9 min.

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.

Cover image with cashback illustration on the right with the text "How to Use Shop Cash: Setup Guide for Merchants".

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.
Shopify dashboard page showing Shop Pay enable toggle.

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.
If your store is not yet eligible, 'require review' button warning.
  • 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).
List of instructions required to activate Shop Pay.

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.

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.
Create campaigns that include Shop Cash offersNew campaign creation page in shop campaign in Shopify dashboard
  • 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.
Creating shop cash offer on Shopify admin panel.

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

Eight effective tips on maximizing Shop Cash rewards.

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

"Common issues and solutions when using shop cash" text on a phone and decoration on the back of the phone.

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.


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