Shopify is a popular e-commerce platform allowing businesses to create and run online stores. You may not know that Shopify has its own payment gateway called Shop Pay. So, what is Shop Pay?
Shop Pay is an online payment platform by Shopify that allows customers to check out and make purchases from Shopify stores using an integrated platform. It offers predictive shipping, fraud monitoring, and real-time reporting. Therefore, it’s a must-have for Shopify merchants.
Read on for a rundown of the popular payment gateway, how it works, and some benefits of using it for your Shopify store.
Shop Pay: An overview and how it works
Shopify created Shop Pay as an integrated payment platform to help merchants process transactions in their online stores. As a Shopify store owner, it allows you to accept payments from your customers and save money on online shopping, thanks to the reduced processing fees.
Here’s a rundown of how Shop Pay works:
- After setting the gateway up in your Shopify store, customers can easily purchase with their saved credit card or linked bank account information.
- Customers only need to enter their email address and password at checkout. It securely stores this information so they can quickly purchase items from your store again in the future.
- When a previously registered Shop Pay customer visits your Shopify store for the first time, it automatically pulls up the customer’s saved payment information. The customer can then quickly complete their purchase without manually entering their payment details each time.
It is a convenient and secure way for customers to buy from your Shopify store, offering significant savings on processing fees.
To put things into perspective, here’s a video by Brittney Bundles describing the payment gateway and its features:
How can Shop Pay help your customers?
There are several ways in which the popular payment gateway can help your customers:
Using it improves customer satisfaction
Did you know that about 69.9% of customers abandon their online shopping carts because they’re not satisfied with the purchase experience? That number is pretty staggering, given that these customers may never return.
Shop Pay helps you improve customer satisfaction by making it quick and easy for customers to buy from your online store. With Shopify’s user-friendly platform, customers can easily input their payment details at checkout and complete the transaction within seconds.
That improves customer satisfaction significantly because your customers no longer have to worry about manually entering their payment details whenever they want to place an order.
It saves your customers time and money
Shop Pay also saves customers time and money when purchasing from your Shopify store.
There are no setup fees or monthly charges associated with using Shop Pay to make a purchase. The platform charges about 1.5% – 2% per transaction (1.5% in the United States and 2% elsewhere), which is significantly lower than the industry average of 2.9%.
Compared to other payment gateways like PayPal and Stripe, Shop Pay offers much faster processing times for customer payments, and transactions are processed within seconds.
Shop Pay allows customers to pay in installments
Another fantastic feature allows customers to pay in installments. They can place an order and split it into multiple payments over time without worrying about late fees or credit checks.
This could help you increase sales with customers who don’t have the budget to pay in full at once.
It isn’t limited to Shopify
In addition to Shopify, you can also use Shop Pay on a wide range of other e-commerce platforms.
For instance, if you have a Facebook or Instagram page, you can use Shop Pay to allow customers to make purchases directly without having to leave the platform.
You can also set up a Shop Pay installation link on your website or mobile app, allowing customers to make purchases directly through these platforms.
Is it secure, and is my personal information safe?
Shop Pay is a highly secure payment gateway with state-of-the-art encryption technology to protect your customers’ personal information from being compromised.
Shop Pay is PCI DSS compliant, meaning customer data and transaction details are protected with the highest possible level of security.
Here are a few ways that Shop Pay protects you and your customers’ personal information:
- All customer payment details are stored in encrypted form and are never shared or sold to third parties.
- Bank-level security measures protect all customer data, including firewalls, SSL certificates, and two-factor authentication.
- Shop pay uses fraud detection technology to help prevent credit card or bank account fraud.
If you’re concerned about your personal or credit card details being compromised, you can also take the following steps to protect yourself further:
- Use strong passwords. A strong password comprises a random mix of numbers, letters, and symbols that are not easily guessable.
- Only make transactions with an SSL certificate. Look for the “HTTPS” prefix and a green lock symbol in the address bar when making transactions or entering any sensitive information.
- Keep your computer or device updated and regularly scan for malware. Malware software can compromise your computer’s security. Regularly updating your operating system and software will help protect you from it, and other forms of cybercrime.
- Always make payments on a secure device. Avoid making payments on devices you don’t fully trust, such as public computers or shared WiFi networks.
- Never respond to emails asking for personal or financial information. Never provide your personal or financial information via email. Shop Pay will never ask you for this type of information via email.
Is Shop Pay the same as Afterpay?
It is not the same as Afterpay. Shop Pay is a payment gateway by Shopify, while Afterpay is a third-party payment service. Afterpay allows customers to make purchases now and pay later, whereas Shop Pay lets customers break up their purchases into multiple payments over time.
That said, both Shop Pay and Afterpay are highly secure payment solutions that can help you increase sales by giving your customers more flexibility with their payments. Here are a few standard features they share:
- Both Shop Pay and Afterpay offer fraud detection technology to help protect your customers from identity theft and ensure their safety while using the platform.
- Both platforms offer 24/7 support if you or your customers have questions or concerns.
- Shop Pay and Afterpay can help you take your business to the next level. The platforms feature customizable user-interface options and an intuitive payment process, so you can focus on growing your business and expanding your customer base.
Is Shop Pay the best payment gateway out there?
In short, it depends on what, you, the store owner, require from a payment gateway. It’s one of the best options, and we highly recommend using it if you can. But some other gateways might prove more useful, depending on what you’re looking for.
The Shop Pay platform is convenient and secure for customers to purchase from your Shopify store. It offers several benefits, including the following:
- Improved customer satisfaction
- Faster processing times
- The option to pay in installments without having to worry about late fees or credit checks
- Compatibility with a wide range of e-commerce platforms, including Shopify, Facebook, and Instagram
- Safe and secure transactions
Whether you’re looking for an easy way to manage payments for your online store or want to improve the shopping experience for your customers, Shop Pay is a worthwhile solution.