What Is Shop Pay? How It Works and Why Your Store Needs It
If you’re asking “What is Shop Pay?”, you’re not alone. It’s one of Shopify’s most powerful features—and one of the least understood.
In this post, we’ll break down exactly how Shop Pay works, why it matters for your conversion rate, and how your Shopify store can get the most out of it.
What Is Shop Pay?
Shop Pay is Shopify’s accelerated one-click checkout. It securely stores a customer’s email, shipping address, and payment details—so the next time they shop at any Shopify store using Shop Pay, they can check out in seconds.
Think of it like Apple Pay or PayPal—but purpose-built for Shopify.
How Does Shop Pay Work?
When a customer places an order through your store and selects Shop Pay at checkout, Shopify securely encrypts and stores their information. Then, when that same customer returns to your store—or any Shopify store that offers Shop Pay—they can complete their next purchase with just one tap.
Here’s what it means for you:
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Faster checkout = fewer abandoned carts
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Pre-filled info = smoother experience on mobile
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More conversions, especially from repeat customers
It’s built for speed, security, and convenience—all of which matter in that final moment before someone clicks “Buy.”
Why Shop Pay Boosts Conversion Rates
According to Shopify, merchants using Shop Pay see an average conversion rate boost of up to 1.72x compared to regular checkouts.
Why?
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No re-entering info: Less friction = more sales
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Trust: Shoppers recognize the Shop Pay brand and feel secure
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Speed: Especially critical on mobile, where typing in details can be a pain
For stores running ads, Shop Pay is especially powerful—it reduces drop-off between landing and checkout, helping you get more return on ad spend (ROAS).
Shop Pay vs Shopify Payments: What’s the Difference?
It’s easy to mix these up:
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Shopify Payments is your payment processor—the backend tool that lets you accept credit cards, Apple Pay, etc.
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Shop Pay is the front-end checkout option that makes the process faster for your customers.
They work together, but Shop Pay is what your customers see.
Can Customers Use Shop Pay in Other Stores?
Yes—and this is where Shop Pay really shines. Once a customer uses Shop Pay on any Shopify store, they can use it everywhere Shop Pay is enabled.
That includes top DTC brands across fashion, wellness, food, tech, and more. It's like joining a massive, trusted commerce network.
How to Enable Shop Pay on Your Store
Shop Pay is included with Shopify Payments, which you can enable in your store admin:
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Go to Settings > Payments
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Activate Shopify Payments (if it’s not already active)
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Ensure Shop Pay is toggled on
That’s it! Once enabled, it will show as an option in your checkout alongside other methods.
Need help configuring your payment setup or testing your checkout experience? We can help with that.
Does Shop Pay Work with Subscriptions or B2B?
Yes—Shop Pay now supports:
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Shop Pay Installments (split payments for eligible stores in the U.S.)
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Subscriptions, via compatible apps like Recharge or Loop
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Buy now, pay later (BNPL) functionality for larger carts
And as Shopify rolls out more B2B functionality (especially on Shopify Plus), Shop Pay continues to evolve with it.
Final Thoughts
Shop Pay isn’t just another payment button—it’s one of the most powerful tools Shopify offers to help stores improve checkout speed, build trust, and drive more sales.
If your store isn’t using Shop Pay—or if you’re not sure your checkout is optimized—you could be losing conversions without even knowing it.
Want us to review your store’s checkout flow and help you make the most of Shop Pay? Book a quick call with our team today.