Are you obsessed with giving your customers as smooth a checkout process as possible? Do you worry that requiring your buyers to manually enter personal details is a source of frustration, and potentially costing you sales?
Shop Pay is a time-saving payment feature that allows repeat customers to finalize their purchases with greater speed and fewer additional steps.
In what follows, we’ll investigate the way this works, and outline how such a tool can be utilized to your advantage as an ecommerce seller.
What is Shop Pay? 🚀
Shop Pay is an integrated service within Shopify that enables buyers–particularly those who have bought from you before–to submit their orders in an automated fashion when they are online shopping.
It is essentially a checkout system that saves payment information so that future purchases can be made with minimal intervention. Required fields are inputted on behalf of your shoppers, streamlining the entire buying and selling process.
How does Shop Pay work? 🤔
With Shop Pay configured, crucial details that are needed to checkout, such as email address, credit card number, shipping address, and billing info, are stored for future use. This eliminates the need for your customers to have to enter this information multiple times and re-verify what they’ve already provided, should they decide to order from you again.
In a practical sense, the way it works is as follows: first-time customers will be invited to join Shop Pay upon arriving at the order review page. The service will appear as an Express Checkout option. After authorizing their purchase, they will then either be asked to verify their purchase on the app or receive a text message with an opt-in code. Their order is then processed, and their payment information is saved for subsequent purchases when they checkout again on the same device.
By auto-populating this mandatory data for shoppers, you are disposing of a potential hurdle that might hinder your ability to convert. Just think: how many times might someone click “buy” on items they have every intention of purchasing, only to land on an order page that requires them to go fishing around for a credit card and type in a long series of digits.
Linking these details back to previous orders eradicates much of the hassle, and is why Shop Pay is potentially so valuable for online sellers. It allows you to strategically implement a process that simplifies the shopping experience, helping to reduce your cart abandonment rate and boost customer satisfaction.
Shop Pay Key Features 🧰
Purchase verification
Since customers need to authorize orders on the Shop app or with an SMS code, fraud through Shop Pay is few and far between. The simple measures that are in place serve as a buffer against chargebacks and protect your revenue coming in.
Carbon emissions offset
On an annual basis, Shopify donates a percentage of its Shop Pay transactions to help replant trees in deforested areas. This helps offset the impact of carbon emissions and is a key way to let your customers know that by using Shop Pay, your business is taking part in sustainable efforts.
Extensive language capabilities
Shop Pay supports 20 languages. In addition to English, the likes of Spanish, Italian, French, Japanese, and Chinese are also recognized, to name a few. This means your ability to use the service is not limited to one region, and can be leveraged to accelerate global growth.
Shop Pay FAQs 🙋
Is Shop Pay like Afterpay?
Afterpay, which is a third-party BNPL service, is not like Shop Pay, which is a one-click checkout system. Afterpay is similar to Shop Pay Installments, however, which allows you to break up the cost of your order and pay it off over time.
Is Shop Pay safe to use?
All data that flows through Shop Pay is encrypted end-to-end. Shopify saves the information on servers that are PCI-compliant, which is an industry-recognized best practice for payment data security.
What is Shop Pay Installments?
This feature allows customers to break up the cost of their purchase into several separate payments that are completed over a period of time. It is essentially “buy now, pay later.”
Shoppers can make four biweekly payments for orders under a thousand dollars. They can also make monthly payments on orders between $150 and $17,500. These monthly installments have a 10% to 30% APR and are made over three, six, or twelve months depending on the item amount.
Within one to three business days, sellers receive the full amount of the purchase.
Shop Pay Pros ✅
- Reduces cart abandonment. When a customer doesn’t follow through with a purchase, it feels like an opportunity is slipping right through your fingers. Luckily, with Shop Pay enabled, prospective buyers are able to bypass the cumbersome process of filling out personal information, and jump right to completing their order.
- Saves time for shoppers. According to Shopify data, using Shop Pay is 70% faster than a typical checkout, with a 1.72x higher conversion rate. Those are statistics every ecom seller likes to see.
- Boosts customer loyalty. Shoppers will be likely to choose your brand over the competition if they know they can count on a quick, seamless ordering process from your store.
- Multiple channels of customer support. Questions you have are able to be answered on a variety of platforms. There is an active online community, a help center with FAQs, and a chat and email service that can be relied upon to quell any lingering concerns.
Shop Pay Cons ❌
- Steps still have to be taken. Customers have to opt in, and in some cases are still entering in a one-time code sent via SMS.
- Might not remain current. Leaves open the possibility that customer information is not always up-to-date, since details are not manually re-entered and verified every time. However, customers can change the info that is on file at any time through the tool.
- Better for certain types of stores. Not as necessary a tool if you don’t have many repeat customers. Maybe you sell a single big-ticket item that is more of a one-time purchase. On the other hand, customers making these kinds of large purchases can still benefit from using Shop Pay Installments.
How to Add Shop Pay ⚙️
You can enable Shop Pay through the Settings page from the admin area in your Shopify account.
First, go to either the Payments section or also to the Third-Party Payment Providers section, depending on what you use to process payments. After selecting Manage, under Shop Pay, check the Shop Pay box to turn on the service.
Shop Pay Pricing 💰
Shop Pay is native to Shopify and is free to enable. There are fees associated with Shop Pay Installments, however.
Merchants pay a fee of 5 to 6 percent to use this service. It can be worth it if offering greater flexibility to your customers with Shop Pay Installments means more sales, which is likely to be the case when there is the opportunity to split up the purchasing cost over a period of time.
Final Thoughts 🕵️♀️
Shop Pay is a one-click checkout solution for online businesses. This tool is particularly useful if you have many repeat customers who frequently come back to make similar purchases from your store.
Say your products require additional orders to replenish and refill. Maybe you sell food items, beverages, or other consumables that see people returning at a high rate when they are shopping online. A tool like Shop Pay shortens the time it takes to complete a purchase, and reduces friction during the ordering process, which is undoubtedly a benefit for business.
It facilitates an automated experience that boosts customer loyalty and leaves people with a favorable impression of your storefront. If shoppers are able to acquire their goods from you without having to engage in redundant, repetitive steps, they are likely to come back and do it again. Shop Pay therefore has the potential to provide you with valuable recurring revenue, which can be used to continue pushing your business forward.
👉 Sign up for Shop Pay here.
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