A couple of weeks ago, we launched the Shop app, a digital shopping assistant that combines the power of Arrive and Shop Pay (formerly Shopify Pay). Shop Pay, Shopify’s accelerated checkout method, launched in 2017 and has slowly made waves with over 40M buyers using Shop Pay regularly to purchase from Shopify stores.
A seamless checkout process is essential for fast conversions and a better buying experience. This is where Shop Pay comes in. Shop Pay increases checkout speed by 4x, but that’s not all. We, on the Financial Solutions team at Shopify, love our numbers, so we decided to dive a bit further into Shop Pay and its performance on checkout.
We conducted a study of our 10,000 largest Shopify merchants with Shop Pay enabled, over a 1-month period spanning mid-January to mid-February 2020. We compared checkout conversion between Shop Pay and regular checkout used by buyers on Shopify.
Our study showed that checkouts going through Shop Pay have an average checkout-to-order rate of 1.72x times higher than those going through regular checkouts. Why? Because Shop Pay provides a seamless shopping experience. Once a buyer uses Shop Pay for the first time, their information is saved for future purchases—they can then securely speed through checkout with a simple tap.
Let’s look a bit more at the performance of Shop Pay on different devices.
While Shop Pay’s conversion advantage is evident across both mobile and desktop, it is significantly improved on mobile, where Shop Pay checkouts convert at a 1.91x times higher than regular checkouts. This is a massive advantage for direct-to-consumer brands, where conversion on mobile can be the difference between making money or losing money. Our merchants agree.
Enabling Shop Pay in our checkout has really made the most painful point of the customer experience delightful.
“The majority of our customers today are discovering new products on the go on their mobile devices, and if they have to fill out a form, we’ve lost them," says Benjamin Sehl, co-founder of KOTN. "Enabling Shop Pay in our checkout has really made the most painful point of the customer experience delightful, and since it’s tied into the million-merchant ecosystem, even new customers can check out in one click.”
There will always be differences in the way buyers behave when they shop in-store compared to how they shop online, but we’re working to close this gap.
Imagine what would happen in a physical store if the overwhelming majority of people who got to the cashier ended up walking away without buying anything! For some reason, everyone seems to be okay with this outcome when it comes to online shopping. But we’re not okay with that. Shop Pay is our solution to this problem—turning more of your online store browsers into buyers.