Shopify began with the idea of making it possible for almost anyone to get started as an eCommerce entrepreneur. The business model has worked extremely well over the years, and is now ready to kick things up a notch or two. In an effort to give its merchants more options, especially needed during the coronavirus pandemic, Shopify has introduced a new debit card program, a new payment installment plan and several other high-profile changes.
The upgrades to the platform were announced yesterday when Shopify held its Shopify Reunite, a company-led virtual showcasing event. Reunite was created to take the place of the fifth installment of Shopify Unite, which would have been a live conference that had been scheduled to be held earlier this month. After the coronavirus pandemic flipped the world upside down, the company decided to move its event online.
Shopify’s new debit card, called Balance, includes an account, a physical and/or virtual card and rewards. It is being managed with the help of a third party, which will be named when the program is released. The rollout will be seen first in the U.S. before being expanded elsewhere. Shopify Chief Product Officer Craig Miller explains, “They get access to the money that they’re earning from the Shopify store within the same day that they earn it.” He adds, “They will get a debit card in the mail that they can customize with their company’s brand on. As well, they’ll get a digital version that they can use to start spending online instantly.” Merchants will also be able to withdraw from ATMs. As for rewards, Shopify plans to offer merchants “cashback and discounts on everyday business spending like shipping and marketing.”
Shop Pay Installments should also be a hit with merchants. As with Balance, it will first only be available to U.S. customers, and will give merchants the ability to allow their customers to break up the cost of purchases into four equal payments. The produce cost has to range anywhere from $50 to $1,000 (tax-inclusive) and Shopify will carry the installments – the merchant gets paid immediately. Miller adds, “As we started looking at traditional banking, we also realized that there’s the consumer side as well. Today, with the unemployment numbers going up quite high, with people being concerned about potentially taking on debt, interest rates with traditional credit cards are actually quite high. That kind of led us to also try and get our installments product out there.”