Case Study: Shopify Offline Payments
Overview
Product Name: Shopify Offline Payments
Company: Shopify
Industry: Ecommerce
Release Date: 2025
Platform(s): Web, iOS, Android
Target Audience: Small to Medium-Sized Businesses (SMBs), E-commerce Entrepreneurs, Online Retailers, Creative Professionals, Dropshippers, Brands and Retailers
Pricing Model: monthly subscription fees for different plans, ranging from a basic plan for $29 to an enterprise-level plan for $2,300+, plus transaction fees and optional app costs
Competitors: Square, PayPal, Stripe, Vend
Description:
This case study came from a prompt in the Shopify APM Summer 2025 application. Although we were required to answer this question in 150 words, I was compelled to provide a more extensive answer as this product resonated with me. I could have used it in my former days as a Shopify Merchant :)
The prompt was:
Review the latest “Shopify Editions Winter ‘25,” describe an update/feature you found most interesting or impactful. Why?
**Also can I say KUDOS to the team that worked on the Shopify Editions Winter 2025! The UI/UX is 🔥🔥🔥 👏👏👏😄!!
Intro
A feature that I find very impactful is Shopify Offline payments. It allows merchants to continue accepting credit and debit card payments even when they lose internet access, securely storing transactions until the connection is restored.
Their transactions are securely stored on the device and synced once connectivity is restored. This feature can be used with Shopify POS, POS Terminal Reader (formerly ‘POS Go’), Tap & Chip, Chipper 2X BT, Wisepad 3 and Chip & Swipe Reader.
For any retailer who operates in-person, particularly at events or locations where connectivity is unreliable, this feature is indispensable. It ensures that sales are not lost due to factors beyond a merchant’s control, removing a key barrier to seamless transactions and improving both merchant confidence and the customer experience.
Shopify’s mission is to make commerce better for everyone, and this update directly supports that by solving a persistent and frustrating problem for those who rely on in-person sales.
Why this matters
Many brick-and-mortar retailers heavily depend on internet connectivity for their POS systems. However, connectivity isn’t always reliable (whether due to poor infrastructure, network congestion, or temporary outages).
As a former Shopify merchant, I made most of my sales vending in person using the Tap & Chip card reader. The biggest challenge I faced at events where the internet was unreliable was capturing payments.
There were times when this cost me the sale entirely, and as a result, my overall revenue for the day suffered.
For an in-person vendor, the checkout process needs to be as smooth as possible, especially when a customer has had a positive experience up until that point.
If you cannot close the transaction in that moment and force them to find an alternative means of payment, you risk losing the sale altogether. More importantly, you break the momentum of the interaction, and what could have been a seamless transaction instead becomes an inconvenience.
✅Having Offline Payments available ensures that these moments are not lost. The sale can be completed effortlessly, and the customer walks away with their purchase without any undue frustration. I know from experience that these frictionless interactions often translate into repeat business, word-of-mouth recommendations, and stronger customer relationships.
✅What I also appreciate is how it removes the silent stress that comes with processing payments when connectivity is unreliable. There is no longer that moment of hesitation, hoping that the payment will go through while the customer stands there waiting. The experience feels effortless on both sides, allowing for a more natural and engaging exchange.
✅It is also a feature that is simple to activate, and I like that merchants can set controls on who is able to use it by assigning staff permissions and setting transaction limits. This gives businesses more flexibility and security while ensuring that operations run smoothly regardless of external circumstances.
✅The Offline Payments feature allows for enhanced revenue continuity, enhanced customer experience, and boosts merchant confidence. This feature is highly impactful for small businesses like I was, retailers in high traffic areas, and international retailers.
Competitive Positioning
Vs.
Compared to competitors such as Square, Stripe, PayPal, and Vend, Shopify now offers one of the most robust offline payment solutions available.
What sets it apart is the way it integrates across the Shopify ecosystem. While other providers also offer offline processing, Shopify’s “one platform, one payment system” approach means that all transactions, whether online or offline, remain seamlessly connected (which is exactly why Shopify was my choice as an entrepreneur!).
Everything is synced automatically once the connection is restored, minimizing manual work and reducing the risks that come with delayed transaction processing.
Shopify’s solution also provides more control for merchants. With the ability to set custom transaction limits, assign permissions, and track offline payments within Shopify’s existing infrastructure, it offers greater flexibility and security than many alternatives.
It removes the need for costly backup systems or a reliance on cash-only policies, which can be impractical in certain retail environments.
Risks & Trade-offs
There are three main risks with this feature:
Declined transactions due to insufficient funds or frozen bank accounts, leading to transactions failing when connectivity is restored
Security concerns which means that there is a need to store transactions securely with robust inscription and fraud detection mechanisms
Merchant education: users must understand how offline payments work and be prepared for any exceptions.
They must also understand that turning off POS devices during offline mode could lead to loss of payments after reconnecting to the internet.
Mitigation Strategies
However, some mitigation strategies that could be introduced could be to implement AI-driven fraud detection (to flag potentially risky offline transactions), or to offer merchant training & FAQs to ensure smooth adoption of Offline Payments.
Future Opportunities
While Offline Payments is already a valuable addition to Shopify’s POS system, there are several ways in which the feature could be expanded to provide even greater value to merchants in future iterations.
Additional Payment Methods
One potential improvement would be to support additional payment methods, including Apple Pay, Google Pay, and Buy Now Pay Later services. This would allow for even more flexibility, ensuring that merchants can accept payments in whatever form their customers prefer.
Automatic Switch to Offline Mode
Another refinement would be to have Offline Payments activate automatically rather than requiring merchants to manually select the “Offline Checkout” button. A visible banner indicating that the device is operating in offline mode would provide transparency, while removing the extra step would create a smoother user experience.
Integrating with Shopify’s fraud prevention tools
Additionally, Shopify could integrate this feature more deeply with its fraud prevention tools, assessing risk before reprocessing offline transactions to minimise failed payments.
To measure success, key indicators would include an increase in the number of transactions processed offline, higher adoption rates among merchants, and improvements in customer satisfaction scores. A reduction in abandoned purchases due to payment failures would also be a clear sign that the feature is making a tangible impact.
Measuring Success
Final Thoughts: A Feature That Makes a Difference
For small businesses, high-traffic retailers, and international merchants alike, Offline Payments is not just a convenience; it is a safeguard against lost revenue and disrupted customer experiences. It provides peace of mind to merchants who operate in environments where connectivity is inconsistent, ensuring that transactions remain uninterrupted and businesses continue to thrive.
A sale should never be lost due to unreliable internet, and with this feature, Shopify has removed a significant barrier for merchants, allowing them to focus on what they do best: selling their products and building relationships with their customers.