Finance Everywhere, Podcasts

Inside Shopify’s financial services strategy

  • Shopify provides more than a million merchants with the tools they need to start, manage and grow their businesses.
  • By looking after all aspects of business operations in one place, Shopify is able to build financial products -- including banking, money management, credits and payments -- that are tailored to sellers’ needs.
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Inside Shopify’s financial services strategy

The convergence of retail and financial services is being led by large platforms that help merchants seamlessly reach customers online and offline. Indeed, embedding financial services within commerce platforms helps them unlock additional value from seller relationships, and provides a repository of data to personalize product offerings.

A major player in this ecosystem is Shopify, a Canada-based company that helps more than a million merchants operate digitally and in-person. On today’s Tearsheet podcast, we speak with Kaz Nejatian, vice president and general manager of Shopify Financial Solutions.

Shopify, a 14-year-old company that has a market capitalization of more than $100 billion, began making forays into financial services in 2013, with the launch of Shopify Point of Sale. Three years later, it rolled out Shopify Capital for sellers. The company in recent months made a couple of noteworthy financial product announcements, including the upcoming launch of Shopify Balance, a money management solution for sellers; and a buy-now-pay-later option for consumers in partnership with point-of-sale lender Affirm.

Nejatian discusses Shopify’s financial product roadmap and how its embedded financial solutions connect to the company’s broader seller toolkit. A lawyer by training, Nejatian previously worked in private practice; the Canadian government; Facebook; and founded and successfully exited payments startup Kash.

 


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1 comments on “Inside Shopify’s financial services strategy”

  • Shopify is a great example of the disruptive open platform concept that is changing both e-commerce and finance. Already number two in e-commerce sales behind only Amazon, Shopify’s ecosystem system allows any e-commerce merchants to start, manage, and grow a business by leveraging technology and data.

    Shopify is advancing its “embedded finance” offerings as a way to create a more seamless experience for its customers to buy and sell products and services without the need for a traditional bank. Their point of sale solutions will keep their clients capital within the Shopify ecosystem for future use. By providing additional options for money management, Shopify clients will continue to move away from using traditional FI’s. Most importantly, Shopify is leading in supporting small business owners as it relates to the innovation and growth of their businesses. Small businesses are the lifeblood of the U.S. economy, by giving small businesses financial choice through multiple partnerships, Shopify is redefining e-commerce.

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