[Shopify] Payment methods you can use and what can happen if you add too many

Third-party payment providers

What we have explained up to this point are the payment methods that are officially provided from the start, but from here on we will look at payment methods that can be introduced as external payments.

It may be a little hard to imagine, but the point is that you can use other credit cards for payment.

• Convenience store payment
• QR payment
• Mobile carrier payment
• Bank transfer (with automatic confirmation function)
• Postpaid service

If you want to add a payment method such as the above, you will need to use an external payment method.

The most important thing to note is that external payment services incur external payment fees!! These fees are added on top of the fees for the payment service.

It depends on which Shopify plan you are using.

• Basic 2.0%
• Standard 1.0%
• Advance 0.5%

Please note that there will be a handling fee.

The official website has a list of external payment services that can currently be implemented, so please check whether you can use it or not, as it is always the most up-to-date information. (It's not easy to see, is it? There are many foreign ones, so please check the Japanese ones.)

And here we will introduce some commonly used ones.

KOMOJU

KOMOJU is probably the one that is most likely to be adopted as an external payment service for Shopify.

The official page is here

The secret to its popularity is that with just one app you can get almost any payment service you want!

• Credit card
• Convenience store payment
• QR payment (Paypay, Merpay, LINEpay)
• Mobile carrier payment
• Bank transfer
• Payeasy
• Paidy
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You can use the following! For details about fees, please check here .

As for credit cards, shopifyPayment has a better interest rate and there are no additional external payment fees, so I don't think it's necessary to make them available on KOMOJU. Basically, I think it's best to assume that you'll use them to make other payments.

Paidy

This is a postpaid service that has become popular recently. You can use it with KOMOJU, so you may not need to connect it separately, but there is a reason why it is so popular.

Great benefits for both users and stores!

This is why it is so popular.

First of all, it is a "post-payment service" for users, so you don't need cash when shopping! Users can choose to pay by "bank transfer" or "convenience store payment".

What? It's just bank transfer and convenience store payment!

You may think that's all there is to it, but the benefit for merchants is that they can leave the collection of funds entirely to Paidy. In other words, Paidy is responsible for collecting funds from the moment a sale is made, so they can send out products without waiting for payment.

In the case of convenience store payment available at KOMOJU, there are few "users who buy but don't pay", but they do occur. In that case, you have to "keep the inventory" even though you can't ship it because the funds have not yet been collected. It would be good if the payment is made in the end, but if not, it is just an opportunity loss.

The biggest advantage is that this won't happen if you use Paidy and select convenience store or bank payment!

NP Postpaid

It's the same deferred payment method as Paidy. It seems that they have the largest market share in the industry, but for now, Paidy is more famous on Shopify.

Like Paidy, users can choose to pay at a convenience store or by bank transfer, so it's great that stores don't have to bear the risk of keeping inventory while still allowing users to pay at a convenience store!

Collection of payments is also handled by Net Protections, the operator of the service, so stores do not need to worry too much about unpaid issues.

The fact that users can use the service without registering as a member is a huge advantage. Membership registration is also possible, and if you do register, you will receive points, which is a modest advantage.

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As you can see from the logo, the operator is Net Protections, the same company that operates NP Pay Later.

This is also a similar payment method for deferred payment, but it seems that you can also accumulate points shared with NP deferred payment, which can be used for discounts.

A unique feature of the service is that it has a smartphone app, from which you can immediately check your usage details and remaining credit limit.

It is a payment service that can be used safely by people who do not have a credit card or those who have a credit card but do not want to use it , so it is a way to expand the number of users. It is a payment service that is worth having. The fees are also cheap.

Rakuten Pay

Rakuten Pay is not included in KOMOJU, but it is a fairly popular payment method.

however

Have a store on Rakuten

These are the terms of use, so if you have a store on Rakuten and you want to create a standalone store on Shopify, this is a payment method to consider.

For users, being able to use Rakuten Pay comes with the benefit of earning points, so it is a service that is quite popular.

Other external payments

GMO Epsilon

It is a payment service that allows you to introduce various payment methods like KOMOJU. It is up to the customer to decide which is better by comparing what can be used with KOMOJU.

If you are already using GMO Epsilon in your store, I think the introduction will be smooth.

SB Payment

In short, it is called "SoftBank Payment", but like KOMOJU, it can handle a variety of payment methods!

It works well with Paypay, so some companies are introducing it! I think it depends on the ease of use, but the conditions are not bad, so if it works well with your company, it is a great option.

summary

If you put in too much, it will be a problem.

By now, you may have realized that it is possible to introduce various payment methods, but you may be wondering if it would be better to introduce various methods from the user’s perspective.

Before that, let's think about the store's cash flow and the number of points of contact for collection of funds! First of all, we will use "shopify Payment", and there is no doubt that this will be the main place to use credit cards.

The next candidates would be Paypal and AmazonPay, which can be used as standard. And in Japan, you'll want KOMOJU.

The thing to think about here is where the money will be pooled.

• Credit card → shopify Payment
• Apple Pay → shopify Payment
• Google Pay → shopify Payment
• ShopPay → Shopify Payment
• Paypal → Paypal
• Amazon Pay → Amazon
• Convenience store payment → KOMOJU
• Bank transfer → KOMOJU
• QR payment → KOMOJU
• Mobile carrier payment → KOMOJU

Yes, at this point, there are already four places where money is pooled . If you also want to use cash on delivery and Rakuten Pay, your wallet will increase to six.

As you can imagine, this can be quite a hassle in terms of accounting , as the deposited money is dispersed. Especially in the early days when sales are low, if you do this, you will only have a few thousand yen pooled in Paypal, but you will still be charged a deposit fee. I wish I could withdraw it after it has accumulated a little more. This kind of situation of not knowing what to do can easily occur.

It is true that offering a wide range of payment methods reduces the chance of missed sales, but it is a good idea to take into consideration the actual situation and business flow of your store.

Summary

Is Shopify really a platform (ASP)? It has so many customizable functions that you might wonder! As you can see from the above, it is possible to handle almost all payment methods.

You can start small and scale up as much as you want!

This is definitely a big advantage, but trying to pack too much into your store from the start can lead to panic, so you can choose to grow your store by watching the situation and making the necessary upgrades when necessary!

Shopify allows you to start in any way that suits your needs, so be sure to carefully consider your company's business flow and think about what you can do!