Ecommerce Web Development

Shop Pay on Shopify – What is it & How does it work?

Online shopping is the most popular way to purchase products and services. According to recent statistics, almost one-third of adult internet users worldwide have used online shopping in the last six months – with 85% of them saying they would do so again in the near future. Shopify as one of the most popular ecommerce platforms caters to more than 1 million merchants around the world with their easy-to-use, customizable online store solutions.

To offer a seamless and convenient checkout experience for customers, Shopify merchants provide options to their customers such as, PayPal, Apple Pay, Google Pay, Stripe, etc. However, Shop Pay is another payment alternative offered to Shopify customers that helps them complete the checkout process quickly, securely and easily and also buy products on installments.

Now, let’s dive deep into the Shop Pay Shopify world.

What is Shop Pay?

introduced in 2018, Shop Pay is a fast and secure checkout system that allows customers to securely save their payment information when they shop on any participating store powered by Shopify. By using Shop Pay, customers can easily complete their purchase with just a few clicks and also get access to exclusive discounts from time to time.

Shop Pay is powered by Shopify Payments, so customers can be assured that their payment information and orders are secure. It also offers a fast checkout process that helps reduce cart abandonment rate as customers don’t have to go through multiple steps when checking out. Additionally, Shop Pay offers customers the option to buy now and pay later with installment plans.

How does Shop Pay Work?

Shop Pay works in three simple steps:

  • First, when a customer adds items to their cart, they can checkout using Shop Pay.
  • Then, they can enter or select their shipping details and payment information.
  • Finally, they can place their order and wait for it to arrive.

For returning customers, the process is even simpler as all their details are already saved. They just need to click on Shop Pay during checkout and enter their password when prompted, which will enable them to complete the payment quickly and securely.

What is Shop Pay Installments?

Shop Pay Installments is an installment payment option (net terms) offered to customers in the US as of now. It allows customers to make their purchases and pay over time instead of paying the full amount upfront. The maximum term of installment payments is 6 months and customers have to pay a fixed fee for each month they use the service.

Benefits of Using Shop Pay

Merchants who offer Shop Pay can provide their customers with a seamless & secure checkout experience on Shopify. With access to analytics, merchants gain valuable insights into how customers use this payment option. Plus, they can take advantage of features like real-time order tracking, customer segmentation, and fraud prevention.


For customers, Shop Pay offers a trustworthy and lightning-fast checkout experience. And that’s not all! With the option to pay in installments, customers enjoy greater flexibility in managing their payments. It’s a win-win for everyone involved.

Shop Pay Features

  • Secure and fast checkout
  • Easy to use for both merchants and customers
  • Installment payments option
  • Fraud prevention
  • Real-time analytics
  • Customer segmentation

With Shop Pay, Shopify merchants can provide their customers with a secure, convenient and fast checkout experience. Additionally, they can also take advantage of the installment payment option to offer more flexibility to their customers. All in all, Shop Pay is a great addition for any Shopify store looking to provide the best shopping experience possible.

Shop Pay Accepted Cards

Shop Pay is accepted by all major credit and debit cards such as Visa, Mastercard, American Express and Discover. Additionally, it also accepts Apple Pay, Google Pay and PayPal. For customers in the US, Shop Pay Installments is available for purchases over $35 with select payment methods.

Shop Pay Fees

Shop Pay follows the same fees structure as Shopify Payments. For US merchants, Shop Pay Installments comes with a fixed fee of 4% of the total purchase amount for each month. In other countries, different payment methods may have their own fees and requirements. It’s important to check with your specific payment provider before using Shop Pay on your store.

How to use Shop Pay as a customer?

Using Shop Pay as a customer is quite straightforward—all you need to do is visit a store that accepts Shop Pay, add items to your cart and select the “Shop Pay” option at checkout. Once you enter or select your shipping details and payment information, you can then place your order and wait for it to arrive.

For returning customers, the process is even easier. All their details are already saved, so they simply need to click on Shop Pay during checkout and enter their password when prompted. This enables them to complete the payment quickly and securely.

How to add Shop Pay to my Shopify store?

Adding Shop Pay to your Shopify store is simple and easy. All you have to do is follow a few steps:

  1. Log in to your admin panel.
  2. Go to the ‘Payments’ tab in the sidebar menu and select ‘Shop Pay’ from the payment providers list.
  3. Once you click on ‘Activate’, the Shop Pay checkout option will be activated and added to your store.

By adding Shop Pay to your store, you can provide customers with a seamless and secure checkout experience that helps increase conversion rates and reduce cart abandonment rates.

How to create a discount code for Shop Pay?

Shopify merchants can create discount codes that apply to purchases made through Shop Pay. To do this, all you need to do is go to your Shopify admin and navigate to the “Discounts” section. From there, you can set up a new discount code that applies to orders made with Shop Pay.

Once the discount code is applied at checkout, customers can easily take advantage of the offer. It’s important to note that merchants can only create discount codes for purchases made through Shop Pay and not with other payment methods such as PayPal or Apple Pay.

How does Shopify handle refunds on Shop Pay orders?

When it comes to refunds, Shopify handles all payments made with Shop Pay via Shopify Payments. All the refunds are processed through Shopify Payments which ensures that customers can receive their money back quickly and securely. Additionally, merchants can also opt to provide store credit instead of a refund if they choose.

For orders made with installment payments, Shopify will automatically process the refund in installments as well. This means that customers will receive their refunded amount over the same period of time that they paid for their order.

Wrapping Up

Shop Pay is an easy-to-use and secure checkout system that helps merchants offer a convenient and seamless checkout experience to their customers. It is powered by Shopify Payments, so customers can be assured that their payment information and orders are safe. Additionally, it offers the option to buy now and pay later with installment plans for shoppers in the US.

If you want to offer your customers an enhanced shopping experience, then adding Shop Pay to your store is a great way to do it. By following the steps outlined above, you can easily add the Shop Pay checkout option to your online store and start offering quick and secure payments today!

With these benefits in mind, what are you waiting for? Add Shop Pay to your store now and enjoy all its features!