With the rise in online shopping, enhancing the customer experience is everything. While there are many ways to do so, one of the best ways to gain recurring customers is to simplify the checkout process. And SHOPIFY offers exactly that with Shop Pay. But how does it work? And most of all, how can it benefit your online business?
If you’re pondering over these questions, you’ve come to the right place. Read on to find an answer to all your queries.
So, What is SHOP PAY?
Shop Pay is an accelerated online checkout service offered by shopify. To put it simply, it accelerates the checkout for customers shopping from Shopify stores.
While it was launched in 2017, today, it is one of the most popular methods used at the checkout. Almost 1.7 MILLION online stores are using Shop Pay.
Customers can store their personal information, including credit card, email, billing, and shipping details, in the store. This way, when they return to the store to shop, all the fields at the checkout are auto-filled, allowing customers to accelerate checkouts. The information is encrypted, so it is only made available to the store after an order has been placed.
How Does Shop pay Work?
It is a feature available only on Shopify and Shopify Plus. If you are a business owner on Shopify, you can easily enable and disable this service without any needless fuss. The good news is that it is compatible with both built-in payment processors as well as third-party payment providers. It also works for sellers that sell on Facebook and Instagram using Shopify.
When Shop Pay is activated, customers are taken to a review page upon checkout. When their purchase has been authorized, customers receive a six-digit code, either by mail or text. Upon verification of the code at the checkout page, the order is processed. However, these steps only occur the first time.
A returning customer using the same device they used last time doesn’t need to repeat the verification process. Instead, all their previously saved information is made available, which can be altered at any time. Moreover, customers can even opt out of the Shop Pay feature if they want so that it doesn’t get in the way of their shopping experience.
What is Shop Pay Installment?
Shop Pay installment is another service offered by Affirm and Shop Pay. Affirm has a simple approach that makes online shopping more appealing, allowing customers to make purchases and make payments later. In this case, the merchant is paid right away. However, customers can make their payments afterward. However, to use this feature, a business must use both Shopify Payments and Shop Pay.
There are two options available when using it. These include:
- Four payments can be made after every two weeks free of any interest. This option is available for orders that range between $50 to $999.
- Monthly payments can be made over the course of three, six, or twelve months. The actual time period is dependent on the total amount of the order. This option applies on orders between $150 to $17,500, with an APR ranging between 10% to 36%.
Shop Pay vs. Shopify Payments
While Shop Pay and Shopify Payments may sound like the same thing, they aren’t. Shopify Payments is a payment processing feature that allows Shopify store owners to accept credit cards and other modes of payment.
Once you have set up your account, this feature can easily be activated. In contrast, Shop Pay is a product that requires you to have Shopify Payments or some other third-party service to process payments. It accelerates checkout by auto-filling all customer details already saved on the Shopify server.
What are the Benefits of Shop Pay?
Now that you know what how it works, let’s look at some of its benefits for your business:
Usability
It has a user-friendly interface, allowing e-commerce business owners to implement it in their Shopify stores without any hassle. It can be easily activated through the Shopify dashboard and can be enabled using PCs and mobile devices.
Security
It is PCI-compliant, making it a secure option. All customer information, including personal and credit card data, is encrypted. All the information stored will bear no risks of leakage or illegal extraction.
Sustainability
Shopify has made many efforts to protect the environment and using it can accelerate its efforts. Every time a customer places an order using Shop Pay, the Shopify team calculates the carbon dioxide gas emissions that each delivery produces. Consequently, they balance out the difference by planting or protecting the trees to conserve the environment. In short, by adding Shop Pay to your business, you are not only enhancing customer experience, but you also get to adopt a “green” approach.
Customer Service
It has a customer service section for business owners and end-customers with detailed information that can answer your queries. The shop pay section on the Shopify website has everything you need to know about activating or deactivating this online checkout service.
Shop Pay for Consumers
It works more like a wallet for consumers purchasing from a Shopify store. It saves all payment information, allowing customers to place orders and make payments with a single click. Customers only need to add all information one time; they’ll receive a six-digit code via email or text to complete the order. The next time, all information will be auto-filled, making checkout hassle-free.
Shop Pay for Merchants
Consumers can only use it if merchants add it to their stores. E-commerce store owners can easily enable and disable the Shop Pay feature in the Settings section. Once it is active, customers can see a purple button at the checkout, allowing for one-click order placement and payments for accelearated checkout
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Wrapping Up
A secure and reliable checkout service that accelerates the checkout method, thus enhancing customer experience. Besides benefitting customers, it also benefits business owners, as you get more repeat customers. Plus, it also helps the environment. The service is easy to use and supports most cards, including Visa, MasterCard, American Express, etc. If you’re not using Shopify Pay on your Shopify store, consider activating it today.
You can also learn more about dropshipping here- The ultimate guide to dropshipping in 2023 (onlinegreatretail.com)
