Morning Brew reported that website builder and ecommerce platform Shopify is planning to offer its one-click payment system, Shop Pay, to all merchants on Google and Facebook platforms in 2021.
The move, a “first” for the company, will see Shop Pay offered to all sellers on Facebook and Instagram this summer, and to sellers on Google later in the year, marking the “first time Shopify has widened a service beyond its own users”.
Additionally, the company said that it wanted its platform to be “the preferred checkout for all merchants”, with VP of Product Carl Rivera quoted as stating that “according to studies, cart abandonment averages 70%, with nearly 20% occurring because of a complicated checkout process”.
According to Shopify, and “compared to the typical process”, Shop Pay is 70% faster, and has a 1.72x higher conversion rate. The news outlet noted in turn that Shopify “isn’t concerned that a broader base means retailers will drop the platform”, having also recently teamed up with Affirm to offer a “buy now, pay later” option for all of its US merchants.
Shopify President Harley Finkelstein commented on the move: “You now need to reconcile inventory across eight or nine channels. You now have to handle shipping and fulfillment across eight or nine channels. And so as the complexity increases, the value of using Shopify as the central retail operating system also increases.”