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What is Shop Pay and How Does It Work?

What is Shop Pay and How Does It Work?
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Shop Pay is Shopify’s new payment solution. But what is it exactly, and how does it work? Well, thankfully, it’s all fairly straightforward. Here’s what you should know. 

What is Shop Pay?

Shop Pay is essentially an accelerated checkout solution. It lets you save your personal details, like your billing address and credit card information, for faster checkout next time around. 

Here are some of the key features:

  • One-tap checkout: Once you’ve saved your personal information with Shop Pay, you won’t need to re-enter it. You can simply use your email address to ‘tap’ through your purchase rather than moving through two or three different screens.  
  • Carbon-free deliveries: If you choose Shop Pay, Shopify calculates the carbon emissions from your delivery and plants enough trees to offset them. You don’t need to do anything – once you select ‘Shop Pay’, Shopify handles the rest. 
  • 0% interest instalments: You don’t need to pay for your purchase in one go. Instead, you can pay four instalments, paid two weeks apart. Buy now, pay later instalments are interest-free, too. 

To be clear, Shop Pay is only available on Shopify. So, unless you’re buying from a Shopify online store, you can’t use it. However, many other retailers and e-commerce stores offer similar tools for faster checkout. 

Can anyone use Shop Pay?

Yes. All you need to do is buy through a participating Shopify store and select the option to save your information for a speedier checkout next time around.   

Are you a small business selling items online through Shopify? Great! You can easily set up Shop Pay to make it faster and easier for customers to move through your checkout – just log in to your seller account and follow the steps. 

How do you use Shop Pay?

So, that’s what Shop Pay is, but how do you actually use it? Well, it’s easy – you just do a few things before you complete the checkout.

  • Look for the button saying ‘save my information for a faster checkout’. Once you find it, click it. 
  • Input your details like your billing address and credit card information. 
  • Complete your order. You’ll get a notification saying you’re signed up.

Once you’ve gone through these steps, you’ll receive an SMS notification on your phone asking you to verify your signup. Follow the instructions, and that’s it! You’ll be set up! The next time you shop, you’ll see a ‘Shop Pay’ button. Click this and you’ll see your saved information pop up on screen, so you can check out faster. 

Can’t verify your account? Don’t worry, you can still purchase your items. You just can’t use Shop Pay until you’re able to verify your details.  

Is Shop Pay safe?

That’s a good question. The answer’s yes – it’s as secure as any other online payment option. 

  • The verification process makes it much harder for scammers to set up an account in your name. 
  • Shopify uses encryption that keeps your data safe while it’s stored away and during the checkout process. 

It’s easy to delete your account if you decide the platform isn’t for you. Just enter your email address on the opt-out page, and the service will stop remembering your details.  

Should you use Shop Pay for your business?

It may be worth giving it a go, at least.

Using it for your online store can improve the customer experience because it streamlines the checkout process. It’s also great for your brand image because you’re providing carbon-neutral, environmentally responsible delivery options for your customers. 

If you’re a Shopify seller, Shop Pay is just a way to give shoppers more choice, so there’s no harm in trying it to see how your customers respond to it.  

Takeaway

Shop Pay is a really convenient way to buy goods online. You can easily move from the basket to checkout in seconds, and Shopify takes reasonable steps to keep your data safe throughout the process.

If you decide to pay for your goods in instalments, though, just make sure you can afford the repayments. Otherwise, you could quickly end up with credit card debt, which may harm your credit score in the long run.  

Finally, if you’re a small business, offering Shop Pay might encourage buyers to shop with you, since it’s so easy to move through the checkout process.

Could you be rewarded for your everyday spending?

Rewards credit cards include schemes that reward you simply for using your credit card. When you spend money on a rewards card you could earn loyalty points, in-store vouchers airmiles, and more. The Motley Fool makes it easy for you to find a card that matches your spending habits so you can get the most value from your rewards.

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