Shopify's Shop Pay Now Available on Facebook & Google
Shopify Extends Shop Pay to All U.S. Merchants on Facebook and Google
Shopify, a leading e-commerce platform, has announced that its one-click checkout solution, Shop Pay, will now be accessible to any U.S. retailer utilizing Facebook or Google for sales. This expansion includes merchants who do not currently operate their online stores using Shopify’s core software.
Introducing a Universal Checkout Experience
Initially unveiled at the company’s developer conference in 2017, Shop Pay streamlines the online purchasing process. It functions similarly to other accelerated checkout options, minimizing the amount of information customers are required to input during transactions.
The service securely stores and encrypts customer data, enabling swift checkouts with a single tap. Recent integrations with Affirm also allow consumers to pay for purchases in installments.
Expanding Partnerships with Social Media and Search Giants
In February, Shopify broadened Shop Pay’s availability to Facebook and Instagram, but initially, this was limited to existing Shopify merchants. Subsequently, Google revealed a partnership with Shopify during its I/O developer conference in May.
This collaboration aims to empower Shopify’s extensive network of over 1.7 million merchants to connect with customers through Google Search and various other “shopping journeys” originating from Google properties like Maps, Images, Lens, and YouTube.
Reach and Adoption Potential
While Shopify has not disclosed the current number of its merchants already present on Facebook or Google, the company identifies these platforms as highly popular sales channels. Following this announcement, other retailers will gain the ability to integrate Shop Pay into their Facebook and Google storefronts.
With 1.8 billion daily Facebook users and a billion shopping sessions occurring across Google, the potential for adoption is substantial.
Benefits of Utilizing Shop Pay
Shop Pay offers a demonstrably faster checkout experience, completing transactions 70% quicker than standard methods. This translates to a 1.72x increase in conversion rates, effectively reducing abandoned carts.
Beyond speed, consumers benefit from Shop Pay’s integration with the Shopify mobile app, Shop. This app consolidates and tracks online orders from various merchants, including Amazon, providing order updates and simplified return management.
The Growing Shop App Ecosystem
To date, the Shop app has monitored over 430 million orders. Over time, the app personalizes user feeds, showcasing preferred stores and offering tailored recommendations, even from local businesses.
Shopify has confirmed that the Shop app will be capable of tracking Shop Pay-enabled orders originating from merchants not utilizing the Shopify platform.
Shopify’s Vision for a Seamless Checkout
“Since its launch, Shop Pay has established a new benchmark for checkout experiences, processing more than $24 billion in orders,” stated Carl Rivera, Shopify’s VP of Product for Shop. “Studies indicate that cart abandonment rates average 70%, with nearly 20% attributed to complex checkout processes.
Shop Pay simplifies this process, and extending it to all merchants on Facebook and Google is a crucial step towards delivering a superior checkout experience to every consumer, merchant, platform, and device.”
Competitive Landscape and Strategic Investments
This expansion presents a challenge to established payment solutions like PayPal, Venmo, and Apple Pay, as well as those offered directly by the platforms themselves. Shopify’s increasing merchant base – currently holding a 23% market share in the U.S. – combined with the Shop app’s rising popularity (ranked No. 3 in the App Store’s Shopping category) positions it strongly.
This news follows Shopify’s recent significant investment in Stripe, the underlying technology powering Shop Pay, and a key partner for merchant services like bank accounts and debit cards.
Rollout Timeline
Shop Pay will become available for all U.S. merchants selling on Facebook in the coming months, with a rollout to Google merchants planned for late 2021.