Before diving into this Shop Pay review, the one thing every online store owner must have at the back of their mind is the customer experience. Every decision to enhance your eCommerce website's functionality must be customer-centric.
A critical part of the customer’s journey through your online store is the checkout process. It needs to be fast, seamless, and secure. That’s where Shop Pay comes in – to give shoppers an accelerated checkout experience.
What Is Shop Pay?
Formerly known as Shopify Pay, Shop Pay is an accelerated checkout method designed for Shopify stores. Since its initial launch in 2017, the app has become one of the most popular payment methods and currently supports over 1.2 million merchants worldwide, all of whom operate Shopify stores.
While Shop Pay is created exclusively for Shopify, the app is powered by Shop, a virtual shopping assistant that works to simplify and elevate the overall customer. Shop Pay’s tagline is to help shoppers "pay, track, and shop better." In other words, to provide a streamlined payment process for customers during checkout.
With Shop Pay, customers get to enjoy a faster checkout experience by allowing them to save their billing and shipping details, credit card information, phone number, and email address securely for future purchases made on any Shopify-powered store. Once they opt into Shop Pay, they can check out in a few easy clicks without re-entering their payment information in every online store. As long as it’s a Shopify store, they’re good to go.
At checkout, shoppers are presented with two options. On the one hand, they can complete their purchases via the Express checkout option (Shop Pay). On the other hand, they can manually enter the required details in the checkout form provided to complete the payment.
Some of Shop Pay's most notable features include:
- One-click checkout
- Smart parcel delivery tracking
- Local store recommendations
See also: Shopify Payments Made Easy – Optimizing the Checkout Experience.
How Does Shop Pay Work?
With that brief overview, it is worth noting that Shop Pay is exclusive to Shopify stores. The app only works with Shopify and Shopify Plus.
To use Shop Pay, customers must enter their billing information once they’re done shopping, choose Express Checkout, and then select Shop Pay. At this point, they will be prompted to fill in the fields with the required details, which will be saved for any future purchases they make on that or any other Shopify store.
To use Shop Pay, a customer must first create a shopper account using their email address or phone number. A code will be sent to them to confirm their account and validate their login. Once they’ve confirmed their account, they'll need to enter their billing information, including their billing and shipping details, credit card information, and phone number. Shop Pay will then use this information to automatically pre-fill the customer’s checkout form for all subsequent purchases.
Customers, therefore, get to enjoy an accelerated checkout process when shopping at any Shopify store by simply inputting their email address or phone number, depending on what they used to create their Shop Pay account. They’ll then need to input the verification code they receive to validate the transaction.
To opt-in to Shop Pay, users must check the “Remember me” option to save their information on the platform. However, this is only available to customers who sign up using their email address, not their phone number.
One of the great things about Shop Pay is that it allows customers to save up to 20 different shipping addresses and a maximum of 10 credit cards. The app accepts American Express, MasterCard, Visa, and any other debit or credit card you support on your online store. Before users can use their payment cards with Shop Pay, they must first:
- Ensure their cards have been activated by their payment providers;
- Check that the billing information (such as the zip code) they provide matches that which is in their bank account on file;
- Ensure the payment app supports the credit or debit card they attach to their Shop Pay account.
What Are Shop Pay Benefits?
As a merchant, you want to leverage every tool available to make your business more appealing to customers. One surefire way of doing this is to provide a seamless shopping experience for anyone visiting your store. Accelerated checkouts are synonymous with great user experiences.
With that in mind, should you integrate Shop Pay into your eCommerce website? Here are some top reasons why it might be a good idea.
1. Enhanced Security
Security should always be at the forefront of any online store because eCommerce websites handle sensitive customer information. If these details somehow end up in the wrong hands, it could result in devastating financial losses for customers and a mountain of legal woes for online merchants.
Shop Pay, a third-party app you would integrate into your store, has taken extensive security measures to ensure customers’ billing information is kept safe from hackers and unauthorized entities. The app relies on two-factor authentication by sending an SMS verification code to ensure the account holder is the only person using Shop Pay.
The fact that it is also only built for Shopify means you and your customers get to leverage an added layer of protection. Shopify is known for how seriously it takes the platform’s security. It is PCI-compliant and Level-1 PCI DSS certified. PCI DSS is a set of security-related standards the payment card industry sets to prevent potential security breaches from hackers and other bad actors.
2. Elevated Customer Experience
Your objective as an online store owner is to remove any roadblocks that might hinder customers from completing purchases on your website. Several statistics indicate that long-drawn-out checkout processes are a major turn-off for customers.
Someone may have every intention of buying a product from your store, only to change their mind at the very last step once they realize how many hoops they must jump through to complete their purchase.
With Shop Pay, your customers don't have to go through the hassle of filling out their billing information whenever they want to buy a product from your store. Faster checkout translates to a better overall customer experience.
3. Increased AOV
Your business’s average order value (AOV) is the average amount of money a customer spends every time they place an order on your online store. When Shop Pay was first launched, 25% of Shopify merchants that adopted it saw a 50% rise in their AOV compared to those that did not.
The reason: Installments.
Shop Pay offers customers an installment option that makes it easier to buy expensive products they otherwise wouldn’t have had they been required to pay for them outright.
4. Higher Conversion Rates
Shopify merchants that adopted Shop Pay saw a 28% decrease in the overall number of abandoned carts. The “Buy now, pay later” option Shop Pay offers to customers can boost your eCommerce website’s conversion rates since users can pay for products in installments. This option makes it less likely for users to abandon their shopping cart even if they're on a tight budget. Shop Pay is especially useful for merchants that stock pricier items.
5. Access to a Vast Consumer Base
Leveraging both Shop Pay and Shop (Shopify’s virtual shopping assistant) allows merchants to access a massive customer base they otherwise would not be able to through any other payment solution. Since there are already 100 million+ customers globally using the app as their preferred checkout and shipment tracking method, incorporating it into your online store gives you access to this vast consumer network.
6. Enhanced Brand Credibility
Customers are generally skeptical of installment payments due to high-interest rates, hidden fees, and late charges. Shop Pay provides complete transparency where costs are concerned, allowing customers to leverage interest-free installments, zero hidden fees, and no late charges.
Since it is also backed by Affirm and Shopify, you can ride on the security of these platforms to build trust with your customers.
See also: GoDaddy vs. Shopify – Which One Should You Pick for Your Online Store?
Shop Pay Reviews – A Hit or a Miss?
So far, we've explored some key benefits of integrating Shop Pay into your online store. The real question is: Is it worth it? From our experience, the answer is a resounding yes. Here are some reasons why it’s a game-changer for Shopify store merchants.
1. Marketing Automation
As an online store owner, marketing automation is undoubtedly one of the most critical features you can leverage to boost your sales. While Shopify has no shortage of marketing integrations you can incorporate into your store, Shop Pay is chock-full of built-in tools to help you effortlessly get the word out about your business. The best part is – these tools are all fully automated.
Popular marketing automation features that come with Shop Pay include:
- Tracking notifications for shipments
- Automatic notifications for trending products
- New arrival notifications
- Hot deals and exclusive promotions
- Product recommendations for additional purchases
- Post-purchase offers
Unlike many payment platforms on the market, Shop Pay provides a streamlined way to boost sales and promote repeat purchases without you having to lift a finger. Once you’ve set it up, it’s the gift that keeps on giving.
2. Performance Tracking
How can you tell whether your online business is growing, stagnating, or receding? How do you know which measures to implement to set your business on an upward trajectory?
The answer lies in performance tracking. If you're not tracking your business's performance, you're likely not growing.
Shop Pay has powerful performance tracking features that analyze several aspects of your business so you can gauge how it’s doing and the areas you may need to switch up. It offers insight into the frequency with which people make purchases on your online store, how long it takes before customers receive their purchases, and whether your conversion rates are on the rise or decline.
Shop Pay also sends tracking messages to the customer and merchant:
- When the store owner processes the order
- When the order is dispatched to the customer, alongside the tracking code generated
- When the customer receives their order
3. Checkout Customization
As an online store owner, one thing you must always keep in mind is that customer experience is subjective. While you might have a competitor dabbling in the same products as you and even have somewhat similar eCommerce websites, it doesn't mean that a customer shopping in both your stores will have the same experience.
With Shop Pay, you customize the checkout experience in your store. You can tailor different aspects of the process to determine how it looks and feels to customers purchasing from your store. You can offer perks like free shipping, express shipping, in-store pickup, etc., to make your business stand out from the competition.
The app also allows you to display specific items in your store to certain customers, share product recommendations, and even have a section where customers can view their past orders. You can also customize your store’s contact methods, logo, cover image, description, and customer support options available to shoppers.
4. Social Media Integration
If you're a merchant exclusively using social media to sell your products and do not have a Shopify eCommerce website, Shop Pay has got you covered. You can leverage the Shop Pay button by embedding it on your Instagram, Facebook, and Google business pages and start accepting payments from customers shopping on these platforms.
5. Mobile Store Management
Shop Pay has a sleek mobile app that lets Shopify merchants manage different aspects of their online store on the go. That's right. You can enjoy all the app's features through your Android or iOS mobile device, wherever you might be.
Whether you need to manage customer support or complete pending tasks, you can do it all from the palm of your hand. Forget about being anchored to your desktop or laptop to process your store orders.
6. Curated Product Recommendations
To present your products to new and existing customers, you need to create curated lists featuring product recommendations and shops they might be interested in. Shop Pay allows online store owners to do just that.
As mentioned, Shop Pay has millions of customers signed up to the platform. Based on the data the platform collects, it recommends your online store and products to customers in line with their purchase preferences, providing your business with more exposure and increased sales potential. You can think of it as free marketing for your eCommerce website.
See also: 5 Shopping Carts That Accept Crypto Payments.
Shop Pay vs. Shopify Payments: Are They the Same?
There’s often a lot of confusion over whether Shop Pay and Shopify Payments are the same product, and it’s easy to see why. One sounds like a shortened version of the other.
Let’s clear that up, shall we?
Shop Pay is not Shopify Payments. While the two products are closely affiliated, they are not the same, even if "Shop Pay" sounds like it is short for “Shopify Payments.”
Shopify Payments is a payment processing feature built into Shopify that allows merchants to accept various payment methods, including credit cards. The feature becomes available once you set up a Shopify account and then enable Shopify Payments.
On the flip side, Shop Pay is a payment processing app built specifically for Shopify stores. It relies on Shopify Payments or other third-party providers to process online store transactions. In other words, to use Shop Pay, you must first install Shopify Payments.
Shop Pay isn't a standalone platform, unlike other payment processing apps from third-party providers. The only way merchants can leverage the full benefits of Shop Pay is by using both Shopify and Shopify Payments. Once you subscribe to Shopify's Premium Plan, you can use Shopify Payments and Shop Pay.
It is worth noting that payment providers typically dictate what merchants can sell using their service and charge fees, usually a percentage of the transaction amount. As far as credit card transactions go, the credit card company, issuer, and acquirer all have fees they charge for their services.
Shop Pay Installments
Earlier in this article, we stated that one of the benefits of Shop Pay to customers and merchants is that it supports installment payments. This feature is particularly useful to online store owners who sell expensive products and customers whose budgets may not allow them to make large purchases outright.
Shop Pay Installments is a solution powered by Affirm, a third-party buy-now-pay-later provider, and Shop Pay that allows merchants to get paid when a customer places an order. The service lets the customer pay for the product in installments over an extended period.
That said, it is worth noting that Shop Pay Installments is only available to US-based businesses that meet specific eligibility criteria and those that use both Shopify Payments and Shop Pay. There are two installment payment options available to customers who opt-in to the service:
- Monthly installments spread over three, six, or 12 months for orders valued at $150 to $17,500 with an annual percentage rate (APR) of 0-36%.
- Four interest-free installments every two weeks for orders valued at $50 to $999.
Eligible store owners have a premium option for longer repayment terms and interest-free installments. Keep in mind that merchants are also required to pay a fee of 5-6% for each buy-now-pay-later transaction, based on Affirm's underwriting and various underlying factors.
If you opt-in to Shop Pay Installments, Affirm will periodically review your store to ensure it is in good standing and in line with its rules for prohibited businesses. If your store is found to be in breach of any of these rules, Shopify Installments on your website will be suspended. Possible reasons for suspension include, but are not limited to, the following:
- If your Shopify store does not have an active online website
- If your store is involved in a business activity prohibited by Affirm, including financial services and gambling
- If you sell regulated products such as alcohol, tobacco, and drug paraphernalia on your online store
- If you sell restricted products such as adult toys, currencies, and weapons on your online store
- If your store's primary currency is not set to USD
- If your store's primary language is not set to English
- If your business operations are primarily business-to-business (B2B);
- If your store requires users to enter a password to access it.
See also: 3 Cheaper Shopify Alternatives for Small Businesses.
How to Enable Shop Pay
To start accepting customer transactions, you must first enable Shop Pay on your online store. The setup process is relatively straightforward and takes no more than a few minutes to complete. Here’s the step-by-step activation process to enable Shop Pay with Shopify Payments:
- Log in to your Shopify admin and click Settings > Payments.
- In the Shopify Payments section, select Manage and scroll down to Payments.
- Find Shop Pay and click the checkbox to select it.
- Click Save to save your changes.
If you’re using a third-party payment gateway (that’s not Shopify Payments) to enable Shop Pay, follow the steps outlined below. Remember that this option is only available to eligible online stores in the US that meet all the payment requirements set by Shopify.
- Log in to your Shopify admin and click Settings > Payments.
- In the third-party payment provider’s Payments section, select Manage.
- Navigate to the Shop Pay section and click the checkbox next to Enable Shop Pay.
- Click Save to save your changes.
- Click the Complete Setup button and input the required store and banking details. Click Save once you’re through.
Keep in mind that your store and banking details are required to allow you to receive payouts from Shop Pay. You have a grace period of 21 days within which to do this, or any payments you receive from Shop Pay in this duration will be reversed and automatically refunded to the customers who purchased products from your store.
What Are Some Shop Pay Alternatives?
If, for whatever reason, you would rather use a different payment processor for your online store transactions, here are some Shop Pay alternatives worth exploring. Regardless of your payment provider, you must still enable Shopify Payments on your eCommerce website.
1. Apple Pay
Like Shop Pay, Apple Pay also offers customers an accelerated checkout experience. Shoppers aren't required to manually input their billing and credit card information whenever they purchase a product from your online store. All they have to do is tap the Apple Pay button and scan their fingerprint, and Apple auto-fills the checkout form with the required information before submitting it to the payment provider.
To start accepting payments via Apple Pay, your Shopify store must have at least one of the payment providers listed below:
- Shopify Payments
- Stripe
- Authorize.net
- Braintree
- CyberSource
- First Data Payeezy
You are also required to adhere to Apple’s acceptable use guidelines for eCommerce websites.
2. Google Pay
Google Pay is the Android version of Apple’s Apple Pay. Like Shop Pay, it lets users enjoy an accelerated checkout process, eliminating the need to enter their billing details and credit card information when shopping on your online store for their initial purchase and any subsequent purchases they might make.
All the customer needs to do is tap on the Google Pay button, and their billing, shipping, and credit card details will automatically be pre-filled in the checkout form and submitted to the payment provider. To enable Google Pay on your Shopify store, you must have activated Shopify Payments.
The upside to using Google Pay is that it is not restricted to Shopify stores. It means you can still enable it even if your eCommerce website isn’t built on the Shopify platform, making it an ideal option for merchants with online stores built outside Shopify’s framework.
Who Accepts Shop Pay?
Shop Pay is best suited for businesses that primarily transact online. The app's unique features (such as accelerated checkout and remembering customers' billing data) are only relevant to online transactions.
In the same breath, if your online store primarily benefits from individuals purchasing from your business frequently and repeatedly, Shop Pay can make it fast, easy, and convenient for customers to complete their purchases. The result is fewer cases of abandoned carts and enhanced customer loyalty.
Shop Pay is widely accepted by several global businesses. Some notable brands you might recognize include:
- Bumble
- Fashion Nova
- Gymshark
- Minecraft
- Ring
- Spanx
- Stanley 1913
- Steven Madden
- Windsor Store
- WWE Shop
The reason why these top brands choose Shop Pay as their preferred payment processing app has everything to do with their customers. They understand that when their customers are happy, their businesses thrive. Customer centricity is the common denominator that unites all these brands.
What is it about Shop Pay that makes it so appealing to customers? Here's why they love the app:
1. Accelerated Shopping Processes
Users find it tedious to input their billing information and credit card details every time they shop online. Shop Pay securely saves customers’ billing details and automatically detects the customer when they shop at a Shopify store. It saves them the hassle of going through the form-filling process, allowing them to check out within seconds.
2. Automatic Transaction Logs
As great as your online store might be, that’s not the only place your customers shop. As a result, it can be difficult for shoppers to keep track of all the purchases they’ve made. They often have to comb through their credit card statements just to identify the various items they've bought. What's worse is that these statements don't provide transaction details, making it near-impossible for them to distinguish between online and in-store purchases.
Customers prefer using Shop Pay since it lets them access and view their transaction history to keep track of their online spending. Every time they check out using Shop Pay, the transaction details are stored in their account and can be viewed at any time in the future.
3. Custom Product Recommendations
Customers who frequently use Shop Pay train the platform to learn about their shopping habits and product preferences. The app begins to curate custom product recommendations specifically suited to their tastes. This level of personalization is something customers crave, and Shop Pay satisfies that craving. It’s a win-win either way you slice it.
4. Local Shopping and In-Store Pickup
Some customers are all about supporting local businesses. Shop Pay provides a host of local shopping opportunities and in-store pickups for those who would rather not wait for doorstep delivery.
5. 24/7 Customer Support
Poor customer service is a deal-breaker for many shoppers. If they run into any issues, especially where payment matters are concerned, they want to be able to communicate with a live representative at any time of day or night.
Shop Pay has a Help Center where customers can input their name, email address, subject, and payment/platform-related issues. A support representative will contact them shortly to address their query.
6. Multiple Payment Options
Last but certainly not least, every customer has a preferred mode of payment. Some shoppers like paying with credit cards, while others prefer to go the debit card route. Customers making expensive purchases may prefer to pay in installments over an extended period through a buy-now-pay-later service if available.
Shop Pay provides customers with several payment options, allowing them to make online purchases using their preferred mode of payment. Shoppers can pay using American Express, MasterCard, Visa, or any other accepted debit or credit card. Those on a tight budget can opt-in to Shop Pay Installments to spread the cost over multiple payments.
Top Stores That Use Shopify
Your store can make or break your brand. That's why you must always make your customer the focal point of your eCommerce operations. The idea is to leave a lasting impression by creating a seamless experience for shoppers from start to finish.
We’ve compiled three top brands whose online stores are powered by Shopify and have exemplified what a customer-centric shopping and checkout experience looks like in their respective industries.
1. Fashion, Footwear, and Clothing Store: Maguire
Drawing inspiration from her surroundings in Montreal, Canadian-based Myriam Belzile-Macguire founded a shoe business – Maguire – with a specific target demographic. The company’s Shopify store captures the style and essence of its ideal customer.
2. Jewelry and Accessories Store: Camille Brinch Jewelry
Camille Brinch started her jewelry-making career as a hobbyist before realizing she had a real knack for making exquisite pieces. Today, she is the CEO and owner of a multi-million dollar business – Camille Brinch Jewelry – with an online store powered by Shopify.
3. Beauty and Wellness Store: Cheekbone Beauty
When Jennifer Harper founded her business, she had a clear vision – to create beauty products that were 100% vegan, cruelty-free, and waste-free. Her vision became a reality; today, her products use 85% less plastic than her competitors. The Cheekbone Beauty Shopify store adopts a minimalist yet vibrant aesthetic that is captivating yet simple in its design.
Final Thoughts
Fast checkout, express checkout, accelerated checkout – popular buzzwords that all refer to the same thing: Making it easy for customers to complete their purchases in the shortest time possible without having to enter their billing and credit card information over and over.
Shop Pay is an app specifically built for Shopify stores to allow customers to check out in one click while minimizing the chances of them abandoning their carts. It's a win for the customer and a win for your business, too.
To leverage Shop Pay and everything else Shopify has to offer, you will need to switch from your current eCommerce provider. Cart2Cart, our automated shopping cart migration tool, can help you do just that. It transfers your online store to any eCommerce platform of your choice in a few easy clicks. You can migrate to Shopify quickly and conveniently with no downtime or risk of data loss.
Want to see it in action? Sign up to Cart2Cart for a free demo today.
FAQs
Can I trust Shop Pay?
As far as security goes, Shop Pay is trustworthy. Customer information is encrypted and stored on Shopify's secure, PCI DSS-compliant servers. The app also requires users to input an SMS verification code sent to them to ensure the account holder is the only person using Shop Pay.
Is Shop Pay better than PayPal?
Shop Pay is specifically built for Shopify stores. It is not compatible with eCommerce websites that run on other platforms. On the other hand, PayPal is compatible with most online store platforms and also offers express checkout. Its main drawback is its higher transaction fees compared to Shop Pay. It also doesn’t offer customers the option to pay via installments.
How do I get paid from Shop Pay?
Shop Pay payments are remitted to the same bank account you’ve linked to Shopify Payments. If you’ve opted-in to Shop Pay Installments, the full payment amount for your order will be remitted to your account within three business days. Affirm will then collect payments from your customers.
April 25, 2024 
Comment by Men Gothic Trousers
Thanks for sharing this article with us.