November 3, 2016
In its Q3 earnings call yesterday, e-commerce platform and payments provider Shopify shed some light on why Apple Pay (and other digital wallets that enable one-touch payments including PayPal, Android Pay, Visa Checkout or Masterpass) being available for online merchants could be such a big deal. During its conference call for investors, Shopify founder and CEO Tobi Lütke touted the effect Apple Pay online is having on conversion rates for its merchants that have employed it.
“Apple Pay on the web went live for Shopify merchants in September,” Lütke told investors, analysts and media members on yesterday’s call. “I talked on our last call about the difference this would make for conversion rates, and that’s exactly what’s happening. Our merchants are seeing up to twice as many conversions on mobile than without Apple Pay.”
Lütke’s goals, however, don’t end with digital wallets operating interoperably on the Web and mobile devices.
“We’re working hard convincing social platforms, web browsers and messengers and even operating system vendors to adopt transaction programs into their systems to make it easier and more secure for everyone,” he said. “Our thesis is that commerce per hour is going to be higher when people engage with platforms that support commerce natively.”
Shopify beat expectations by posting a 2 cents-per-share loss in Q3 on $99.6 million in revenue. Analysts had predicted a loss of 3 cents per share on sales of $94.6 million.