Shopify Pay
Shopify Pay is an accelerated checkout that lets customers save their email address, credit card, and shipping and billing information so they can complete their transactions faster the next time they’re directed to a Shopify checkout.
To enable Shopify Pay, merchants need to use Shopify Payments.
Shopify Payments is the simplest way to accept payments online. Eliminating all the hassle associated with setting up a third-party payment system. With Shopify Payments, merchants are automatically set up to accept all major payment methods.
Since Shop Pay remembers a customer’s important details, they can fill out carts rather than forms. Everything is encrypted to ensure a safe and secure transaction. Not only that, but using Shop Pay also automatically offsets the carbon emissions produced by deliveries – for free! When customers check out with Shop Pay, their delivery carbon emissions are offset, making Shop Pay the first carbon-neutral way to pay.
Shop automatically gathers and tracks customer orders – an optional feature. Shop also makes highly relevant, personalised recommendations based solely on the brands and products customers know and love. Independent stores in a customer’s local area are easy to find thanks to the Shop’s local features. This is ideal for local in-store pickup and delivery options.
Shopify Pay Installments
Shopify is also launching Shop Pay Installments, a buy now pay later option at checkout providing customers with the option to split purchases into four equal payments over time. The payments are interest free and come with no additional fees. The merchant receives the full amount from the purchase upfront while Shopify collects the remaining three payments. This ensures merchants aren’t left with risk or a gap in cash flow, completely removing the primary risks and hesitations many companies have with using split-payment solutions.
Installments will be fully integrated into the Shop Pay accelerated checkout, enabling merchants to continue offering buyers a seamless checkout experience.
In 2020, Shop Pay Installments will only be available to U.S merchants eligible for Shopify Payments.
As Shopify distributes Shopify Pay Installments across borders and into additional markets, we’re getting excited and are curious as to whether this may mark final days for payment solutions such as Zip, Party Pay and LayBuy on Shopify. While these options will remain available for merchants to utilise, we’re anticipating Shopify Pay to offer such incredible benefits that it will leave all other options and providers in the dust.
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Zip
Zip boasts an account limit of up to $8000, an interest-free period of 6 months, an establishment fee of $0-$99, minimum repayments from $40/month depending on limit and a $6/month account fee that is waived if you have no balance.
Laybuy
Similarly to Shopify Pay, Laybuy enables merchants to receive the full payment up front while Laybuy collects the remaining balance. Laybuy does charge retailers to offer their service (4%-10%) as they cover the cost of purchase.
Afterpay
Afterpay also collects the full amount via 4 installment payments. Afterpay entered the market early and is a well-known option and a leading database in the buy now pay later market, particularly across NZ and Australia. Afterpay charges retailers a $0.30 fee per transaction and a commission rate fee is applied per transaction as well – this can range from 4%-10%.
Clearly the zero interest rate and no additional fees offered by Shopify Pay is an appealing option for merchants, an option we believe will become a major leader in the market and massively adopted by Shopify merchants around the globe. Shopify Pay Installations will truly save merchants money, something we’re always looking to help merchants to do. Shopify’s continuous improvement and development of payment solutions to benefit merchants is the reason so many eCommerce companies on other platforms are making the move to Shopify and Shopify Plus.
Part pay providers will continue for those with physical stores. But for merchants with Shopify POS, this truly may mark the end of third-party payment solutions, since using Shop Pay means zero transaction fees.
Merchants in the U.S are currently able to join the waiting list for Shopify Pay Installments. As New Zealand’s leading Shopify Experts, we look forward to being able to announce the launch of this new Shopify Payment feature in New Zealand – hopefully soon.
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