Shop Pay Installments

What is Shop Pay Installments?

Shop Pay Installments is Shopify's native buy now pay later solution that allows customers to split their purchases into flexible payment plans. Powered by Affirm, Shop Pay Installments integrates seamlessly into the Shopify checkout experience. With access to over 200 million shoppers already using Shop Pay, merchants can offer flexible financing options without any additional setup complexity.

How Shop Pay Installments Works

Shop Pay Installments gives customers multiple ways to pay over time. For purchases between $50 and $999, shoppers can split payments into 2 or 4 interest-free installments paid every two weeks. For larger orders, monthly installment plans extend up to 12 or 24 months depending on the merchant's eligibility. Customers see their payment options clearly at checkout and can choose the plan that best fits their budget.

Standard vs Premium Packages

Shop Pay Installments offers two tiers to accommodate different business needs. The Standard package covers purchases from $50 to $1,000 with bi-weekly interest-free payments and monthly installments up to 12 months. The Premium package, available to eligible merchants, supports purchases from $35 to $30,000 with extended financing options including interest-free payments up to 12 months and monthly installments up to 24 months.

Benefits for Merchants

Merchants using Shop Pay Installments report significant improvements in key metrics. Average order values increase by up to 50% as customers feel comfortable purchasing more. Checkout speeds improve by 30% thanks to the streamlined Shop Pay experience. Cart abandonment drops by 28% when flexible payment options remove price as a barrier. Merchants receive full payment upfront while Affirm handles installment collection and risk.

Omnichannel Payment Flexibility

Shop Pay Installments works across all Shopify sales channels including online stores and physical retail locations. In-store customers can access the same flexible payment options through seamless POS integration. This consistent experience across channels helps merchants maximize sales opportunities wherever customers choose to shop.

Customer Experience

Shoppers enjoy a frictionless financing experience with instant approval decisions at checkout. Eligible customers can view their purchasing power before adding items to cart, encouraging larger purchases. Payment reminders and easy account management through the Shop app help customers stay on track with their installment schedules.

Who Should Use Shop Pay Installments?

Shop Pay Installments is ideal for Shopify merchants selling products in the $50 to $30,000 range. It particularly benefits stores selling furniture, electronics, fashion, fitness equipment, and other higher-ticket items. Businesses looking to compete with larger retailers offering BNPL options can level the playing field through this native Shopify integration.

Security and Lending Partners

Shop Pay Installments is powered by Affirm, a licensed and regulated lending platform. All financing options are subject to eligibility checks, with APR rates ranging from 0% to 36% depending on the customer's creditworthiness and chosen plan. Affirm operates under state lending licenses and provides transparent terms with no hidden fees for customers who pay on time.