PayPal and Shopify Expand Payments Processing Pact

PayPal says it is expanding its partnership with eCommerce company Shopify.

With this new collaboration, PayPal will become an additional online credit/debit processor for Shopify Payments via the PayPal Complete Payments solution, the company announced in a news release Monday (Sept. 9).

“With a brand-new experience, PayPal wallet transactions will be integrated into Shopify Payments in the U.S., which will streamline the managing of orders, payouts, reporting, and chargeback flows,” the release said.

“This enhancement creates a single, unified experience for PayPal and Shopify merchants offering both innovative payment options and operational efficiency.”

The announcement follows the companies’ last team-up two years ago, when PayPal helped Shopify roll out Shopify Payments in France.

The news also comes on the heels of earnings reports from both companies that — as noted here last month — showcase a common theme: the ongoing streamlining and refining of the last moment of an eCommerce transaction.

“Checkout exists as what can be termed the ‘last few feet’ of eCommerce, where the ease of clicking to pay and finish a transaction is make-or-break,” PYMNTS wrote. “For platforms, reducing the pain points of checkout and speeding the process offers new revenue potential from merchants, as checkout becomes a competitive advantage for these firms.”

This offers an opportunity, the report added, citing PYMNTS Intelligence data that shows that half of all consumers weigh the ease of a merchant’s checkout process when deciding where to shop. And 91% of shoppers said a satisfying checkout experience has a strong impact on their willingness to patronize a merchant again.

Meanwhile, Shopify said last month it was seeing customers expect more features that bring digital-style capabilities to in-store shopping, at a time when consumers have come to demand a seamless experience from eCommerce and brick-and-mortar channels.

Shopify President Harley Finkelstein discussed on an earnings call how the company is expanding the digital features available to retailers in their stores, while revealing that the company’s point-of-sale (POS) solution was gaining traction, with offline gross merchandise volume (GMV) climbing 27% year over year.

“Offline commerce is still a huge deal for us, still happening in physical stores,” Finkelstein said. “… We’re introducing the features [merchants] care about most, like improving operating efficiency such as the new remote smart grid layout editor, omnichannel return rules, and the ability to stack multiple discounts at checkout, which makes it easier for merchants to customize the promotional strategies.”