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economy

Shopify expands its one-click checkout, Shop Pay, to any merchant on Facebook or Google

E-commerce platform Shopify announced this morning its one-click checkout service known as Shop Pay will become available to any U.S. merchant that sells on Facebook or Google — even if they don’t use Shopify’s software to power their online stores. That makes Shop Pay the first Shopify product offered to non-Shopify merchants, the company notes.

First introduced at its developer conference in 2017, Shop Pay is similar to other instant checkout solutions that offer an easier way to pay online by reducing the number of fields a customer has to fill out during the checkout process. The service remembers and encrypts the customer’s information, so consumers can check out with just a tap when shopping online and, as of recently, even pay for purchase in installments, thanks to a partnership with Affirm.

Shopify in February had expanded Shop Pay to Facebook and Instagram, in partnership with Facebook, but it only worked for existing Shopify merchants selling on those social platforms at the time. In May, Google announced at its I/O developer conference it was partnering with Shopify on an online shopping expansion that would give Shopify’s more than 1.7 million merchants the ability to reach customers through Google Search and other “shopping journeys” that began through other Google properties like Search, Maps, Images, Lens, and YouTube.

The company declined to share how many of its 1.7 million merchants are already available on Facebook or Google today, but said they are two of the most popular channels.

Following today’s announcement, other merchants will also have the option to adopt Shop Pay for their own Facebook or Google stores. While how many will actually do so is yet unknown, Shopify notes that every day 1.8 billion people log onto Facebook and a billion shopping sessions take place across Google.

The company also touted Shop Pay’s advantages, including its 70% faster checkout than a typical checkout offers, with a 1.72x higher conversion rate — meaning fewer abandoned charts.

For consumers, the advantage of using Shop Pay over a traditional checkout, beyond the speed, is its integration with Shopify’s mobile app, Shop, which organizes and tracks your online orders across merchants, including Amazon,  so you can see when orders are arriving or quickly ask questions and manage returns.

To date, the Shop app has tracked over 430 million orders, the company says.

Over time, the Shop app can also customize a feed including users’ favorite stores to point to other recommendations, including those from local merchants. Shopify confirmed that the Shop app will be able to track the Shop Pay-enabled orders from the non-Shopify merchants.

“Since launching, Shop Pay has set the standard for checkout experiences, facilitating more than $24 billion in orders,” noted Shopify VP, Carl Rivera, who heads Product for Shop. “According to studies, cart abandonment averages 70%, with nearly 20% occurring because of a complicated checkout process. 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,” he added.

The expansion could be a notable challenge to other payment mechanisms, including PayPal, Venmo, Apple Pay, and those offered by the platforms themselves, thanks to Shopify’s growing traction with merchants — one analysis gives its platform a 23% market share in the U.S — combined with the popularity of the Shop app, now the No. 3 Shopping app on the App Store.

The news follows yesterday’s confirmation that Shopify has taken a significant stake in payments giant Stripe, the backbone of the Shop Pay service, as well as Shopify’s partner on merchant services, including bank accounts and debit cards.

Shopify says the Shop Pay service will be enabled for all U.S. merchants selling on Facebook in the “coming months,” and will roll out to all merchants on Google by late 2021.

 

SkyWatch raises $17.2M for its Earth observation data platform

Waterloo-based SkyWatch was among the first startups to recognize that the key to unlocking the real benefits of the space economy lay in making Earth observation data accessible and portable, and now the company has raised a $17.2 million Series B to help it further that goal. Fresh on the heals of a partnership with Poland-based satellite operator SatRevolution, SkyWatch is now set to bridge the gulf between satellite startups and customers in a bigger way as it lowers the barriers to entry for new companies focused on high-tech spacecraft payloads.

The new round of funding was led by new investor Drive Capital, and included participation from existing investors including Bullpen Capital, Space Capital, Golden Ventures and BDC Ventures. SkyWatch CEO and co-founder James Slifierz told me that bringing Drive on was a major win for the Series B.

“Drive is a firm that has actually been researching the space industry for a few years now, and looking for an opportunity that would be their first space technology investment,” he said. “Not their first in the [GTA-Waterloo] area  they’re based out of Columbus, Ohio, made up of Silicon Valley veterans. They were a little early to the trend of believing that a majority of the really interesting and large opportunities would eventually evolve outside of the Bay Area and outside of New York City.”

SkyWatch definitely fits the bill, having built strong revenue pipeline for an Earth observation data platform that makes the information collected by the many observation satellites on orbit accessible to private industry, in a way that doesn’t require re-architecting existing systems or handling huge amounts of data in unfamiliar formats.

This fresh funding will help SkyWatch accelerate the rollout of its TerraStream product, a nw platform that the company developed to provide full-service data management, ordering, processing and delivery for satellite companies. This allows SkyWatch to not only make data collected by Earth observation satellites like those operated by SatRevolution accessible to customers — but also to source customers for those companies, too, effectively handling both sales and delivery, which many satellite startups born from a technical or academic background don’t start out equipped to tackle.

“My favorite analogy for TerraStream is it’s Shopify for space companies,” Slifierz said. “It takes away a lot of the complexity of going to market. So if you want to build an amazing shoe brand today, Shopify enables you to not have to worry about the logistics, and shipping, and the inventory management, the website, storefront and all that; it allows you to focus on the things that will build value in your company, which is the quality of your product, and your brand.”

He added that just like Shopify depends on the existence of a rich third-party ecosystem to support its platform, so does SkyWatch, and that ecosystem is only now reaching maturity after years of infrastructure development, including things like the proliferation of launch startups, ground station build out, data warehousing and more.

Ultimately, what SkyWatch provides is the ability to go to market “faster and more profitably,” Slifierz says, which is a major shift for hard tech satellite startups working on new and improved sensor capabilities, often spinning out of research labs at academic institutions.

“The strongest value proposition is that we give you instant access to hundreds of customers, which we’re growing at a very fast pace on the EarthCache [SkyWatch’s commercial satellite imagery marketplace] side. So in that way, we sort of joke, it’s like Shopify for space, but also integrated with the AWS marketplace.”

SkyWatch can also actually help identify demand, by providing satellite-side customers with real data to back up signals of what the market is actually looking for. Slifierz says that’s helped them advised partners on how to tweak their offering to meet a real need, which is beneficial in an industry where research and tech development often lead payload design, with actual demand as a somewhat secondary consideration.

SkyWatch raises $17.2M for its Earth observation data platform

Waterloo-based SkyWatch was among the first startups to recognize that the key to unlocking the real benefits of the space economy lay in making Earth observation data accessible and portable, and now the company has raised a $17.2 million Series B to help it further that goal. Fresh on the heals of a partnership with Poland-based satellite operator SatRevolution, SkyWatch is now set to bridge the gulf between satellite startups and customers in a bigger way as it lowers the barriers to entry for new companies focused on high-tech spacecraft payloads.

The new round of funding was led by new investor Drive Capital, and included participation from existing investors including Bullpen Capital, Space Capital, Golden Ventures and BDC Ventures. SkyWatch CEO and co-founder James Slifierz told me that bringing Drive on was a major win for the Series B.

“Drive is a firm that has actually been researching the space industry for a few years now, and looking for an opportunity that would be their first space technology investment,” he said. “Not their first in the [GTA-Waterloo] area  they’re based out of Columbus, Ohio, made up of Silicon Valley veterans. They were a little early to the trend of believing that a majority of the really interesting and large opportunities would eventually evolve outside of the Bay Area and outside of New York City.”

SkyWatch definitely fits the bill, having built strong revenue pipeline for an Earth observation data platform that makes the information collected by the many observation satellites on orbit accessible to private industry, in a way that doesn’t require re-architecting existing systems or handling huge amounts of data in unfamiliar formats.

This fresh funding will help SkyWatch accelerate the rollout of its TerraStream product, a nw platform that the company developed to provide full-service data management, ordering, processing and delivery for satellite companies. This allows SkyWatch to not only make data collected by Earth observation satellites like those operated by SatRevolution accessible to customers — but also to source customers for those companies, too, effectively handling both sales and delivery, which many satellite startups born from a technical or academic background don’t start out equipped to tackle.

“My favorite analogy for TerraStream is it’s Shopify for space companies,” Slifierz said. “It takes away a lot of the complexity of going to market. So if you want to build an amazing shoe brand today, Shopify enables you to not have to worry about the logistics, and shipping, and the inventory management, the website, storefront and all that; it allows you to focus on the things that will build value in your company, which is the quality of your product, and your brand.”

He added that just like Shopify depends on the existence of a rich third-party ecosystem to support its platform, so does SkyWatch, and that ecosystem is only now reaching maturity after years of infrastructure development, including things like the proliferation of launch startups, ground station build out, data warehousing and more.

Ultimately, what SkyWatch provides is the ability to go to market “faster and more profitably,” Slifierz says, which is a major shift for hard tech satellite startups working on new and improved sensor capabilities, often spinning out of research labs at academic institutions.

“The strongest value proposition is that we give you instant access to hundreds of customers, which we’re growing at a very fast pace on the EarthCache [SkyWatch’s commercial satellite imagery marketplace] side. So in that way, we sort of joke, it’s like Shopify for space, but also integrated with the AWS marketplace.”

SkyWatch can also actually help identify demand, by providing satellite-side customers with real data to back up signals of what the market is actually looking for. Slifierz says that’s helped them advised partners on how to tweak their offering to meet a real need, which is beneficial in an industry where research and tech development often lead payload design, with actual demand as a somewhat secondary consideration.