Shop Pay is Shopify’s express checkout solution that lets returning customers save their details including address and payments after their first purchase.
Shop Pay saves your information so you can buy from any store with just two taps. This is why over 40% of all Shopify sales use this feature which leads to 18% fewer abandoned carts and more sales for merchants.
How Shop Pay Works?
Shop Pay is a core part of the Shopify payment system and is designed to save time. And here’s how it works for both buyers and sellers:
For Buyers (Customers)
- You enter your details and save them securely by confirming with a text message the first time you use Shop Pay.
- Then you just have to click the Shop Pay button afterwards. It will instantly fill in your details so you can finish your order in one click.
- You can also split the total cost into four installments with no interest.
- You can use the Shop mobile app to track all your orders from any store in a single place after buying.
- Shop Pay protects your data using strong encryption and requires a SMS code for every purchase.
For Sellers (Merchants)
- It’s easy to use Shop Pay. Just turn it on in your settings and the button automatically appears on your store.
- You pay no extra fees or take on any risk as Shopify handles all costs and security by paying you the full amount right away even with installments.
- Shop Pay provides easy reports to see exactly how much it has increased your sales and conversion rates.
Shop Pay benefits both buyers and sellers. Merchants get effortless sales while customers enjoy a quick and secure buying experience.
Whar are the benefits of Shop Pay?
Shop Pay offers many incredible benefits to both buyers and sellers.
For Buyers (Customers)
- Shop Pay works across the entire Shopify network including social media and the Shop app. This allows you to check out in two simple taps regardless of your seller.
- Shop Pay offers loyalty rewards like 1% cashback in Shop Cash on every purchase to use as credit on future orders.
- This platform uses advanced security to keep your card details encrypted and safe. Merchants also never see your entire card number with the SMS code adding an extra layer of protection.
For Sellers (Merchants)
- Shop Pay’s faster and automatic checkout helps your store get about 50% more sales as fewer customers will now abandon their carts.
- It lets customers pay later in four simple installments without any interest. This motivates them to buy more costly products and increases your average order size. But you still get paid the whole amount upfront.
For Both
- You can change the look of the Shop Pay button to match your store’s brand. It’s a simple payment option for global sales since it works with different payment types worldwide.
What are the key features of Shop Pay?
This platform has two main extra features apart from the instant checkout:
- Shop Pay Instalments
This feature lets eligible buyers in the US and Canada split their purchase into smaller payments:
- You can divide your amount into four interest-free payments paid every two weeks.
- Extended payment plans are also available for expensive items at a lower interest rate.
- You don’t need a separate sign-up as it works automatically with your Shop Pay account.
- Shop Cash Rewards
You earn 1% of the purchase amount back as Shop Cash every time you use Shop Pay.
- This credit gives you a reason to keep using Shop Pay the next time you shop.
- It means you will now get $1 in Shop Cash back on a $100 purchase.
These features make Shop Pay a better choice for buyers to pay for their online products.
Is Shop Pay Safe?
Yes. This is a secure platform. It’s built into Shopify’s payment system and uses the same level of security that banks use called PCI compliance. Every user’s data is encrypted and handled only on Shopify’s secure servers.
Shop Pay requires an SMS code when you check out to stop unauthorised orders. The store owners will also never see your full card details. Shopify in short takes the entire security responsibility by letting you shop freely with confidence.
Where You Can Use Shop Pay
Shop Pay is available in major countries worldwide. This includes the US, Canada, the UK, and Europe. But it’s not supported in India as Shop Pay is linked directly to the Shopify Payments system.
Indian merchants cannot offer Shop Pay in their stores as they must use other payment providers like Razorpay. This means that most Indian shoppers can’t use the fast, two-tap checkout or extra features like Shop Cash.
Alternatives for Indian Buyers
Online shopping in India relies heavily on payment methods that are much different from what Shop Pay uses.
- UPI is India’s most popular payment method. It’s a free and instant way to transfer money directly between bank accounts using simple apps like Google Pay. Major Indian stores must offer UPI to avoid losing sales as it’s much faster than using cards.
- Local stores use special Indian Gateways like Razorpay and PayU since Shopify Payments isn’t available in India. Such gateways are vital as they are a crucial connection for stores to accept local payment options such as UPI and direct transfers.
- Mobile wallets like Paytm and PhonePe are extremely popular in India and allow millions of users to pay quickly by scanning a QR code or using their stored money. This makes them a crucial part of India’s online shopping.
India’s e-commerce uses a unique payment system built around UPI and local wallets that Shop Pay does not connect with. India’s online market thus relies on local gateways and methods to ensure payments are fast and secure.
Shop Pay vs Indian Payment System
Shop Pay vs UPI
- Shop Pay acts like a saved digital wallet that only works inside the Shopify system and relies on your saved card details for quick checkout.
- UPI is an open system that instantly moves money directly between bank accounts for free. It works with any seller or person across India and not just Shopify stores.
Shop Pay vs Gateways (Razorpay/Paytm)
- Indian Gateways like Razorpay are necessary for stores in India because they are the central payment system that lets them accept all local payment types including UPI and cards.
- Shop Pay is just a quick checkout feature built on top of the central Shopify payment system. Indian stores have to use separate payment gateways to handle all their sales as they cannot use Shopify’s system.
Both systems aim for faster checkout. But Shop Pay is designed for worldwide credit card payments. India’s system is built specifically around instant UPI bank transfers and local mobile wallets.
Conclusion
Shop Pay is not helpful because Indian sellers can’t be used. Merchants must provide local options like UPI and COD since Indian buyers prefer these. Not having UPI and local wallets will likely mean losing sales as they are now essential to succeed in the Indian market.
Shop Pay is vital for international sales as it offers foreign shoppers a fast checkout experience they expect which boosts sales. Indian merchants must typically run a separate global store that is set up to use Shopify Payments legally. It’s the only way we can use Shop Pay in India.
FAQs
Q1. Is Shop Pay available in India?
No. Shop Pay is not available for people or businesses in India right now because it requires the Shopify Payments system which is not used here.
Q2. Can Indian shoppers use Shop Pay on international stores?
Indian shoppers still sometimes pay with their credit cards. But the special features of Shop Pay like saving your details or earning Shop Cash might not work correctly.
Q3. What’s the Indian equivalent of Shop Pay?
UPI and Paytm are the best local alternatives that offer fast and secure payments through single tap or QR code checkouts.
Q4. How is Shop Pay different from UPI?
Shop Pay uses saved credit card details for quick payments only on Shopify stores. UPI is a system for instant bank transfers used widely by payment apps in India.
Q5. Can Indian merchants offer Shop Pay for global buyers?
Yes. But only if they set up Shopify Payments through a business registered in a country where it’s supported like the US or the UK.
Q6. Is Shop Pay safe to use?Yes. Shop Pay is a highly secure platform. It protects your data using advanced encryption and requires an SMS code to verify your orders.
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