean PayPal is becoming obsolete?

Should merchants migrate to Shop Pay?

To understand that, I’ll go on and explore the key differences between Shop Pay and PayPal. But before that, let’s have the lazy version.

Research Methodology

I already have a PayPal merchant account and I’ve been using it for years. I’m rather new to Shop Pay. I use it with one of my eCommerce websites that runs on Shopify. Since I have used both services, I could easily compare them for this review.

While I have always loved PayPal, Shop Pay is easier to set up on Shopify websites, which is why I used the latter for my new store. That’s…

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