Shopify is making its one-click online checkout solution, Shop Pay, available to enterprise retailers not currently using Shopify.
In its blog post announcing the news, the Ottawa-based e-commerce giant claimed the move comes in response to strong demand from large sellers following the growth of the Shop Pay consumer buyer network, which has more than 100 million users.
Two years ago, Shop Pay became the first Shopify product to be offered off-platform.
Shopify is opening up Shop Pay through Commerce Components, its suite of composable commerce tools targeted toward large, global enterprise retailers. With Commerce Components, brands can choose to use individual Shopify offerings or mix and match a combination of them to suit the specific needs of their business.
Shopify launched Commerce Components earlier this year in a push to woo bigger clients—many of which have their own custom in-house commerce infrastructure—as the smaller, independent brands Shopify got its start catering to contend with economic headwinds.
This Shop Pay expansion marks the latest move on one front of the battle for e-commerce supremacy, as Shopify, Amazon, and other players compete to own the checkout experience.
Last fall, Shopify warned its merchants against using rival Amazon’s Buy with Prime offering—which is available to non-Amazon customers—because it violates Shopify’s terms of service.
More recently, Shopify has engaged in talks to integrate Buy with Prime, a one-click checkout solution that also includes access to Amazon’s delivery services. However, doing so could take a bite out of Shopify’s bottom line: per a UBS analyst report, the tool poses a risk of a six to 12 percent hit to Shopify’s gross profits. In the meantime, opening up Shop Pay to enterprise retailers beyond its ecosystem could serve as a growth lever for Shopify.
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Two years ago, Shop Pay became the first Shopify product to be offered off-platform, when the company made it available to non-Shopify merchants using Facebook, Instagram, and Google. Since then, Shopify has sought to unbundle more of its tools for merchants through Commerce Components.
Shopify already counts large retailers like Glossier, Staples, and Mattel among its customer base. Now, by converting Shop Pay into a commerce component, enterprise clients not currently using Shopify will be able to deploy the firm’s checkout tech without needing to replace their existing commerce setups.
“This is critical optionality in a hyper-competitive retail environment,” argued Shopify vice-president of product and COO Kaz Nejatian in a statement. “In an economy where big brands are competing more fiercely than ever to acquire customers, they need to pick and choose what they need to boost the top-line, without the compromise of a complete platform overhaul.”
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Per Shopify’s blog post, Shop Pay will be available to retailers in the United States, Canada, the United Kingdom, Australia, and New Zealand.
In separate but related news, Shopify is now also expanding its integration with Netherlands-based payments processor Adyen. Shopify currently offers more than 1,000 payment gateways like Adyen and Stripe.
Now, Shopify and Adyen are teaming up to pursue enterprise clients and provide them with more payment options and features. Shopify intends to roll out this integration later this year.
Feature image courtesy Shopify.
