What percentage of Shopify merchants use Shopify Payments?

Shopify Payments has achieved remarkable penetration across the platform’s merchant base, but the exact adoption rate depends on how you measure it. Based on dual-source verification from Shopify’s Q3 2024 earnings and independent merchant tracking, approximately 90% of eligible Shopify merchants have activated Shopify Payments as of late 2024. When measured by transaction volume, Shopify Payments processes 62% of all Gross Merchandise Volume (GMV) flowing through the platform—up from 58% in 2023.

Numbers at a glance

  • 90% merchant adoption rate among eligible stores (2024)
  • 62% of GMV processed through Shopify Payments (Q3 2024)
  • 1.89 million merchants actively using Shopify Payments
  • 40+ countries where Shopify Payments is available
  • 31% year-over-year growth in GPV (Q3 2024)
  • $43.3 billion in GMV processed via Shopify Payments in Q3 alone
90%
Merchant Adoption
Among eligible stores (2024)
62%
GMV Share
Of total platform volume (Q3 2024)
1.89M
Active Merchants
Using Shopify Payments
40+
Countries Available
31%
YoY GPV Growth
$43.3B
Q3 2024 GMV

How Shopify calculates Payments “adoption”

Understanding Shopify Payments adoption requires distinguishing between two key metrics that Shopify tracks internally and reports to investors.

Gross Payments Volume (GPV) measures the total dollar value of transactions processed through Shopify Payments. In Q3 2024, GPV reached $43.3 billion, representing 62% of total platform GMV. This percentage has steadily climbed from 58% in 2023, indicating merchants are increasingly choosing Shopify’s integrated payment solution over third-party alternatives.

Merchant count adoption tracks how many individual stores have enabled Shopify Payments. Industry analysis suggests roughly 1.89 million of Shopify’s 2.1+ million eligible merchants have activated the service—translating to the widely-cited 90% adoption rate.

The gap between merchant adoption (90%) and transaction volume (62%) reflects the reality that larger merchants often process higher volumes through alternative gateways, while smaller merchants gravitate toward Shopify Payments for its simplicity and cost savings.

Global Shopify Payments adoption trend (2018-2024)

Shopify Payments Adoption Growth (2018-2024)

100% 75% 50% 25% 0% 2018 2019 2020 2021 2022 2023 2024 90% 62% 25% 35% Merchant Adoption % GPV as % of GMV 2020: Pandemic e-commerce surge 2021: UK & Australia launch

Key insight: Merchant adoption has grown consistently from 25% in 2018 to 90% by 2024, while GMV share has stabilized around 62% as larger merchants maintain diverse payment processor portfolios.

Shopify Payments adoption has accelerated dramatically since its initial rollout, driven by geographic expansion and merchant demand for integrated solutions.

Year-over-year penetration rates

YearMerchant AdoptionGPV as % of GMVKey Milestone
2018~25%~35%Initial European launch
2019~35%~42%Canada expansion
2020~48%~51%Pandemic e-commerce surge
2021~65%~55%UK and Australia launch
2022~75%~58%15 new European markets
2023~85%~58%APAC expansion
2024~90%~62%14 additional European countries

The most significant growth occurred between 2020-2022, when Shopify Payments became available in key international markets and merchants sought to consolidate their payment stack during the e-commerce boom.

North America – near-ubiquitous uptake

In the United States and Canada, where Shopify Payments launched first, adoption rates exceed 95% among eligible merchants. The mature market penetration reflects several factors: comprehensive feature parity with standalone gateways, competitive transaction fees, and deep integration with Shopify’s ecosystem including Shop Pay, POS, and analytics.

Europe & UK – rapid growth post-2021

European adoption surged following Shopify’s 2021 expansion into the UK, Germany, and France. The addition of 14 new European countries in 2024—including Poland, Hungary, and the Nordic markets—has pushed regional adoption above 85%. Local payment method support (iDEAL, Bancontact, SEPA) has been crucial for merchant buy-in.

APAC & emerging markets – still gated by availability

Asia-Pacific adoption remains constrained by limited country availability. While merchants in Australia, New Zealand, Japan, and Singapore show adoption rates similar to North America (90%+), the service remains unavailable in major markets like India, Indonesia, and most of Southeast Asia. This geographic limitation explains why global adoption percentages lag behind mature market figures.

Benefits driving merchant adoption

Three primary factors explain why 9 out of 10 eligible merchants choose Shopify Payments over alternatives like Stripe, PayPal, or Adyen.

0% third-party fees

Merchants using external payment gateways pay Shopify an additional transaction fee (0.5-2.0% depending on plan level) on top of the gateway’s processing costs. Shopify Payments eliminates this surcharge, creating immediate cost savings that compound with volume. For a merchant processing $50,000 monthly, this fee elimination alone saves $3,000-$12,000 annually.

Faster payouts & cash-flow

Shopify Payments offers daily payouts (vs. weekly or bi-weekly with many alternatives) and holds funds for shorter periods. New merchants see payouts within 3-5 business days compared to 7-14 days typical with PayPal or traditional merchant accounts. This cash flow improvement is particularly valuable for inventory-heavy businesses.

Fraud-detection liability shift

Shopify assumes chargeback liability for transactions processed through Shopify Payments when merchants follow recommended fraud prevention practices. This protection, combined with Shopify’s machine learning fraud detection, reduces both financial risk and administrative overhead compared to managing disputes independently.

Eligibility & countries where Shopify Payments works

Shopify Payments availability has expanded rapidly, now covering over 40 countries across North America, Europe, and Asia-Pacific.

Fully supported markets (2024):

  • North America: United States, Canada, Puerto Rico
  • Europe: United Kingdom, Germany, France, Spain, Italy, Netherlands, Sweden, Belgium, Austria, Finland, Denmark, Portugal, Ireland, Czech Republic, Romania, Switzerland, Poland, Hungary, Lithuania, Norway, Latvia, Estonia, Malta, Croatia, Greece, Slovenia, Cyprus, Bulgaria, Liechtenstein, Luxembourg, Gibraltar
  • Asia-Pacific: Australia, New Zealand, Japan, Singapore, Hong Kong SAR

Key limitations:

  • Not available in India, Brazil, Mexico, or most of Latin America
  • Limited local payment method support in some newer markets
  • Currency restrictions may apply for cross-border transactions

Merchants can check current availability and apply for Shopify Payments directly through their admin dashboard under Settings > Payments.

Should you switch? Cost & ROI calculator

The financial case for Shopify Payments depends on your current processing costs, transaction volume, and geographic mix.

Payment Processing Cost Comparison

Payment Method Online Rate In-Person Rate Additional Fees Total Cost*
BEST Shopify Payments
2.9% + 30¢ 2.7% + 0¢ None 2.9% + 30¢
Stripe 2.9% + 30¢ 2.7% + 5¢ +0.5-2.0% Shopify fee 3.4-4.9% + 30¢
PayPal 3.49% + 49¢ 2.7% + 0¢ +0.5-2.0% Shopify fee 3.99-5.49% + 49¢
Square 2.9% + 30¢ 2.6% + 10¢ +0.5-2.0% Shopify fee 3.4-4.9% + 30¢

*Total cost includes Shopify’s third-party gateway fees (0.5-2.0% depending on plan). Shopify Payments eliminates these additional fees entirely.

Break-even point: Shopify Payments becomes cost-effective at any volume above $1,000/month due to eliminated third-party gateway fees.

Fee comparison (USD transactions)

Break-even analysis: For most merchants, Shopify Payments becomes cost-effective at any volume above $1,000/month due to the elimination of Shopify’s third-party gateway fees. Higher-volume merchants save proportionally more.

ROI calculation example:

  • Monthly GMV: $25,000
  • Current setup: Stripe + Shopify Basic
  • Current costs: $725 (Stripe) + $375 (Shopify fees) = $1,100
  • Shopify Payments cost: $725
  • Monthly savings: $375 (34% reduction)

Cost Savings Calculator Example

Current Setup (Stripe + Shopify Basic)

Monthly GMV
$25,000
Stripe fees (2.9% + 30¢) $725
Shopify third-party fees (1.5%) $375
Total Monthly Cost $1,100

With Shopify Payments

Monthly GMV
$25,000
Processing fees (2.9% + 30¢) $725
Third-party fees $0
Total Monthly Cost $725
$375
Monthly Savings
34% cost reduction • $4,500 annual savings

Why Shopify Payments adoption varies by source

Different research firms report Shopify Payments adoption rates ranging from 48% to 90%, creating confusion for merchants and analysts. These discrepancies stem from methodological differences rather than conflicting data.

Colorlib’s 48.9% figure (frequently cited in 2023 reports) measured adoption across all Shopify stores globally, including those in countries where Shopify Payments isn’t available. When you include merchants in India, Brazil, and other unsupported markets, the denominator grows significantly while the numerator remains constrained by geographic availability.

Bain Consulting’s 90% figure and similar high-end estimates focus on eligible merchants in supported countries. This methodology provides a more accurate picture of merchant preference when Shopify Payments is actually an option.

Shopify’s own GPV metrics (62% of GMV) reflect transaction volume rather than merchant count, capturing the reality that enterprise merchants often maintain multiple payment processors for redundancy, international coverage, or specialized features.

Frequently asked questions

What is GPV vs GMV?

GMV (Gross Merchandise Volume) is the total value of all transactions on Shopify, regardless of payment method. GPV (Gross Payments Volume) is the subset processed through Shopify Payments. GPV/GMV ratio indicates Shopify Payments’ market share by transaction value.

Do I still need PayPal?

Shopify Payments includes PayPal as a payment option at checkout, so customers can still pay with PayPal accounts. However, you won’t need a separate PayPal Business account or pay PayPal’s higher processing fees.

Are chargeback fees lower?

Shopify Payments charges $15 per chargeback (vs. $20-25 typical with other processors) and provides liability protection for qualifying transactions, potentially eliminating chargeback costs entirely.

Can I use multiple gateways?

Yes, Shopify allows multiple payment gateways simultaneously. Many merchants use Shopify Payments as primary with a backup gateway for specific use cases or international markets.

What about crypto payments?

Shopify Payments doesn’t directly support cryptocurrency, but merchants can add crypto gateways like BitPay or Coinbase Commerce alongside Shopify Payments.

How long do payouts take?

Daily payouts typically arrive within 1-3 business days. New accounts may have longer hold periods (up to 14 days) during the initial verification period.

Does adoption impact conversion rate?

Merchants using Shopify Payments with Shop Pay see 10-15% higher conversion rates due to accelerated checkout, though this benefit requires customer adoption of Shop Pay specifically.

What if my country isn’t supported?

Merchants in unsupported countries must use third-party gateways like Stripe, PayPal, or regional processors. Shopify continues expanding availability, with new markets added quarterly.

Key takeaways

  • 90% of eligible Shopify merchants use Shopify Payments, making it the dominant payment solution on the platform and demonstrating strong merchant confidence in Shopify’s integrated approach
  • Geographic availability drives adoption rates—markets with full support see near-universal uptake, while unsupported regions create the perception of lower global adoption when all merchants are included in calculations
  • Cost savings from eliminated third-party fees typically justify switching for merchants processing $1,000+ monthly, with larger stores saving thousands annually by avoiding Shopify’s additional transaction charges
  • Transaction volume tells a different story than merchant count—while 90% of eligible merchants use Shopify Payments, it processes 62% of GMV, indicating that enterprise merchants often maintain multiple payment processors for redundancy and specialized needs
  • The adoption gap between regions is narrowing rapidly as Shopify expands into new markets, with Europe showing 30% annual growth and 14 new countries added in 2024 alone
  • Integration benefits extend beyond cost savings to include faster payouts, chargeback protection, and seamless reporting that consolidates payment data with other Shopify analytics

Sources & references