Shopify alternative payment methods are the ways customers can pay you without typing in a credit card: digital wallets such as PayPal, Apple Pay and Shop Pay, buy now pay later services, local methods such as iDEAL, manual methods such as cash on delivery and bank transfer, and cryptocurrency. You turn most of them on in Settings > Payments, and Shopify calls the non-card online ones “additional payment methods”.
The method you pick changes what you pay. Three facts to know first:
- Manual methods (COD, bank transfer, money order) carry no third-party transaction fee.
- Third-party and additional methods add a Shopify fee of 2% on Basic, 1% on Grow, 0.6% on Advanced and 0.2% on Plus, on top of the provider’s own fee.
- PayPal is exempt from that Shopify fee when Shopify Payments is your main card provider.
This guide covers the six types of alternative payment methods, what each one costs, how to add one in admin, which mix fits your store, and the problems merchants run into after turning them on.
What Counts as an Alternative Payment Method on Shopify
An alternative payment method is any way to pay that is not a direct credit or debit card entry at checkout. Shopify’s payments overview groups them into wallets and accelerated checkouts, installments, manual methods, cryptocurrency, and local methods available by country. “Alternative” here means alternative to cards, not an alternative to Shopify as a platform or to Shopify Payments as a processor.
There are six types. Each solves a different reason a shopper leaves at checkout.
1. Digital wallets and accelerated checkouts
Wallets let a shopper pay with saved details in one or two taps. Shopify supports Shop Pay (when you use Shopify Payments), plus PayPal, Amazon Pay, Apple Pay and Google Pay as accelerated checkout buttons. They help most on mobile, where typing a card number is the main point of friction.
2. Buy now, pay later (BNPL)
BNPL splits the price into installments. Shopify’s own option is Shop Pay Installments, which needs Shopify Payments and Shop Pay. It runs in the US and Canada on orders from $35 to $30,000, in the UK from £50 to £30,000, and in Australia (early access) from $50 to $30,000 AUD. Third-party BNPL providers such as Klarna are added as additional payment methods.
3. Local payment methods
Local methods are the bank-based or regional options buyers in one country expect, such as iDEAL in the Netherlands. Which ones you can offer depends on your country, your market settings and, for multi-entity stores, the business entity assigned to each market.
4. Cash on delivery (COD)
With COD the customer pays the courier when the parcel arrives. Shopify treats it as a manual payment method: the order is created with payment pending and you mark it as paid after the courier hands over the cash. It is the standard way to sell in markets where many shoppers do not use cards online.
5. Bank transfer, money order and custom manual methods
Bank deposits, money orders, and Canadian email money transfers are also manual methods. You can create a custom one too, for example “Pay at our studio” for services, with your own payment instructions shown at checkout. These suit B2B buyers and high-value orders where a card limit gets in the way.
6. Cryptocurrency
Crypto payments are offered through an additional payment provider listed in Settings > Payments. Most stores add crypto only when their own customers ask for it, because it needs a separate provider account.
What Each Method Costs You
Each method has up to two layers of fees: the provider’s processing fee, and Shopify’s third-party transaction fee when the payment does not go through Shopify Payments. The table shows the Shopify layer, which is the part most merchants miss.
| Method | Shopify third-party transaction fee | Who sets the other fees |
|---|---|---|
| Shop Pay, Shop Pay Installments | None | Shopify Payments rates |
| PayPal | None if Shopify Payments is your main card provider; otherwise plan rate | PayPal |
| Cash on delivery, bank transfer, money order | None | Your courier or bank (COD collection fees) |
| Third-party gateways and additional methods (BNPL, local, crypto) | Basic 2% · Grow 1% · Advanced 0.6% · Plus 0.2% | The provider |
Data checked on 6 Nov 2026 from Shopify pricing, manual payment methods and third-party providers pages.
Example: a Basic-plan store that sells $10,000 a month through a third-party BNPL provider pays Shopify $200 in transaction fees before the provider’s own fee. The same $10,000 through COD adds no Shopify fee, but you carry the cost of refused parcels.
How to Add an Alternative Payment Method
There are two paths, depending on the type: additional methods (wallets, BNPL, local, crypto) are activated from a provider list, and manual methods (COD, bank transfer) are switched on with your own instructions. Both start in Settings > Payments.
To add an additional payment method, follow Shopify’s activation steps:
- Go to Settings > Payments.
- In Additional payment methods, click Add payment methods.
- Search for the method or provider and select it.
- Choose the provider and click Activate.
- Enter your account credentials with that provider, then click Activate again.
Some providers are payment apps: you click Install app, then Manage to connect your account, then Activate.
To add a manual method such as COD, go to Settings > Payments, pick a suggested manual method in the payment providers section (or click Create custom payment method under Manual payment methods), fill in Additional details and Payment instructions, and activate it.
Step 4 matters most: a method only shows at checkout when it is available for the shopper’s market and meets the provider’s rules, so test checkout from each market after you activate it.
Which Methods to Offer by Store Type
Offer the two or three methods your buyers already use, not every option on the list. This table matches common store types to a starting mix.
| Store type | Start with | Why |
|---|---|---|
| US or UK store, mostly mobile traffic | Shop Pay, Apple Pay, Google Pay, PayPal | Fast checkout, no extra Shopify fee with Shopify Payments |
| Average order above $100 | Add Shop Pay Installments or a BNPL provider | Installments lower the price shown per payment |
| Selling into the Netherlands or other card-light EU markets | The leading local method for that market | Buyers there expect their bank’s method |
| Markets where many shoppers pay in cash | Cash on delivery with order confirmation | Cards are not the default; COD unlocks first orders |
| B2B or wholesale | Bank transfer or a custom manual method | Invoices and card limits |
Data checked on 6 Nov 2026; fees and availability from the Shopify Help Center pages linked above.
Adding Cash on Delivery With an App
Shopify’s built-in COD takes the customer through the normal checkout and leaves confirming the order to you. A COD form app replaces that with a short order form and adds checks against fake orders, which is why COD stores often use one.
Disclosure: Orichi builds Madgic COD Form & Upsells. We describe it and one alternative using public Shopify App Store data checked on 6 Nov 2026.
Madgic COD Form & Upsells (4.7 stars, 23 reviews, launched May 27, 2024) gives a popup or embedded COD form, COD fees, partial payment (a deposit up front and the rest on delivery), WhatsApp OTP phone checks in early access, IP blocking and postal code limits, plus upsells and Google Sheets export. Its free Small Business plan lists unlimited orders; Premium is $7.99 a month with a 3-day trial. Where others are stronger: Releasit COD Form & Upsells has far more reviews (4.9 stars, 2,418 reviews), which matters if you want a long track record; its free plan covers up to 60 orders a month and Premium is $11.49 a month for up to 420 orders.
If you are new to COD, our guides on how to use COD forms effectively and on picking a cash on delivery application walk through form fields and confirmation calls.
Common Problems After Adding a Method
Most problems come from fees, tax settings and market rules, not from the method itself. These are the five that come up most:
- The method does not show at checkout: it is not available in the buyer’s market, or the order is outside the provider’s limits (for example under $35 for Shop Pay Installments in the US).
- Manual methods or third-party providers are greyed out on a US store: Shopify does not allow them while US sales tax is managed by Shopify. Switch US sales tax to Self-directed first.
- Unexpected fees on the invoice: third-party transaction fees apply to every payment through an alternate gateway, even with Shopify Payments active. Only Shop Pay, manual methods and (with Shopify Payments as primary) PayPal avoid them.
- COD orders sit as “Payment pending”: that is normal. Mark each order as paid on its order page once the courier pays you.
- Subscriptions stop working after a switch: subscription products need Shopify Payments as your main gateway.
If you are comparing card processors rather than payment methods, our roundup of the best Shopify payment gateways covers that choice, and our explainer on whether Shop Pay is safe answers the questions customers ask about it.
FAQ
What alternative payment methods does Shopify support?
Wallets (Shop Pay, PayPal, Apple Pay, Google Pay, Amazon Pay), Shop Pay Installments and other BNPL providers, local methods by country, manual methods (cash on delivery, bank transfer, money order, custom), and cryptocurrency through an additional provider.
Does Shopify charge a fee for alternative payment methods?
It depends on the method. Manual methods and Shop Pay carry no Shopify transaction fee. Third-party and additional methods carry 2%, 1%, 0.6% or 0.2% depending on your plan.
Can I use PayPal without the extra Shopify fee?
Yes, if Shopify Payments is your primary card provider. Then PayPal transactions are exempt from third-party transaction fees.
Can I offer cash on delivery only in some countries?
Shopify’s manual payment settings give you a name, details and instructions, not location rules. To limit COD by country or postal code, use a COD form app with location rules (Madgic COD Form & Upsells lists postal code limits) or a payment customization app.
How many payment methods should a new store offer?
Start with cards plus the two or three methods your buyers already use. Add more only after your analytics show shoppers from a new market.
Start Taking Cash on Delivery Orders
If your buyers prefer to pay at the door, install Madgic COD Form & Upsells on the free Small Business plan and test the form on one product first.
