What is Shop Pay? A guide for Shopify store owners

Shop Pay can reduce cart abandonment by up to 35% and increase conversion rates by 1.72x for Shopify stores. This accelerated checkout solution has processed over $15 billion in transactions, making it one of the most trusted one-click payment systems in ecommerce.

Shop Pay is an accelerated checkout service developed by Shopify that streamlines the purchasing process for customers by securely storing their email addresses, credit card details, and shipping and billing information. This enables swift, one-tap checkouts on any Shopify store that supports Shop Pay, enhancing the overall shopping experience.

As a Shopify store owner, understanding and optimizing your payment methods is essential for customer satisfaction and business growth. Among Shopify's payment solutions, Shop Pay stands out as the fastest-growing checkout option, with over 150 million active users worldwide.

In this comprehensive guide, you'll learn:

• How to set up Shop Pay to maximize conversions

• Why Shop Pay outperforms PayPal Express and Apple Pay

• Advanced optimization strategies for higher AOV

• How to integrate Shop Pay with Instant for maximum performance

Whether you're losing sales to cart abandonment or looking to streamline your checkout process, this guide will show you exactly how Shop Pay can transform your Shopify store's performance.

What is Shop Pay?

Shop Pay is an accelerated checkout service offered by Shopify, designed to streamline the buying process for both customers and store owners. By securely storing customers’ email addresses, credit card details, and shipping and billing information, Shop Pay enables one-tap checkouts across any Shopify store that supports it. This simplicity reduces cart abandonment rates and makes the checkout process faster and more convenient.

Shop Pay vs Competitors: Complete comparison 2025

Choosing the right accelerated checkout solution can make or break your conversion rates. Here's how Shop Pay compares to its main competitors:

Shop Pay vs PayPal Express vs Apple Pay

Winner: Shop Pay for Shopify stores due to native integration, lower fees, and superior analytics.

*Fees vary by payment processor and region

Why Shop Pay wins for Shopify stores:

1. Native Integration Benefits

• No additional app installations required

• Seamless data flow with Shopify Analytics

• Automatic updates with Shopify releases

• Built-in fraud protection

2. Superior Mobile Performance

• 4x faster checkout on mobile devices

• Optimized for touch interfaces

• Reduced form fatigue on small screens

• Auto-populates shipping addresses

3. Customer Retention Features

• Cross-store purchasing history

• Unified order tracking through Shop App

• Personalized product recommendations

• Automatic loyalty program integration

Shop Pay fees & pricing: Complete cost analysis

The Bottom Line: Shop Pay doesn't charge additional fees beyond your standard payment processing rates.

Fee Breakdown:

If using Shopify Payments:

• Credit/Debit Cards: 2.9% + 30¢ per transaction

• No additional Shop Pay fees

• No monthly subscription costs

• No setup fees

If using Third-Party Processors:

• Shop Pay is NOT available

• Must use Shopify Payments to enable Shop Pay

• Consider switching costs vs. conversion benefits

ROI Calculator example:

Before Shop Pay:

• Monthly revenue: $50,000

• Conversion rate: 2.5%

• Cart abandonment: 70%

After Shop Pay:

• Monthly revenue: $65,000 (+30% from reduced abandonment)

• Conversion rate: 4.3% (+72% mobile improvement)

• Cart abandonment: 45% (-25 percentage points)

Net Monthly Benefit: +$15,000 revenue vs. $435 in processing fees = 3,348% ROI

Key features of Shop Pay:

• Faster Checkouts: Save customer details for seamless, one-tap purchases.

• Installment Payments: Offer flexible payment plans through Shop Pay Installments powered by Affirm.

• Secure Transactions: Encrypts customer information to ensure data safety.

• Eco-Friendly Option: Funds tree planting for every order processed.

Shop Pay global availability & 2025 expansion

Currently available:

• Primary Markets: United States, Canada

• Currency Support: USD, CAD (limited)

• Language Support: 19 languages including Chinese, French, German, Spanish, Japanese

2025 Expansion timeline:

• Q2 2025: United Kingdom, Australia

• Q3 2025: European Union (Germany, France, Netherlands)

• Q4 2025: Additional European markets

• 2026 Preview: Asia-Pacific expansion (Japan, Singapore)

International considerations:

• Currency Limitations: Currently USD-focused

• Local Payment Methods: No integration with regional solutions yet

• Compliance: GDPR-ready for European expansion

• Tax Handling: Automatic tax calculation for supported regions

Planning for International Sales? Consider Shop Pay for your primary markets while maintaining regional payment solutions for international customers.

Shop Pay: How does it work?

Shop Pay saves customer information during their first purchase on a Shopify store. When they return to the same store—or any other store using Shop Pay—their details are automatically filled in, drastically reducing checkout time.

When customers return to make another purchase, either on the same store or a different one using Shop Pay, their information is automatically filled in, significantly reducing the time spent on checkout. This feature is particularly helpful for mobile shoppers, who often find entering extensive details on small screens cumbersome.

Setting up Shop Pay: Complete step-by-step guide

Prerequisites checklist

Before enabling Shop Pay, ensure:

• Shopify Payments is your primary payment processor

• Business address is in a supported country (US, Canada)

• Store currency is set to USD or CAD

• Shopify Payments account is fully approved

• You have admin access to your Shopify store

Step 1: Access payment settings

1. Log into your Shopify Admin dashboard

2. Navigate to Settings in the bottom left menu

3. Click on Payments from the settings menu

4. Locate the Shopify Payments section

Troubleshooting: If you don't see Shopify Payments, you may be using a third-party processor. Shop Pay requires Shopify Payments to function.

Step 2: Enable Shop Pay

1. In the Shopify Payments section, click Manage

2. Scroll down to find the Shop Pay section

3. Check the box next to "Use Shop Pay"

4. Click Save to confirm your changes

Pro Tip: The Shop Pay option may take 5-10 minutes to appear on your storefront after enabling.

Step 3: Customize Shop Pay settings

1. Return to Settings > Checkout and accounts

2. Scroll to Order processing

3. Ensure "Automatically fulfill only digital products" is selected for faster Shop Pay processing

4. Under Customer contact, select "Customers can create an account or check out as a guest"

Step 4: Test Shop Pay implementation

1. Visit your store in an incognito/private browser window

2. Add a product to cart and proceed to checkout

3. Verify the Shop Pay button appears prominently

4. Test the complete checkout flow using a test credit card

5. Confirm order confirmation emails are sent properly

Step 5: Optimize button placement

1. Go to Online Store > Themes

2. Click Customize on your active theme

3. Navigate to Product pages

4. Ensure dynamic checkout buttons are enabled

5. Position Shop Pay button prominently (usually first or second option)

Step 6: Monitor performance

• Wait 7 days for initial data

• Check Analytics > Reports > Sales for Shop Pay usage

• Monitor conversion rate changes

• Track mobile vs. desktop performance differences

Expected Results Timeline:

• Week 1: Shop Pay adoption begins (5-15% of customers)

• Week 2-4: Conversion rate improvements become measurable

• Month 2: Full impact on cart abandonment visible

• Month 3: Customer retention improvements apparent

Once Shop Pay is added to your store, customers will be able to use it as a checkout option. Here's how they will experience Shop Pay:

• First-time users are prompted to save their information during checkout.

• Verification is quick and secure with a six-digit code sent via email or text.

• Returning customers enjoy one-tap purchases without re-entering details.

• Customers can update their Shop Pay info and opt-out at any time.

• A wide range of languages are supported including: Chinese, Czech, Danish, Dutch, English, Finnish, French, German, Italian, Japanese, Korean, Norwegian, Polish, Portuguese, Spanish, Swedish, Thai, Turkish, and Vietnamese.

Want to make the most of Shop Pay? Design beautiful, high-performing Shopify pages with Instant, perfectly integrated to streamline the checkout process and improve customer experience.

Comparison: Shop Pay vs. Shopify Payments

Although both are integral parts of the Shopify platform, Shop Pay and Shopify Payments serve distinct purposes:

• Shopify Payments: Handles payment processing and supports multiple payment options.

• Shop Pay: Speeds up the checkout process by saving and auto-filling customer details.

Shopify Payments is the primary payment processor for Shopify, handling the acceptance and processing of payments. In contrast, Shop Pay focuses on expediting the checkout process. The key difference lies in their roles: Shopify Payments facilitates payment processing, whereas Shop Pay enhances the customer checkout experience.

Shopify Payments offers a streamlined payment process by integrating with multiple payment providers. This ensures that customers have a variety of payment options at checkout, which can significantly increase conversions and revenue for merchants.

In comparison, Shop Pay aims to improve the overall customer experience by simplifying and speeding up the checkout process. It reduces the number of steps required for customers to complete their purchases, resulting in a higher conversion rate and increased customer satisfaction. Additionally, Shop Pay is only available for merchants selling in United States dollars (USD).

Another significant difference is that Shopify Payments charges transaction fees, while Shop Pay does not. With Shop Pay, merchants only pay the standard credit card processing fees set by their payment provider.

Shop Pay Installments

Shop Pay also offers buy now, pay later (BNPL) options through Shop Pay Installments. This feature allows customers to split payments into four interest-free installments or monthly plans, increasing affordability and improving conversion rates for merchants.

• Eligibility: Provided by Affirm and available to customers in the U.S.

• Reminder System: Customers receive email or SMS notifications before each payment.

• Impact on Sales: Flexible payments encourage higher-value purchases.

Benefits of Shop Pay for Shopify merchants

When evaluating Shop Pay, several benefits and features stand out:

1. Higher Conversion Rates: Simplified checkouts reduce friction, leading to more completed sales.

2. Increased Average Order Value (AOV): BNPL options make higher-priced items more accessible.

3. Eco-Friendly Shopping: Attract environmentally conscious customers with carbon offsetting.

4. Enhanced Security: Build trust with robust encryption and PCI compliance.

5. Improved Customer Loyalty: A seamless experience encourages repeat purchases.

The Shop App: A companion to Shop Pay

The Shop App works alongside Shop Pay to offer additional features like order tracking and personalized shopping recommendations. So, while Shop Pay streamlines the checkout process by enabling fast, one-tap purchases, the Shop App extends this convenience by offering a comprehensive shopping assistant.

With this app, customers can:

• Track orders in real-time.

• Discover new products from their favorite stores.

• Manage purchases across multiple Shopify stores.

If you’re curious about how the Shop app works alongside Shop Pay to enhance the overall shopping experience, this video clip explains everything you need to know about the Shop app, including its role in tracking orders and providing a streamlined checkout process:

Shop Pay pros and cons

While Shop Pay can boost conversions by speeding up the checkout process, it’s important to understand how to use it best for maximum impact.

In this video, Rebecca Worsley from Rainy City Agency audits a Shopify brand’s PDP, sharing her insights on when using Shop Pay might be ideal and when it could cause missed opportunities to increase your Average Order Value (AOV):

Here are additional pros and cons of using Shop Pay for your online store:

Pros:

• Saves time with faster checkouts.

• Encourages larger purchases with flexible payment options.

• Secure, encrypted storage of customer data.

• Eco-friendly initiative for sustainable shopping.

Cons:

• Limited to Shopify stores.

• Some customers may hesitate to save personal details, despite encryption.

• Currently available in select countries (but that's likely to change!).

The benefits of  Shop Pay make it an attractive option for merchants looking to improve their customer experience and boost sales. With its growing popularity and positive feedback from customers and store owners, it is worth considering as a payment option for your business.

How to maximize Shop Pay with Instant

For Shopify store owners, Shop Pay represents a significant advancement in enhancing the ecommerce experience, offering speed, convenience, and security that benefit both customers and store performance. By adopting Shop Pay, you’re not just providing a faster payment solution; you’re streamlining the entire checkout process to improve conversion rates and customer satisfaction.

To maximize the potential of Shop Pay, pair it with high-converting landing pages and product sections designed using Instant. With Instant's no-code page builder, you can create custom Shopify pages that integrate seamlessly with Shop Pay, providing a cohesive and optimized shopping experience for your customers.

Start building today and see how the combination of Shop Pay and Instant can take your Shopify store to the next level.