Payment solutions are the tools and services businesses use to manage customer payments. They include checkout software, card readers, payment processing, fraud prevention, and transaction reporting.
Business owners need a payment solution that works across their sales channels and keeps checkout easy for customers, who expect to pay using their preferred method, according to a 2026 report from Worldpay. The same report found that those expectations are increasingly digital: Digital wallets account for more than half of online transaction value and one-third of in-person transaction value worldwide.
Here, learn how payment solutions work, which features to compare, and how to choose an option for your business.
What are payment solutions?
Payment solutions are the tools and services a business uses to accept, process, and manage customer payments. A solution might cover checkout software, payment hardware, transaction processing, security, payouts, refunds, and reporting. The payment processor is one component within that setup.
More purchases now rely on electronic payment systems. The number of cashless payment transactions worldwide is projected to roughly double from today, reaching 3.54 trillion by 2029. This growth drives more transaction volume through the systems businesses use to accept cards, digital wallets, and bank payments.
Every part of the system has a different function:
- Merchant account. A dedicated account that receives card-payment funds during settlement before they move to the business bank account.
- Payment gateway. The technology that encrypts payment details and sends them from checkout to the processor.
- Payment processor. The service that sends transaction data between the business, card network, and banks for authorization and settlement.
- Payment suite. The set of tools and services a business uses to accept and manage payments, such as checkout software and card readers.
Some providers bundle these services into one system. Shopify Payments lets store owners accept major payment methods and manage transactions, payouts, and reports in Shopify admin. Eligible Shopify stores can use it for online transactions, in-person sales, or both.
How do payment solutions work?
A payment solution coordinates the services and technology that move a customer’s payment from checkout to the business’s bank account.
The payment processor is the intermediary among the business, card network, and financial institutions. It routes transaction data to the customer’s bank for approval. The issuing bank approves or declines the request based on available funds, account status, and fraud checks.
A payment service provider (PSP) bundles several payment services through a single vendor. Many PSPs provide payment processing, merchant account access, fraud prevention, currency conversion, and transaction reporting.
Merchant accounts
A merchant account is a special bank account used to receive funds from electronic payments. It enables businesses to accept credit cards, debit cards, and near-field communication (NFC) mobile payments.
A business can open a dedicated merchant account through an acquiring bank. They can also obtain merchant account access through a PSP that groups multiple businesses under a single aggregated account.
After settlement, the provider transfers the funds to the business’s bank account according to its payout schedule.
Payment gateways
A payment gateway captures and encrypts payment information at checkout. It then sends the transaction data to the payment processor. The issuing bank makes the final approval or decline decision.
Here’s how the components of a payment gateway work together:
- A customer initiates payment. The customer makes a purchase and selects a payment method such as a credit card or digital wallet.
- The gateway sends the payment data. The payment gateway encrypts the customer’s information and sends it to the payment processor.
- The processor routes the request. The processor sends the transaction through the card network to the issuing bank.
- The issuing bank responds. The bank checks the customer’s account and approves or declines the transaction.
- The result returns to the business. The response travels back through the card network, processor, and gateway. The business and customer then receive the payment status.
- The transaction settles. For approved payments, the issuing bank sends the funds through the card network and the acquiring bank. The payment provider then deposits the payout into the business’s bank account.
Types of payment solutions
Payment solutions handle different ways of collecting money from customers. Most businesses use more than one method based on where they sell, the purchases they process, and how their customers prefer to pay.
| Payment solution | How it works | Best for |
|---|---|---|
| Credit and debit cards | Customers tap, insert, swipe, or enter their card details at checkout. | Retailers selling online, in person, or across both channels. |
| Digital wallets | Services such as Apple Pay and PayPal store payment credentials for faster checkout. | Ecommerce stores serving mobile shoppers and returning customers. |
| ACH and bank transfers | Funds move directly between bank accounts. Processing fees are often lower than card fees. | Recurring bills, supplier invoices, and higher-value B2B payments. |
| Buy now, pay later | A provider pays the business while the customer repays the purchase in installments. | Higher-priced purchases where customers may prefer smaller payments over time. |
| Mobile and contactless payments | Customers tap a card, phone, or wearable on an NFC-enabled reader. | Stores that process frequent in-person payments at a counter, market, or event. |
| Cross-border payments | Providers process payments across countries and may handle currency conversion or local payment methods. | Stores selling to international customers or paying overseas suppliers. |
Payment data shows why businesses accept several methods. According to Worldpay’s research, US consumers spent more than $16 trillion directly with credit, debit, and prepaid cards in 2025. Digital wallets accounted for 56% of global ecommerce value and 33% of in-store spending.
Buy now, pay later (BNPL) accounted for 6% of US ecommerce value in 2025. Worldpay expects it to grow 13% per year through 2030. Mobile payments are also gaining ground. US in-store digital wallet adoption is growing at nearly three times the rate of overall point-of-sale growth.
Cross-border and business-to-business (B2B) payments are a category of their own. In a 2025 survey, 87% of organizations engaged in cross-border payments, up from 78% in 2022, while B2B check usage fell to 26% from 33%.
Shop Pay is Shopify’s accelerated checkout. It saves customers’ shipping and billing details for one-tap payments across devices. Stores using Shopify Payments can offer Shop Pay, and enable Shop Pay Installments to provide BNPL for eligible purchases.
How to choose the right payment solution
The right payment solution depends on the business model and sales volume. A lower-volume pop-up might prioritize a simple setup and flat-rate pricing. But a high-volume ecommerce retailer needs volume pricing and faster payouts.
Businesses selling online and in person also need a system that works across ecommerce payment processing and the point of sale (POS).
Review payment methods, total cost, security, and integrations before choosing a provider:
- Evaluate supported payment options
- Compare fee structures
- Verify security compliance
- Check compatibility
- Evaluate customer service and support
- Assess scalability and flexibility
- Test user experience (UX)
- Check settlement time frames
- Research client reviews
Evaluate supported payment options
Review how customers pay in each sales channel. In US ecommerce, digital wallets edged out credit cards in 2025. In the US, they accounted for 40% of online payment value compared with 32% for credit cards, according to Worldpay’s research.
Use checkout data and customer location to choose which methods to accept. Consider the following payment options:
- Credit and debit cards
- Digital wallets
- Automated clearing house (ACH)transfers
- Buy now, pay later
Compare fee structures
Calculate the total cost based on your average order value and monthly sales volume. Credit card processing fees typically run 2% to 3% per transaction in 2026. Exact rates vary by card type, network, and provider. For instance, Shopify Payments does not charge any additional third-party transaction fees.
Review every charge listed in the agreement:
- Transaction fees
- Setup costs
- Monthly charges
- Chargeback fees
- Cross-border fees
- Currency conversion costs
Providers offer different pricing models. For example, flat-rate pricing can work for businesses with lower sales volume. Interchange-plus pricing may reduce costs for stores processing more transactions. Compare the effective rate with the advertised transaction rate.
Verify security compliance
Card networks and acquirers require compliance with the Payment Card Industry Data Security Standard (PCI DSS) from virtually every business that stores, processes, or transmits cardholder data. Specific PCI DSS validation requirements vary by business size and transaction volume.
Card fraud creates a direct cost for store owners. A Federal Reserve report published in 2025 found fraud losses of $17.63 per $10,000 in transaction value among covered debit card issuers in 2023. Businesses absorbed 49.9% of those losses.
Look for encryption, tokenization, fraud detection, and secure payment gateways. Ask which security tasks the provider handles and which remain your business’s responsibility.
Check compatibility
A payment solution needs to work with the business’s POS system, ecommerce platform, and accounting software. Confirm how orders sync with payment records. Test how the system handles refunds, payouts, and reconciliation.
Shopify lets stores use a third-party payment provider with Shopify Payments. Stores can add payment methods while keeping Shopify Payments active, though third-party transaction fees may apply.
Request a demo or trial period. Test an online transaction and an in-person payment before choosing the provider.
Evaluate customer service and support
Payment issues can interrupt checkout or delay payouts. Check when the provider’s service team is available and which channels store owners can use. Look for 24/7 access if the business accepts payments outside standard working hours.
Shopify Payments is integrated with Shopify, giving stores one place to manage payment activity. Read provider reviews from businesses with similar sales channels. Focus on response times and how quickly teams resolve payment or payout problems.
Assess scalability and flexibility
Choose a payment solution that can handle current sales volume and expected growth. Ask about transaction limits and volume pricing. Confirm whether the provider can add new locations, currencies, or payment methods as the business expands.
Test how the system performs during a sales spike. Review any fee changes that apply after transaction volume reaches a higher tier.
Test user experience (UX)
Test the checkout flow across desktop, tablet, and mobile devices. Check how many steps it takes to pay. Review payment selection and error messages as well.
Baymard calculates an average online cart abandonment rate of 70.22%. Their checkout research estimates that large ecommerce sites could increase conversion by an average of 35.26% through better checkout design.
Run test transactions online and in person. Confirm that customers can complete a payment quickly and receive an immediate confirmation.
Check settlement time frames
Settlement speed affects when sales revenue reaches the business’s bank account. In Shopify’s Q4 2025 Survey of Store Owners, 34% named stable cash flow as a business goal, making it the second most common response.
Compare each provider’s standard payout schedule with your business’s cash flow management needs. Check how weekends and bank holidays affect payouts. Review fees for accelerated or instant transfers.
Research client reviews
Search G2 and Capterra for feedback on the provider's software and integrations. Check Trustpilot for experiences with fees and payouts. You can also review complaints against US and Canadian businesses through the Better Business Bureau to see how the provider handles billing disputes or frozen accounts.
If the solution connects through an app, read its Shopify App Store reviews. Sort by newest and search for terms such as “payout hold,” “chargeback,” and “unexpected fee.”
Give more weight to reviews from businesses with similar sales volumes and business models. Repeated complaints across multiple sites warrant closer examination.
Extra tips for choosing a payment solution
Review each solution’s management and checkout features to see how well they fit the business today and as it grows.
Check international payment capabilities
For international sales, choose a payment solution that accepts multiple currencies.
Research its foreign exchange rates and international transaction fees. Look for local payment methods that customers use in each target market.
Analyze reporting features
Consider a payment solution with reporting tools and analytics dashboards. The reports can provide insights into sales trends, customer behavior, and transaction patterns.
If possible, test the reporting features to confirm they can generate the reports your business needs.
Consider customizable checkout options
A checkout experience that matches your brand can strengthen customer trust and reduce cart abandonment.
Buy a payment solution that lets you customize the checkout experience. Options may include adding a logo or adjusting colors, or embedding a checkout within your website.
Evaluate multi-location capabilities
If you have multiple physical locations or plan to expand, choose a payment solution that tracks transactions by store. Location-level reporting and tax settings can make managing multiple stores easier. Unified billing can also simplify account management.
Payment solutions FAQ
What do payment solutions do?
Payment solutions let businesses accept and manage customer payments. They connect checkout with the services that authorize and settle transactions, and many also handle fraud checks, refunds, payouts, and reporting.
What is the difference between a payment gateway and a payment processor?
A payment gateway captures payment details at checkout and sends them to the processor. The payment processor routes the transaction through the card network and banks for authorization and settlement. Many payment providers bundle both technologies.
How much do payment processing services cost?
Costs vary by provider and plan. Most providers charge a percentage of each sale plus a fixed fee. Shopify Payments rates range from 2.5% to 2.9% plus 30¢ per online transaction, depending on the plan. Monthly, chargeback, or cross-border fees may also apply.
What is the most preferred payment method?
US consumers prefer digital wallets. According to Worldpay, they account for 40% of online payment value in 2025, compared with 32% for credit cards. Globally, the same report found that digital wallets account for 56% of all ecommerce transaction value.
Does Shopify offer a payment solution?
Shopify Payments is Shopify’s built-in payment solution for eligible store owners, who can accept major payment methods and manage transactions and payouts from Shopify admin. Availability varies by country and region.
