Introduction to Shopify’s Payments Stack: Shopify Payments, Shop Pay, Shop Pay Installments, and Shopify Protect


Unpredictable payment processing fees, volatile conversion rates, and fraudulent chargebacks are key hurdles that can impact your variable expenses and cash flow if left unchecked.

That’s where Shopify’s suite of payments solutions comes in. Each product is purpose-built to help overcome these obstacles and unlock opportunities for seamless payment handling, improved customer experiences, and enhanced security. 

In this article, you’ll learn about each of Shopify’s payments products: Shopify Payments, Shop Pay, Shop Pay Installments, Fraud Control, and Shopify Protect. Let's explore how these tools can help you tackle payment-related challenges, elevate your buying journey online and in-store, and ensure each customers’ payment information is secure. 

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Shopify Payments: accept, track, and manage payments in one place

Shopify Payments is Shopify’s fully-integrated payment processing. You pay one stable rate for debit, credit, and mobile wallet payments, no matter what customers use—Visa, Mastercard, American Express, local payment methods, and more. This ensures that your monthly payment processing fees are predictable, making it easier to manage your cash flow. 

Once you activate Shopify Payments, you also get powerful capabilities above and beyond payment processing: 

  • Sell in 133+ global currencies and settle in your own
  • Track online and in-person orders and payments in one place
  • Get fast and predictable payouts with auto-reconciliation
  • Complete and track refunds directly in orders
  • Streamlined chargeback management

You can also rest easy knowing that your business’ and customers’ payment information is safe with end-to-end data encryption, bot protection, risk analysis, chargeback recovery, and auto-reconciliation. Shopify Payments boasts a 3D secure checkout, is Level 1 PCI DSS, and SOC2 Type II compliant. 

Alongside those capabilities, turning on Shopify Payments also unlocks other powerful products in Shopify’s payments stack: Shop Pay, Shop Pay Installments, and Shopify Protect.

Shop Pay: reduce checkout friction with accelerated payments 

Shop Pay is Shopify’s one-tap accelerated checkout that enables shoppers to speed through every purchase with their saved shipping and billing information. For brands, this means higher conversion rates, and we have the data to prove it. 

An external study by a Big Three global management consulting company found that Shop Pay lifts conversions by up to 50% relative to guest checkout, and outpaces other accelerated checkouts by at least 10%. 

Even when it isn’t used by a buyer, the mere presence of Shop Pay increases lower funnel conversions by 5%—and you can expect higher conversions across multiple channels where you sell: your online store, in the Shop App, Facebook, Instagram and Google.

Simply put, Shop Pay is the Internet’s best converting accelerated checkout. You can get Shop Pay for free by setting up Shopify Payments for your store. 

Shop Pay Installments: boost sales with buy now, pay later 

Shop Pay Installments is Shopify’s native buy now, pay later (BNPL) solution that’s fully integrated with your online store and Shopify POS. With it, shoppers have the flexibility to split purchases into four equal, interest-free payments, or monthly installments for up to 12 months with no additional, hidden, or late fees, and no impact to their credit scores.**

There’s also Shop Pay Installments Premium, which allows customers to maximize their budgets even further by letting them pay equal, interest-free payments for up to 12 months, or in monthly installments with interest for up to 24 months on orders between $50 and $17,500 USD. This is a fantastic option for increasing the conversion rates on high price point products. 

Merchants who have activated Shop Pay Installments to date have seen up to 50% increase in average order values, and up to 28% higher conversion rates. To see the results for yourself, turn on Shop Pay and unlock Shop Pay Installments today. 

Shopify Protect: get protection against fraudulent chargebacks 

Shopify Protect is Shop Pay’s free, built-in chargeback protection available to US-based stores. It covers all eligible Shop Pay transactions against fraud-based chargebacks at no extra cost.*

Shopify’s fraud algorithm uses data from across our network to catch the latest forms of fraud so you stay secure every day. Orders marked "protection active" in your Shopify admin are eligible for protection and safe to fulfill. We’ll automatically cover the cost of the order and chargeback fee on fraudulent transactions for any eligible orders paid for using Shop Pay. This gives you peace of mind to approve and ship orders faster.

Once you turn on Shop Pay, you can activate Shopify Protect and confidently fulfill your orders without the fear of incurring fraudulent chargeback fees.

* Terms and conditions apply. Coverage applies to US stores only. Eligibility for protection requires fulfillment and a tracking number for each order within seven days of order receipt. Orders must be shipped using an approved carrier. Click here to view full terms and eligibility requirements.

** Customers can pay monthly installments for orders between $150 and $17,500 USD.