Shopify 2023 and Payments

Following on from Rick’s post on linkedin

I agree Shopify needs to do something about payments. Should it build something? Lengthy and expensive to become a PSP, let alone an acquirer (significant compliance and reputational risk).

Should it buy someone? expensive and who is for sale at the moment?

My view is they need to build out certified integrations with a couple of the mega-players (Adyen, Worldpay, Cybersource), and some “regional heroes”. Make it easy for Shopify’s retailers to shop around for the best deal and just configure that, ensuring compliance with e.g. PSD2. And their in-store capability needs to leverage compliant PED integrations via a partner.

Where Shopify can make it’s own mark potentially is European open banking integration (allowing customers to pay by bank transfer).

Stripe is really the only choice here I think. They have an option to acquire up to 20% of the company already… Right?

I agree they need more players beyond Stripe, and Adyen stands out like a sore thumb.

Interesting that Shopify has a 20% stake and option to buy.

Certified integrations to a flexible PSP brokering/Payment automation solution (e.g. Primer), allowing easy swapping of PSPs and payment methods without having reconfigure and retest at Shopify would keep options open for now.

Complemented by an enhanced Loss prevention capability that is not tied to a particular PSP (e.g. Forter)

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Option to buy the whole thing I am not sure… Own at least 10% already and option to buy more? that is my understanding currently.