How to Use Shop Cash: Setup Guide for Merchants

As a merchant using Shopify, it's key to understand how to use Shop Cash effectively.

In this guide, we'll dive into more detail about what Shop Cash is, how it works, and how you, as a merchant, can make the most of it.

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‍What is Shop Cash on Shopify?

Shop Cash is a rewards program that has been integrated into Shop Pay, a checkout solution provided by Shopify, designed to enhance your Shopify-powered store's shopping experience. 

When you activate Shop Cash, your customers can earn digital credits for their purchases, which they can later use to get discounts on future purchases within the Shopify ecosystem. 

Shop Cash aims to increase customer loyalty and encourage repeat purchases by providing exclusive rewards to the Shopify ecosystem.

How Does Shop Cash Work on Shopify?

Shopify's Shop Cash is a rewards program designed to incentivize customers and boost your business. 

As a merchant, here's how it works:

1. Setting up Campaigns: By starting Shop Cash campaigns in your Shopify admin, you can offer opportunities that can increase the value of a buyer's Shop Cash. You can customize this campaign by setting parameters such as maximum cost per acquisition, budget restrictions, and duration.
2. Earning Shop Cash: Customers earn Shop Cash on eligible purchases made via Shop Pay. This not only encourages customers to make a purchase but also enhances customer loyalty as they are incentivized to return and use their earned cash.
3. Customer Engagement: Shop Cash campaigns offer opportunities to engage new customers and retain existing ones. With over 100 million shoppers on Shop, targeted campaigns ensure your offers reach a broad and relevant audience.
4. Customer Acquisition: You will only be charged when you obtain a new customer through the Shop Cash campaign, which enhances sustainable and scalable customer growth. Also, you have the power to set the max cost per acquisition, which ensures better budget control.
5. Utilities: The Shop app provides tools to track campaign performance individually and collectively, ideally helping in making adjustments to improve campaign performance over time.
6. Redeeming Shop Cash: Customers can redeem their earned Shop Cash on further purchases through the Shop app, contributing to repeat purchases rate and customer loyalty.

Tip: Running multiple campaigns, adjusting order values, regularly tracking performance, and customizing your storefront can enhance your campaign's success and improve the customer shopping experience.

Setting up a Shop campaign is an effective way to expand your customer base and increase sales while maintaining control over your marketing budget. 

How Merchants Setup Shop Cash on Shopify in 6 Step 

Setting up & using Shop Cash on Shopify involves a series of steps that merchants can follow to integrate this rewards program effectively into their online store. 

Here’s a guide on how merchants can set up Shop Cash on Shopify:

Step 1: Ensure Eligibility

Before setting up Shop Cash, ensure that your store meets the necessary criteria:

• Your store must be located in the United States.
• Transactions should be in USD.
• You must have a Shopify Payments account that accepts USD.
• Shop Pay must be activated on your store.

Step 2: Activate Shop Pay

Shop Pay must be enabled as it is required to make Shop Cash-eligible purchases. To enable Shop Pay:

• Go to your Shopify admin panel.
• Navigate to the ‘Payments’ section.
• Activate Shop Pay by following the on-screen instructions.

Step 3: Integrating Shop Cash

Once Shop Pay is activated, you can integrate Shop Cash:

• Access the Shopify admin.
• Go to the Shopify apps into the ‘Apps and sales channels’, then find the Shop app.
• If your store is not yet eligible yet, click on the ‘review requirements’ shown in the picture.

• Then, fulfill the requirements shown in the image one by one and ensure your store's products are eligible to earn Shop Cash (no gift cards, digital products, or subscriptions).

Step 4: Educate Your Customers

Promote the benefits of Shop Cash to your customers.

• Develop a content promotion strategy to showcase the benefits of Shop Cash.
• Optimize your product pages to display Shop Cash information prominently.
• Include Shop Cash details in email newsletters and social media posts.
• Be sure to include clear and concise explanations of how they can earn and redeem Shop Cash.

Step 5: Monitor Shop Cash Activity

Use Shopify’s analytics to track the impact of Shop Cash on your sales.

• Analyze the number of transactions using Shop Pay.
• Monitor and improve average order value and frequency of purchases with Shop Cash.
• Adjust your Shopify marketing strategies based on these insights to maximize benefits.

Step 6: Participate in Shop Campaigns

Engage in Shop Campaigns to attract new customers using Shop Cash incentives.

• Access the 'Advertising' section within the Shop channel from your admin.

• Click on 'Create Campaign', fill in the necessary details including your budget, and customer acquisition cost, and decide if you want to feature your campaign on third-party platforms as well.

Can Merchants Set Their Own Shop Cash Rewards?

Shop Cash is a rewarding method for customers shopping through the Shop app or Shopify online store. Merchants don't decide the amount of Shop Cash rewards, but they can engage with the program in different ways:

1. Running Shop Campaigns: Merchants can start campaigns that include Shop Cash offers to get new customers.   

2. Setting Campaign Rules: Merchants can set some rules for their campaigns. They can determine things like how much they want to spend to get a new customer, the smallest order value, their daily budget, and how long the campaign lasts.

3. Giving Special Offers: Merchants can give special offers tied to Shop Cash. These offers can help boost sales and make customers more loyal.

4. Encouraging Shop Cash Use: Merchants can't set reward amounts, but they can encourage customers to use Shop Cash. They can use marketing to let customers know about the benefits of using Shop Cash at their store.

5. Checking Success: Merchants can use Shopify to see how their campaigns are doing. They can look at things like sales, new customers from Shop Cash offers, and overall return on their investment.

6. Advertising on Other Platforms: If merchants opt in for advertising outside the Shop app, they can promote their Shop Cash offers on third-party platforms. This can help them reach more people.

These methods allow merchants to use Shop Cash to help their Shopify marketing strategies, get more customers, and increase sales. They must follow the rules Shopify has set for this program.

Benefits of Using Shop Cash on Shopify

Shop Cash is strategically designed to amplify customer engagement and stimulate growth for merchants on the Shopify platform. 

Here are the benefits it offers to merchants:

1. Targeted Customer Acquisition: Shop campaigns allow merchants to specifically target and attract new customers within the Shop app ecosystem. The unique pay-per-sale model ensures that merchants pay only for successful conversions, making it a cost-effective strategy for expanding their customer base.
2. Controlled Advertising Costs: Merchants can set a maximum cost per acquisition (CPA) for their campaigns, ensuring that marketing expenses remain within budget. This level of control helps merchants plan their financial strategies more effectively, avoiding the uncertainty often associated with other advertising platforms.
3. Building Long-Term Customer Relationships: The Shop app facilitates initial purchases and encourages repeat buying behaviors. 
4. Rapid Setup and Flexibility: Shop campaigns can be set up quickly within the Shopify admin, allowing you to respond swiftly to market trends or operational needs. Also, you have the flexibility to adjust campaigns based on performance data provided by Shopify.
5. Data-Driven Insights: Shopify provides analytics for campaign performance, helping you understand what's working and what isn't. This allows for ongoing optimization of your marketing efforts based on solid data.
6. Strategic Growth Opportunity: The integration of Shop campaigns allows you to not only attract new customers but also strategically grow your market presence in a controlled and scalable manner.

Common Issues and Solutions When Using Shop Cash

Using Shop Cash as a merchant on Shopify offers several advantages but also presents certain challenges. Here are some typical issues you might encounter and effective strategies to resolve them:

1. Managing Budgets and Costssome text
   • Issue: Optimizing budgets for Shop Campaigns, especially daily budgets and customer acquisition costs, can be challenging.
   • Solution: Start with a modest budget, then adjust as you learn what works best. Use Shopify’s analytics to track and refine your spending.
2. Dealing with Order Value Requirementssome text
   • Issue: High minimum order values may deter customers from using Shop Cash, reducing conversions.
   • Solution: Set a minimum order value that reflects your typical order size. Offer tiered promotions to incentivize larger purchases without excluding customers with smaller budgets.
3. Campaign Visibility and Promotionsome text
   • Issue: It’s crucial that customers know about and can easily find your Shop Cash offers.
   • Solution: Advertise your Shop Cash offers across all channels, including email, social media, and your website. Ensure promotions are visible and appealing on the Shop app and your homepage.
4. Handling Refundssome text
   • Issue: Refunding orders paid with Shop Cash can be complicated, particularly determining amounts refunded through Shop Pay versus Shop Cash.
   • Solution: Make sure you and your customer service team are familiar with Shopify’s refund protocols to manage inquiries efficiently.
5. Integration with Third-Party Systemssome text
   • Issue: Some third-party systems may not recognize Shop Cash as a payment method, leading to potential issues with accounting or inventory.
   • Solution: Collaborate with your third-party providers to integrate Shop Cash. If not possible, make manual adjustments or develop custom solutions.
6. Scaling Challengessome text
   • Issue: It can be difficult to scale Shop Cash offers while maintaining profitability and customer satisfaction.
   • Solution: Analyze initial campaign data to identify what maximizes ROI. Gradually expand your efforts, tweaking your approach based on obtained customer feedback and data insights.

By addressing these issues strategically, you can effectively leverage Shop Cash to boost customer engagement and sales while managing risks.

Conclusion

In conclusion, Shopify's Shop Cash rewards program presents a major advantage for merchants. 

This service provides opportunities for enhanced customer engagement, repeat business, targeted campaigns, new customer acquisition, and long-term relationship building. 

Merchants can customize their campaigns, while Shopify's analytics offer crucial insights for campaign adjustments and improvements. 

Additionally, potential challenges can be effectively managed with the right strategies. Therefore, making full use of Shop Cash can significantly contribute to the strategic growth of a Shopify store in today's competitive market.

Frequently Asked Questions

What is the Difference Between Shop Cash and Shop Campaign?

While both play their part within Shopify's ecosystem, Shop Cash is designed for the customers and Shop Campaigns are a tool for the merchants.

Shop Cash is essentially a rewards program for customers. When customers make a purchase using the Shop app or via a Shopify-powered online store that accepts Shop Pay, they earn Shop Cash. 

Shop Campaigns, however, are a promotional strategy implemented by store owners. Its function is to increase the visibility of the store and boost sales. They often come with Shop Cash offers, which temporarily inflate the value of a customer's Shop Cash, thereby attracting new customers.

Can Shop Cash be Canceled by the Merchant?

No, store owners cannot opt out of accepting Shop Cash as a payment method. Once you are a Shopify merchant and use Shop Pay, you are automatically enrolled to accept Shop Cash. This ensures a uniform experience for customers who earn Shop Cash.

Can I Link the Shop Cash Program Directly with my Existing Loyalty Program?

Shopify's Shop Cash program operates independently and cannot be directly linked with an existing loyalty program that you may be running on your store. The Shop Cash is a built-in feature of the Shop app, which uses Shop Pay to reward customers for their purchases, and its mechanics are pre-set by Shopify.

However, you can still run both programs in parallel and inform your customers that they can benefit from both. This means that customers could earn rewards from your existing loyalty program while also earning Shop Cash on eligible purchases.

Further Reading

• 12 Best Shopify Loyalty Apps of 2025: How to Choose & Setup
• Gift Card Marketing: 10 Top Strategies for Maximizing ROI
• How to Remove Shop Pay from Shopify: A Merchant's Guide‍
• How to Do a Test Order on Shopify with Effective Techniques‍
• Shopify Checkout Optimization Checklist (20+ Easy Tips)

Frequently Asked Questions

How to apply Shop Pay at checkout?

To apply Shop Pay at checkout, shop on a store that supports Shop Pay and look for the Shop Pay button on the product page, in the cart, or in the checkout payment section; when you choose it, you’ll be prompted to enter your email or mobile number to locate your Shop Pay account, then verify with a one-time code and select or confirm your saved shipping address and payment method to complete the purchase. If you’re a first-time user, you’ll enter your shipping, billing, and card details once, and Shop Pay will securely save them for faster checkout next time; on supported stores, you may also see installment options (where available and eligible), which you can choose during the Shop Pay flow before placing the order.

Is there a downside to using Shop Pay?

A potential downside to using Shop Pay is that it can reduce flexibility compared with a traditional checkout because it’s optimized for speed and relies on the details saved in your Shop Pay account—if your shipping address, phone number, or payment method is outdated, you’ll need to update it during the flow or in your Shop account to avoid issues. Some shoppers also prefer not to store payment information with any accelerated checkout service, even though Shop Pay uses encryption and security measures; additionally, Shop Pay isn’t available on every website (only participating Shopify stores), and certain features like installment payments depend on eligibility, region, and merchant settings. From a merchant perspective, Shop Pay can streamline conversion, but it may also mean customers are more likely to complete checkout without seeing as many on-site upsells or custom steps, and any rewards programs like Shop Cash apply only under specific conditions (for example, eligible purchases and supported redemption paths).

How do I use my Kohl's Cash in store?

To use Kohl’s Cash in store, bring your Kohl’s Cash certificate (printed or on your phone) to the register and present it at checkout so the associate can scan the barcode or manually enter the coupon number; the value is applied to eligible merchandise during the redemption window printed on the certificate. If your Kohl’s Cash is stored in your Kohl’s Wallet in the Kohl’s app, you can open it at checkout and have the cashier scan it, and you can typically use multiple Kohl’s Cash offers in the same transaction if they’re valid and in your account. Be sure to review exclusions before you shop—certain brands or categories may not qualify—and remember that Kohl’s Cash generally can’t be redeemed for gift cards and may not cover taxes or shipping; if your purchase total is less than the Kohl’s Cash amount, any remaining value is usually forfeited rather than returned as change, so it often makes sense to plan your cart to use most of it.

How to spend Apple Cash in a store?

To spend Apple Cash in a store, the most common method is to use Apple Pay at any contactless terminal: add Apple Cash as your selected card in the Wallet app, double-click the side button (or Home button on older devices), authenticate with Face ID/Touch ID/passcode, and hold your iPhone or Apple Watch near the reader to pay using your Apple Cash balance. If a store can’t accept Apple Pay, you generally can’t use Apple Cash directly at the register, but you can use the Apple Cash virtual card number for online or phone purchases where card entry is accepted (in regions where the virtual card is available), or you can transfer Apple Cash to your bank account and pay with another method. For best results, confirm you have sufficient Apple Cash balance, ensure Apple Cash is set up in Wallet, and keep in mind that availability and features can vary by country or region.

What do experts say about how to use shop cash?

Experts generally describe Shop Cash as a Shopify ecosystem reward that’s easiest to use through Shop Pay and the Shop app: you earn Shop Cash on eligible purchases (often when a merchant is running a Shop Cash campaign or when eligibility criteria are met), and then when you shop again in the Shop app or at participating Shopify stores, your available Shop Cash balance can appear at checkout as a redemption option you can apply to reduce your total. The practical best practices are to (1) ensure you’re checking out with Shop Pay using the same account that earned the rewards (email/phone matters), (2) confirm the purchase is eligible for redemption because not every product, store, or checkout path will support Shop Cash, and (3) review any campaign terms that can affect how much you earn or where you can redeem. From a merchant standpoint, experts emphasize setting clear campaign parameters in Shopify (budget, duration, max cost per acquisition) and monitoring performance in Shop campaign reporting so you can acquire new customers efficiently while encouraging repeat purchases when customers return to redeem their Shop Cash.

Where can i use Shop Cash?

You can use Shop Cash within the Shopify ecosystem—primarily when shopping through the Shop app and, in many cases, when checking out with Shop Pay at participating Shopify-powered stores where Shop Cash redemption is supported. In practice, that means you’ll see Shop Cash as an available option during checkout only when the store and the specific purchase are eligible, and you’re signed into the same Shop/Shop Pay account that holds the balance; if you don’t see it, it may be because the merchant isn’t participating, the items aren’t eligible, you’re not using Shop Pay, or you’re checking out in a way that doesn’t support redemption (for example, certain accelerated checkouts or draft invoice flows). A quick way to confirm is to shop in the Shop app (where Shop Cash visibility is typically clearest) and look for the Shop Cash option at checkout, or check your Shop app balance and recent activity to verify where it can be applied.