E-commerce online stores. The company notes that Shop Pay is to non-Shopify merchants.this morning its one-click checkout service known as Shop Pay would become available to any U.S. merchant that sells on Facebook or Google — even if they don’t use Shopify’s software to power their
First introduced at its developer conference in 2017, Shop Pay is similar to otheran easier way to pay online by reducing the number of fields a customer has to fill out during the checkout process. The service remembers and encrypts the customer’s information, so consumers can check out with just a tap when and, as of recently, even pay for installments, thanks to a partnership with Affirm.
In February, Shopify expanded Shop Pay to Facebook and Instagram in partnership with Facebook. Still, it only worked for existing Shopify merchants selling on those social platforms at the time. In May, Google announced at its I/O developer conference it was partnering with Shopify on an expansion that would give Shopify’s more than 1.7 million merchants the ability to reach customers through Google Search and other “shopping journeys” that began through other Google properties like Search, Maps, Images, Lens, and YouTube.
The company declined to share how many of its 1.7 million merchants are already available on Facebook or Google today but said they are two of the most popular channels., other merchants will also have the option to adopt Shop Pay for their own Facebook or Google stores. While how many will do so is yet unknown, Shopify notes that 1.8 .
The company also touted Shop Pay’s advantages, including its 70% faster checkout than a typical checkout offers, with a 1.72x higher conversion rate — meaning fewer abandoned charts. For consumers, the advantage of using Shop Pay over a traditional checkout, beyond the speed, is its integration with Shopify’s , Shop, which organizes and tracks your online orders across merchants, including Amazon, so you can see when orders are arriving or quickly ask questions and manage returns.
Shopify confirmed that the Shop app will track the Shop Pay-enabled orders from the non-Shopify merchants. To date, the Shop app has tracked more than 430 million orders, the. Over time, the Shop app can customize a feed, including users’ favorite stores, to point to other recommendations, including those from local merchants.
“Since launching, Shop Pay has set the standard for checkout experiences, facilitating more than $24 billion in orders,” noted Shopify VP Carl Rivera, who heads Product for Shop. “According to studies, cart abandonment averages 70%, with nearly 20% occurring because of a complicated checkout process. Shop Pay makes that process fast and simple, and expanding to all merchants selling on Facebook and Google is a mission-critical step in bringing a best-in-class checkout to every consumer, every merchant, every platform, and every device,” he added.
The expansion could be a significant challenge to other payment mechanisms, including PayPal, Venmo, Apple Pay, and those offered by the platforms themselves, thanks to Shopify’s growing traction with merchants — one analysis gives its platform a 23%in the U.S. — combined with the popularity of the Shop app, now the No. 3 .
The news follows yesterday’s confirmation that Shopify has taken a significant stake in payments giant Stripe, the backbone of the Shop Pay service and Shopify’s partner on merchant services, including bank accounts and debit cards. Shopify will be enabled for all U.S. merchants selling on Facebook in the “coming months” and by late 2021.