What is Shopify Payments? A Complete HK Merchant Guide

What is Shopify Payments?

Introduction to Shopify Payments

Shopify Payments is the platform’s official, integrated payment solution. While powered by Stripe’s underlying technology, it is fully embedded into the Shopify admin.

This means you don't need to log into a third-party platform (like PayPal or Stripe) to check your transaction details. Everything—from orders and payment status to refunds—is managed within the same Shopify dashboard.

Key Advantages of Shopify Payments

• Waiver of Shopify Transaction Fees: If you use a third-party gateway (like standalone PayPal or Stripe), Shopify charges an additional transaction fee of 0.5% to 2% based on your plan. By enabling Shopify Payments, this fee is typically waived.
  
• Seamless Shop Pay Integration: Once enabled, you can offer Shop Pay to your customers. This accelerated checkout feature stores shipping and payment info, allowing returning customers to check out with "one click," significantly boosting conversion rates.
  
• Localized Checkout Experience: It supports multi-currency settlement and allows customers to enter credit card details directly on the checkout page without being redirected to an external site.
  

Is Shopify Payments Supported in Hong Kong?

Yes. Shopify Payments is fully available to Hong Kong merchants. As long as your company is registered in Hong Kong, holds a valid Business Registration (BR), and has a local bank account, you can apply. It supports major cards like Visa, Mastercard, and American Express, as well as Apple Pay and Google Pay.

Shopify Payment Costs: 3 Fees You Must Know

New merchants often overlook the cost of receiving money. Running a Shopify store involves three main types of fees:

1. Shopify Subscription Plan Fee

This is the "rent" for using the Shopify system. Common plans in Hong Kong include:

• Basic: Best for new startups.
  
• Shopify: Best for growing businesses.
  
• Advanced: Best for scaling businesses with higher volume. Note: Your plan level affects the rates of your other fees.
  

2. Payment Provider Fee (Credit Card Processing)

This is the service fee charged by the processor (Shopify Payments, Stripe, PayPal, or Airwallex) for every transaction. Shopify Payments (HK Estimated Rates):

• Basic Plan: Approx. 3.3% + HK$2.35
  
• Shopify Plan: Approx. 3.1% + HK$2.35
  
• Advanced Plan: Approx. 2.9% + HK$2.35
  

3. Shopify Transaction Fee

If you do not use Shopify Payments and rely solely on a third party (e.g., only using PayPal), Shopify charges an extra fee:

• Basic: 2%
  
• Shopify: 1%
  
• Advanced: 0.5% Pro Tip: To eliminate this extra 0.5%–2% fee, simply enable Shopify Payments as your primary gateway.
  

3 Categories of Payment Methods for HK Shopify Stores

To cater to different shopping habits, we recommend a "hybrid" payment strategy.

Category 1: Integrated Payment Methods (Native Support)

• Credit Cards (Visa, Mastercard, AMEX): The essential option for both local and cross-border e-commerce, enabled directly via Shopify Payments.
  
• Express Checkouts (Apple Pay, Google Pay, Shop Pay): Vital for mobile commerce. Customers can pay via FaceID or fingerprint without typing in card numbers. Shop Pay also allows customers to track orders, encouraging repeat purchases.
  

Category 2: Third-Party Payment Gateways

• International Standards (PayPal, Stripe):
  

• PayPal: A "must-have" for Western markets. Many US/EU customers won't buy if they don't see the PayPal logo.
  
• Stripe: The best alternative if you cannot apply for Shopify Payments (though you will incur the extra Shopify transaction fee).
  

• Asia/Local Specialized (AsiaPay / PayDollar): A long-standing HK payment provider that supports many local bank interfaces, suitable for larger enterprises with specific integration needs.
  

Category 3: Alternative & Manual Methods

• Local E-Wallets (AlipayHK, WeChat Pay HK): These usually require a third-party Service Provider (PSP) like QFPay or Yedpay. This is crucial if you are targeting the local HK market and younger demographics.
  
• Local Systems (FPS, Octopus):
  

• FPS (Faster Payment System): While there isn't a native FPS button, you can set it up as a "Manual Payment" or use a gateway like Yedpay.
  
• Octopus: Popular for everyday goods; usually integrated via a third-party gateway.
  

• Manual Payments (Bank Transfer, COD):
  

• Bank Transfer: Ideal for B2B or high-ticket items. You provide instructions, and the customer uploads a receipt after transferring funds.
  
• Cash on Delivery (COD): Still has a niche market in traditional HK industries, though the merchant bears the risk of rejection.
  

How to Choose the Best Payment Mix for Your Store?

• Market Focus (Local vs. Cross-Border):
  

• HK Local: You MUST have Credit Cards + FPS/PayMe + AlipayHK. Missing FPS often leads to abandoned carts.
  
• US/EU Cross-Border: Focus on Shopify Payments (Credit Cards) + PayPal. Local wallets are unnecessary here.
  

• Cost vs. Margin: If your margins are thin, prioritize Shopify Payments to save the 2% transaction fee.
  
• Cash Flow (Settlement Cycles):
  

• Shopify Payments/Stripe: Typically T+4 to T+7 working days for payouts in HK.
  
• PayPal: Funds are instant in your PayPal account but take a few days to withdraw to your bank.
  

How to Set Up Shopify Payment: Step-by-Step Guide

Follow this standard process to quickly open your payment functions.

Step 1: Enable Credit Card Payments (e.g., Stripe / Shopify Payments)

• Log in to the Shopify admin and click "Settings" in the bottom left.
  
• Select "Payments."
  
• In the "Payment Providers" area, click "Activate Shopify Payments."
  
• Fill in your Business Registration number (BR), bank account info (for receiving funds), and company address.
  
• Submit verification documents (e.g., passport or ID, BR copy). Review is usually completed in 1–3 days.
  

Step 2: Add Third-Party Payment Providers (e.g., PayPal)

• On the same "Payments" page.
  
• Find "Additional payment methods" or see the PayPal block directly.
  
• Click "Activate PayPal." The system will guide you to log in to your PayPal Business account for authorization.
  

• Tip: Be sure to use a PayPal Business account, not a personal one, to avoid transaction restrictions.
  

Step 3: Set Up Local Payment Methods (e.g., FPS / Octopus)

If using a third-party gateway (e.g., QFPay):

• Click "Add payment methods."
  
• Search for your contracted service provider's name (e.g., QFPay).
  
• Enter the API Key and Merchant ID provided by the provider to link them.
  
• Enable the options you need (e.g., Alipay HK, WeChat Pay).
  

Step 4: Set Up Manual Payments (Bank Transfer / COD)

• At the bottom of the "Payments" page, find "Manual payment methods."
  
• Select "Bank Deposit" or "Cash on Delivery (COD)."
  
• Clearly fill in the instructions in the field.
  

• Example (FPS): "Please transfer to FPS ID: 1234567 (Company Name). After completion, please take a screenshot and reply to the order confirmation email."
  

Step 5: Test Your Payment Process to Ensure Smoothness

Before official promotion, be sure to test:

• Enable "Test Mode" for Shopify Payments and place an order with a test credit card number.
  
• Alternatively, publish a hidden product for HK$10, buy it with a real credit card to confirm the funds successfully enter the backend, and then perform a refund.
  

Safety Considerations for Shopify Payments

Shopify PCI Compliance: What Do Merchants Need to Do?

Shopify is Level 1 PCI DSS certified (the highest level of the Payment Card Industry Data Security Standard). This means as long as you use the Shopify checkout system, Shopify handles server-side compliance. Merchants only need to ensure they do not request credit card numbers via email or non-encrypted environments.

How to Set Up and Prevent Fraud and Credit Card Theft?

• Utilize Shopify Fraud Analysis: For every order, Shopify provides a risk assessment (Low, Medium, High). For "High Risk" orders (e.g., IP address far from shipping address), it is recommended to contact the customer to confirm or cancel the order directly.
  
• Enable CVV and AVS Verification: Ensure payment settings require the customer to enter the three digits on the back of the card (CVV) and the billing address. This effectively reduces the risk of theft.
  
• Choose Safe and Reliable Payment Providers: Never use unknown, small payment gateways just to save a tiny fee. If they go bust or run off with the money, your funds face huge risks. Use Shopify-recommended or mainstream providers (Stripe, PayPal, AsiaPay).
  

How Aspire Simplifies Cash Flow for Shopify Merchants

Once your store starts generating global sales, you’ll face a hidden cost: Currency Conversion Fees.

The Problem: If a US customer pays in USD, and you withdraw from Stripe/PayPal to a traditional HKD bank account, the platform often charges an approx. 2% conversion fee.

The Aspire Solution: Aspire acts as your global "funds hub."

• Avoid Forced Conversion: Open a USD Global Account with Aspire for free.
  
• Direct Payouts: Link your Stripe or PayPal to Aspire. Withdraw your USD sales into your Aspire USD account with zero conversion fees (as it is a local-to-local transfer).
  
• Better FX Rates: When you eventually need to convert USD to HKD for local payroll or marketing, Aspire offers rates close to the mid-market rate—significantly cheaper than traditional banks.
  
• Cashback on Ad Spend: Use Aspire Virtual Corporate Cards to pay for Facebook/Google Ads and earn unlimited 1% cashback, turning your expenses into revenue.