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Shopify Launches New Buy Now Pay Later Product

Shopify has officially launched Shop Pay Installments — a buy now, pay later product specifically designed for Shopify merchants. Exclusively powered by Affirm in the US, Shop Pay Installments is now available to hundreds of thousands of US merchants, and will be automatically enabled for new merchants when they enable Shopify Payments and Shop Pay.

With Shop Pay Installments fully integrated with the Shopify platform, merchants retain a centralised view into everything from performance to product pages to inventory. Shop Pay Installments has also been proven to boost sales: one in four merchants using it during early access saw 50% higher average order value compared to other payment methods. In addition, merchants saw 28% fewer abandoned carts through Shop Pay Installments after switching from a third-party buy now, pay later solution.

“We built Shop Pay Installments to give merchants a critical and easy-to-use financial tool to grow their sales,” said Kaz Nejatian, VP, Product, Merchant Services at Shopify. “Our partnership with Affirm combines their technology and expertise in buy now, pay later with our deep understanding of our merchants’ unique needs and the power of our commerce platform. Together we are delivering the best possible buy now, pay later experience for merchants and their buyers.”

Shop Pay Installments helps merchants give their buyers flexibility when paying for purchases at checkout. Buyers can split payments into four equal instalments, interest-free and with no additional fees.

By activating Shop Pay Installments, merchants unlock significant benefits:

  • Access to one of the largest US consumer networks of any buy now, pay later provider through Shop Pay, accelerated checkout method, and Shop, a shopping assistant app. Merchants can seamlessly serve the millions of US consumers already using Shop Pay to complete their purchases and using Shop to get real-time shipping updates on their orders.
  • A seamless checkout experience with higher conversion and order values. Unlike other buy now, pay later providers, Shop Pay Installments allows merchants to offer a fast, easy checkout experience through Shop Pay, instead of sending buyers offsite and risking abandoned purchases.
  • Direct integration of Shop Pay Installments with their Shopify stores. Merchants are able to easily measure their performance, sales, and fees in one place — the platform where they run and grow their businesses.
  • Transparency that builds trust with buyers. Through Affirm, Shop Pay Installments helps merchants provide buyers with increased flexibility and affordability at checkout with the option to split purchases into four equal interest-free payments. There are no additional, hidden, or late fees, helping merchants build trust with their customers.

“All businesses regardless of size deserve access to technology that can help them grow and succeed, which is why we custom-built Shop Pay Installments in partnership with Shopify,” said Max Levchin, Founder and CEO of Affirm. “At a time when consumers are demanding more flexible and transparent payment options, providing a pay-over-time solution that doesn’t hit consumers with late or hidden fees is no longer a nice-to-have, but a must. We are thrilled to be making Shop Pay Installments immediately accessible to hundreds of thousands of Shopify merchants in the US, and the millions of consumers they serve, as we advance our vision of becoming ubiquitous.”


  • Polly is a journalist, content creator and general opinion holder from North Wales. She has written for a number of publications, usually hovering around the topics of fintech, tech, lifestyle and body positivity.

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