Shopify To Launch Merchant Banking, BNPL Tools
Shopify, an eCommerce company, hosted its first virtual event for members of its global community, the Canadian firm announced Wednesday (May 20).
Dubbed “Reunite,” it gave attendees a glimpse into updates and new products designed to help entrepreneurs boost profits.
“This is a difficult time to be an entrepreneur — the retail landscape is shifting under our feet, and the old way of doing things no longer works,” Shopify said in a statement. “Physical distancing measures and lockdown have made it clear that omnichannel commerce is more important than ever.”
The additions, Shopify said, will help merchants navigate the new normal and empower them to plan ahead.
Among the improvements include Shopify Balance, a business account built for small, independent businesses and entrepreneurs.
The company said most of today’s banking products are built for large, established companies, not small- and medium-sized businesses (SMBs).
“We found that two in five merchants are currently using their personal bank accounts and cards for business, meaning they’re combining their personal and business finances, making it difficult to measure the financial health of the business,” Shopify said.
Shopify Balance promises to close the gap by providing merchants with a one-stop-shop where they can see cash flow, pay bills, track expenses and make decisions about the future of their business.
Kaz Nejatian, vice president and general manager of Shopify’s financial-solutions team, told Canada’s National Post newspaper that the firm plans to develop Shopify Balance’s software and user experience, but partner with an actual bank so that customers’ funds go into federally insured accounts.
The company also unveiled a Shopify Balance Card that will provide merchants with access to their money faster when spending in-store, with mobile or online, as well as withdrawing from ATMs. There are no monthly fees or minimum balances.
Shopify also announced Wednesday that it will add Shop Pay Installments, a new buy now, pay later option, which lets merchants offer more payment choice and flexibility at checkout, giving consumers the option to split purchases into four equal payments over time, interest-free and with no additional fees to consumers.
The new products will launch later this year, Shopify said.
Last month, Shopify introduced a Shop app that offers personalized recommendations and helps people discover local businesses.
It also lets customers pay for purchases and track orders. It combines the features of Shop Pay, which provides one-click checkout, and Arrive, which enables online order tracking. The company said more than $8 billion in sales have been processed using Shop Pay. Arrive is used by 16 million shoppers, the company said.
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