Pay Your Way—Exploring Shopify POS Payment Methods

Understanding Shopify POS Payment Options: The Complete Guide

If you're looking for information about Shopify POS payment options, here's a quick overview of what you can accept:

Shopify POS payment options are a critical part of creating a seamless checkout experience for your retail customers. Whether you're running a pop-up shop, managing a brick-and-mortar store, or selling at events, the ability to accept various payment methods can significantly impact your sales and customer satisfaction.

With Shopify POS, you can offer your customers flexibility at checkout by accepting all major credit and debit cards, contactless payments via digital wallets, cash transactions, gift cards, and even buy-now-pay-later options through Shop Pay Installments. The system also supports split payments, allowing customers to use multiple payment methods for a single purchase.

What sets Shopify POS apart is its integrated approach—connecting your in-person sales seamlessly with your online store, unifying inventory, customer data, and financial reporting in one back office.

I'm Steve Pogson, a certified Shopify Expert with over two decades of experience implementing Shopify POS payment options for retailers across various industries, helping them optimize their checkout experience and boost conversion rates through flexible payment solutions.

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Shopify POS Payment Options: What Can You Accept In-Store?

Today's shoppers expect options when they pay. Whether they're reaching for cash, tapping their phone, or wanting to split a purchase across multiple methods, your retail business needs to be ready. Let's explore the full range of Shopify POS payment options available for your in-store transactions.

Default Shopify POS Payment Options

When you first set up your Shopify POS system, you'll have several payment methods ready to go without any extra configuration:

Cash remains a staple for many businesses, especially small-ticket retailers and markets where physical currency is preferred. Shopify enables cash tracking to help you monitor your drawer balance throughout the day – a real lifesaver during busy periods!

Credit and debit cards are must-haves for modern retail. With Shopify POS, you can accept all major cards including Visa, Mastercard, American Express, and Find. The transactions flow seamlessly through the system when you're using Shopify Payments.

Contactless payments have surged in popularity, especially since 2020. Your customers can simply tap their phones or smartwatches to pay with Apple Pay, Google Pay, and other digital wallets – creating those quick, friction-free checkout experiences shoppers love.

Gift cards serve double duty as both payment methods and marketing tools. Shopify POS handles both digital and physical gift cards with ease, helping you build loyalty while giving customers flexible payment options.

I often remind our Portland boutique clients that while digital payments are growing, having multiple options is key. "Your payment flexibility can be the difference between a sale and a walkaway," is something I find myself saying frequently.

Advanced Shopify POS Payment Options

Beyond these basics, you can configure your POS to accept a variety of alternative payment methods that might appeal to your specific customer base:

Shop Pay Installments lets U.S. merchants offer buy-now-pay-later flexibility. Customers can split purchases into four interest-free payments while you get paid the full amount upfront. One of our Maine clients saw a 15% increase in average order value after adding this option – customers were suddenly more comfortable buying those higher-priced items when they could spread payments out.

Additional BNPL solutions can be integrated through third-party providers. Options like Sezzle, Zip Pay, Splitit, and Klarna give your customers even more ways to manage their cash flow while making purchases.

PayPal isn't directly integrated with Shopify POS, but can be accepted through third-party payment gateways if your customers prefer this method.

Cryptocurrency acceptance is becoming more mainstream. Using solutions like SensePass, your business can accept various cryptocurrencies with automatic conversion to your preferred currency – perfect for tech-forward retailers looking to attract crypto enthusiasts.

Open banking enables real-time bank transfers for direct account-to-account payments, which can reduce transaction fees compared to credit card processing.

What makes Shopify POS payment options truly powerful isn't just the variety – it's how they all connect to your unified commerce system. Every transaction, regardless of payment method, flows into the same reporting system and connects to your inventory and customer data. This creates a seamless experience for both you and your customers.

"The right mix of payment options isn't just about convenience," I often tell our clients. "It's about showing customers you understand their preferences and are making it easy for them to shop with you."

How to Activate, Deactivate, and Configure Payment Types

Setting up your preferred Shopify POS payment options is a breeze. I've helped dozens of retailers configure their payment settings, and it's one of those tasks that seems complicated at first but becomes second nature quickly.

Step-by-Step Activation Flow

When you're ready to customize which payment methods your customers can use, just grab your device and follow these simple steps in the Shopify POS app:

1. Tap the ≡ menu icon in the corner
2. Select Settings from the menu
3. Tap Payment types to see all your options
4. Under Default payment types, you'll see toggles for:
5. Cash
6. Credit/Debit
7. Gift Card

Just flip the switches on or off depending on what you want to accept. If you're handling cash, I always recommend enabling cash tracking too—it's a lifesaver when counting your drawer at the end of the day.

For retailers in the US wanting to offer Shop Pay Installments, there's a bit more to it:

First, make sure it's turned on for your online store. Then head to your Shopify admin, steer to Settings > Payments > Shopify Payments > Manage, and select Enable Shop Pay Installments on Point of Sale. Just confirm your choice, and you're all set!

The screens look slightly different between iPhone and Android devices, but don't worry—the core steps are identical, and the system will guide you through.

Managing Custom Payment Methods

What about those special payment situations that don't fit the standard options? This is where custom payment methods shine. They're perfect for:

Checks from regular business customers, store credit for returns without receipts, external card terminals if you're using hardware outside Shopify's ecosystem, or any other payment type unique to your business.

Adding a custom payment method is simple:

In the POS app, go to Settings > Payment types, then under Custom Payment Types, tap Add custom payment type. Give it a clear name like "Check" or "Employee Discount," and hit Save. Then just toggle it on when you need it.

I was helping a boutique owner in Portland last month who offers in-house layaway for higher-priced items. We set up a custom payment method called "Layaway" that helps her track these partial payments right in the system. "It's so much better than the paper system I was using before," she told me.

When you turn off a payment method, it simply disappears from your checkout screen—making things cleaner and faster for your staff. You can always turn it back on later if needed.

Want to dive deeper? Check out Shopify's official guide to Activate payment methods or learn more about the complete Shopify POS Set Up process.

Shopify Payments and Integrated Hardware: Card Readers, Tap to Pay, Supported Countries

Taking card payments in your store has never been easier with Shopify POS payment options. Whether you prefer dedicated hardware or want to use your smartphone, Shopify Payments makes card transactions smooth and reliable.

"Hardware is often the unsung hero of a great checkout experience," I tell my clients. "The right card reader not only processes payments reliably but also creates that professional impression customers expect."

Setting Up Card Readers in Shopify POS

Shopify offers several card reader options to fit different business needs:

The Tap & Chip Card Reader is perfect for merchants on the move. At just $49, this portable Bluetooth device handles contactless payments, chip cards, and traditional magnetic stripe cards with ease.

For a more permanent solution, the POS Terminal creates a professional checkout experience with its customer-facing display. While pricier at $349, it's ideal for established retail locations.

International merchants might use the WisePad 3, which supports various regional payment methods and works seamlessly with Shopify POS.

The POS Go combines everything into one sleek handheld device—card reader and barcode scanner together means your staff can complete sales anywhere in the store.

Getting your card reader ready is straightforward:1. Make sure your reader is charged and powered on2. Open your POS app and steer to Settings > Payment types3. Find the Hardware section and select your specific card reader model4. Follow the on-screen instructions to pair via Bluetooth5. Run a test transaction to confirm everything works

One boutique owner I worked with in Maine had constant card reader disconnections until we realized the reader was too far from the iPad. "Moving the Bluetooth device closer to the tablet fixed everything," she told me. "Now we haven't had a single hiccup in months."

For smooth operations, I always recommend keeping your card reader firmware updated and maintaining a stable Bluetooth connection, especially before busy shopping periods.

You can find detailed setup instructions on the Shopify POS Card Reader Setup page.

Free Tap to Pay on Smartphones

One of my favorite recent additions to Shopify POS payment options is Tap to Pay technology for smartphones—no extra hardware needed!

This feature turns compatible iPhones (XS or newer running iOS 16+) and select Android devices into card readers. Your phone becomes the payment terminal, accepting contactless credit and debit cards, plus digital wallets like Apple Pay and Google Pay.

Setting up Tap to Pay is simple:1. Update your Shopify POS app to the latest version2. Go to Settings > Payment types3. Enable the Tap to Pay option4. Complete the guided setup process

This free option is perfect for seasonal businesses, pop-up shops, market vendors, and sales associates who need to move around the store. It's also great for businesses just testing the waters with in-person sales before investing in dedicated hardware.

A Portland farmer's market vendor told me, "Tap to Pay changed everything for us. Before, we'd lose sales when people only had cards. Now we just pull out our phones and complete the transaction in seconds."

Currently, Shopify Payments supports in-person transactions in 14 countries, including the United States, Canada, United Kingdom, Australia, and several European markets. When you use Shopify Payments with EMV-compliant readers in these regions, you can skip customer signatures for faster checkout—a small touch that makes a big difference during busy periods.

Want to learn more about Shopify Payments? Visit the official Shopify Payments page for complete details.

Going Further: Split Payments, BNPL, Gift Cards, Custom & Alternative Methods—Plus Fees and Reporting

Let's explore the more advanced features of Shopify POS payment options that can truly transform your in-store checkout experience and potentially boost your sales.

Handling Split & Partial Payments in Shopify POS

We all know those moments when customers want to pay with multiple methods—maybe they're using up a gift card balance and covering the rest with a credit card, or perhaps friends are splitting the bill. Shopify POS makes this easy with split payments.

To use this feature, simply tap the Split payment button during checkout, enter the amount for the first payment method, select that method, and repeat for any additional payment types. When you're finished dividing up the total, just tap "Done" and you're all set.

For situations where customers can't pay the full amount at once—like when taking deposits for custom orders or setting up layaway—partial payments are your friend. Accept whatever portion they can pay now, tap Mark as partially paid, and the order will be saved with that status. When they return to complete the purchase, you'll find their order in your Orders screen where you can easily collect the remaining balance.

I've seen this work wonders for a local jewelry store that takes 50% deposits on custom pieces. The owner tells me, "It keeps our cash flow healthy while giving customers flexibility. The system remembers everything, so there's no confusion when they come back to pick up their items."

Shop Pay Installments and Other BNPL Choices

Buy-now-pay-later options have become hugely popular, especially for bigger purchases. If you're a US-based merchant, Shop Pay Installments lets you offer this payment option right within your POS system.

The process is smooth for customers—they select Shop Pay Installments at checkout, complete a quick approval process, and their purchase gets split into four interest-free payments. The best part? You get paid the full amount upfront, with no risk on your end.

Not in the US? No problem. Third-party solutions like SensePass can help you integrate other BNPL options like Sezzle, Zip Pay, Splitit, and Klarna with your Shopify POS payment options.

A home goods retailer I work with saw their average order value jump by 25% after adding BNPL options. "Customers who were hesitant about buying that $400 lamp suddenly felt comfortable when they realized they could pay just $100 today," she explained.

Gift Cards as Payment & Marketing Tool

Gift cards pull double duty—they're both a payment method and a powerful marketing tool that brings new faces into your store.

Setting up gift cards in your POS is simple: go to Settings > Checkout > Payment types, tap Gift Card, and activate Accept gift card payments. To issue gift cards, head to Settings > Products > Gift cards and choose between digital options or both digital and physical cards.

I love sharing the story of a small bookstore that started offering branded gift cards before the holiday season. Not only did they see an immediate boost in December sales, but they had new customers coming through the door throughout January and February as recipients redeemed their gifts. Even better—most spent more than the gift card value!

Fees, Payouts, and Daily Reconciliation

One of the biggest headaches for retailers is keeping track of all the different payment methods and fees. Using Shopify Payments helps simplify this with:

• No extra transaction fees for orders processed through Shopify Payments
• Clear processing rates based on your Shopify plan
• Combined reporting for both online and in-person sales

When it's time to reconcile your daily sales, just head to Analytics > Reports in your Shopify admin. Under Finances, you'll find the Payments report where you can filter by payment method, date range, or location to match everything up with your cash drawer counts and bank deposits.

A boutique owner in Maine recently told me, "Before switching to Shopify POS payment options, I spent hours every Sunday night trying to match up sales from our separate online and in-store systems. Now it's all in one place—I can actually enjoy my weekends again!"

The real magic of Shopify POS isn't just in the variety of payment methods you can accept—it's in how seamlessly everything works together, saving you time and helping you understand your business better through unified reporting. Whether you're running a busy retail store or just starting out with pop-up shops, the system grows with you, adapting to your needs and your customers' preferences.

For a deeper look at how to keep selling even when your internet connection drops, check out our guide to Shopify POS offline mode.

Conclusion

Shopify POS payment options give your retail business the flexibility it needs in today's ever-changing shopping landscape. Whether your customers prefer traditional methods like cash and cards or newer options like contactless payments and buy-now-pay-later plans, Shopify has you covered.

After helping dozens of Portland retailers optimize their payment systems, I've seen how the right mix of payment options can transform a business. One boutique owner told me, "Once we added Shop Pay Installments, customers started buying multiple items instead of just one. Our average sale jumped by almost 30%!"

Here's what I recommend to make the most of your Shopify POS payment options:

Give your customers choices. Each payment method you add removes another potential barrier to purchase. The customer who might walk away if you only accept cash will happily complete their purchase if they can tap their phone or split payments across multiple cards.

Keep checkout simple for your staff by only activating the payment methods you'll actually use. Too many options can confuse new employees and slow down your checkout process during busy periods.

Choose hardware that matches your business style. A small pop-up shop might do perfectly well with free Tap to Pay on an iPhone, while a busy boutique might benefit from dedicated POS Go devices that staff can carry throughout the store.

Take advantage of Shopify's unified reporting to understand how your customers prefer to pay. You might find that offering installment payments leads to larger purchases, or that contactless payments speed up your checkout line during rush periods.

Stay open to new payment technologies as they emerge. Shopify regularly adds new Shopify POS payment options, making it easy to keep your business current without major investments or system changes.

I remember working with a small craft brewery in Portland that was hesitant to accept anything beyond cash and cards. After setting up gift cards and Shop Pay Installments, they saw their merchandise sales (particularly higher-priced items like custom growlers and apparel sets) increase by over 20%. "We should have done this years ago," the owner admitted.

The bottom line? Payment flexibility isn't just a nice-to-have feature—it directly impacts your revenue. Our clients who implement multiple Shopify POS payment options consistently report higher sales, bigger average purchases, and happier customers who return more often.

At First Pier, we've helped countless Portland businesses find the perfect payment configuration for their unique needs. Whether you're just starting with in-person sales or looking to upgrade your existing setup, we'd love to help you make the most of what Shopify POS has to offer.

For more guidance on implementing the right payment mix for your business, check out our Shopify POS implementation services or reach out for personalized advice.