Posted on 12/11/24 01:42 pm
Just a few years ago, Shopify did not have its own payment system. Store owners had to rely on third-party services like PayPal or Stripe to process payments, incurring additional fees. However, since 2020, Shopify has introduced its built-in payment system, Shop Pay (short for Shopify Payments).
What is Shop Pay, and how can you activate an account without compromising your mobile number? Let’s explore these points in today’s blog post and learn more about the service’s functionality.
So, what exactly is Shop Pay? Shop Pay, or Shopify Payments, is a payment system that offers accelerated checkout for Shopify merchants. For customers, it simply speeds up the checkout process. This payment gateway allows users to pay using several methods, such as:
Shopify Payments operates on a model similar to Stripe, but it’s integrated directly into the store’s backend, making it more convenient for entrepreneurs who sell on Shopify.
However, this comes with a limitation: registering for Shop Pay makes sense only for Shopify users, as the service is not intended to be used externally. That said, for Shopify store owners, Shop Pay is the best option due to its ease of setup and competitive pricing compared to other payment systems.
For merchants, the app is beneficial as it simplifies financial tasks in just one click. It automatically syncs with all accounts and expenses, so you can calculate your profits in advance. The numbers are displayed in an easy-to-read dashboard, giving you real-time insights into your business.
For customers, it makes the checkout process quicker and more efficient by eliminating the need to repeatedly enter shipping and credit card details.
Pros of Shop Pay
Among the benefits, Shopify sellers highlight the following:
Easy to set up: To connect Shop Pay, you can find the module in the Shopify services store and launch it within minutes, without needing a programmer. When setting up, your store’s financial block is automatically synchronized with sales and balances.
Increased payment conversion: According to statistics, many users are frustrated with the need to use third-party payment services, as being redirected to another page slows down the process. Shop Pay’s integrated system reduces payment time, which positively impacts conversion rates.
Lower servicing costs: With third-party services, merchants pay both the third-party system fees and Shopify’s transaction processing fees. Using Shop Pay cuts out the need for third-party services, saving you money on fees.
Multiple payment gateways: After linking your Shop Pay account to Shopify, you can continue using services like PayPal, providing customers with more payment options and increasing conversion rates.
High security: The system uses multi-factor authentication to prevent fraudulent activity, and the refund process is seamless.
Cons of Shop Pay
Here are some drawbacks to consider:
Limited product availability: Shop Pay can only be used within the Shopify platform, which might cause inconvenience if you’re shopping outside of Shopify.
Expensive chargebacks: Shop Pay charges high fees for customer refunds. If a customer cancels an order, you will not only lose the payment but also incur a chargeback fee, which can be as high as $15.
Availability issues: While you can create a store on Shopify from almost any country, Shop Pay is not available in all EU countries. One workaround is to register a personal Shop Pay account under a foreign name or open a legal entity abroad.
When you open the app, you’ll be directed to the homepage. There, you can either sign in via Google or provide your email address and create a password. Additionally, Shop Pay may require identity verification, which involves linking a mobile number and entering an OTP (One-Time Password) sent via SMS.
For users concerned about privacy, using a temporary virtual phone number for Shop Pay registration is a great alternative.
Virtual phone numbers that expire in 20 minutes are an excellent digital tool for masking your real phone number and enhancing privacy. With the increasing threats to personal data security, it’s important to protect sensitive details like your email and phone number, which can be used to access a wealth of personal information such as your name, ID number, credit card details, and more.
At best, your data might be used for targeted advertising; at worst, it could fall into the wrong hands, leading to financial theft, account hacking, identity theft, and more. As technology advances, including the rise of deepfakes, this threat has become more significant.
Moreover, virtual numbers are useful for marketing services, registering multiple accounts, or accessing platforms that are blocked in your country. If you need a local number for registration, a virtual phone number is the perfect solution.
With SMSOTPVerify, you can obtain a virtual phone number from over 190 available countries for as low as $0.25. This enables you to register on over 3,000 global and local platforms without the risk of personal data leakage.
Here’s how you can use SMSOTPVerify to get a virtual phone number for Shop Pay in just a few simple steps: