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Quick payment checkout options have devised a new revolution in online shopping. Integrating such methods is a win-win situation for both customers and merchants. Where customers get to use a hassle-free and easy-to-use e-wallet, merchants can stop customers from leaving the purchase in the cart. Today, we will discuss one such app called Shop Pay and discuss what is Shop Pay, its benefits, and how it can be used.

Shop Pay was introduced to ease and speed up the payment checkout process. In addition, it is meant to bring down the number of cart abandonments. Imagine this: When a customer shops online, they like a product, but when they have to provide their address details, contact information, card details, etc., they remember some important task and leave for that. This situation is called cart abandonment.

Shopify thus felt the need to bring up an accelerated checkout option- Shop Pay, which only requires customers to save their billing information, address, and contact information for once.

What Is Shop Pay?

Shop Pay is an accelerated checkout option powered by Shopify to facilitate faster purchases by saving purchase-related data. The checkout method has been widely used since its introduction in 2017 and can work with existing payment methods.

Shop Pay is so convenient for users because it stores users’ data with encryption and allows faster transactions. Here are the fields that Shop Pay keeps stored:

  • Email address 
  • Shipping information
  • Credit card details
  • Billing information

Not only for buyers, but Shop Pay is a blessing for sellers who want to expand their business by joining hands with local delivery and pickup companies. Moreover, this payment option can be integrated with Google Pay and social media sites such as Facebook, Instagram, YouTube, etc.

How To Checkout Via Shop Pay?

To check out via Shop Pay through an online store that has enabled it, follow the procedure stated below:

  1. When viewing a product for purchase in a cart or at the time of checkout, tap/click on the Shop Pay button.
  2. Next, you’ll be asked to provide your email address or select the passkey icon in the email field.
  3. Follow the im-prompt instructions to save your information.
  4. Review your order before any changes.
  5. Tap/click on Complete Purchase.

Benefits Of Shop Pay

Learning what is Shop Pay can skyrocket your conversions by 50%. This fact is convincing enough, but Shop Pay benefits aren’t limited to that only.

Shop Pay Benefits For Buyers

(a) Saves Time: Shop Pay saves buyers’ data imperative for exercising purchases like billing or credit card details and shipping information, etc. This saves time by eliminating the need to enter details every time you want to make a purchase.

(b) Provides Customer Support: It allows customers to look for support services and chat options, go through frequently asked questions like what is Shop Pay, installment-related queries, and find other resources easily. Instead of directing you to some other app, it’ll provide you access to support services without having to leave the app.

(c) Personalized Shopping Experience: The platform offers customized shopping experiences to customers by providing purchase recommendations, giving updates for deals, updating stock restoration/back in stock, etc., and keeps their data safe and secure.

(d) Shop Locally: If you love to shop locally, Shop Pay lets you track new offerings and deals from local stores. The best part is that it also provides access to pickup options from stores in your proximity.

(e) Encrypted Data Storage: Shop Pay stores customers’ data on Shopify’s PCI compliant servers. It only shares customers’ information with the stores only when they are making a purchase order. So customers can be relieved of their data safety online.

(f) Easy Installments Allowed: Shop Pay allows customers to pay in installments only for orders from 50 USD to 17,500 USD (including discounts, shipping, and taxes). Buyers can pick the duration at their convenience within 3 to 24 months. They can also pay in a maximum of 4 installments biweekly. This allows Shop Pay users to ‘Buy Now, Pay Later,’ which customers often look for.

Shop Pay Benefits For Sellers

(a) Increases Conversions: Shop Pay has reportedly increased conversion rates for sellers by 50% in comparison to guest payment options. It makes the checkout quick and hassle-free, thus attracting more customers.

(b) Automated Marketing: This is the most celebrated feature of Shop Pay that allows marketers to connect with customers better. With the platform’s automated tool, sellers can send automated messages before, in between, and after an order is received. Among other things, it also allows:

  • Sending shipment tracking notifications with other product recommendations.
  • Messages for new arrivals
  • Sending products recommendations
  • Deals messages
  • Sending post-purchase offers

(c) Allows Performance Tracking: With Shop Pay, sellers can keep track of when an order was placed and how fast it was delivered. Furthermore, they can check how frequently a product was purchased, thus monitoring how fast the conversion rate for a particular product goes up. That’s how this platform serves the purpose of keeping the business transparent and helps them make future sales strategies.

(d) Customized Store & Checkout Options: Shop Pay provides enormous options to choose from. Sellers can add enticing features to their stores that attract customers. For instance, Shop Pay installments, express shipping, free shipping, recommendations based on orders received previously, etc. This customization will help retain the customers and give them a continuous reminder about your store.

(e) Seamless Integration Across Various Platforms: Shop Pay allows seamless integration for merchants to manage inventory on different e-commerce and social stores like Shopify, Amazon, Instagram, etc. It also allows activating a tab/button for customers so that they can quickly pay and checkout. This integration saves their time and effort from wasting and allows sellers to focus on other things. Furthermore, sellers can also provide resources that are useful to customers in a single place in Shop Pay.

How Does Shop Pay Work?

So far, we’ve talked about what is Shop Pay and its benefits. Now, let’s see how Shop Pay works.

Shop Pay works in a streamlined manner, providing integrated features that are equally good for sellers and buyers. One of its most cherished aspects is the level of customization it proffers.

Where the customers can access quick payment and checkout options, sellers get access to the platform’s automated tool for sending messages and notifications, pre-purchase, post-purchase, and while the product is in transit. This helps customers get updates on new deals and offers, whereas sellers get to handle the inventory on multiple e-stores.

How Does Shop Pay Work

Shop Pay facilitates quick checkout with the already existing payment method. The image above depicts the steps for how Shop Pay works. The customer first needs to sign up using their phone number. They then need to submit their email, shipping, and payment information.

These details and numbers get stored on the platform’s servers, and the customers need not enter them again and again.

Whenever the customer makes any purchase in the future using Shop Pay, they’ll be allowed a quick checkout without having to re-enter the already saved information. We discussed what details Shop Pay saves in the ‘What Is Shop Pay’ section.

Shop Pay uses advanced PCI standards and follows Google’s API Services User Data Policy, which ensures data protection. Also, customers will get a six-digit verification code via SMS or email for order confirmation and safety purposes.

How To Set Up Shop Pay For Your Store?

Just knowing what is Shop Pay isn’t enough, you must know how to use it for your store. You can enable Shop Pay for your online store in 8 easy steps:

1. Sign up with your mobile number and email ID to create a Shop Pay account.

2. Log in to your Shopify Admin dashboard.

3. Go to the search bar on the top and type Shop Channel. Press Enter.

What Is Shop Pay

4. Locate and click on the Shop Channel app. Then click on Install.

How To Set Up Shop Pay

5. Now come back to your Shopify Admin dashboard and hover over to the Settings icon at the bottom on the left.

6. Go to Payments.

Shop Pay Sign Up

7. Then click on Manage appearing on the upper right side of the panel.

Shop Pay Account

8. Scroll down a little to see the Shop Pay option and ensure to check/tick the box next to it. Make sure to save the changes.

If you use a third-party gateway to process your payments, follow this procedure:

(i) From the Shopify admin dashboard, go to Settings.

(ii) Then click on Payments.

(iii) Head to the Third-Party Payment Providers section, and click on Manage.

(iv) In the Shop Pay section, check Enable Shop Pay and then Save.

(v) Click on Complete Set Up, in the Shop Pay section.

(vi) Now enter details of the online store and banking information.

(vii) Click on Save.

Adding Shop Pay Installments To Retail Stores

1) Log in to your Shopify admin dashboard and go to Settings.

2) Click on Payments.

3) Then click on Manage.

4) In the Shop Pay section, ensure that Shop Pay Installments is selected, and then depending on your eligibility for Premium installments options, follow the suitable method:

If Eligible for Premium

Installments

If Not Eligible for Premium

Installments

If Point-of-Sale Section Is Not

Showing

Go to Shop Pay section >

Point of Sale >

Enable Shop Pay Installments

Click on Manage >

Point of Sale >

check/tick Enable

Shop Pay Installments

Choose a financing

package for Shop

Pay Installments

5) Lastly, click Enable to confirm.

Is Shop Pay Safe To Use?

There are plenty of online payment checkout alternatives available. However, Shop Pay stands distinct in many ways, as discussed above. 

Switching to a new payment method can be a little hard without knowing how your financial information will be managed. Shop Pay runs on PCI compliant servers and follows Google’s API Services User Data Policy, which makes it a safe option.

On Shop Pay, all the information is stored securely. Only relevant details like delivery address, mobile number, etc., are shared with the particular store to facilitate order authorization and delivery.

Shop Pay v/s Shopify Payments

People often get perplexed thinking of what is Shop Pay and how it is different from Shopify Payments. These two platforms have a lot that is not common.

Shopify Payments allows buyers to make payments only on Shopify. Whereas, Shop Pay allows an Express Checkout option which can be used across a wide range of stores (that are integrated with Shopify).

Shop Pay v/s Shopify Payments

Another distinctive feature of Shop Pay is that it allows using the e-wallet for transacting for various purposes. This is not possible with Shopify. The difference between Shop Pay and Shopify Payments is summarized in the table below:

S. NO. BASIS SHOP PAY SHOPIFY PAYMENTS
1 What Is Shop Pay/

Shopify Payments

It is a quick checkout option. It is a payment gateway for

online stores. 

2 Purpose It is a customer-oriented

button allowing faster

checkouts.

It is a merchant-oriented option

allowing managing flow of

transactions smoothly.

3 Available For Can only be used with Shopify

and Shopify-supported online

stores.

Can be used to take

payments fromc ustomers via

credit cards and other payment

methods.

4 Fees No fee is charged for using

Shop Pay. However, a

minimal percentage might

be charged for availing of

Shop Pay Installments.

Depends on the country/region.
5 Integration With Offline

Stores

Shop Pay Installments

can be allowed in brick

-and-mortar stores.

Can be integrated with the

Shopify POS System in offline

stores.

How Is Shop Pay Different From PayPal, Apple Pay, Google Pay, Afterpay etc.?

Shop Pay v/s PayPal:

Shop Pay provides the facility of autofill option which eliminates the need to re-submit billing information, shipping preferences, address, card details, etc. every single time a buyer wants to make a purchase. On the other hand, PayPal doesn’t require any such details but only a mobile number.

Shop Pay v/s Apple Pay:

Shop Pay and Apple Pay work in a similar manner, the only difference is that where Shop Pay requires confirmation codes, Apple Pay works on TouchID.

Shop Pay v/s Google Pay:

Shop Pay works only with merchants/online stores that use Shopify or are supported by Shopify. In contrast, Google Pay can be used without requiring Shopify integration.

Shop Pay v/s Afterpay:

Shop Pay and Afterpay both allow paying later for purchases. Afterpay can be used globally with third-party stores which aren’t supported by Shopify. Moreover, Afterpay allows splitting payments over several weeks and charges late fees on defaults. 

Frequently Asked Questions (FAQs)

#1 What Is Shop Pay?

Shop Pay is an accelerated online checkout option that allows buyers to make quick purchases. It stores users’ billing information, shipping preferences, addresses, card details, etc. removing the need to re-enter them at the time of checkout.

#2 Is Shop Pay Safe?

Shop Pay works on PCI compliant servers which store users’ information safely. In addition, it also follows Google’s API Services User Data Policy which sets boundaries for what information is shared with third-party apps/online stores and how.

#3 Who Is Eligible For Shop Pay Installments?

To be able to access Shop Pay Installments, you must make a purchase between $50-$1750 (including shipping and taxes) using Shop Pay and possess a United States billing address (for physical products to be delivered). Furthermore, you must have a debit card (for monthly payments), whereas credit card can also be used for four biweekly payments.

#4 Is There A Fee To Use Shop Pay?

Shop Pay doesn’t charge any fee if the customers are paying in four biweekly payments. However, if you’re opting for monthly payments/installments, interest rates from 10 to 36 percent APR apply.

#5 Does Shop Pay Affect Credit Score?

Defaulting installment payments on Shop Pay will not affect your credit score. However, you might not be allowed to opt for the installment option in the future.

Wrapping Up

Shop Pay is an advanced on-spot payment checkout option from Shopify. It has eased the pain of re-entering card details, addresses, shipping preferences, etc. for every purchase. It has multifold benefits for both buyers and sellers. The above article has walked you through what is Shop Pay, what are its benefits and how customers and sellers can use it.

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