Shop Pay is entirely optional for your store. You can choose not to enable it in your payment settings and offer other payment methods instead. Many merchants successfully use alternatives like direct credit card payments, PayPal, or other third-party payment solutions. Just ensure you're offering enough payment options to meet your customers' needs and maintain competitive conversion rates.
ECOMMERCE TIPS
What is Shop Pay? Is Shop Pay safe and how to use it: A complete guide
by Lauren
Feb 13th, 2025
10 mins read
Ever left items in your cart because you couldn't find your preferred payment option? Or felt nervous typing your credit card details into yet another store's checkout page?
You're not alone. Every day, countless shoppers abandon their carts when faced with unclear payment choices, endless forms, or worries about security. Let's be honest – typing in your shipping address and card details over and over isn't just annoying, it makes you worry about where your information is going.
That's where Shop Pay comes in. With over 150 million users worldwide, it's turning those painful checkout moments into quick, safe purchases. Picture entering your details just once, then zipping through future checkouts on any Shopify store with a simple verification code. No more password hassles, no more typing fatigue, and best of all – no more security stress.
Think of Shop Pay as your shopping fast pass:
- Save your details once, use them everywhere
- Check out with a quick code instead of retyping everything
- Pay now or later – it's up to you
- Top-level security protecting every purchase
In this simple guide, we'll answer all your questions about Shop Pay from the most basic ones to the practical tips:
- What is Shop Pay exactly and How does it work?
- Is it really safe for your stores and for your customers?
- How can Shop Pay Installments help with bigger purchases?
- Step-by-step guideline to use Shop Pay in your stores.
Ready to see how Shop Pay can make your online shopping quick and easy? Let's dive in!
1. What is Shop Pay and how does it work?
Shop Pay is Shopify's official accelerated payment solution, designed specifically for online stores. Think of it as a secure digital wallet that works across the entire Shopify ecosystem – from small boutiques to major brands. What sets it apart? It combines lightning-fast checkout with flexible payment options, all while earning you rewards on every purchase.
How it works for shoppers at your stores:
The magic of Shop Pay lies in its simplicity. Here's the process:
#1 First-time setup:
- Customer makes a purchase on a Shopify store
- Opts to save their information with Shop Pay
- Enters their details (email, shipping, payment information)
#2 Future purchases:
- Customer selects Shop Pay at checkout
- Enters their email address
- Receives a verification code via SMS
- Confirms the purchase
#3 Information storage:
- Saves up to 10 credit cards
- Stores up to 20 shipping addresses
- Securely encrypts all data
2. What makes Shop Pay special?
2.1. Advanced security & trust
- Bank-level encryption and PCI compliance
- Two-factor authentication with SMS verification
- Faster dispute resolution (15 days vs. PayPal's 20 days)
- Automatic fraud detection and prevention
2.2 Flexible payment power
- Interest-free installments for orders $50-$17,500
- No credit check required (unlike Afterpay)
- Faster merchant payouts (3 business days vs. PayPal's 5-7 days)
- Support for major cards, Apple Pay, and Google Pay
2.3 Exclusive shopper benefits
- Earn Shop Cash rewards on every purchase
- Access to exclusive Shop Pay discount codes
- Real-time order tracking in the Shop app
- One account works across all Shopify stores
- No spending limits for regular purchases
2.4 Seamless integration
- Works directly with Shopify Payments
- Available on Instagram and Facebook shops
- No additional setup fees for merchants
- Built specifically for Shopify's ecosystem
While PayPal might work in more countries and Apple Pay offers in-store payments, Shop Pay excels at what it does best: creating the fastest, most secure online checkout experience specifically for Shopify stores. Plus, unlike Afterpay's $2,000 limit for repeat customers, Shop Pay Installments can handle purchases up to $17,500, making it perfect for both everyday shopping and big-ticket items.
3. Is Shop Pay safe?
Yes, Shop Pay is safe.
When it comes to online payments, security is a top concern – and Shop Pay delivers peace of mind with bank-level protection.
First, Shopify holds Level 1 PCI DSS certification – the gold standard for payment security. This means all customer information saved through Shop Pay is encrypted and stored on secure, PCI-compliant servers. Every Shopify store using Shop Pay automatically benefits from this enterprise-level security.
For extra protection, Shop Pay uses SMS verification codes for every purchase. Even if someone knows your email, they can't complete a purchase without access to your phone – ensuring only you can use your Shop Pay account.
Think of it like having a bank-grade vault for your payment information, with an extra security guard (the SMS code) checking your ID every time you want to access it.
4. Why choose Shop Pay? The benefits that matter
Whether you're a shopper or store owner, Shop Pay offers impressive advantages that go beyond just another payment button. Let's look at what makes it stand out:
4.1 For shoppers:
#1 Lightning-fast checkout: Shop Pay makes buying 4 times faster than regular checkout. No more typing the same information over and over – just one quick verification code, and you're done.
#2 Shop now, pay your way: Want that premium purchase but prefer to spread the cost? Shop Pay Installments lets you split payments with zero interest, no hidden fees, and no late charges. Plus, unlike some payment options, there's no strict spending limit to hold you back.
#3 Track everything in one place: Follow your orders in real-time through the Shop app, from purchase to delivery. It's like having a personal shopping assistant in your pocket.
#2 Shop now, pay your way: Want that premium purchase but prefer to spread the cost? Shop Pay Installments lets you split payments with zero interest, no hidden fees, and no late charges. Plus, unlike some payment options, there's no strict spending limit to hold you back.
#3 Track everything in one place: Follow your orders in real-time through the Shop app, from purchase to delivery. It's like having a personal shopping assistant in your pocket.
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4.2 For store owners:
#1 Better sales, fewer abandoned carts: The numbers speak for themselves:
- 28% fewer abandoned carts than other payment solutions
- 25% of merchants see a 50% jump in average order value
- 43% of customers choose Shop Pay when available
#3 Sustainability that sells: Every Shop Pay purchase supports Shopify's Sustainability Fund, helping fight climate change through carbon removal projects. It's a feature that resonates with environmentally conscious shoppers.
4.3 Important limitations to consider
While Shop Pay offers significant benefits, it's worth noting some key limitations:
#1 Platform restrictions: Shop Pay only works with Shopify stores using Shopify Payments. If you're selling on other platforms like WooCommerce or Magento, you'll need alternative payment solutions.
#2 Geographic limitations: The service is available in just 22 countries and languages, which may affect international business strategies.
#3 Cost considerations: For merchants offering installment plans, there's a 5-6% transaction fee. Monthly installment options can carry interest rates between 10-36% APR for customers.
#4 Customization constraints: The checkout process offers limited customization options, which might not suit merchants wanting a more tailored experience.
4.4 The bottom line
Shop Pay isn't just another way to pay – it's a complete solution that makes shopping easier for customers and more profitable for businesses. While it has some limitations, its benefits in speed, security, and convenience make it a powerful tool for Shopify stores looking to enhance their checkout experience.
5. Key features of Shop Pay
Let's quickly explore the four key features that make Shop Pay stand out in the world of online payments:
- One-tap checkout: Never type your details again. Save your information once and breeze through future checkouts with just two taps. Create custom checkout links to share via email, chat, or social media – no coding needed.
- Shop Pay Installments: Make bigger purchases more manageable. Choose between interest-free payments or monthly installments up to 24 months. It's like having a flexible payment plan in your pocket, ready whenever you need it. Learn more about requirements to use Shop Pay Installments in Shopify.
- Shop Cash rewards: Earn while you shop. Get 1% Shop Cash back on every eligible purchase, then use your rewards on future shopping. It's automatic savings that add up with every purchase.
- Complete order tracking: Follow your purchase from click to delivery. The Shop app keeps you updated on your order's journey, showing real-time progress and estimated arrival times. It's like having a personal delivery assistant in your pocket.
6. How to set up Shop Pay
Setting up Shop Pay is straightforward, and you have two options depending on your payment setup. Let's walk through both methods. This also applies to new Shop Pay sign up and linking Shop Pay Shopify account.
Setup with Shopify payments
If you're using Shopify Payments, here's your quick setup guide:
1. Head to Shopify admin → Settings → Payments
2. Find the Shopify Payments section and click "Manage"
3. Look for Shop Pay under Payments and check the box
4. Click Save, and you're ready to go!
Setup with third-party payment gateways
For U.S. stores using other payment providers:
1. Go to Settings → Payments in your Shopify admin
2. Click "Manage" in your payment provider's section
3. Enable Shop Pay and save your changes
4. Complete the setup with your business and banking details
Important setup notes:
- Complete your business and banking details promptly
- You have 21 days after your first Shop Pay payment to finish setup
- Missing the 21-day window? Any Shop Pay payments will be automatically refunded
Once set up, your customers can instantly start using Shop Pay's express checkout. Plus, you'll be able to offer Shop Pay on your social media stores like Facebook and Instagram.
Learn more on how to activate Shop Pay in Shopify here.
Managing your Shop Pay account and Shop Pay login
Once set up, you might need to Shop Pay log in to manage your settings or view past transactions. Here’s how you can access your Shop Pay account:
#1 Through the Shop App: The easiest way to manage your Shop Pay account is through the Shop App.
- Download the Shop App from the App Store (iOS) or Google Play Store (Android).
- Log in using the email address associated with your Shop Pay account.
- Here, you can view your order history, manage payment methods, and update your shipping addresses.
#2 During checkout: When using Shop Pay, you’ll have the option to review your account details before completing a purchase.
#3 Shop Pay Login: can be accessed through the Shop app. Shop Pay app provides account management options, including the ability to update payment information, review past purchases, and track current orders.
If you forgot your password:
- Head to the website.
- Select "Forgot Password?"
- Enter your email address.
- A password reset link will be sent to your email.
- Follow the steps from the email to reset your password.
Shop Pay sign up process
The Shop Pay sign up process is generally automatic when you make your first purchase on a Shopify store that offers Shop Pay:
- Make a purchase on a Shopify store.
- At checkout, choose Shop Pay as your payment method.
- Enter your email address, shipping address, and payment information.
- Opt to save your information with Shop Pay.
- Verify your account via the SMS code sent to your phone.
By following these steps, you create a Shop Pay account that you can use on any Shopify store offering Shop Pay.
7. Payment methods comparison
Features
Shop Pay
PayPal
AfterPay
Klarna
Availability & reach
23 countries; Shopify stores only
200+ countries; multiple platforms
Select countries; multiple platforms
45+ countries; multiple platforms
Transaction fees
• Regular: Shopify Payments rates
• Installments: 5-6% per transaction
• US: 2.9% + $0.30
• International: 4.4% + fixed fee
4-6% + $0.30 per transaction
3.29% + $0.30 per transaction (US)
Payment options
•Credit/Debit cards
• Interest-free installments
• Monthly payments (10-36% APR)
• US: 2.9% + $0.30
• International: 4.4% + fixed fee
4-6% + $0.30 per transaction
3.29% + $0.30 per transaction (US)
Spending limits
• Regular: No limit
• Installments: $50-$17,500
Based on account status
Up to $2,000 for repeat customers
Up to $1,000 for Pay in 4; Higher for financing
Security features
• SMS verification
• PCI compliance
• Encryption
• Fraud detection
• Email verification
• Encryption
• Fraud protection
• Identity verification
• Fraud checks
• Bank-level security
• Credit checks
• Fraud prevention
Integration options
• Shopify stores
• Facebook/Instagram shops
• Multiple platforms
• Social media integration
• Various eCommerce platforms
• In-store payments
• Multiple platforms
• In-store payments
• Mobile app
Customer benefits
• 1% Shop Cash back
• Order tracking
• One-tap checkout
• Buyer protection
• Refund support
• Currency conversion
• No interest
• No credit check
• Flexible payments
• Shopping app
• No interest on Pay in 4
• Rewards program
Merchant benefits
• 3-day payouts
• 15-day dispute window
• Built-in analytics
• 5-7 day payouts
• Seller protection
• Detailed reporting
• Next-day funding
• Risk-free payments
• Marketing tools
• Customer acquisition tools
• Risk-free payments
• Marketing insights
Setup requirements
• Shopify Payments required
• Business verification
• Banking details
• Business account
• Bank verification
• Basic integration
• Business approval
• Platform integration
• Category eligibility
• Business verification
• Platform integration
• Category approval
Key takeaways:
- Shop Pay offers the highest installment limits and unique rewards program
- PayPal provides the widest global reach and platform compatibility
- Afterpay and Klarna compete in the BNPL space with different approaches
- Klarna offers more flexible payment options than other BNPL providers
- Apple Pay and Google Pay excel in device-specific security and convenience
Each solution has distinct advantages depending on business needs and customer preferences.
8. FAQs
1. What if I don't want to use Shop Pay?
2. What companies use Shop Pay?
Shop Pay is used by businesses of all sizes across the Shopify ecosystem. Notable brands include:
- Enterprise retailers: Allbirds, Spanx, Gymshark
- Beauty brands: Kylie Cosmetics, Olaplex
- DTC success stories: Brooklinen, Bombas
- Luxury goods: Dossier (fragrances)
These brands often highlight Shop Pay's ability to increase conversion rates and average order values through its installment options and streamlined checkout.
3. Why am i not allowed to use Shop Pay?
Several business-related factors might prevent you from enabling Shop Pay:
1. Payment provider requirements:
- Must have Shopify Payments activated, or
- Must use eligible third-party payment providers
2. Geographic restrictions:
- Business must be based in one of 23 supported countries
- Must operate in supported currencies (primarily USD)
3. Store configuration:
- Store cannot be password-protected
- Must use one of 22 supported languages
- Must have an active online presence
4. Business category:
- Cannot be in restricted industries (gambling, regulated products)
- Must comply with Shopify's terms of service
Contact Shopify support for specific eligibility requirements for your business case.
4. Is Shop Pay safe?
Yes, Shop Pay uses advanced encryption, two-factor authentication, and fraud detection to protect transactions and personal information.
5. What payment methods are accepted?
Shop Pay accepts major credit and debit cards, including Visa, Mastercard, and American Express. Capital One cards are not accepted for installment payments.
6. Does Shop Pay affect credit scores?
Bi-weekly installments don't impact credit scores, but monthly installment payments may affect credit if payments are missed.
7. What are the order value limits?
Shop Pay Installments works for orders between $50 and $17,500, with different terms based on order value.
Final thoughts: Is Shop Pay right for your business?
As eCommerce continues to evolve, having the right payment solution can make or break your store's success. Shop Pay stands out as a powerful tool in the Shopify ecosystem, offering a blend of speed, security, and flexibility that both merchants and customers appreciate.
The numbers speak for themselves: 28% fewer abandoned carts, 25% of merchants seeing a 50% jump in average order value, and 43% of customers choosing Shop Pay when available. These aren't just statistics – they represent real business growth opportunities.
However, the decision to implement Shop Pay should align with your business strategy. Consider:
- Your target market's location (available in 23 countries)
- Your payment processing needs (requires Shopify Payments)
- Your average order value (installments available for $50-$17,500)
- Your customer base's preferences (works best for repeat customers)
For Shopify merchants looking to optimize their checkout experience, Shop Pay offers a compelling package: top-tier security, flexible payment options, and seamless integration with the Shopify ecosystem. While it may have limitations, particularly for international merchants, its benefits in conversion rates, customer loyalty, and streamlined operations make it a valuable addition to most Shopify stores.
Whether you're just starting out or running an established enterprise like Allbirds or Gymshark, Shop Pay's combination of features can help turn browsing into buying, and first-time customers into loyal fans.
Ready to enhance your store's checkout experience? The purple button awaits.
ABOUT THE AUTHOR
Lauren Nguyen
Growth Marketing Specialist at Qikify
Hey there! Lauren here - the data-driven marketing gal at Qikify. My thing? Providing eCommerce merchants like you with the most valuable insights and streamlined solutions to help grow your online stores and drive more sales. Since joining this exciting industry, I've been all about sharing expertise to boost your success.
When I'm not geeking out over marketing, you'll find me kickstarting my day with a delicious morning coffee (and let's be real, an afternoon cup is a must some days to power through).
Feel free to connect with me through LinkedIn. I'm always stoked to chat with fellow marketing enthusiasts, store owners, swap ideas, and explore cool new collaborations. Together, we can take your online business to new heights!