PayPal and Shopify Partner Up for Shopify Payments in the U.S.

Shopify and PayPal in the U.S.: Key Insights

• Partnership for Shopify Payments: PayPal is going to be processing part of Shopify's debit and credit card transactions in the U.S. The PayPal eWallet is also going to be offered at Shopify Payments, giving consumers a wider range of payment options.

• Securing Market Leadership: Both companies are leaders in their field, Shopify in shop software and PayPal in eWallets. By working together, both companies can gain more visibility and improve their offerings.

PayPal and Shopify are entering into a partnership in the U.S., which means that PayPal will process additional online credit and debit card payments for Shopify Payments. The cooperation further means that merchants who have set up shop on Shopify will now be able to integrate PayPal wallet transactions into the shopping experience, expanding the payment options that customers can choose when paying for their orders.

Collaborations to Increase Market Share

The partnership is nothing unseen: Two years ago, the two companies collaborated in France to enhance Shopify Payments with more payment options in the market. Such collaborations are a way for both brands to improve their offerings by making them more accessible to a larger portion of the market. 

In the case of Shopify and PayPal, both companies are somewhat of a market leader in their field: Shopify is the most widely used shop software for U.S. online stores.

Conversely, PayPal is the most used eWallet, not only in the U.S., but across a wide range of important eCommerce markets.

The eCommerce software and payments markets are highly disputed, with other competitors like Adyen NV, Stripe, Inc., Salesforce, and AWS (Amazon Web Services) equally vying for market share. PayPal is in a similar collaboration with other software providers, which reflects the dominant position of this eWallet in global eCommerce.

Sources: PayPal – Yahoo! Finance