Shopify has launched a new buy now, pay later product with Affirm. The new product, Shop Pay Installments, is designed especially for Shopify merchants and allows buyers to have greater flexibility with their budgets when making purchases on the platform. Here is what you need to know:
Shopify Launches Shop Pay Installments
Shopify has a new buy now, pay later (BNPL) service targeted towards merchants that utilize its platform and mobile app – the Shop app. The new service, Shop Pay Installments, seeks to streamline the buying process on Shopify, which the company says will increase purchase size and transaction speed.
According to data collected by Shopify, merchants using the Shop Pay service experienced a four-fold (4X) increase in checkout speed and a significant rise in order size. Shopify’s data claims that merchants using the new BNPL service have an average checkout-to-order rate 1.91X higher than regular checkouts.
The Shop Pay Installments plan was created in conjunction with Affirm, one of the leading names in the blossoming BNPL market. Affirm has been proactive in the space, introducing a number of innovations in the BNPL marketplace – including a BNPL debit card earlier this year.
Shopify and Affirm Comment on the New BNPL Launch
Commenting on the launch of Shop Pay Installments, Kaz Nejatian, VP, Product, Merchant Services at Shopify hailed the firm’s new partnership with Affirm and the promise it offers both brands:
“Our partnership with Affirm combines their technology and expertise in buy now, pay later. Together, with our deep understanding of our merchants’ unique needs and the power of our commerce platform, we are delivering the best possible buy now, pay later experience for merchants and their buyers,” he said in a statement.
“All businesses, regardless of size, deserve access to technology that can help them grow and succeed. This is why we custom-built Shop Pay Installments in partnership with Shopify,” added Max Levchin, Founder and CEO of Affirm. “At a time when consumers are demanding more flexible and transparent payment options. Providing a pay-over-time solution that doesn’t hit consumers with late or hidden fees is no longer a nice-to-have but a must. We are thrilled to make Shop Pay, our solution, immediately accessible to hundreds of thousands of Shopify merchants in the U.S. This will support the millions of consumers they serve as we advance our vision of becoming ubiquitous.”
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