As a European eCommerce merchant selling internationally within Europe, you need to offer your customers reliable and user-friendly payment options. Shopify, one of the world’s most popular eCommerce platforms, offers a wide range of payment options specifically tailored to the European market. In this article, we’ll give you an overview of European Shopify payment options and explain how you can implement and optimize them to grow your online business.
Shopify Payments
Shopify Payments is Shopify’s own payment gateway and is available to European sellers in several countries. Shopify Payments allows you to easily accept online payments without having to integrate an external payment gateway. The advantage of Shopify Payments is that it is seamlessly integrated into the Shopify platform, allowing you to manage payments and generate reports without having to use multiple systems.
Key features of Shopify Payments include:
- Fast and secure payments : Shopify Payments uses advanced security measures to ensure payments are safe and secure.
- No transaction fees : When you use Shopify Payments in combination with Shopify’s own payment provider, there are no additional transaction fees on top of the normal subscription fees.
- Multi-currency support : Shopify Payments allows you to accept payments in multiple currencies, which is useful if you serve international customers.
- Integrated refunds : Shopify Payments lets you easily process refunds from the Shopify dashboard.
External payment gateways
In addition to Shopify Payments, Shopify also offers support for several third-party payment gateways that are popular in Europe. These gateways allow you to accept payments through various methods, such as credit cards, PayPal, and alternative payment methods specific to certain countries.
Some of the most widely used external payment gateways in Europe are:
- Stripe : Stripe is a popular internationally used payment gateway that offers support for various currencies and payment options.
- PayPal : PayPal is known worldwide and offers reliable payments via credit cards and PayPal accounts.
- Klarna : Klarna is a popular payment method in Scandinavia and allows users to pay for their purchases later or pay in installments.
- SOFORT : SOFORT is a widely used payment method in Germany and some other European countries. It allows direct bank transfers.
Choosing the right external payment gateway depends on several factors, such as the location of your customers, the payment methods they want to use, and the gateway’s fee structure. It’s important to research the terms, costs, and integration options of each payment gateway before making a decision.
To set up an external payment gateway in your Shopify store, you need to select the gateway in your Shopify admin settings and enter the required information, such as API keys or account details. Once the gateway is set up, your customers will be able to make payments using the chosen method during the checkout process.
Local payment methods
In addition to credit cards and PayPal, European customers often prefer local payment methods. It is important to offer these payment options to gain your customers‘ trust and increase conversion. Shopify supports various local payment methods depending on the country you operate in.
Some common local payment methods in Europe are:
- iDEAL : iDEAL is the most popular online payment method in the Netherlands and uses direct bank transfers.
- Bancontact : Bancontact is a widely used payment method in Belgium that also uses bank transfers.
- Giropay : Giropay is a German payment method that also allows direct bank transfers.
- Przelewy24 : Przelewy24 is a popular payment method in Poland and supports bank transfers and e-wallets.
To set up local payment methods, you may need to integrate a specific app or payment gateway that supports these methods. Shopify has an extensive app store where you can find various payment apps that will meet all your needs.
Tax calculation and compliance
When selling within Europe, it’s important to be aware of the complex European VAT regulations. Fortunately, Shopify offers several tools and features to help you calculate and report VAT.
Shopify supports automatic VAT calculation based on the customer’s location. This means that depending on the buyer’s country, the correct VAT rates will be applied to the products you sell. This will help you comply with VAT and reduce red tape. Good!
Additionally, Shopify offers integrations with third-party VAT apps and services that can help you manage complex VAT scenarios, such as collecting VAT from customers outside your home country or generating VAT reports for your tax return.
Staxxer also offers VAT services to its customers: you can use the software to prepare European VAT returns, or you can leave the VAT returns to Staxxer (also the one stop shop). In addition, you can apply for European VAT numbers from Staxxer if you want to expand.
Summary
As a European eCommerce merchant, it’s important that you offer your customers the right payment options. Shopify offers several options for accepting and managing online payments, giving you a seamless and reliable shopping experience. Here are the key points to remember:
- Shopify Payments : If you have a Shopify store, you can take advantage of Shopify’s integrated payment gateway, Shopify Payments. This allows you to process payments securely and easily without any additional transaction fees.
- External payment gateways : Shopify also supports a wide range of external payment gateways that are popular in Europe, such as Stripe, PayPal, Klarna, and SOFORT. By choosing an external gateway that meets your needs, you can accept different payment methods and offer your customers more choice.
- Local payment methods: Don’t forget to offer local payment methods such as iDEAL, Bancontact, Giropay and Przelewy24. By integrating these methods, you increase the chances of conversion and build trust with your European customers.
- Tax calculation and compliance: Shopify offers convenient tools and integrations to help you calculate and report VAT. Automatically calculate VAT based on customer location and integrate with VAT apps and services to ensure you comply with complex VAT regulations in Europe.
Would you like more information or tailored advice on managing international VAT for your Shopify sales? Contact us and our experts will be happy to help you!