Shop Pay: Wie die Zahlungsmethode und Checkout-Lösung von Shopify funktioniert
Thursday, 14 September 2023
Latori GmbH

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.

You use Shopify or Shopify Plus and need the professional support of a Shopify Plus agency? Then contact us and we will be happy to provide you with advice and support.

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).

Reading tip: We've summarized how to automate your workflows using Shopify Flow in this post.

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.

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 customers the option to decide whether they want to pay the full amount directly or split the invoice amount over multiple payments. After a short identity verification process, the customer receives a 6-digit confirmation code via SMS to complete the process. The installment payment option can only be used for transactions between $50 and $3,000.

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.

Reading tip: You can read more helpful tips on conversion rate optimization in this blog post.

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

Shop 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.

Reading tip: We explain when it's worth switching to Shopify Plus here.

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.

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.

Would you also like to enable a smooth checkout for your customers and are planning a migration to Shopify? The Latori team will be happy to support you with your request. Contact us.

Frequently asked questions about Shop Pay

Frequently asked questions about Shop PayHow can I pay with Shop Pay?

For this, customers need a valid card with which they can make online purchases. Verification follows via app, email, or text message via smartphone. Customers who have opted for Shop Pay and verified themselves can use their saved data for all Shopify checkouts where Shop Pay is activated.

What does Shop Pay cost?

Store Pay eliminates transaction fees on all Shopify plans. This also applies to Paypal.

Shop Pay - What is it?

Shop pay is a simplified checkout solution where customers can secure all important payment and delivery information to make checkout fast and secure.

Is Shop Pay reputable?

Store Pay is a secure payment method that online stores provide to speed up checkout.

Can I track my orders when I use Shop Pay?

Yes, with Shop Pay, customers can track their orders. They receive notifications about order status and shipping. Merchants can also track orders and view previous receipts.

How does Shop Pay's express checkout feature work?

Store Pay's Express Checkout feature allows customers to use their saved information to complete the purchase in just a few clicks. This speeds up the checkout process significantly.

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