Shop Pay vs Shopify: A Comprehensive Comparison Guide

Shop Pay is a payment option that allows customers to save their payment and shipping information for future purchases, making checkout faster and easier. This feature is exclusive to Shop Pay and is not available on Shopify.

Shop Pay is integrated with Shopify, but it's not the same thing. In fact, Shop Pay is a separate payment option that can be used on any website, not just Shopify stores.

Related reading: Find Paypal Option on Shop Pay Checkout

Shop Pay is a tool that relies on payment processors to work, making the experience smoother and easier once you already have your payment processor in place. It's more like an optional add-on that acts as a digital wallet, storing customer information for fast checkout and providing other perks.

If you have Shopify Payments set up in your store, it will be what customers use to pay if they don't choose any other options, showing as the standard Checkout or Pay Now button. This is because Shopify Payments is a payment processor, or a service that allows businesses to accept payments from their customers.

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Shop Pay, on the other hand, will show up as a separate button, often as an "Express checkout" option alongside other payment processors and digital wallets. This is because it's an optional add-on that relies on payment processors to work.

Shop Pay can "lift conversion by as much as 50% compared to guest checkout, outpacing other accelerated checkouts by at least 10%", according to a research study. This means that using Shop Pay can significantly reduce cart abandonment and make the checkout process more seamless for customers.

If you choose to use Shop Pay, you'll also get the option to customize the appearance and functionality of your checkout page using the checkout editor. This feature is only available to certain merchants on the Shopify Plus plan.

Shop Pay and Shopify are two distinct services that often get confused with each other.

Shop Pay is a fast checkout service that allows customers to save their payment and shipping information for future purchases, making the checkout process much quicker.

Shopify is an e-commerce platform that allows businesses to create their own online stores and sell their products directly to customers.

Shop Pay is only available to Shopify merchants who have enabled the Shop Pay checkout option on their store.

Related reading: Is Shop Pay Shopify

Shop Pay's checkout solution from Shopify is the better option for your budget as it will help your business save 0.5% to 2% in transaction fees compared to using PayPal.

Shop Pay itself doesn’t charge additional fees beyond your regular payment processing costs, which vary by your Shopify plan – typically ranging from 2.4% + 30¢ to 2.9% + 30¢ per transaction.

Shopify is known to be one of the best eCommerce platforms because of its high safety and security standards. It's a Payment Card Industry Data Security Standards (PCI DSS/PCI-Compliant) Company, certified to be Level 1 PCI DSS compliant.

The SMS verification codes add a layer to security by ensuring that Shop Pay is used by the account holder only. This extra security measure gives you peace of mind when dealing with sensitive customer information.

Here's a comparison of the transaction fees for Shopify and PayPal:

Shop Pay is a cost-effective option for businesses, especially when compared to using PayPal. It eliminates the need for a third-party provider, which means you'll save money on transaction fees.

Shopify Payments, the payment processing system used by Shop Pay, charges a flat fee of 2.15% to 2.9% + $0.30 per transaction, depending on your Shopify plan. This fee is the same for all online purchases.

The cost of using Shop Pay varies depending on your Shopify plan. Here's a breakdown of the fees for each plan:

PayPal, on the other hand, charges a fee of 2.9% of the transaction amount plus a $0.30 flat fee for transactions inside the US. This means that for a payment of $50 USD, you'll incur a $1.75 USD processing fee, leaving your payout at $48.25.

Overall, using Shop Pay's checkout solution from Shopify is a better option for your budget, as it can help your business save 0.5% to 2% in transaction fees compared to using PayPal.

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Shop Pay protects customer information using end-to-end encryption, which ensures that sensitive data is kept private and secure.

Shop Pay is stored on certified Level I PCI DSS-compliant servers, meeting industry standards for data security.

Shop Pay meets and exceeds industry standards for data security, being compliant with GDPR and CCPA.

Shop Pay is certified under many programs and standards, including the Mastercard Site Data Protection Program and the American Institute of Certified Public Accountants SSAE18 SOC1.

Shopify, the company behind Shop Pay, is known for its high safety and security standards, being a Payment Card Industry Data Security Standards (PCI DSS) compliant company.

Shopify is certified to be Level 1 PCI DSS compliant, the highest level of security standard for companies that deal with credit and debit card details.

All Shopify stores are automatically PCI compliant, ensuring that customer data is stored securely.

The SMS verification codes used by Shop Pay add an extra layer of security, ensuring that Shop Pay is used by the account holder only.

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Shop Pay offers a convenient payment processing system, but it's essential to understand the costs involved. Payments typically arrive in your bank account within 2-5 business days.

To avoid automatic refunds, complete your payment verification and provide valid banking information within 21 days of your first sale. This ensures you can receive customer payments on time.

Shop Pay isn't a payment processor itself, but rather an optional add-on that relies on payment processors like Shopify Payments to work. It's a digital wallet that stores customer information for fast checkout and provides other perks.

Shop Pay installments allow customers to split the cost of their purchase into multiple payments, with four interest-free installments or monthly installments spread across 12 months. However, this option only applies to orders between $50 and $3,000.

Take a look at this: Shop Pay Installments Merchants

Shop Pay Installments offers customers a way to pay for purchases over time, with options for interest-free payments or monthly installments with interest.

Eligible merchants can use Shop Pay Installments for orders between $50 and $17,500, allowing customers to choose from four biweekly interest-free payments or monthly payments with interest.

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Customers can pay for orders between $50 and $3,000 in four interest-free installments or monthly installments spread across 12 months, depending on the merchant's plan.

The merchant pays a 5% to 6% fee on each transaction when using Shop Pay installments.

Here are the available payment options with Shop Pay Installments:

The APR for monthly payments is 10 to 36%, and customers must pay balances three, six, or twelve months depending on the purchase amount.

Integrating Shop Pay with other payment methods is a great way to provide your customers with a seamless checkout experience. You can activate Shop Pay with third-party payment gateways, allowing customers to use accelerated checkout on your online store, Facebook, and Instagram.

To activate Shop Pay with a third-party payment gateway, your online store must be in the United States and meet all Shopify Payment requirements. This includes completing the Shop Pay setup with your business information and banking details.

Here's an interesting read: Store Pay Shop Pay

Here are the steps to enable Shop Pay with a third-party payment gateway:

You can also integrate Shop Pay with PayPal, allowing customers to choose between Shop Pay and PayPal. This can be done by setting up a PayPal Business Account using the same email address as your Shopify account.

To connect your PayPal account to Shopify, follow these steps:

By integrating Shop Pay with other payment methods, you can provide your customers with a more convenient and seamless checkout experience.

Shop Pay has many interesting features, including being an optional payment method that offers flexibility to merchants.

Shop Pay is not a mandatory payment method, giving merchants the freedom to keep it or remove it.

Harley Finkelstein, President of Shopify, has shared the impressive growth of Shopify in 2022, with a 3x increase in GMV to nearly $200B and $4B in additional revenue.

Shop Pay can help your business by leveraging its benefits, which include a mix of positive and negative reviews from different merchants.

Shop Pay has many interesting features. Below is a quick overview of the key ones.

Shop Pay's best feature is its ease of use and simple integration process, which takes only 5 minutes. Essentially, all you need to do is turn on the option to use Shop Pay at your checkout.

Setting up Shop Pay is a breeze, taking only 4 steps in 5 minutes from your desktop. This is much faster than setting up PayPal, which requires more complex and time-consuming steps.

With Shop Pay, customers can directly complete their checkout on one page without any redirection. This makes the checkout process much smoother and faster for customers.

Shop Pay makes the checkout process 4 times faster than regular checkouts, saving customers valuable time and enhancing their shopping experience.

Shop Pay's ease of use and simple integration process can increase your overall conversion rate by up to 36% and by an average of 15%. This makes it a great option for eCommerce businesses.

Marketing Automations are a game-changer for Shop Pay merchants. You can set up automated messages featuring hot deals, post-purchase offers, and more to drive conversions and repurchases.

Shop Pay checkout modules allow for plenty of marketing automations. Automated messages can be triggered before, during, and after the purchase, giving you a ton of flexibility.

To take advantage of marketing automations, you can use Shop Pay's pre-approved messaging that meets state and federal regulations. This ensures your marketing stays compliant while effectively communicating with customers.

Here are some examples of automated marketing you can set up:

Shop Pay Installments can significantly increase your average order value (AOV). This is especially true since customers can purchase expensive products with installments, making it easier for them to afford.

During the early access of Shop Pay Installments, it was found that 25% of merchants had a 50% higher average order value compared to other payment options. This is a notable increase that can have a positive impact on your business.

By offering Shop Pay Installments, you can encourage customers to make larger purchases, which can lead to increased revenue. This is a win-win situation for both your business and your customers.

Here are some ways Shop Pay Installments can increase AOV:

If you use Shopify, you can choose from a variety of payment providers, including direct and external providers. Shopify supports well-known providers like JP Morgan Chase, Affirm, Amazon Pay, and Klarna.

Other popular alternatives to Shop Pay include Amazon Pay and PayPal Checkout. Amazon Pay is a great option for customers who have Amazon accounts, as it allows them to check out quickly and easily.

Business owners who use Shopify should consider activating Shop Pay to increase sales. Ecommerce store owners who don't use Shopify may also want to consider Shop Pay as an alternative to other payment methods.

Shop Pay is a payment option offered by Shopify, a leading e-commerce platform, allowing customers to pay for purchases in four interest-free installments.

It's essential to note that Shop Pay is only available to customers in the US, UK, and Canada.

If you're considering using Shop Pay, you'll need to have a Shopify account and be a verified customer.

Shop Pay is a convenient option, but it's not suitable for all businesses, as it requires a minimum of $50 in sales per month.

You can offer Shop Pay on your Shopify store by contacting Shopify support and requesting the feature be enabled.

Shop Pay is not a credit card or loan, and customers won't be charged interest or fees for using it.

Shop Pay is a great way to increase average order value, as customers can take advantage of the four-installment payment plan to purchase more items.

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