The Canada-based ecommerce platform said the new payment plan option will be enabled for all customers by default when they switch on Shopify Payments. The rollout comes after Shopify conducted a beta test of the product in 2020 with a select batch of clients and saw 28% fewer abandoned carts than third-party BNPL options had yielded. One quarter of those merchants also saw 50% higher order values, the company states.
Shopify’s Shop Pay Installments offers customers the option to split a price into four separate payments with no interest or additional fees. Company representatives said that lack of extra charges was an instrumental factor in Shopify selecting Affirm as its exclusive US partner on the rollout.