Shopify (SHOP) has taken the initial steps to make Shop Pay a preferred checkout system for all merchants. Starting this summer, the payment system will be available to all U.S merchants selling items on Facebook (FB), Instagram, and Alphabet (GOOGL) by the end of the year.
The expansion drive beyond the confines of the Shopify ecosystem is part of the company’s strategy of targeting more than 1 million merchants. The company is especially targeting merchants who don’t use the Shopify Online store. (See Shopify stock analysis on TipRanks)
Shopify plans to make Shop Pay more accessible to independent brands to strengthen its user base. Once integrated, it will be the first time that a Shopify product is available to non-Shopify merchants, marking an important milestone in making commerce better and easy for everyone.
“Shop Pay makes that process fast and simple, and the expansion to all merchants selling on Facebook and Google is a mission-critical step in bringing a best-in-class checkout to every consumer, every merchant, every platform, and every device,” said Carl Rivera, VP, Product, Shopify.
Some of the benefits that merchants stand to enjoy include fast and secure payments with a 1.72X higher conversion rate than in typical checkouts. Consumers also stand to benefit given Shopify’s tracking service for tracking purchases and receiving updates.
Rosenblatt Securities analyst Mark Zgutowicz has reiterated a Buy rating on the stock with a $1900 price target implying 43.8% upside potential to current levels. The analyst expects the company to report earnings per share (EPS) of $10.21 for the second quarter of 2021.
Consensus among analysts is a Moderate Buy, based on 13 Buys and 9 Holds. The average analyst Shopify price target of $1491.10 implies 12.9% upside potential to current levels.
SHOP scores 9 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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