Shop Pay: How Shopify's payment method and checkout solution works

Customers also expect the best possible shopping experience online. In order to guarantee you this, a smooth checkout process in your online store is essential. With Shop Pay, the accelerated checkout solution from Shopify, it is possible for you to sell via various platforms such as Facebook, Google or your own online store. Thereby, a Shopify store is not mandatory - Because the solution is also available for non-Shopify merchants. Store Pay also supports environmental protection with every transaction, which is an increasingly important decision criterion for customers to make a purchase.

Find out which advantages and functions the one-click checkout service offers and why the solution is also worthwhile for your online store in the article.

What is Shop Pay?

Shop Pay is a secure and fast payment method that merchants can integrate into their online store to provide customers with expedited transactions. Users can store payment information in the app and save it on their device. This eliminates the need to enter personal information with each new transaction.

Shop Pay stores payment information such as credit card details (encrypted and PCI compliant), cell phone number, billing details (e.g. customer billing address) and shipping details (e.g. delivery address).

The convenient payment method is available for any online seller, even without a Shopify store. You also have the option to accept payments via other websites, such as Google or Facebook. All stored information is always safe and secure. As a merchant, you don't store any information on their servers, so you are at low risk from compliance regulations.

Store Pay is also committed to offsetting the CO2 emissions caused by the delivery of orders. In implementation, this means planting and protecting new trees. Currently, over 120 million trees are being protected in the Peruvian rainforest and over 4.6 million mangrove trees are being planted in Senegal.

Store Pay advantages

• Fast checkout: Customers can complete their orders in just a few clicks as Shop Pay stores their shipping and payment information.

• Improved security: Shop Pay offers a secure payment experience with encryption technology and fraud protection features.

• Increased conversion rate: The fast and user-friendly checkout process enables merchants to achieve higher conversion rates and sales.

• Brand loyalty: The frictionless and trustworthy payment experience can strengthen customer loyalty and lead to repeat purchases.

• International support: Shop Pay enables merchants to tap into international markets by supporting local payment methods and currencies.

• Integration with other platforms: Store Pay can be seamlessly integrated with various e-commerce platforms to ensure a consistent payment experience for customers.

How does Shop Pay work?

Shop Pay provides an intuitive shopping experience thanks to the wide range of helpful features. Let's take a closer look at the most important main functions below:

Optimized checkout process

The most important function of the payment method is to speed up the checkout process for all online customers. Users need to provide their payment information only once. For subsequent transactions, the tool detects when the user visits an online store that uses Shop Pay and automatically fills out the checkout form.

Checkout customizations

As a merchant, you can determine how you want the checkout experience to look for your customers. For example, free shipping, express shipping, or even in-store pickup can be offered. You can also customize elements such as contact methods, customer support resources, and logo and cover image.

Installment payments

The checkout solution also offers the customer the option of deciding whether to pay the full amount directly or split the invoice amount into several payments. After a short identity verification process, the customer receives a 6-digit confirmation code via SMS to complete the process. The option to pay with Shop Pay installments can only be used for transactions between 50 and 3,000 USD.

Overview of all orders

All past orders are listed in the app. Users can thus quickly search for orders and order them again.

Shopping recommendations

The tool asks users questions about what they are interested in and where they like to shop. Combined with shopping habits, it thus compiles a list of personal shopping recommendations.

Marketing automations

A big advantage for merchants is that Shop Pay is already active on customers' devices. This allows them to send automated marketing messages before, during and after the transaction. These include, for example, shipping notifications with recommendations for other products, discounts and deals, or shipment tracking with links to other products. The tool can also be used to increase conversions and repeat sales.

Mobile management

Thanks to a mobile app, you can manage all the benefits like tracking notifications or marketing automations on the go and take care of your customers' concerns.

Performance Tracking

Performance tracking in Shop Pay (for merchants) analyzes the efficiency of your sales, taking into account aspects such as the speed of purchase behavior, conversion rate increase, and on-time delivery of products.

This helps to increase trust and increases the transparency of your business.

Tracking information is sent to both the merchant and the customer, covering the following areas:

• Processing of orders

• Shipping of orders

• Provision of tracking codes for orders

• Delivery of orders

Store Pay vs Shopify Payments: the differences

If you're already using Shopify as your e-commerce platform, you probably know that Shop Pay isn't the company's only checkout option. Shopify offers the ability to connect with a variety of payment providers to accept credit and debit card payments.

The main function of Shop Pay is to speed up the payment process in conjunction with stored data. If you want to enable your customers to make faster payments or arrange installment payments, the Checkout solution will help you do that. It allows customers to save all their information, so they only need to enter a confirmation code.

Shopify Payments, on the other hand, is more of a standard online payment processor that helps you accept payments from customers. The tool does not offer any way to speed up transactions. The advantages of Shopify Payments are, for example, savings on transaction and setup fees.

Is Shop Pay safe?

Of course, it's important for merchants to ensure an easy checkout experience for customers. But it's even more important to guarantee customers that their payment information is protected.

Thanks to SMS verification, PCI compliance and encrypted financial data, you and your customers are on the safe side with Shop Pay. You don't need to have any technical expertise - the tool handles the encryption and all other security measures itself.

With the store payment code, for example, a high level of security is guaranteed. To verify the customer's identity, the 6-digit code is sent directly to their phone. Essentially, this allows the customer to complete transactions in a matter of seconds. To complete the payment process, the code must be entered on the checkout screen - the tool now adds the encrypted data such as credit card number or delivery address.

Store Pay Shopify: Use Shop Pay as a merchant

As a merchant, you have the option to either add the Shop Pay app to your Shopify store or use the option to place the Shop Pay module on your Facebook, Instagram or Google Shopping page.

On the Shop Pay website, you will be provided with a QR code to download the app.

You can enable Shop Pay similar to using Apple Pay or Amazon Pay on your Shopify website. Also, the app can be easily installed through the Shopify App Store. Your customers will now see a purple button in the Express Checkout section when checking out from your online store, similar to PayPal and Google Pay. If necessary, the stored data can be adjusted by customers so that a quick checkout always remains possible.

Conclusion

Customers expect a smooth shopping experience. So it pays to have a system that allows for an optimized checkout.

Another benefit for you is that the tool drives sales. Because the easier it is for a consumer to complete transactions, the more likely it is that they will buy from a retailer again.

Disclaimer: This article is for informational purposes only and is not a substitute for legal advice. Please consult independent legal counsel for this purpose.