The number of users has increased sharply, and Shopify's installment payment function is beneficial to merchants

After opening up Shopify's Shop Pay installment payment function to all US merchants, it now has a merchant user base of hundreds of thousands, and the number of consumers choosing this service has also achieved explosive growth in a short period of time.

According to the editor, the service is supported by the American company Affirm, which allows all qualified merchants on the platform to use the Shop Pay installment payment function.

Max Levchin, CEO of Affirm, said that when installment payment was first launched, 25% of merchants chose the service. Compared with merchants using other payment methods, the average order amount of merchants using Shop Pay is 50% higher. In addition, after the launch of the Shop Pay installment payment function, the number of invalid shopping carts decreased by 28%.

It is reported that merchants who newly register for Shopify payment will automatically activate the installment payment function, and existing merchants can also activate this function on their own. In the long run, Shop Pay installment service does have great potential.

Clear positioning, committed to omni-channel development

Shopify Chief Financial Officer Amy Shapero said that social channels and marketing are a small but rapidly growing part of Shopify's revenue structure, and it will take time for them to become the majority of revenue.

Although the Shop Pay service has been extended to merchants on the Facebook and Google platforms, Shopify has no plans to develop Shop Pay into a full-stack solution to compete with PayPal.

CEO Tobi Lutke said that Shop Pay's success stems from its tailor-made for the Shopify platform. Once it leaves this vertical platform, it will no longer have exclusive competitiveness.

Shopify's current investment focus is on three areas: Shopify's logistics network, improvements to the Shop APP, and expansion into international markets.

According to Shopify's Q2 financial report, the proportion of merchants from outside North America has increased compared to the past, and the year-on-year growth in GMV ( gross merchandise volume ) in other regions has also exceeded that of North America.

Shopify President Finkelstein mentioned that the global economy will rise again, and the business in the next 100 years will focus on omni-channel development. All of Shopify’s investments, including the promotion of its POS hardware, are very strategic.

“The company is committed to integrating platform services into places where consumers gather, such as social media. With the launch of various services, Shopify’s value and status in the minds of users are constantly improving.”

It turns out that when merchants are looking for a retail platform, Shopify is clearly more popular.

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