How to Add a Payment Method to Shopify Store

Adding a payment method to your Shopify store is one of the most important steps in setting up your online business. Without it, customers cannot complete purchases, and your store won’t generate revenue. The good news is that Shopify makes this process simple and flexible, allowing UK merchants to choose from several secure payment options that best suit their business model. Understanding each option, how to configure it correctly, and how to manage payments effectively is key to building trust with customers and ensuring smooth transactions.

Understanding Payment Methods on Shopify

Shopify allows you to accept payments from customers in multiple ways, depending on where your business is based and what suits your target audience. Payment methods can include credit and debit cards, digital wallets, buy now pay later services, and even manual options such as bank transfers or cash on delivery.

For UK-based stores, the most common and efficient method is Shopify Payments, the platform’s built-in gateway that handles transactions directly through your store. It eliminates the need to connect to external providers and keeps all payments, refunds, and transaction details in one place. However, Shopify also supports third-party payment providers like PayPal, WorldPay, and Klarna, giving merchants flexibility and customer choice.

Before setting up any payment method, you’ll need to ensure your business complies with Shopify’s requirements and that your bank account is ready to receive payouts. Having these details prepared will make the setup process faster and help you avoid delays once your store starts taking orders.

Setting Up Shopify Payments

For most UK merchants, Shopify Payments is the easiest and most straightforward option. It integrates directly into your Shopify dashboard, allowing customers to pay using major credit and debit cards as well as services like Apple Pay and Google Pay.

To activate Shopify Payments, log in to your Shopify admin panel and navigate to Settings, then Payments. You’ll see Shopify Payments listed as an available option. Click Activate Shopify Payments, and you’ll be guided through entering your business and banking information. This will include your company name, address, and bank account details for payouts.

You will also need to verify your identity and provide any required documents to comply with financial regulations. Once approved, Shopify Payments will automatically become your primary payment gateway, and you’ll be able to start accepting payments immediately.

One major advantage of using Shopify Payments is that it removes the additional transaction fees Shopify applies when using external gateways. This means your only charges are the standard processing fees based on your plan, making it a cost-effective and efficient choice.

Adding PayPal to Your Shopify Store

While Shopify Payments covers most needs, many UK customers still prefer to pay using PayPal. Thankfully, Shopify makes it easy to add PayPal as an additional payment method.

PayPal is automatically available when you create a Shopify account, as Shopify sets up a default PayPal Express Checkout using the email address you registered with. To fully activate it, you’ll need to log in to PayPal using that same address and complete the verification process.

If you’d like to use a different PayPal account, simply go to Settings, then Payments, and select PayPal. Click Activate, then follow the on-screen instructions to link your PayPal business account. Once connected, customers will see PayPal as an option at checkout.

Adding PayPal not only increases flexibility but also builds trust, as many online shoppers prefer the added protection and familiarity of using their PayPal accounts. However, be aware that PayPal charges its own transaction fees, which are separate from Shopify’s.

Enabling Alternative Payment Methods

Beyond traditional card payments and PayPal, Shopify also supports a variety of alternative payment methods that cater to modern consumers. These include options like Klarna, Amazon Pay, and Shop Pay. For UK merchants, Klarna is particularly popular as it allows customers to buy now and pay later, which can help increase sales conversions.

To enable Klarna or similar methods, go to Settings, then Payments, and look under the section labelled Alternative Payment Methods. Choose the provider you want to use and click Activate. You may need to sign up for an account with the provider and follow their specific setup instructions before it becomes active in your store.

Adding these methods provides your customers with greater flexibility and choice at checkout, which can make your store more appealing to a wider audience. It’s also a good idea to review your target market’s preferences when deciding which payment options to offer, as some methods are more popular in certain regions or age groups.

Setting Up Manual Payment Methods

Some businesses, particularly those that sell locally or handle bespoke orders, prefer to offer manual payment methods such as bank transfers, cash on delivery, or invoice payments. These can be useful if you want to provide additional flexibility for specific customers or if you cater to wholesale buyers who prefer traditional payment arrangements.

To add a manual payment method, go to Settings, then Payments, and scroll to the Manual Payment Methods section. Click Add Manual Payment Method, then choose from the available options or create a custom one. You can name it something specific, such as “Bank Transfer” or “Pay on Collection”, and include detailed instructions that customers will see during checkout.

When using manual payments, it’s important to confirm receipt of payment before shipping any products. Because these payments are processed outside of Shopify’s automated system, you’ll need to manually mark orders as paid once you’ve received the money.

Managing Payment Settings and Preferences

Once you’ve added your preferred payment methods, it’s a good idea to review and customise your payment settings to match your store’s policies. Within the Payments settings page, you can manage options such as automatic or manual capture of funds, fraud prevention measures, and refund preferences.

Automatic capture means payments are processed immediately when an order is placed, while manual capture allows you to approve the payment later, which can be helpful if you need to verify stock or customer information first. Most merchants prefer automatic capture to streamline the process.

You can also enable or disable specific payment methods at any time. For example, if you’re running a limited-time promotion that only accepts credit cards, you can temporarily turn off other options and reinstate them later.

Testing Your Payment Methods

Before launching your store or making new payment methods live, always test them to ensure everything works correctly. Shopify includes a test mode within the Payments section that allows you to simulate transactions without processing real charges.

Activate test mode, perform a test checkout using the sample card numbers provided, and confirm that the order appears correctly in your dashboard. Once you’re satisfied that everything works as expected, deactivate test mode to start accepting real payments.

Testing helps prevent customer frustration and ensures that there are no issues with authorisation, fees, or order processing once your store is live.

Troubleshooting Common Payment Issues

Occasionally, merchants encounter problems when setting up or managing payment methods. The most common issues include incorrect bank account details, failed verification, or declined transactions. Ensuring that your bank account meets Shopify’s eligibility criteria, and that all information matches exactly as it appears on your bank records, can prevent many of these problems.

If you experience delays in payouts, check your payout schedule and make sure your bank account can receive Faster Payments. Failed payments may also occur if you change banks without updating your account details in Shopify.

For customers, declined transactions are usually related to insufficient funds or incorrect card details. Providing clear messages during checkout and offering multiple payment options can help reduce abandoned carts.

Optimising Your Store for Payments

Your checkout experience has a major impact on sales performance. To make the most of your payment setup, ensure your checkout process is smooth, fast, and secure. Keep the number of required fields minimal, use trusted payment logos, and provide reassurance about data security.

Offering a variety of payment methods, including digital wallets and buy now pay later options, can also increase your conversion rates. The more convenient you make it for customers to pay, the more likely they are to complete their purchase.

Regularly review your payment reports within Shopify to see which methods are most popular. This data helps you refine your checkout strategy and focus on the options that work best for your audience.

Conclusion

Adding a payment method to your Shopify store is a crucial step in setting up a successful online business. Whether you choose the convenience of Shopify Payments, the familiarity of PayPal, or the flexibility of manual methods, each option contributes to a better checkout experience for your customers.

By taking the time to configure everything correctly, verifying your details, and testing before launch, you can ensure a smooth and reliable payment process. This not only builds trust but also helps you maintain healthy cash flow and customer satisfaction.

In short, the right payment setup gives your Shopify store the foundation it needs to grow, turning visitors into paying customers and keeping your operations running seamlessly.