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What is Shop Pay – A Complete Guide for Merchants and Users

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Learn what is Shop Pay and apply the service to elevate user experience and make checkout quicker for repeat customers.  

As a Shopify store, you are always searching for new ways to convert your website traffic into paying customers. While not every visitor can convert into a customer (what a perfect world that would be), the ones who browse your website, add products to the cart, and leave right before making the payment, pinch the most.   

Here, it is clear that the visitor likes your products and is willing to purchase them. But the payment method has put them off. You can use Shop Pay as your payment service provider to avoid complicated payment methods.   

What is Shop Pay?  

Shop Pay is a new and improved checkout system launched in 2017 by Shopify. It offers faster payment services for small businesses. The tool automatically remembers and fills customers’ contact and payment information for higher efficiency in payment.  

To ensure that users get their products delivered appropriately, companies need information like their email address, shipping details, billing information, and debit/credit card information before the checkout. Shop Pay can help businesses remember this information and recall it when needed. Customers do not need to recheck every piece of information several times before making payments when they use a Shop Pay account.  

The users can only enjoy the benefits of Shop Pay if the merchant accepts payment on this payment solution. Currently, it has over 1 million users worldwide. 

What is Shop Pay – The Workings of Shop Pay  

Currently, Shop Pay only works for Shopify and Shopify Plus stores. So, if you have recently started an eCommerce platform, set up a Shopify store before trying to offer a Shop Pay payment option.    

The first-time users must provide billing information in detail, which will be remembered in future purchases.   

The user will need to log in with their email address or phone number; afterward, they can fill in all the details and purchase in no time. As Shop Pay stores this information, you can access it in any store that provides a Shop Pay payment option. All the data is encrypted to ensure safety while offering quick check out without filling in credit card details for every purchase.  

How Does Shop Pay Work?  

  • On Shop Pay, you must validate the purchase by entering a 6-digit verification code you receive in your text for the first purchase.  
  • However, from then on, you can make purchases through the same device using the saved information.  
  • It also has options to change the details or opt-out of the service.  
  • Specific Shop Pay Stores also provide pickup and delivery options here.  
  • On Shop Pay installment stores, buyers can opt for the Shopify buy now, pay later model, in some cases, interest-free.  

Shop Pay has over 20 language settings, including Chinese, Dutch, English, Hindi, Korean, Polish, Swedish, Thai, etc. 

How Does Shop Pay Installments System Work  

When it comes to Shop Pay installment options, the customer can pay the amount over time, but the merchant gets payment in full upfront.  

Shopify Pay Installments follow these rules:  

  • Choose the four biweekly and interest-free payments for orders ranging from $50 to $999.99. The option to pay monthly installments for orders between $150 to $17,500 is always available. For monthly installments, the users can opt for 10% to 30% ARP that they can make over three, six, or 12 months per the amount.  
  • The merchant will receive the full payment in one to three business days.  
  • Affirm is the third-party lender that powers buy now, pay later Shopify feature. 
  • Affirm is responsible for paying for the business.  
  • Merchants must pay a fee between 5% and 6% for the service. The rate will depend on various business factors and Affirm underwriting.  
  • To become eligible for the Shop Pay installment option, businesses must be based in America and sell their merchandise in US dollars.  
  • Shop pay also approves the messaging your website displays for installments to offer correct disclosures and wordings.  
  • Capital One credit cards are not acceptable on Shopify shopping installment payments.  

For Pillow Cube, the Shop Pay installments option was 6.5% of Gross Merchandise Value. They have also reported a rise in their average order value. 

What is Shop Pay benefits?  

Now that you understand what is Shop Pay and its features, it is time to look at the advantages. One of the biggest factors that pushed several merchants to offer Shop Pay service is that it has helped several businesses boost their sales and improve their checkout process.  

Advantages of Using Shop Pay  

One-Click Check Out: The one-click checkout option lets users make decisions quickly. Moreover, it enables them to spend less time filling in details, which is an incentive. If it takes too long to check out, the user might decide not to make the purchase or do it at a later date. Consequently, it reduces cart abandonment while improving conversion rates and sales volume.  

Smart Delivery Tracking: For merchants that offer smart delivery tracking, the users have 24/7 access to shipment locations. With this feature, the users can choose to look at shipment progression at their convenience.  

Local Store Suggestions: Shop Pay merchants that offer local pickup and delivery can give access to the option here. The user can select it during checkout on Shop Pay. 

Who uses Shop Pay?  

Now, you may be wondering what stores use Shop Pay.  

Several brands are currently offering Shop Pay as a method to make payments. Some popular examples include:   

Allbirds 

Monos

Stationery Pal

Ring

With over 40 million regular Shop Pay users, merchants find it beneficial to offer the Shop Pay option, even when other payment methods are available. 

What is a Shop Pay Verification Code? 

Shop Pay verification code text is the method they deploy to avoid misuse of your credit or debit card information. It is a 6-digit code that users get on their verified phone number for identification.   

A message from Shop Pay Code Looks Like the picture below:  

Shop Pay support  

Shop Pay offers optimum support to its merchants through three channels.  

  • Online Community: Shop Pay has an online community where users can attend events and get answers to various queries.  
  • Help Center: Their online help center has FAQs and user manuals for beginners.  
  • Customer Care: Their executives are available to help through chat and email. 

Shop Pay Customer Service  

For business owners, navigating to Shop Pay Section is ideal for getting relevant results. 

For customers, the option of using the Shop Help Center is available. Here, the clients can get all the information they need.  

However, there is no Shop Pay customer service number. Instead, customers can fill in the contact form to contact a support agent who will get in touch with them as quickly as possible. 

Who owns Shop Pay?  

Shop Pay is owned by Shopify and powered by Stripe. Shopify is the biggest and the most trusted eCommerce platform on which several known online merchants sell products. Hence, it enjoys credibility among users and merchants.   

Shop Pay vs. Shopify Payments  

For anyone who has shopped online on any Shopify store, the fact that they offer a variety of payment methods is no surprise.  

It is easy to assume that Shop Pay and Shopify Payments are the same, but they are not.  

Shop Pay  

  • Serves as a wallet  
  • Speeds up the payment process  
  • The Shop Pay Installments Store offers the option of splitting your payment into parts.  
  • The only information needed for the payment is the verification code.  
  • Higher setup and transaction fee than Shopify Payments  
  • Google Pay, Apple Pay, etc., follow the same model.  
  • Branded purple button under Express Checkout that captures attention  
  • Shopify gift cards work on Shop Pay solutions if the merchant enables them.  
  • Shop Pay does not ask for the shipping address if the checkout does not need it, for example, if you are ordering a service or downloads.  
  • It considers your setup while offering accelerated checkout solutions.  
  • It isn’t mandatory to use Shop Pay for every transaction.  

Shopify Payment  

  • No Wallet  
  • Standard payment processor  
  • Helps Merchants accept payments.  
  • Lower setup and transaction fee than Shop Pay  
  • A similar product to Stripe, Authorize.net, Square  
  • An unbranded button that does not capture the user’s attention 

What is Shop Pay Alternatives? 

The Shop Pay reviews mention several features. However, if you are not interested in using Shop Pay for your business, alternatives are available.  

Apple Pay: 

Apple Inc. is the creator of Apple Pay – A Digital Payment Processor that works like Shop Pay. 

Google Pay: 

Google Pay is a payment processor from Google.   

Want to Build Software/App Like Shop Pay 

Now that you understand what is Shop Pay, you can take the decision of using the payment processor or not. Want to create a custom Shop Pay alternative of your own? Cerebrum mobile app development services can help create bespoke payment applications that are secure and effective. Visit Cerebrum Infotech to know more about our services and contact us to discuss the project requirement in detail.    

FAQ:   

Is it safe to use shop pay?  

Yes, Shop Pay is safe for the customer and merchant usage. Powered by Stripe, it meets all the strict requirements (PCI Compliance) to store debit and credit card information.   

Is shop pay the same as Afterpay?  

Shop Pay and Afterpay are two separate entities with similar features. Afterpay is owned by Lanai (AU) 2 Pty Ltd, and Shopify owns Shop Pay. Also, while both the payment options have a buy now, pay later option, Shop Pay has additional features like accelerated checkout and installment options. 

How do I get rid of shop pay?  

Depending on whether you are a merchant or a user, the method for opting out of Shop Pay will vary. You can go to the opt-out form and enter details to remove Shop Pay. However, if you have installments, you can only opt-out once these installments are complete.  

What is shop pay and Shopify?  

Shopify is among the most renowned eCommerce platforms businesses use to launch their company online and sell their products. Shop Pay is a Shopify-owned payment system that lets users make quick payments while shopping online.  

How much can you use on shop pay?  

Shop Pay offers the option of paying for orders in full at checkout or an installment payment option for orders between 50 USD and 17,500 USD. The installment payments include four biweekly and interest-free payments on orders ranging from 50 USD to 999.99 USD.  

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Sakshi Shukla

Sakshi’s intrigue with the latest technology and advancements, combined with the ability to string words together for maximum information in the least number of words helps her create impactful, meaningful, and useful content for all types of readers.

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