UI Pattern for selection list – feedback and suggestions

I'm designing an ecommerce checkout process and I would like to get some feedback or other ideas on how to visually display the shipping options for customers.

Currently we have 3 options, regular, express and pick up in store. We can use the drop down option and even 3 radio buttons, but I feel those are outdated.

Below is a couple of wire frames that I would love to get feedback on.

1

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There is a thin grey bar that highlights which option is selected. I also included a radio button as I am uncertain if a user would know whether or not they understand that they can select one of these 3 boxes.

2

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This one I created two visual cues, one is a tab selection option and an arrow that highlights which selection the user is on or has chosen.

Thank you in advance.

By default, the first option is pre-selected.