Payments platform Affirm has announced it will exclusively power Shopify’s Shop Pay Installments in the United States. Starting later this year, Affirm’s buy now, pay later financing solution will be made available to eligible Shopify merchants in the U.S. who want to offer this flexible payment option to their customers.
At checkout, approved Shop Pay customers will be able to split their total purchase amount into four equal, bi-weekly, interest-free payments. Customers will not be charged any additional fees.
Eligible U.S. Shopify merchants who elect to offer Shop Pay Installments to their customers will not have to worry about collecting future payments from customers. They will receive the full purchase amount, less fees, upfront, and Affirm will handle payment collection.
“With the acceleration of online spending, many small businesses must reinvent themselves. This includes embracing the rising importance of e-commerce strategies and meeting consumers, particularly young shoppers, where they are,” said Max Levchin, founder and CEO of Affirm. “By partnering with Shopify, the gold standard of commerce platforms for businesses that want to sell direct-to-consumers, we can help merchants seamlessly enable a pay-over-time option at checkout. In doing so, we’re helping them reach new customers, particularly Gen Z and Millennials, who are looking for more transparent and flexible ways to pay.”
“It’s critical for businesses to make it easy for their customers to buy from them. Shop Pay Installments helps our merchants offer their customers more payment choice and flexibility, while delivering a seamless checkout experience to boost conversion and overall sales,” added Kaz Nejatian, VP and GM of Shopify’s financial solutions team. “We’re looking forward to partnering with Affirm to bring this powerful pay-over-time payment option to our merchants and their customers in the U.S., unlocking their ability to succeed and grow their businesses.”
Affirm merchants who offer consumers a similar pay-over-time option today see an increase in average order value and overall sales.
Affirm and Shopify will begin testing in the coming months, with Shop Pay Installments expected to be made available to eligible U.S. merchants starting later this year.