What payment methods have you set up on your Shopify store? In this article, we'll introduce the benefits and drawbacks of adding Shop Pay to your Shopify store, along with how to set it up.
What Is Shop Pay?
Shop Pay is a payment service provided by Shopify.
Stores using Shopify Payments can easily enable Shop Pay, with no setup fees, monthly fees, or transaction fees involved. Customers using Shop Pay can also complete their purchase smoothly using the credit card and shipping information already saved to their Shop account, reducing the hassle of entering information at checkout. This helps prevent customers who might otherwise abandon their cart due to the burden of manual entry, and can be expected to improve the conversion rate.
Shop Pay is a payment service that not only improves convenience for shoppers, but also helps Shopify stores improve the customer experience and boost sales.
Features of Shop Pay
Easy Registration and One-Click Checkout
Once a customer registers their email address and phone number, they won't need to enter their credit card information or shipping address again on future purchases.
No Additional Costs
Stores already using Shopify Payments can add Shop Pay with no additional setup fees or monthly usage fees. *Payment processing fees still apply.
Works Across Multiple Platforms
It can be used not only on your Shopify store, but also across various platforms such as social media, email, and chat.
High Security
It meets credit card industry security standards (PCI DSS) and prevents fraudulent use through passkey authentication and a 6-digit Shop Pay code.
Environmental Consideration
Customers can contribute to carbon removal projects at no extra charge when making a purchase, which can also appeal to customers who value sustainability.
Benefits of Adding Shop Pay
Helps Prevent Cart Abandonment
As mentioned above, Shop Pay reduces the effort customers need to put into checkout, which can be expected to lower the cart abandonment rate.
According to research by Baymard Institute, the 10th most common reason for cart abandonment is a lack of payment options. If a product can only be purchased on your Shopify store and the customer is determined to buy it, it may not matter much if their usual payment method isn't available. However, if the product is available elsewhere, or if the customer's intent to purchase isn't very strong, this can cause them to go to a different store or product.
As a countermeasure against cart abandonment, it's worth adding as many payment options as you reasonably can.
The article below introduces cart abandonment countermeasures on Shopify beyond simply adding more payment types.
Can Be Expected to Improve Conversion
Source: Shopify Blog
According to a 2020 Shopify study covering 10,000 stores that compared conversion rates between Shop Pay and regular checkout, Shop Pay resulted in 1.72x higher conversion.
Evidence: What Is Shop Pay? A Complete Guide to the Benefits of Shopify's Shop Pay
Easy to Set Up
If you're using Shopify Payments, adding Shop Pay is very easy. All you need to do is check the Shop Pay checkbox on the Shopify Payments settings screen. Detailed setup instructions are provided later in this article, so please refer to them.
Low Cost
If you're using Shopify Payments, there are no setup fees, monthly fees, or transaction fees for using Shop Pay. The only cost is the payment processing fee, so being able to start at low cost is another benefit.
Drawbacks of Adding Shop Pay
Shop Pay May Appear on the Dynamic Checkout Button
Shopify product pages typically display two types of buttons: a cart button and a dynamic checkout button. For express checkout, Shopify automatically displays whichever payment method the visiting customer is likely to use, chosen from Apple Pay, Google Pay, Shop Pay, and PayPal.
Because of this, adding Shop Pay may cause it to appear unintentionally in cases where you only wanted to show, say, Apple Pay.
How to Add Shop Pay
Here's how to add Shop Pay to your Shopify store.
(1) From the Shopify admin, go to "Settings > Payments > Manage"
(2) Click "Manage payment methods"
(3) Enable Shop Pay
A Shopify App That Can Hide Shop Pay Under Specific Conditions
RuffRuff Order Limits
RuffRuff Order Limits is fully localized in Japanese and is Japan's first Shopify app to use the Cart and Checkout Validation API.
By leveraging the Cart and Checkout Validation API, order restriction logic that previously could only be handled on the frontend can now be enforced server-side. This makes it possible to achieve more robust order restrictions that are harder to bypass compared to existing order-limit apps.
With a single app, you can implement quantity limits, amount limits, bundling restrictions, customer restrictions, and payment method hiding.
The blog article below introduces how to use RuffRuff Order Limits to hide Shop Pay. Please use it as a reference.
In Closing
In this article, we introduced the benefits and drawbacks of adding Shop Pay to your Shopify store, along with how to set it up.
Shopify supports a variety of other payment methods as well. The blog article below introduces payment methods available on Shopify besides Shop Pay. Please use it as a reference.
