How To Set Up Afterpay On Shopify

More and more new payment providers are popping upwardly effectually the world. E-commerce businesses accept to react fast. People now wait to be able to use their preferred payment methods when shopping, or otherwise plow to the competitor.

Posted 6 months ago by Irina Lanina

Table of Contents:

• Shopify simplifies third-party payment integrations
• What is Shop Pay vs Shopify Payments?
• Direct vs Third-Party providers – what is the difference?
• Shopify Payments vs External Providers: Pros and Cons
• Footstep-by-step guide to adding payment methods on Shopify: 
• Personalize your Shopify shop client experience with added payment options

Co-ordinate to statistics from 2022, cart abandonment rates still boilerplate to a whopping seventy%, a total of 20% are found to be due to a complicated checkout process. That is currently the pinnacle fourth reason in the listing, later on extra costs (high delivery fee, taxes), having to set up an business relationship, and slow delivery times.

And you want to do everything in your power to subtract loftier cart abandonment rates, right? To make the checkout process of your Shopify shop seamless for your customers, calculation more Shopify payment methods to your store can assistance.

Offering a no-friction checkout can have a directly impact on abandoned cart rates. By knowing which payment methods your customers prefer, you can actively make changes.

In this post, we'll explain how Shopify payment processing works, and become through different payment options y'all can add to your Shopify shop checkout page. We will go into detail about pros and cons of Shopify Payment methods, differences between first-party and third-party payment providers, and how to set up payments on Shopify.

Shopify simplifies third-party payment integrations

In 2022, Shopify launched their integrated Shopify Payments, assuasive piece of cake integration of payment methods to your shop. However, calculation third-party payment providers hasn't been as like shooting fish in a barrel.

Great news for all the payment developers also equally shop owners. At the previous year's Shopify Unite issue in July 2022, Shopify announced a new payments platform that allows much easier integration with new payment gateways. Previously, this required integration with Shopify Checkout through Agile Merchant and Hosted Payment SDK.

At present in that location will be a amend way that benefits merchants as well as payment providers. Shopify'due south payments platform will allow developers to add their payment gateways as Shopify apps. With a single path to integrate with Shopify, every payment gateway volition exist built on the payments platform. Payment providers can use app extensions, APIs, and congenital-in merchant experiences.

This will add more than third-party payment gateways to the list, so stores that wish to better client experience can add more payment options to their checkout pages.

What is Shop Pay vs Shopify Payments?

The difference is that Shop Pay is a client-facing payment button. Shop Pay runs on payment processor Stripe. Shop Pay is a user-friendly checkout solution that allows customers to save their credit carte information, shipping information every bit well as billing information for faster checkout in future purchases.

Shopify Payments are all Shopify payment processing methods that are already integrated with Shopify that you tin add as a payment method for customers to check out directly through your shop.

For example, Visa or Mastercard, including the Store Pay push. Shopify Payments are the easiest options as it removes the need to prepare third-party payment providers. What is more, merchants benefit from reduced fees and like shooting fish in a barrel set up-up, you tin receive payments directly on your Shopify shop.

Shopify Payments are designed to assistance small businesses to process money without complicated external processes with no prior coding skills. To manage all operational processes from one single platform, from shipping to guild management to payments.

Direct vs Third-Party providers – what is the difference?

Shopify supports ii principal types of providers for payments:

1. Direct providers

Are all Shopify Payments, as discussed in the previous paragraph. If you are using i of these direct providers, your customers tin can complete their checkout process in the store, without always leaving the platform and without existence redirected to a dissimilar site.

For example, Shop Pay, Mastercard, Visa, that are offered nether Shopify Payments.

2. Third-party providers

Are all payment providers that crave adding to your shop. For customers, this ways that after reaching the checkout page in your store, they are redirected to a hosted site outside to complete the payment. For example, Amazon Pay, PayPal or payment gateways like Stripe or Square.

All the payment methods can exist changed, activated & deactivated on Shopify if you lot go to Settings, and then to the Payments folio.

Shopify Payments vs External Providers: Pros and Cons

Let's go through Shopify Payments pros and cons, so information technology would exist easier for you to make up one's mind whether at that place is a need to add more payment options to your store.

First of all, Shopify Payments are cracking for small and medium-sized businesses as everything from aircraft, social club management to payments can be managed on the same platform.

Because when calculation more third-party options, yous would need to keep track of all payments across each yourself. But don't worry, costless and easy-to-utilize accounting software solutions can solve this trouble.

What is more, Shopify Payments is more affordable and doesn't charge extra fees. You can find the pricing listing below for reference.

Shopify Payments rates (depends on your chosen programme):

Shopify payments offers over 130 currencies, even so, is only available for stores in select countries, a huge downside for businesses in the other regions. Fifty-fifty though anyone in the globe can use Shopify, Shopify Payments is only available in select 17 countries including US, Great britain, Canada and Australia. Businesses outside these 17 countries would have to consider other payment methods.

On a positive side, Shopify payments offers several insurances like fraud protection and 2-gene hallmark, just unfortunately doesn't include things like shipping insurance.

However, as with most aspects of running an e-commerce business, Shopify does have a separate solution for shipping insurance.

Shopify Payments' downside is that mayhap you want to add popular local payment methods, for instance, local payment solutions preferred past shoppers in Spain. So if you want to serve your local customers, you need to consider alternative payment methods.

Step-by-step guide to adding payment methods on Shopify:

If you are wondering how to set up payments on Shopify, starting time you take to go to Settings, and and so click on Gear up payments, and so go to Payment providers:

1. Shopify Payments

Shopify Payments are all payment options that are direct accepted and integrated with Shopify and can be easily added to the checkout page. Substantially, this means that the customer pays using Apple Pay, simply through Shopify Payments.

Currently, Shopify Payments allows below payment options:

• Visa
• Mastercard
• American Express
• Maestro
• Apple Pay
• Google Pay
• Facebook Pay
• Shop Pay (Shopify's own payment button)

Shop Pay is an accelerated checkout option. Customers tin check out faster, as their payment and shipping information is already automatically saved in the system.

Checkout through the Store Pay push within the Shopify platform is 70% faster than a typical checkout, with a i.72x higher conversion charge per unit, which in turn means fewer abandoned carts and increased conversion.

2. Third-political party check-outs

Ii 3rd-political party Shopify payment processing methods tin can exist easily added to your store. If you desire to add a push that enables customers to check out through these providers, where their payment, as well as aircraft information, is already stored, you tin can add integrated third-political party payment providers:

• PayPal
• AmazonPay

When calculation these two, you have to click actuate Amazon Pay or Actuate PayPal express, create an business relationship on their page, and it will be added to your checkout folio. Your customers would be redirected to the providers to procedure the payment.

Substantially, this means that the client pays through Amazon Pay or PayPal, and the payments are too candy through them. This is where Amazon Pay and PayPal differ from Shopify Payment methods, they are processed every bit third-party payments.

3. Third-political party providers

Shopify third-political party payments include online payment technology providers and offer payment processing software and awarding programming interfaces (APIs) for e-commerce websites and mobile applications. They enable you to integrate any other payment methods, like Klarna or country-specific payment methods to your Shopify store.

Payments would come at a set up rate provided by the third political party. An additional fee will be applied by Shopify to all new orders, depending on the plan you lot have chosen.

This would include options like:

• Stripe
• Square
• EPay
• 2Checkout
• Adyen

For case, Stripe is a payment processor that powers the Shop Pay payment gateway to be added to the store. PayPal, however, has their own payment gateway called PayFlow, therefore doesn't need a payment processor.

So, if you want to integrate a payment method that isn't offered by Shopify Payments, you lot can apply 1 of the gateway providers to add the payment method you need. For instance, payment processor Square offers Visa, MasterCard, Amex, Find, JCB, or UnionPay credit cards. Their newest improver Afterpay, a Buy Now, Pay Later (BNPL) service provider is now also available from August 2022.

If you want to add third-political party services yous can then click "Choose third-party provider" and cull between several providers that are available in your region.

4. Culling payment methods

These are any external methods that tin be used in addition to 3rd-party providers or Shopify Payments. You lot can also gear up up other alternative payment options to allow your customers to pay for their products other than credit or debit cards.

This means that they can pay for instance in cryptocurrency, currently, a popular payment method that allows customers not to become through a banking company to pay.

five. Manual payment methods

Yous tin still add any payment methods that aren't available in the above options. But this has to be done manually and processed outside your e-commerce store. One time your customers have purchased something, y'all have to approve their payment each time before fulfilling the order. Therefore, there is more piece of work involved and the procedure becomes more than time-consuming.

For example, in case of transmission payments, the status has to be changed individually to "paid" after the client has made the transfer. The problem hither is that customers might forget to exercise the transfer.

Here, a simple SMS notification tin can help. On Shopify, there are integrated apps you can download to send out automated SMS messages in instance of a pending transaction.

And then, even though it might be more than time-consuming, it is worth adding that specific payment method preferred past your target audience in lodge to guide your customers through the sales funnel and optimize your sales.

Personalize your Shopify shop customer experience with added payment options

If you are already running your Shopify store, or whether you are just starting out, it is important to consider your customers' needs. And this includes the checkout experience. As previously discussed, bad checkout feel counts for xx% of abandoned carts.

And which payment options to add, largely depends on your target audition. For example which country you are operating in and which payment methods are preferred in that state.

If y'all are a small or medium-sized business organization, it makes sense to start out with Shopify Payments. They can be easily added, come with fewer charges, provide an all-in-one solution and offer fraud protection.

If you are a growing business, operating in niche markets, or have already acquired a wider customer base, it perhaps makes sense to consider culling payment options and go through third-party providers to accommodate each customer, despite higher fees and more complicated set-up processes.

Source: https://www.heycarson.com/blog/how-to-set-up-payments-on-shopify-a-complete-guide/

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