Shop Pay vs Standard Checkout: Conversion Rate Comparison

Shop Pay converts 1.72x higher than standard checkout. That is Shopify's data across their entire network. But what does that mean for your store, and is Shop Pay adoption really that impactful? This comparison breaks down the real differences.

What Is Shop Pay?

Shop Pay is Shopify's accelerated checkout. Customers save their payment and shipping information once, then complete purchases with one tap on any Shopify store.

How it works:

1. Customer opts in during first purchase (or via Shop app)
2. Information is stored securely by Shopify
3. On future purchases, customer enters phone or email
4. Verification code sent (SMS or email)
5. One-tap to complete purchase

Available on: All Shopify stores with Shopify Payments enabled. Free to use.

The Conversion Data

Shopify's Published Data

1.72x higher conversion: Shop Pay checkouts complete 1.72x more often than standard checkouts (Shopify, 2023).

What this means: If standard checkout converts at 40%, Shop Pay converts at approximately 69%.

Additional metrics:

• 4x faster checkout completion
• 10% more likely to return and purchase again
• Lower cart abandonment at every stage

Independent Research

Third-party studies generally confirm accelerated checkout benefits:

Baymard Institute:

• Express checkout (any type) improves conversion 5-15%
• Mobile improvement is higher (10-25%)
• Returning customer improvement is highest (up to 50%)

Forrester Research:

• Accelerated checkout reduces abandonment at payment stage by 25-30%

Important Context

Shop Pay data includes selection bias: Customers who use Shop Pay have already:

• Purchased on Shopify stores before
• Opted into saving their information
• Demonstrated purchase intent

These are already higher-intent customers. The 1.72x number compares Shop Pay users to all standard checkout users, including browsers and hesitant buyers.

More accurate comparison: Returning customers with saved information vs. similar returning customers using standard checkout. The gap narrows but Shop Pay still wins.

Why Shop Pay Converts Better

Friction Reduction

Standard checkout requires:

• Enter email
• Enter shipping address (8+ fields)
• Select shipping method
• Enter payment information (4+ fields)
• Review and confirm

Shop Pay requires:

• Enter phone/email
• Enter verification code
• Tap to confirm

Field count: 12-15 vs. 2

Each eliminated field removes a potential drop-off point.

Trust Factor

Shopify branding: Shop Pay is backed by Shopify. Customers who do not recognize your store may trust Shopify's checkout handling.

Stored payment security: Customers do not enter card details on unfamiliar sites. Their information is stored with Shopify, not individual merchants.

Verification step: SMS/email verification feels secure. Customers know someone cannot use their Shop Pay without their phone.

Speed

Time to complete:

• Standard checkout: 2-4 minutes
• Shop Pay: 15-30 seconds

Less time in checkout means less time to reconsider, get distracted, or encounter problems.

Mobile Optimization

Shop Pay on mobile:

• Pre-filled everything
• Large tap targets
• Biometric option (Face ID, fingerprint)
• No typing on small keyboard

Standard checkout on mobile:

• 15+ form fields
• Tiny input targets
• Easy to make errors
• Frustrating experience

Mobile is 70%+ of e-commerce traffic. Shop Pay's mobile advantage is significant.

Shop Pay Installments

Shop Pay includes a Buy Now Pay Later option:

How it works:

• Orders $50-3000
• 4 bi-weekly payments
• 0% interest (if paid on time)
• Soft credit check

Conversion impact:

• 50% higher conversion for Shop Pay Installments vs. full pay
• 20% higher average order value
• Particularly effective for $100-500 price points

Who sees it: Customers who qualify based on soft credit check. Not all customers see the option.

Merchant cost: Same as standard Shopify Payments (2.9% + $0.30). Shopify absorbs BNPL risk.

Who Uses Shop Pay

Shop Pay User Demographics

Over 100 million Shop Pay users (as of 2023)

User profile:

• Have purchased on Shopify stores previously
• Opted in to save information
• Higher purchase intent
• More likely to complete purchases

Adoption by store type:

• Fashion/apparel: High
• Electronics: Medium-high
• Home goods: Medium
• Specialized/niche: Varies

Customer Awareness

The "Shop" brand: Shop Pay is promoted through the Shop app, which has 100M+ downloads. The purple Shop button is increasingly recognized.

New customer behavior: First-time buyers may not have Shop Pay. Your conversion improvement depends on:

• Returning customer percentage
• Shop Pay adoption among your audience
• Whether customers have used Shop Pay on other stores

Enabling Shop Pay

Requirements

1. Shopify Payments must be active
2. Store must be in supported country
3. Business verification complete

Setup Steps

1. Go to Settings > Payments
2. Ensure Shopify Payments is activated
3. Shop Pay is enabled by default
4. Verify "Shop Pay" appears in Shopify Payments section

Enabling Shop Pay on Product/Cart Pages

Settings > Checkout > Checkout appearance

Enable:

• "Show Shop Pay on product pages"
• "Show Shop Pay on cart page"

This shows the purple Shop Pay button before customers reach checkout.

Shop Pay Installments

1. Settings > Payments > Shopify Payments
2. Find "Shop Pay Installments" section
3. Enable if available
4. Currently US-only

Comparing Shop Pay to Other Express Options

Shop Pay vs. Apple Pay

Shop Pay:

• Works on any device/browser
• Phone verification
• Includes BNPL option
• Shopify network benefits (customer recognition across stores)

Apple Pay:

• iOS/Safari only
• Face ID or Touch ID
• No BNPL
• No cross-store recognition

When Apple Pay wins:

• iOS-heavy customer base
• Customers value biometric over code entry
• Brand trust is already high (do not need Shopify backing)

When Shop Pay wins:

• Android traffic significant
• Want BNPL option
• Benefit from Shopify network trust

Shop Pay vs. Google Pay

Shop Pay:

• Works on any device
• Phone verification
• Includes BNPL
• Cross-store recognition

Google Pay:

• Android-optimized (works elsewhere)
• PIN or biometric
• No BNPL
• No cross-store recognition

Similar dynamics to Apple Pay. Shop Pay is more universal; Google Pay is platform-specific.

Shop Pay vs. PayPal

Shop Pay:

• Shopify native
• Same fees as card
• Includes BNPL
• Faster checkout (fewer steps)

PayPal:

• Universal trust (non-Shopify stores too)
• Buyer protection reputation
• PayPal balance users
• 44% of online shoppers have accounts

When PayPal wins:

• Customers specifically want PayPal protection
• Customers have PayPal balance
• International customers (PayPal trusted globally)
• Older demographics

When Shop Pay wins:

• Customers already have Shop Pay (Shopify store shoppers)
• Mobile-first customers
• Want BNPL option
• Returning Shopify customer base

Best Practice: Offer All

You do not have to choose. Enable Shop Pay, Apple Pay, Google Pay, and PayPal. Let customers pick their preference.

The cost is the same (processing fees), and you capture each customer's preferred method.

Measuring Shop Pay Impact on Your Store

Shopify Analytics

Reports > Checkout > Checkout by payment method

See:

• Checkouts started by method
• Checkouts completed by method
• Conversion rate by method
• Revenue by method

What to Look For

Shop Pay conversion vs. others: Compare checkout completion rate for Shop Pay vs. standard card payment.

Typical results:

• Shop Pay: 60-75% completion
• Apple Pay: 55-70% completion
• Standard card: 40-55% completion

Segment further:

• New vs. returning customers
• Mobile vs. desktop
• Order value ranges

Calculating Revenue Impact

Example:

• 1,000 checkouts started
• 40% via Shop Pay, 60% via standard
• Shop Pay: 400 starts × 70% = 280 orders
• Standard: 600 starts × 45% = 270 orders
• Total: 550 orders

If Shop Pay adoption increases to 50%:

• Shop Pay: 500 × 70% = 350 orders
• Standard: 500 × 45% = 225 orders
• Total: 575 orders
• 25 additional orders (4.5% revenue increase)

Growing Shop Pay adoption directly improves conversion.

Increasing Shop Pay Adoption

Make It Visible

Product page button: Enable Shop Pay button on product pages. "Buy with Shop Pay" appears next to "Add to Cart."

Cart page button: Show Shop Pay prominently on cart page. Make it the visually primary option.

Mobile emphasis: On mobile, Shop Pay should be the most prominent checkout option.

Educate New Customers

What is Shop Pay? Some customers do not know what Shop Pay is. A brief explanation can help:

"Shop Pay securely saves your information for one-tap checkout on this and other stores."

Trust indicators: "Shop Pay is powered by Shopify, processing billions in secure transactions."

Post-Purchase Adoption

Thank you page: Prompt customers who did not use Shop Pay to sign up for next time.

Email follow-up: "Save time on your next order with Shop Pay."

Target High-Value Segments

Returning customers: If they have not opted into Shop Pay, they are leaving conversion on the table. Remind them.

Mobile shoppers: Shop Pay's biggest advantage is mobile. Target mobile users specifically.

Shop Pay Limitations

Not Universal

Shop Pay only works on Shopify stores. Customers cannot use Shop Pay on non-Shopify sites. This limits network effects compared to PayPal or Apple Pay.

Requires Phone Verification

Some customers find SMS verification annoying. They may prefer Apple Pay's biometric approach or just entering their card.

Installments Eligibility

Not all customers qualify for Shop Pay Installments. If they expect it but cannot use it, there may be friction.

New Store Adoption

If your customers are not typical Shopify shoppers, fewer will have Shop Pay accounts. The 1.72x improvement assumes your audience overlaps with Shopify's network.

Implementation Checklist

Immediate (Today)

• [ ] Verify Shopify Payments is active
• [ ] Confirm Shop Pay is enabled
• [ ] Enable Shop Pay on product pages
• [ ] Enable Shop Pay on cart page
• [ ] Test Shop Pay checkout flow

Short-Term (This Week)

• [ ] Enable Shop Pay Installments (if eligible)
• [ ] Review checkout analytics by payment method
• [ ] Compare Shop Pay conversion to standard
• [ ] Ensure Shop Pay is prominent on mobile

Ongoing

• [ ] Monitor Shop Pay adoption rate
• [ ] Track conversion by payment method monthly
• [ ] Test Shop Pay messaging to increase adoption
• [ ] Compare Shop Pay vs. other express options

The Bottom Line

Shop Pay facts:

• 1.72x higher conversion than standard checkout (Shopify data)
• 4x faster checkout completion
• Free to enable (same fees as card payments)
• 100M+ users in the network
• Includes BNPL option (Shop Pay Installments)

Who benefits most:

• Stores with returning customers
• Mobile-heavy traffic
• Audiences that shop on Shopify stores
• Products in the $50-500 range (Installments benefit)

What to do:

1. Enable Shop Pay (if not already)
2. Show Shop Pay buttons on product and cart pages
3. Enable Installments if eligible
4. Measure conversion by payment method
5. Actively promote Shop Pay to increase adoption

Realistic expectations:

• If 50% of checkouts use Shop Pay, and Shop Pay converts 1.5x better, overall conversion increases 15-20%
• Mobile conversion improvement is even higher
• First-time visitor improvement is lower (they need to create Shop Pay account)

Shop Pay is the highest-impact checkout optimization available on Shopify, and it is already included in your plan. The only question is whether you have made it prominent enough for customers to use.