Shopify
SHOP
is expanding its checkout solution Shop Pay’s availability to merchants doing business on
Facebook
FB
, Instagram and
Alphabet
GOOGL
division Google, irrespective of whether they use Shopify’s online store.
The extended relationship with Facebook and Google will boost Shop Pay’s expansion, eventually driving top-line growth. Shop Pay will be available to all merchants doing business on Facebook this summer, while it will be available on Google in late 2021.
Markedly, this February, Shopify announced the availability of Shop Pay to all Shopify merchants doing business on Facebook and Instagram. The partnership benefited Shop Pay’s adoption rate.
Shopify noted that it ended the first quarter with Shop having more than 107 million registered users, which included buyers that opted for Shop Pay and Shop App.
The Zacks Rank #3 (Hold) company ended the first quarter with more than 24 million monthly active users. Also, Shop Pay facilitated nearly $24 billion by the end of the first quarter in cumulative GMV since its launch in 2017. You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
Last month, Shop Pay was expanded to all Shopify merchants selling on Google. Moreover, later this year, merchants who enable Buy on Google will be able to provide Shop Pay as a checkout option.
Most recently, Shopify launched Shop Pay Installments product in the United States. The company’s buy now pay later solution is supported by Affirm and is available to U.S. merchants that have enabled Shopify Payments and Shop Pay.
Shopify has been focused on winning merchants on a regular basis, based on product offerings including Shop Pay and Shop Pay Installments, as well as features like end-to-end order tracking. This has benefited top-line growth, making it an attractive stock for investors. Notably, Shopify shares have returned 16.7% year to date.
Moreover, integrating the Shopify platform with expanding sales channels from Facebook Shops, Walmart.com,
Pinterest
PINS
and TikTok’s marketing channel, to enable merchants expand sales and broaden business avenues, is expected to drive new buyer traffic to their stores. Further, solid adoption of new merchant-friendly applications amid the evolving retail environment, holds promise. This favors Shopify’s prospects over the long haul.
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