Shop Pay needs very little introduction. It’s the fastest way to checkout online on a e-commerce store. It is the checkout system that powers all Shopify website stores. Originally launched in 2017, the little innovation has made shopping on Shopify sites so much easier. It has also significantly improved customer experience on the eCommerce platform.
Now, Shop Pay is coming to Facebook and Instagram, meaning it won’t be business as usual on Facebook Pages and business Instagram accounts going forward. Both merchants and customers will have the opportunity to benefit from the speedy, one-click checkout solution.
Facebook and its sister channels, Instagram and WhatsApp, have been three of Shopify merchants’ most important sales channels to date.
For example, at the beginning of March 2020, Shopify saw a 36% growth in monthly active users just by integrating with Facebook and Instagram. Currently, Shopify is the e-commerce platform of choice for a large percentage of direct-to-consumer brands, including names such as Kylie Cosmetics and Beyond Yoga.
Unfortunately, up to now, Shopify businesses selling on Facebook and Instagram were limited to the PayPal payment gateway or, asking customers to manually enter credit or debit card information each time as they checkout. While both methods work, they come with massive downsides.
PayPal, though convenient, is a third-party platform that typically redirects shoppers to a secure page where they can complete the transaction. This is both time-consuming, a bit confusing and expensive. Merchants know all too well that whenever you redirect shoppers to a third-party site, you can end up losing a lot of customers.
As well, asking customers to manually type their personal and financial information every time they want to purchase something on Facebook is even more costly. Many digital consumers are so terrified of online scams that they aren’t prepared to share their personal and financial details online every time.
THE SHOP PAY ADVANTAGE
Shop Pay isn’t unlike Apple Pay or Google Pay. Even the naming system is the same — Shop Pay it’s short for Shopify Pay.
These payment solutions are a new breed of digital wallets designed to make shopping easier for consumers. It starts by shortening the time it takes to complete a transaction. Rather than requesting the customer to enter their personal and financial information every time they want to purchase something, or worse, redirecting them to third-party websites, the wallet allows customers to save their information for more convenient processing the next time they buy.
It benefits both the merchant and consumer. Merchants can capture more sales thanks to a shorter checkout process.
“The majority of customers today are discovering new products on the go, usually on their mobile devices,” says Benjamin Sehl, co-founder of KOTN, one of the companies already using Shop Pay on Facebook. “If they have to fill a form, we have lost them.”
Meanwhile, customers are set to benefit from a more enjoyable shopping experience and faster checkout.
“Integrating Shop Pay into our checkout process has changed the most painful point of the customer experience into one of the most delightful moments”, Sehl says.
Shop Pay helped buyers complete at least 137 million orders last year. By the start of 2021, it had facilitated about $21 billion cumulative gross merchandise value.
HOW IT WORKS
If you’re a Shopify merchant on Facebook or Instagram, your customers will see a Shop Pay option in the Facebook Pay menu. If they select the option, they will check out with their Shop Pay account. Shoppers can also track their orders — and the carbon emissions generated by the purchase. Fortunately, Shopify covers 100% of the cost of carbon emissions.
Shopify says the transaction is 40% faster. It’s also more secure thanks to advanced encryption. Most importantly, merchants can look forward to increased conversions. According to recent research, Shop Pay reduces cart abandonment, resulting in 1.72x more conversions. All of this is great news for eCommerce sellers.