Affirm to power Shopify's Shop Pay Installments in the U.S.
We’re excited to announce an exclusive partnership in the United States with Shopify, the leading commerce platform that enables people to start, run, and grow a business.
Under the partnership announced this week, Affirm will exclusively power Shopify’s Shop Pay Installments in the U.S., seamlessly bringing a pay-over-time payment option to eligible U.S. merchants beginning later this year. Eligible U.S. Shopify merchants can choose to offer their customers a buy now, pay later (BNPL) payment option via Shop Pay at checkout. Shop Pay Installments will be native to the Shopify platform and will be powered by Affirm in the U.S.
Since 2012, we’ve helped more than 6,000 merchants accelerate growth by increasing average order value (AOV), conversion, repeat purchase rates, and overall sales. Later this year, our partnership with Shopify will help many more merchants offer their customers more payment choice and flexibility, and grow their businesses in a similar way.
An easy way for shoppers to pay in installments
Once Shop Pay Installments is enabled on a Shopify store by an eligible U.S. merchant, their customers will be able to pay in installments via Shop Pay, which will split their total purchase amount in four equal, biweekly, interest-free payments. Customers who pay for orders using Shop Pay Installments will not be charged any additional fees, in keeping with our promise never to charge late or hidden fees.
Eligible U.S. Shopify merchants that elect to offer Shop Pay Installments will not have to worry about collecting future payments from customers. They will receive the full purchase amount—minus fees—for every transaction, and we’ll handle collecting payments from customers.
The upsides for participating merchants can include higher AOV, conversion lift, repeat purchase rate, and more. U.S. Shopify merchants that currently allow customers to check out with Affirm and split their total purchase into monthly payments across 3, 6, or 12 months see these benefits today:
“While our shoes are more affordable than average, some customers are still reluctant to pull the trigger when they see the price tag,” said Evan Fript, CEO of Paul Evans Shoes. “But when they see they can pay using Affirm, the decision to buy becomes an easy one.”
Helping retailers meet today’s demands
With the acceleration of online shopping due to the coronavirus pandemic, many businesses have had to reorient—or even reinvent—themselves in order to thrive. Affirm saw a 40% surge in new merchant signings from March 1 to April 30, as compared to January 1 to February 28.
This online shift for retailers has also meant embracing new e-commerce strategies and meeting customers where they are—particularly young shoppers and those with constrained budgets. With U.S. credit card debt at a historic high, many shoppers appreciate being able to pay with an alternative to credit cards, where they know exactly what they’ll owe. In addition, 60% of shoppers think more favorably of brands that offer flexible payment methods.
With this partnership, Affirm and Shopify together will bring more payment choice and flexibility to U.S. online shoppers. We’ll also help U.S. businesses boost conversion and overall sales, so they can thrive in this new retail reality.
“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,” said Max Levchin, Founder and CEO of Affirm. “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,” said Kaz Nejatian, VP & 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.”
Learn more about how Affirm can accelerate growth for your business.
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