What is Shop Pay and How Does it Work? (Jan 2022)

Everything You Need to Know about Shop Pay.

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Shop Pay, otherwise known as Shopify Pay, is all about guiding potential customers through their path to purchase and generating more sales. Shopify Pay is a convenient payment button that you add to your checkout process. This solution manages payment information for your Shopify store using Stripe. This is the tool that helps countless huge companies to handle payments.

Today, we’re going to introduce you to all the benefits of Shop Pay, and why you should consider using it for your own online store.

What is Shop Pay? The Basics

Let’s start with the basics.

Shop Pay is a convenient payment method and checkout solution for customers on a Shopify store. This handy little tool allows customers to save credit card information, along with other data. For instance, your customers can add their shipping address and billing information, for a faster checkout next time they buy.

The accelerated checkout system from Shop Pay ensures that your customers can process payments faster, which means that you end up with more repeated purchases. All the customer needs to do to access Shopify Payments, is enter their email address.

Although you can speed through Shop Pay’s payment process with a phone number, there are limits to this. Customers using phone numbers won’t have the option to save their information.

Shop Pay comes with a bundle of awesome features to explore. Aside from saving your customers heaps of time when they check out, Shop Pay also comes with features like local pickup and delivery options. Customers and businesses can also rest assured that information is safe and private. Billing and shipping information stays on Shopify’s PCI ready servers.

You don’t save any information on your store, so you’re less at risk of issues with compliance regulations.

Security is an important part of selling online, whether you’re working with third party payment providers, a merchant account, or something else entirely. Support for everything from PCI compliant servers to secure dropshipping is a must have for your small business.

How Does Shop Pay Work?

Shopify Pay, or Shop Pay is a very straightforward solution, which is excellent for both you and your customer. All your customer needs to do to make their purchase is click on the branded button for Shopify on your checkout page. The user will then enter all shipping, credit card, and billing information.,

After your customer enters their number and links the account they want to save, they’ll be ready to checkout faster next time. Shop Pay ensures that whenever your customer logs into your store again, they can simply authorize their purchase without having to enter all of their details again.

For security purposes, your customers will need to receive a text message that includes a verification code. This 6-digit code will allow users to authorize their payment safely. Crucially, this means that all customers do need to enter their mobile phone number to complete their shopping experience.

Fortunately, because all data for Shop Pay remains on compliant servers, your customers can rest assured that you’re only using their phone number for SMS verification and payment options, not for anything else. This leads to a better overall customer experience.

Shop Pay: Offsetting Carbon Emissions

One of the most unique features of Shop Pay, is that it’s committed to making the world a better place. As more companies experiment with deals and offers since the COVID-19 outbreak, it’s becoming increasingly common for businesses to add a unique element to their offer.

Shop Pay is dedicated to offsetting the carbon emissions caused by delivery. This means planting and protecting new trees. Currently, Shop Pay has protected nearly 7 million trees to offset over 6000 tons of carbon emissions.

Whenever a customer pays for online orders using the Shop Pay feature, the delivery from your store ships using one of Shopify’s committed carriers. The Shopify team uses the information they get from their carriers to calculate the emissions that the delivery produces. Shopify then offsets the delivery emissions from your sale by protecting a number of trees.

Shopify believes that protecting trees is the key to reducing carbon emission issues. That’s because trees absorb carbon emissions and transform them. This ensures that we have a better quality of air. Unfortunately, today’s fragile forests often have a hard time keeping up with the number of emissions that people and companies create every day. That’s why Shopify wants to protect our trees.

Shopify also has the Shopify sustainability fund that it contributes to. This provides yet another way to make the planet a better place. The sustainability fund is Shopify’s commitment to use around five million dollars every year to fight for the environment.

Shop Pay Review: Ease of Use

Shop Pay is remarkably similar to Amazon Pay and Apple Pay. The company designed the experience from start to finish to be as simple and straightforward as possible. You can enable Shop Pay just like you would any other options for third-party providers on your Shopify website.

Start by going to the Setting section on your Shopify store dashboard. There will be a section here where you can choose Payment Providers. Click on Payment Providers, and you’ll see options like PayPal and other options. Click on Shopify Payments, then click on Manage.

You’ll see a section named Accelerated Checkouts that includes the Shop Pay or Shopify Pay option. Turn this option on alongside your other payment providers, and make sure that you save your chances. Your customers will then be able to use their saved information to speed up their checkout experience.

When a customer checks out with your store using Shop Pay and they’ve already entered their credit card, billing and shipping information, they’ll have the option to save that information for a following a purchase. This ensures that your customer has to do the bare minimum to checkout next time. If you’re looking for a convenient way to keep your customers coming back for more, this is it.

With only one code to enter to authorize a payment, your customers can enjoy a more streamlined way of making payments. At the same time, Shop Pay features options that make your checkout more unique to you. For instance, you can offer a local pickup or delivery option.

Another excellent feature is that your customers can adjust their Shop Pay information if they ever need to. They’ll have to opt out of Shop Pay using their current phone number, then create a new account with the number they’d prefer to use. Although this is a little awkward, it’s a good option for those who might want to use different details for their payments.

Shopify Payments vs Shop Pay

If you’re familiar with Shopify as an ecommerce platform, then you’ll know that Shop Pay isn’t the only checkout option the company can offer. Shopify provides a variety of payment platform solutions for taking credit and debit card payments.

Shop Pay is all about speeding the payment process along. If you want to help your customers make multiple payments fast, then Shop Pay will help with that. Your clients can save their credit card information and other crucial details, so all they need to do is enter a verification code.

Crucially, Shop Pay isn’t the same as Shopify Payments. Shopify Payments is a checkout option that gives you the opportunity to take payment from your customers in a way similar to PayPal. There’s no option to save payment information for the future. However, Shopify Payments has its own benefits, like saving you some cash on transaction fees and checkout solutions.

Shopify Payments appears on your site as an unbranded checkout option for your customers. On the other hand, Shop Pay is a branded button that comes with the iconic Shopify logo. You’ll definitely be able to tell them apart on your website.

A few interesting things to note is that your customers can use Shopify gift cards on the Shop Pay solution if you’re offering them. Additionally, if your checkout doesn’t ask for a shipping address, then Shop Pay won’t either.

If you’re selling services or downloads instead of physical products, you might not need an address to complete a payment. Shop Pay will pay attention to the kind of checkout process that you already have set-up when creating an accelerated solution.

Shop Pay doesn’t force customers to use it every time either. Even if your clients agree to handing over their information, they can always go through the full checkout journey instead. Installing Shop Pay just means that you can give your customers another purchasing option.

Shop Pay Review: Security

It’s not always easy to know which payment options and checkout solutions you should offer on a website. You want to make sure that you’re creating a simple experience for your customers. However, it’s also important to ensure that you're keeping your bills low and reducing the amount of effort required on your side too.

Shop Pay is an excellent tool for a number of reasons. First and foremost, it provides your customers with a faster way to checkout in the future. This boosts your chances of getting repeat purchases. That’s one of the main things a company needs to thrive. Another massive bonus of Shop Pay, is it’s approach to security.

Shop Pay isn’t just there to improve your conversion rate or give you another point of sale. It can transform the way you interact with basic Shopify features.

Thanks to things like SMS text verification, you know you’re giving your customers an extra layer of purchasing security. That’s important in a world where your customers are trusting companies online less than ever. The added layer of security that Shop Pay provides means that shoppers and merchants can enjoy more peace of mind when they interact.

Shop Pay even handles all the payment security elements on your behalf. You don’t need to do a lot of coding work on the back—end to set things up. There’s no technical expertise necessary. This makes Shop Pay an excellent choice for companies that don’t want to have to hire their own developer to make their website suitable for customers.

Although not all of your customers will opt-in to Shop Pay, it’s a great feature to offer. You can easily enable and disable the solution however you choose. What’s more, there’s no requirement for your customers to use the feature if they don’t want to.

Make sure you check your options on things like chargebacks too, to ensure that you have everything you need for payment processing.

Is Shop Pay a Good Idea for Your Business?

Shop Pay is just another payment option offered by Shopify to give you and your customers a better experience online. Now that customers are demanding more choice and better experiences than ever before, it pays to have a system in place to give them a straightforward and streamlined checkout. At the very least, offering multiple checkout processes will make it easier for customers to buy.

The biggest benefit of Shop Pay is that it encourages regular future sales from your most dedicated clients. The easier it is for these people to make payments, the more likely they are to continue buying from your store. Because of that, and the incredible security that’s built into the service, there’s really no downside to using Shop Pay.

Another major bonus of Shop Pay is that you get to let your customers know that you’re doing something positive for the environment. The carbon offsetting strategy from Shopify ensures that every time you process a delivery, you give something back to the world around you. This is an excellent story to share with your customers if you want to prompt them to purchase more products. Plus, showing that you can about the environment can lead to more loyalty from buyers too.

Shop Pay might not make you stand out on Google, but it could attract extra customers, and improve your chances of people using your payment gateway. It’s an easy way for people to use their bank account to pay online quickly and easily.

At the very least, it’s probably a good idea to give Shop Pay a whirl and see how often your customers use it. You can always remove the feature if it’s not delivering any major benefits for your store.

Do you use Shop Pay? How is it working out for you? Let us know in the comments, and read more about Shopify stores on our blog

Rebekah Carter

Rebekah Carter is an experienced content creator, news reporter, and blogger specializing in marketing, business development, and technology. Her expertise covers everything from artificial intelligence to email marketing software and extended reality devices. When she’s not writing, Rebekah spends most of her time reading, exploring the great outdoors, and gaming.

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