What Is Shop Pay?
WalletShop Pay is Shopify's accelerated checkout solution that stores customer payment and shipping information for one-tap purchases across the Shopify merchant network. With over 100 million registered users, it is the fastest-converting checkout on Shopify and is now available on non-Shopify platforms through Stripe integration.
How It Works
1. **Customer selects Shop Pay**: At checkout, the customer clicks the Shop Pay button (purple button with the Shop Pay logo). 2. **Email entry**: The customer enters their email address. If they have a Shop Pay account, they receive a 6-digit verification code via SMS. 3. **Verification**: The customer enters the SMS code to authenticate their identity. 4. **One-tap checkout**: Shop Pay auto-fills the customer's saved shipping address and payment method. The customer confirms with a single tap. 5. **Payment processing**: The transaction is processed through Shopify Payments (powered by Stripe) at standard rates. 6. **Confirmation**: The customer receives an order confirmation and can track the shipment through the Shop app.
Key Details
Instant
Included in Shopify Payments
Same as Shopify Payments card processing limits
20 countries
Pros & Cons
- 91% higher conversion rate than regular checkouts according to Shopify — the highest among all accelerated checkout options on the platform.
- No additional fees beyond standard payment processing — Shop Pay is free to enable for merchants already using Shopify Payments.
- Network effects across millions of Shopify merchants mean a large and growing pool of customers have pre-saved Shop Pay profiles.
- Built-in carbon-neutral shipping offsets provide a sustainability differentiator that resonates with eco-conscious consumers and brands.
- Primarily tied to the Shopify ecosystem — while Stripe integration exists, the core value is strongest for Shopify merchants.
- Requires Shopify Payments (Stripe) as the payment processor — merchants using other PSPs cannot offer Shop Pay unless they add Stripe.
- Limited brand customization — the Shop Pay checkout experience follows Shopify's design, which may not align with all brand aesthetics.
- Customer data is managed by Shopify, not the merchant — Shop Pay profiles are tied to Shopify's ecosystem, not the individual store.
Use Cases
- Shopify merchants of any size wanting to maximize checkout conversion with zero additional cost.
- Mobile-heavy e-commerce brands where the 4x faster checkout speed significantly reduces cart abandonment.
- D2C brands offering installment payments through Shop Pay Installments without integrating a separate BNPL provider.
- Sustainability-focused brands leveraging Shop Pay's carbon-neutral shipping as part of their environmental commitment.
- High-volume Shopify Plus merchants looking for the highest-converting accelerated checkout across their global stores.
Shop Pay is Shopify's proprietary accelerated checkout solution, designed to make online purchases as fast and frictionless as possible. Originally launched as "Shopify Pay" in 2017, it was rebranded to Shop Pay in 2020 as part of the broader Shop ecosystem that includes the Shop app and Shop Promise. With over 100 million registered users, Shop Pay has become one of the most significant digital wallet experiences in e-commerce.
## How Shop Pay Works
Shop Pay works by saving a customer's email address, shipping address, and payment information the first time they check out on any Shopify-powered store. On subsequent purchases — at any Shop Pay-enabled merchant — the customer simply enters their email, receives a verification code via SMS, and completes the purchase with a single tap. No card numbers to enter, no addresses to type, no friction.
The key insight behind Shop Pay is network effects. Because Shopify powers millions of merchants, a customer who creates a Shop Pay profile at one store can use it at every other Shopify store. This means the checkout experience improves across the entire Shopify ecosystem — the more merchants that enable Shop Pay, the more customers have saved profiles, and the faster everyone checks out.
## Performance and Conversion
Shopify reports that Shop Pay has a 91% higher conversion rate than regular checkouts. This is the highest conversion rate among accelerated checkout options on Shopify, outperforming Apple Pay, Google Pay, and PayPal Express. The speed advantage is dramatic: Shop Pay checkouts complete in an average of 4x faster than standard checkouts, which translates directly into fewer abandoned carts and more completed orders.
For merchants, the conversion impact is the primary selling point. Mobile checkout — where typing is slow and error-prone — sees the largest improvement. Since mobile now accounts for over 70% of e-commerce traffic, any reduction in checkout friction has an outsized impact on revenue.
## Shop Pay Installments
Shop Pay includes a buy-now-pay-later option called Shop Pay Installments, powered by Affirm. Eligible customers can split purchases into 4 bi-weekly interest-free payments, or choose monthly installment plans for larger purchases. The merchant receives the full payment upfront, while Affirm handles the credit risk and collections. This feature competes directly with standalone BNPL providers like Klarna, Afterpay, and Affirm's own checkout widget.
## Availability Beyond Shopify
In 2021, Shopify announced that Shop Pay would be available to non-Shopify merchants through Stripe. This was a significant strategic move, extending Shop Pay's reach beyond the Shopify ecosystem. Merchants using Stripe's payment processing can offer Shop Pay as an accelerated checkout option, even if their e-commerce platform is not Shopify. However, adoption outside the Shopify ecosystem is still in early stages.
## Carbon-Neutral Shipping
A unique feature of Shop Pay is its commitment to sustainability. Every purchase made through Shop Pay is carbon-neutral — Shopify automatically calculates the carbon footprint of the delivery and purchases carbon offsets through Shopify's Sustainability Fund. This is a meaningful differentiator for environmentally conscious brands and consumers.
## Fees
Shop Pay itself has no additional fees beyond standard Shopify Payments processing rates. Since Shop Pay is built on top of Shopify Payments (which is powered by Stripe), merchants pay the same transaction fee whether the customer uses Shop Pay or enters their card manually. This makes Shop Pay essentially free to enable — all upside with no incremental cost.
