Shopify Inc. will open up its e-commerce checkout system to all retailers selling through Google and Facebook Inc., expanding an existing collaboration with the two U.S. giants and marking the first time the Canadian technology company has offered a product to merchants that don’t use its platform.
Retailers who sell products through Facebook or Google properties such as Instagram, YouTube or Google Maps will be able to offer shoppers the chance to pay for their purchase using Shop Pay, starting in July for Facebook and later in 2021 for Alphabet Inc.’s Google.
Shop Pay is a checkout product that stores users’ information, speeding up online transactions. Right now, retailers have access to it through those social media platforms, but they must be Shopify merchants to use it.
From its early days helping retailers set up websites to shift their stores online, Ottawa-based Shopify has expanded to offer a suite of products, including shipping, data analytics and small business loans, and now describes itself as a “retail operating system.”
Small companies pay a monthly fee to use its core e-commerce software; larger enterprises may pay thousands of dollars a month based on sales volume, a model that has proved a huge success for shareholders.
Shopify declined to provide details about what, if any, revenue will flow between the three companies as part of the arrangement, which will be announced later today.
More than 1 million merchants sell on Facebook and Google platforms, it said; each day more than 1.8 billion people log on to Facebook and a billion shopping sessions take place across Google.
Shopify rose 0.8% to $1,317.59 as of 2:30 p.m. in New York.
Whether Shopify will open up other products from its suite of subscription offerings remains to be seen.