The checkout experience can make or break a sale. A slow or complicated process often leads to abandoned carts and missed revenue. That’s where Shop Pay, one of the top Shopify payment methods, saves the day. Created by Shopify, Shop Pay makes checkouts fast, easy, and safe for your customers.
Why are big brands like Allbirds and Minecraft using Shop Pay for their online stores? In this blog, we’ll explain what’s Shop Pay, its pros and cons, and why it’s a should-have for your store.
Keep reading for easy tips to win more sales and keep your customers smiling!
What is Shop Pay?
Shop Pay is a secure, fast, and convenient payment solution built by Shopify. It allows customers to make seamless purchases on Shopify-powered online stores by storing essential information, such as payment details, shipping addresses, and contact preferences. This eliminates the need to re-enter personal information every time you shop, speeding up the checkout process and enhancing convenience.

Shop Pay logo
But what’s Shop Pay in essence? It’s a way for customers to save time while shopping, enabling them to check out quickly and securely. Moreover, Shop Pay includes an installment feature, called Shop Pay Installments, allowing customers to split payments into smaller amounts. This makes higher-ticket items more affordable and accessible.
With Shop Pay, shoppers enjoy a frictionless experience, and for merchants, streamlining the payment process helps boost conversions and drive more sales.
How Does Shop Pay Work?
Shop Pay makes checkout faster and easier for both merchants and customers. It works quietly in the background to reduce friction and speed up purchases. Here's how it works for each side:
How does Shop Pay work for sellers?
1. Enabling Shop Pay
To use Shop Pay, a seller must use Shopify Payments - Shopify’s built-in payment provider. Once that’s active, Shop Pay can be turned on with a simple toggle inside the Shopify admin under Settings > Payments.

Setup Shop Pay in Shopify Payments
Regional note: Shop Pay is only available if you're using Shopify Payments, which is supported in 39 countries, including the United States, Canada, the United Kingdom, Australia, New Zealand, Ireland, and several other eligible regions.
2. Shop Pay at checkout
Once enabled, Shop Pay becomes a payment option in the store’s checkout. It also shows up as an express checkout button on product pages and cart pages, allowing returning customers to skip right to the final step.

Shop Pay appears as an express checkout button on the product page

Shop Pay appears as an express checkout button on the cart page
Shop Pay appears as an express checkout on the checkout page
💡 Upsell tips: Want to enable Shop Pay and upsell other products in the cart?
Use FoxKit for unlimited upsell options and smart cart boosts to increase your AOV like a pro. Try it now and watch your checkout do more!
3. Order handling with Shop Pay
When a customer completes a purchase using Shop Pay, the order appears in the Shopify admin like any regular order. There’s no special handling or new process to learn. You can fulfill, refund, or manage the order as usual.
4. Customer data handling with Shopify
Shopify securely manages all the information customers save. Sellers don’t have access to stored credit card data, and there’s no need to worry about security or PCI compliance related to this saved info.
How does Shop Pay work for customers?
For customers, Shop Pay is all about saving time at checkout. Here's what the process looks like from the moment a shopper clicks "Buy" to when their order is confirmed.
1. First-time checkout
When customers shop at a Shopify store and select Shop Pay at checkout, they follow the usual steps: they enter their email, phone number, shipping address, and payment information (like a credit or debit card).

Sign up process for Shop Pay
At the end of the process, they’re asked if they want Shop Pay to save this info for future use. If they say yes, their details are securely stored.
📝 Supported payment methods for Shop Pay include: Visa, Mastercard, Amex, Discover, Apple Pay, Google Pay (device-dependent), and Shop Pay Installments (U.S. & Canada – split payments via Affirm).
📚 Related article: How to add Apple Pay to Shopify
2. Info is securely saved
Shop Pay encrypts and stores the customer’s information so it can be used again, without retyping anything. The saved details include:
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Email
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Shipping address (up to 20)
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Billing address
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Phone number
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Payment details (up to 10 credit cards)
This data is tied to the customer’s email address and verified using a phone number for extra security.
3. Faster checkout next time
The next time the customer visits any Shopify store that supports Shop Pay, they can check out by just entering their email. A 6-digit text message - known as Shop Pay codes is sent via text, and once it’s confirmed, all their saved info is filled in instantly.

Shop Pay codes
4. The order is placed
Once confirmed, the order is submitted just like any other online purchase. The customer receives the usual confirmation and shipping updates from the store they ordered from.
📝 Note: For customers, Shop Pay works globally, as long as the store supports it. That means even if a shopper is in another country, they can still use Shop Pay to check out smoothly on any store that offers it.
What is Shop Pay Installments? How Does It Work?
What is Shop Pay Installments?
Shop Pay Installments is a buy now, pay later (BNPL) option that lets customers split their purchase into smaller, more manageable payments - either biweekly or monthly.
It’s powered by Affirm, a trusted BNPL provider, and is fully integrated into Shopify checkout. Customers can see their payment options before they place their order, which makes budgeting easier and removes friction at checkout. Currently, 2 countries using this payment method are the US and Canada.

Shop Pay installments in partnership with Affirm
Here’s how it works in simple terms:
Pay in 2
- For purchases between $35 and $50
- Split your total into two interest-free payments made every 15 days.
Pay in 4
- For purchases between $50 and $999
- Make four interest-free payments, automatically charged every two weeks.
Monthly payments
- For purchases between $150 and $30,000
- Choose flexible terms of 3, 6, or 12 months, with APR rates ranging from 0% to 36%, depending on credit eligibility.
💡Note: Minimum purchase amounts and financing options may vary by retailer. For orders over $20,000, a $10,000 down payment is required.
📌Merchants get paid upfront, in full. Shopify handles the payout, and Affirm manages the rest.
How does Shop Pay Installments work?
Here’s what happens step by step when a customer chooses Shop Pay Installments:
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Step 1: The customer adds items to the cart and proceeds to checkout.
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Step 2: At the payment step, they select Shop Pay Installments instead of a credit card or PayPal.
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Step 3: They’re shown a few payment plans, including how much they’ll pay each time and any interest that applies.
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Step 4: The customer chooses their preferred plan and completes a quick credit check (soft pull - no impact on their credit score).
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Step 5: If approved, they complete the purchase.
You, the merchant, get the full payment upfront, while Affirm collects the payments from the customer.
Is Shop Pay Safe?
Yes, Shop Pay is safe. It’s made by Shopify and built to protect both you and your customers. It uses strong security tools like encryption and follows strict rules (PCI compliance) to keep payment information safe. Shop Pay also sends a code to your customer’s phone or email to double-check their identity, which adds extra protection.
For you as a merchant, this means your customers can check out faster and feel more confident buying from your store. A safer, easier checkout helps increase trust and can lead to more sales.
Whether you’re a buyer or a store owner, Shop Pay offers a secure, dependable way to complete transactions online, with both speed and peace of mind. So, if you're wondering, is Shop Pay reliable? Absolutely.
How Much Does Shop Pay Charge Merchants?
Using Shop Pay itself is free for merchants on Shopify - it’s included as part of the Shopify ecosystem. It doesn’t come with any extra cost if you're already using Shopify Payments. However, if you choose to offer Shop Pay Installments to your customers, that’s where the additional Shop Pay fee comes in.
Here’s a breakdown:
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Shop Pay setup (Standard checkout): No extra fees. It’s free to use for all Shopify merchants who are set up with Shopify Payments.
- Shop Pay Installments (Buy now, Pay later)

Buy now pay later with Shop Pay installments
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For U.S. merchants, there's a 5.9% + $0.30 fee per transaction when a customer opts to pay in installments. This Shop Pay fee is only charged on orders processed using the installment feature, not standard Shop Pay checkouts.
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Other regions: Installment-related fees may vary by country. Shopify doesn’t publicly list all international rates, so you’ll need to check your admin panel or contact Shopify support for exact numbers if you're outside the U.S.
Standard Shop Pay rates for payment processing: Even with Shop Pay, you’ll still pay Shopify’s regular credit card processing fees:
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Online transactions: Range from 2.4% to 2.9% + $0.30, depending on your plan.
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In-person payments: Start at 2.7% on the Basic plan, with lower rates on higher-tier plans (as low as 2.4%).
- Currency conversion fees: If you sell internationally, there’s an added Shop Pay
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Transaction fee: 1.5% for US-based stores and 2% for stores in other regions
So, is Shop Pay free for merchants? Yes, if you're using it for standard checkouts with Shopify Payments, there’s no extra charge. But when you add features like Shop Pay Installments, it’s essential to factor in the additional fees and processing rates when calculating your overall costs.
What Are the Benefits of Shop Pay?
Shop Pay is a game-changer, streamlining checkouts and driving revenue. It helps sellers boost sales and trust. For shoppers, it’s quick, easy, and rewarding. Below, we explore the key benefits for both, answer the question of why Shop Pay is essential for Shopify stores:
Shop Pay benefits for merchants
1. Faster checkout = more sales
Speed matters - especially in eCommerce. Every extra click or form field gives a shopper a chance to bounce. Shop Pay makes checkout incredibly fast by storing customer info after their first purchase. That means future checkouts happen with a single tap, and no typing is needed.

Shop Pay - the best converting checkout payment
According to Shopify, stores that use Shop Pay see conversions that are 1.91x higher on mobile compared to stores using other checkout options. That’s a massive deal, especially when you consider how many people are shopping on their phones these days.
🛒 Real-world tip: Make sure your product pages and cart pages clearly show that you accept Shop Pay. The more customers see that trusted name upfront, the more likely they are to complete their order.
Want to get the most out of Shop Pay? Design beautiful, high-performing Shopify pages with Foxify Smart Page Builder, seamlessly integrated with Shop Pay to streamline checkout and boost conversions.
2. Higher AOV
Shop Pay Installments makes it easier for customers to say yes to more, whether it’s an extra item or a pricier upgrade. They can split payments into 4 interest-free installments or monthly plans. Stores offering this see up to 50% higher AOV; you still get paid upfront.
📌 Pro tip: Promote flexible payments on product pages, especially for bundles, upsells, or high-ticket items.
3. Builds trust fast
Shop Pay is a name shoppers recognize as trusted. The logo signals security and ease, especially on mobile.
💡Quick win: Add a Shop Pay badge to your footer or cart page for instant credibility.
4. Mobile-optimized
With 70%+ of shopping happening on mobile, Shop Pay delivers a frictionless, tap-and-go experience. One-time setup, no form-filling - just speed and simplicity.
Shop Pay benefits for customers
1. Faster checkouts
Once a customer has used Shop Pay, all their details - name, address, payment info - are securely saved. Next time they shop (in your store or another Shopify store), they can check out in just one tap. No typing. No digging through wallets. Just done.
It’s like having a magic button for shopping.
2. Flexible payment options
Not ready to pay the full amount today? No problem. Shop Pay Installments lets customers:
- Split the total into 4 interest-free biweekly payments
- Or choose monthly payments with an APR between 0% and 36%, depending on the cart size and credit check.
It’s all displayed before purchase, with no hidden fees.

BNPL with Shop Pay installments. Source: Shopify
💡Helpful for customers: This flexibility makes higher-ticket items or bundled deals much more accessible. Plus, knowing they won’t pay interest (or just a Í›small amount) reduces friction at checkout.
3. Real-time tracking
With the Shop app, customers can track their orders across multiple stores in one place. They’ll get real-time updates, shipping info, and even delivery estimates - without digging through their inbox. It’s one of the best post-purchase experiences out there.

Order real-time tracking with Shop App
4. Shop cash

Earn and spend Shop Cash when buying via Shop App
When customers buy through the Shop app with Shop Pay, they will earn 1% Shop Cash for future purchases.
What Are the Drawbacks and Limitations of Shop Pay?
Shop Pay is a powerful tool that speeds up checkout and helps increase conversions, but it’s not without its limitations. Here are a few things to consider before making it your go-to solution:
First, Shop Pay only works with Shopify. If you're using platforms like WooCommerce, BigCommerce, or Wix, it's not an option. If you ever leave Shopify, you’ll lose access to Shop Pay completely.
Second, you must use Shopify Payments to enable Shop Pay. This setup isn’t available in all countries or industries, especially if you're in a restricted region or sell high-risk products.
Third, customization is limited. While you can add your logo and brand colors, you won’t have full control over the checkout layout. That could be a downside for merchants who want to offer a fully branded experience.
Lastly, Shop Pay Installments - which can increase order value - are only available in the U.S. and parts of Canada (not Quebec). Customers also need to qualify for installment payments, and only orders between $35 - $30,000 are eligible.
In short, Shop Pay is fast, secure, and effective - but it may not be the right fit for every business, especially those needing more flexibility or operating outside supported regions.
Which Stores Accept Shop Pay?
1. Allbrids
Allbirds, known for comfortable, eco-friendly shoes and clothing, accepts Shop Pay at both the cart and checkout pages, making purchases faster and smoother for customers.

Shop Pay at the Cart page

Shop Pay is listed as an Express checkout method on the checkout page
2. Minecraft
The official Minecraft Shop offers a variety of merchandise and integrates Shop Pay for a quicker, secure checkout experience at both the cart and checkout pages.

Minecraft enables Shop Pay checkout at the cart page

Minecraft allows customers to use Shop Pay at checkout
3. Morphe
Morphe, a popular cosmetics brand, uses Shop Pay to speed up checkout, allowing customers to complete purchases quickly and securely.

Morphe embeds Shop Pay at the cart page

Morphe integrates Shop Pay at the checkout page
4. Vici
VICI Collection, known for trendy women’s clothing, integrates Shop Pay and Shop Pay Installments, offering customers flexible payment options to buy now, pay later.

Shop Pay is one of the payment methods of Vici on the checkout page
5. Floyd
Floyd, a Detroit-based furniture brand, supports Shop Pay and Shop Pay Installments, enabling customers to split payments on larger purchases for added convenience.

Floyd allows Shop Pay Installment, enabling customers to split their bill

Shop Pay at Floyd’s checkout page
Everything about Shop Pay - FAQs
Why use Shop Pay?
Shop Pay makes checkout fast and easy for customers by saving their information for future purchases. For merchants, it helps reduce cart abandonment, increases conversions, and even supports eco-friendly shopping by offsetting carbon emissions for every order.
Is Shop Pay a part of Shopify?
Yes, Shop Pay is built by Shopify and fully integrated into the Shopify ecosystem. It’s not a separate service - it’s designed to make checkout faster, smoother, and more secure for both customers and merchants.
Does Shop Pay charge a fee?
There’s no extra fee to use Shop Pay itself. It’s included with Shopify Payments. If customers use Shop Pay Installments, merchants pay a small service fee, but it often pays off through higher order values and better conversion rates.
Is Shop Pay safe to use?
Yes. Shop Pay is safe to use. It uses strong security tools like encryption, SMS verification, and is PCI DSS Level 1 compliant - the highest standard for payment safety.
Is Shop Pay like Afterpay?
They’re similar in that both offer interest-free installments. The key difference is that Shop Pay is built for Shopify stores and runs through Affirm, while Afterpay works as a standalone service across more platforms.
Is Shop Pay used in Australia?
Yes, Shop Pay is available in Australia through Shopify Payments and works with other options like credit cards, Apple Pay, and Google Pay.
In the end, hope you now understand What is Shop Pay and how it benefits your store - it’s more than just a fast checkout. It streamlines purchases, boosts conversions, and enhances customer experience. For more tips on how to grow your Shopify brand, visit the FoxEcom blog.