What is Shop Pay and how does this payment method work?

When it comes to online shopping, you want to offer customers the best possible experience in every area. Checkout is one such area, but one that is, unfortunately, often underestimated. Shop Pay offers an accelerated checkout option that can enhance the shopping experience for customers in your Shopify shop. But that’s not all – the solution can also be used on Facebook or Google.

In this article, I’ll show you exactly how the express checkout solution works.

What is Shop Pay?

Shop Pay is a fast and secure payment method that can be integrated into your online shop. It enables customers to check out quickly and easily. The payment details provided by the user can be saved on their device, meaning they do not have to re-enter them for every new transaction.

Shop Pay handles the secure storage of customer data (encrypted in accordance with PCI standards). To further enhance privacy, customers are not required to provide their full name, address, email address or telephone number.

Consequently, customers can purchase the item they want on the product page with just one click. As well as Shopify, you can also use this solution for Google Shopping and in the Meta Space – that is, on Facebook and Instagram.

Shop Pay also offers the option to pay in instalments. To do so, the customer must undergo an identity verification process.

In addition, the company has voluntarily committed to offsetting the CO₂ emissions caused by the transport of orders. To this end, Shop Pay is protecting 120 million trees in the Peruvian rainforest and is in the process of planting 4.6 million mangroves in Senegal.

Click here to visit the app’s homepage.

Shop Pay benefits at a glance

• Express Check-out: Once customers have entered their details once, they can order products with just one click on the Shop Pay button.

• Increasing the conversion rate: The fast and seamless checkout process makes it more likely that customers will complete their transaction.

• Customer loyalty: A simple checkout process enhances the customer experience. This can help ensure that customers are happy to return.

• High security builds trust: Shop Pay uses encryption technologies that meet the highest standards; as a retailer, you can benefit from the trust that this payment method instils.

• The more, the better: Ultimately, it all comes down to the customer and their preferences. That is why it can make sense to offer as many payment options as possible.

Shop Pay disadvantages

• Tough competition: Shop Pay is up against other payment methods such as PayPal, Apple Pay and Klarna, which already have a loyal customer base, and may therefore see limited use.

• Relatively new: Shop Pay was launched in 2017 and is therefore not yet as widely used as other payment providers, which benefit from their network effects.

How does Shop Pay work for users?

If you’d like to use Shop Pay as a customer, I’ve listed all the steps for setting it up here.

Register and set up

The first time you check out using Shop Pay, you’ll be asked to enter your email address, payment details (credit or debit card) and delivery address. You’ll then have the option to create a Shop Pay account.

SMS verification

For security reasons, you’ll receive a code on your mobile phone which you’ll need to complete the registration.

Storage of information

Once you have verified your identity, Shop Pay stores your information in encrypted form on a secure server.

Log in to the app

For the best user experience, you should download the shop app onto your smartphone. You can then log in using your email address.

Simplified checkout

You can now complete your purchase in just a few clicks at any Shopify shop that supports Shop Pay.

Payment by instalments

Shop Pay also allows you to pay the price in instalments. To do this, you’ll need to complete a quick identity check. Once the instalment plan has been set up, when you select ‘Pay in instalments’, you’ll receive a 6-digit confirmation code via text message to authorise the transaction.

How does Shop Pay work for merchants?

Shop Pay works via Shopify Payments, so you simply need to enable the feature in your settings. To do this, go to Settings in your Shopify admin, then select Payments. From there, navigate to the Shopify Payments management section and tick the box next to Shop Pay. The express checkout option should now be available in your shop.

What else should you bear in mind regarding Shop Pay?

Basically, Shop Pay is easy to set up and quick to get started with. Nevertheless, I’ve got a few more interesting points for you.

Check-out can be customised

As a retailer, you can customise your checkout process using Shop Pay to ensure maximum customer satisfaction. You are free to choose elements such as your logo, cover image and delivery methods.

Fees apply

Nothing is free, so there are also charges for Shop Pay. These depend on your particular Shopify plan. We’ve already explained the Shopify costs in detail in this article. As a retailer, you should always be aware of the costs and charges involved.

Shop Pay vs. Shopify Payments

You often come across comparisons of the two payment gateways online. Don’t let that confuse you. As explained earlier, Shop Pay simply needs to be enabled in the Shopify Payments settings. The two features are therefore not in competition with one another; rather, Shop Pay is built on top of Shopify Payments.

Conclusion on Shop Pay

Shop Pay is a useful addition to other Shopify payment methods. Its focus on fast check-outs offers a number of benefits for both customers and merchants. Although Shop Pay is not yet as widely used as some established payment service providers, merchants can still benefit from its advantages simply by setting it up.

As a full-service Shopify agency, we’re happy to advise you on Shop Pay or any other Shopify-related matters – from minor technical adjustments and Shopify marketing right through to comprehensive support. Please feel free to contact us for an initial free consultation.

Frequently Asked Questions about Shop Pay

What is Shop Pay and how does it work?

Shop Pay is a payment method provided by Shopify. It enables you to complete your checkout quickly and securely. With Shop Pay, you can save your payment and delivery details, so that future purchases can be completed in just a few clicks. This significantly enhances the shopping experience in online shops.

Is Shop Pay like PayPal?

Shop Pay is not exactly the same as PayPal. Whilst PayPal is a standalone payment service provider, Shop Pay is Shopify’s own checkout solution. Shop Pay securely stores customers’ payment and delivery details, enabling particularly quick and easy payment processes in Shopify shops. Unlike PayPal, however, Shop Pay is not designed as a separate account or wallet, but is specifically integrated into Shopify. Reading time: 4 minutes.

Is Shop Pay like Klarna?

Shop Pay is not like Klarna. Klarna is known for its ‘Buy Now, Pay Later’ features (payment in instalments, purchase on account). Shop Pay, on the other hand, primarily offers a faster checkout process using stored customer data. Although Shop Pay also offers the option to pay for larger purchases in instalments (Shop Pay Installments, currently available only in some countries), its main focus is on speed and convenience when paying via the Shopify checkout.

Can you pay by invoice using Shop Pay?

Yes, Shop Pay offers payment by instalments or purchase on account. This has a positive influence on the decision to buy.

Can you pay via PayPal when using Shop Pay?

With Shop Pay, you need to register a credit or debit card to make a payment; Shop Pay competes with PayPal.

Is Shop Pay trustworthy?

Yes, Shop Pay is considered a trustworthy payment method. It is offered by Shopify, a well-established e-commerce company that provides a wide range of services for online retailers. Shop Pay offers a secure and encrypted platform for payments to ensure the security of transactions. It also features functions such as fraud prevention and customer authentication to protect the integrity of the payment process.

Can I track my order using Shop Pay?

Yes, the Shop Pay app displays the order status and sends notifications about each stage of the process.

Is Shop Pay secure?

Yes, Shop Pay is a secure payment method. It employs various security measures to protect your data. Transactions via Shop Pay are encrypted, and the platform uses trusted technologies to ensure the security of your information. Shop Pay ensures that your purchases are processed securely.

How can I activate Shop Pay?

To activate Shop Pay, you’ll first need to have a Shopify account. You can then enable the Shop Pay integration in your online shop. To do this, go to the payment settings in your Shopify admin and enable Shop Pay as a payment method. It’s a simple process that will help you boost your conversion rate.

How do I deactivate Shop Pay?

To disable Shop Pay, go to your Shopify admin, then go to Settings, then Payments, and then Manage Shopify Payments; here, untick the box next to Shop Pay.

What does Shop Pay offer compared to other payment methods?

Shop Pay offers many advantages that set it apart from other payment methods. As well as offering the option to pay in instalments, it allows you to enjoy a quick and secure checkout. You can also earn Shop Cash, which you can use towards future purchases. This enhances your shopping experience and encourages the use of Shop Pay on e-commerce platforms.

Can I use Google Pay alongside Shop Pay?

Yes, you can use Google Pay as a payment method alongside Shop Pay, provided the online shop offers this option. Integrating different payment methods allows customers to choose flexibly which payment method they prefer. This helps to improve conversion rates and makes the checkout experience even more enjoyable.