Shopify has confirmed that its Shop Pay Installments offering in the United States will be exclusively powered by Affirm.
Commencing 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.
Max Levchin, Founder and CEO of Affirm commented: “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.
“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.”
The collaboration comes as US merchants look to maximise payment efficiency and expand the portfolio of transactions that are being offered in order to support businesses through the pandemic.
At checkout, approved Shop Pay customers will be able to split their total purchase amount into four equal, bi-weekly, interest-free payments. True to Affirm’s long-standing commitment to never charge late or hidden fees, 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.
Kaz Nejatian, VP and GM of Shopify’s Financial Solutions Team added: “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.
“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.”
Expert Analysis: Buy Now Pay Later has grown as a transaction option and may take on significant importance as global economies seek to navigate through the financial burden endured by COVID-19. The partnership between Affirm and Shopify is in a strong position to maximise engagement through shop pay instalments.