Business

Shopify announces Shopify Balance, a payment account for its merchants free of fees

In its virtual conference called Reunite, the company presented several new products and features. The new account comes with a debit card

Tobi Lütke, CEO at Shopify.
Tobi Lütke, CEO at Shopify. Photo: Screenshot/YouTube Shopify

On Reunite, Shopify‘s a virtual conference for its over one million merchants, the company announced Shopify Balance, a payment account for its merchants that is free of fees and minimum balances, and that comes with a debit card. This and other several new products and services will be launched later this year in the U.S.–the company did not say which will be the next markets to have contact with the new features.

“Right now we’re dedicating ourselves to get as many as SMBs to survive as possible. We’ve looked far wide into our road-maps, we’ve looked for everything that might be helpful right now, and we’ve right to put many things forward as we could, ” Tobi Lütke, CEO at Shopify, said at the opening of the virtual event.

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He was followed by the Chief Product Officer Craig Miller, who presented, alongside several other employees, the new products and features made available for Shopify’s merchants, including Shopify Balance.

Through Shopify Balance Account merchants will be able to get a clear view of cash flow, pay bills, and track expenses. With Shopify Balance Card, merchants will be also able to withdraw from ATMs.

Miller said that for now the only funds in the account will come from Shopify payments—merchants won’t be able to deposit additional money, but they will be able to log in, track cash flow and pay bills.

As mentioned before, the account comes with a debit card (virtual or physical). With time, Shopify will offer cashback rewards and discounts on expenses like shipping and marketing through this new account.

READ ALSO: Shopify launches Shop, a mobile app that wants to be your shopping personal assistant

Funding

Another novelty is that Shopify has added $200 million to Shopify Capital, its fund which supports its merchants with small loans, as a way to support small businesses affected by COVID-19. Initially available in Canada now the fund also includes the United States and the United Kingdom. The company has already provided $1billion in funding to small entrepreneurs in those countries.

“Bur now, pay later” new feature

Interface of the new functionality that will allow the installment of purchases. Photo: Shopify/Courtesy

The company said that it will offer a “buy now, pay later” feature called Shop Pay Installments, that it will allow merchants to give their customers the option to split their payments into four equal installments, with no interest or additional fees.

The company will launch Shop Pay Installments later this year. It’ll be available to U.S. merchants eligible for Shopify Payments.

This new feature comes from a partnership with a non-disclosed “financial partner”.

On May 19, Facebook introduced Facebook Shops, which allows merchants to build branded versions of its online store within Instagram and Facebook. Shopify stressed that it is partnering with Facebook to help businesses create branded storefronts to help merchants deliver unique shopping experiences, and enable consumers to browse and purchase without ever leaving the apps.