Through their partnership, Shopify and Affirm have launched Shop Pay Installments, their "buy now, pay later" solution, to all Shopify merchants in the U.S. Shop Pay Installments, designed specifically to meet the needs of Shopify’s merchants, launches today in the U.S. The new solution is powered by Affirm, a publicly held payment company, that allows customers to split their purchase into four biweekly payments with no interest, late fees, or hidden fees.
Affirm built Shop Pay Installments to be fully integrated on Shopify's existing platform for merchants. Affirm is working on competing for the buy now, pay later marketshare against companies like Klarna and Afterpay.
Affirm is unique from other buy now, pay later programs because they never charge any hidden or late fees or deferred interest to consumers. Affirm also supports a wider range of transaction types and sizes than many other buy now, pay later offerings.
Any new Shopify merchant will have Shop Pay Installments automatically enabled. It was reported that in May, 12,500 Shopify merchants were using Shop Pay installments as part of the beta testing phase before a broader rollout.
According to Affirm, one in four merchants on Shopify saw a 50 percent increase in average order volumes after Shop Pay Installments was integrated. The Motley Fool reported that 58 percent of Americans have used a buy now, pay later service.