You’ve got the product. You’ve mastered your Facebook and Instagram ads. Maybe you’ve even cracked the code on viral TikTok videos. But if you’re serious about scaling your Shopify store to six figures a month, there’s one make-or-break factor you can’t ignore: your payment strategy.
For non-U.S. sellers expanding to the U.S. market, it’s not just about what you sell—it’s about how you make it easy for your customers to buy. This is where Shop Pay comes in.
Here’s the deal: Shop Pay is Shopify’s one-click checkout solution that can dramatically boost your conversions. But here’s the catch—you can’t use Shop Pay until you qualify for Shopify Payments. And for non-U.S. residents, getting Shopify Payments set up the right way is a game of strategy, patience, and expert planning.
Let’s break it all down: what Shop Pay does, why it matters, and the exact strategy to get your Shopify Payments account approved and running smoothly.
What Is Shop Pay? And Why Do You Need It?
Imagine this: a shopper lands on your store. They’re excited about your product. They’re ready to buy. But at checkout, they hit a wall—manually entering their credit card details, billing address, and shipping info. It’s annoying. They bounce. You just lost a sale.
Shop Pay fixes that.
Shop Pay is Shopify’s accelerated checkout tool. It stores customer payment and shipping info for one-click purchases. Once customers use Shop Pay on your store, they can use it on any Shopify store. It’s fast, it’s trusted, and it’s built to close the sale.
Why Shop Pay Is a Game-Changer
- One-Click Purchases: Faster checkout = higher conversions. Shop Pay can increase mobile conversions by 18%.
- Trust and Loyalty: Features like order tracking and carbon offsets show you care about the customer experience and the planet.
- Frictionless for Returning Customers: Repeat buyers can check out in seconds.
Here’s the bottom line: Shop Pay isn’t just a feature; it’s a conversion machine.
The Shop Pay Catch: Shopify Payments Is the Key
Here’s the part no one tells you: you can’t use Shop Pay without Shopify Payments. And for non-U.S. residents, activating Shopify Payments isn’t as simple as clicking a button.
What Shopify Payments Requires
To activate Shopify Payments as a non-resident with a U.S. LLC, you’ll need:
- A Tax Plan and Strategy for Your U.S. Company: This is because step 4 below is complex and expensive.
- A U.S. Company: Don’t assume a single-member LLC disregarded is the best. We often consult, review, and amend incorrectly set-up LLCs.
- A U.S. EIN: Your LLC’s tax identification number.
- A U.S. Bank Account: Shopify Payments only pays out to U.S.-based accounts.
- Proof of Operational Presence: This might include a U.S. address or other documents showing your business operates in the U.S. (this is where 95% get rejected).
Why It’s Worth It
Shopify Payments eliminates transaction fees and unlocks tools like Shop Pay. But it’s not just about the checkout process—it’s about building a foundation for scaling. If you’re not planning for Shopify Payments upfront, you’re setting yourself up for headaches and lost sales later.
How to Strategically Set Up Shopify Payments as a Non-U.S. Resident
Step 1: Start with Strategy
The correct strategy from evaluating your cash outline for consulting, operational presence, then to entity formation, U.S. taxation, banking, and compliance during your first 90 days is everything.
Step 2: Your U.S. LLC Setup & Taxation Type
You can’t unlock Shopify Payments without a properly formed U.S. LLC. Choose the right state (hint: not all states are created equal for non-residents), get your EIN, and set up a U.S. bank account.
Step 3: Build a U.S. Presence
Shopify Payments often requires proof that you’re doing business in the U.S. This could mean setting up a virtual office in the U.S. or working with an address service. Pro Tip: Make sure your business address is credible—Shopify doesn’t play games with compliance.
Step 4: Diversify Your Payment Options
While you’re setting up Shopify Payments, add backups like PayPal, Amazon Pay, and Apple Pay to your store. These give customers alternative checkout options and keep sales flowing if Shopify Payments needs extra verification.
Step 5: Get Help
Setting up Shopify Payments as a non-resident isn’t something you want to DIY. This is where experts like us come in—we’ll guide you through the process so you can focus on scaling your store.
Shop Pay’s Role in Scaling to Six Figures
If you’re scaling aggressively, Shop Pay isn’t just a nice-to-have; it’s a must-have. For sellers running ads and driving traffic, the checkout experience is the last piece of the funnel. Without it, you’re wasting clicks and ad spend.
Here’s What to Know About Scaling:
- First 90-Day Strategy: Start slow. Even if you can sell $10K/day, don’t do it right away. Shopify Payments flags new accounts with sudden spikes. Ramp up gradually to avoid account holds.
- Optimize for Mobile: Most U.S. shoppers buy on their phones. Shop Pay’s one-click checkout is optimized for mobile users.
Tax Implications for Non-U.S. Sellers
Here’s where things get real. Setting up Shopify Payments isn’t just about sales—it has serious tax implications.
- Flow-Through Entities: If you’re using an LLC taxed as a partnership, your sales could trigger U.S. taxation under the effectively connected income (ECI) rules.
- Corporate Tax Planning: Structuring as a C Corporation may reduce your tax liability, but it depends on your sales and profits.
Our Take: Payment setup is part of a bigger strategy. We help you connect the dots between payments, tax planning, and scaling sustainably.
For Agencies: How This Helps Your Clients
If you’re running an agency helping clients scale Shopify stores, payment setup is the foundation for their success.
- Increase Client ROI: Clients with Shop Pay and Shopify Payments see higher conversions.
- Simplify Compliance: We handle the hard stuff—LLC formation, bank accounts, and operational presence—so your clients can scale faster.
- Protect Their Accounts: By following the First 90 Days Strategy, we reduce the risk of holds and closures for your clients’ accounts.
Ready to Scale Your Shopify Store?
Shop Pay and Shopify Payments aren’t just payment tools—they’re scaling tools. But getting them set up as a non-U.S. resident requires strategy, expertise, and patience.
We specialize in helping non-residents navigate U.S. LLC formation, Shopify Payments, and tax planning so you can focus on what you do best: growing your business.
Book a call today to establish your payment strategy from the start. Learn more about our solutions and fees to help you expand confidently.
Your customers deserve a frictionless checkout. Your business deserves the best foundation. Let’s make it happen.
