1/23/2025

Assessing Shopify's Buy Now Pay Later Options for Your Store

The e-commerce world is buzzing with excitement over the Buy Now, Pay Later (BNPL) trend, and for good reason. With customer preferences shifting towards flexible payment solutions, it's more important than ever to explore options that give your customers that profit-boosting freedom of choice. If you're a Shopify merchant, you're probably wondering how to tap into this lucrative market. Let's dive into everything you need to know about Shopify's BNPL options and how they can elevate your store to new heights!

What is Buy Now Pay Later?

Buy Now, Pay Later is a financing option that allows customers to purchase items immediately while paying for them over time, usually in installments. This model transforms the shopping experience such that customers can buy products they may not afford upfront, then spread the payment over weeks or months. According to a recent report, about 25% of Americans utilized BNPL options in 2023.

Why Consider BNPL for Your Shopify Store?

Increased Average Order Value (AOV): Merchants offering a BNPL solution tend to see up to a 50% increase in average order value, as customers feel empowered to make larger purchases. This is one of the BIG WINS of choosing to implement BNPL options in your store.
Reduced Cart Abandonment: According to Shopify's statistics, stores that offer BNPL can reduce cart abandonment rates by as much as 28%. With BNPL at checkout, customers are less likely to hesitate when making larger purchases, which means more sales for you!
Improved Customer Satisfaction: Shoppers LOVE the flexibility of BNPL, which means higher customer satisfaction. With fewer financial hurdles to consider, shoppers can enjoy an enhanced purchasing experience, leading to more loyal customers.
Wider Audience: Shoppers without credit cards can confidently buy products thanks to flexible payment structures. This opens up your store to a broader audience, welcoming more potential buyers.

Shopify's BNPL Options

When we're talking about BNPL options on Shopify, Shop Pay Installments is the star of the show. This feature allows customers to split their purchase into interest-free payments and adds an extra layer of convenience to the purchasing process.

Shop Pay Installments Features

Interest-Free Payments: Customers can make up to four interest-free payments every two weeks for purchases between $50 and $999.99. This gives customers the ability to budget their purchases without worrying about annoying fees.
Monthly Installment Options: For purchases between $150 and $17,500, customers can also opt for monthly installment plans that span up to 24 months. This gives customers an even greater choice when it comes to managing their budgets.
Integration with Shopify POS: The feature is fully integrated with Shopify's point-of-sale system, allowing both online and in-store purchases to benefit from BNPL options. This lets customers scan QR codes for easy checkout, effectively merging the online and physical shopping experiences.
No Hidden Fees: There's a NO SURPRISE policy here, meaning that if a customer is late on a payment, they won't be facing any late fees—just smooth sailing.
Zero Impact on Credit Scores: Customers can rest easy knowing their credit scores won’t take a hit when they use Shop Pay Installments, making it an attractive payment method for many.

How to Implement Shop Pay Installments

Getting started with Shop Pay Installments is simple and requires just a few steps:

Log into your Shopify Admin: Head to Settings, then Payments.
Check Eligibility: Click the Manage section in Shopify Payments to check if you can enable Shop Pay Installments. You can log in here to check your eligibility.
Activate the Feature: Once confirmed, simply enable it and you’re ready to go.
Market the Option: Consider adding banners notifying your customers about the new payment option to increase its visibility and encourage usage.

A Practical Example

Let’s visualize how this works in the wild: Sarah is looking for a new couch at her favorite Shopify store. When she encounters a stylish piece priced at $1,200, her initial instinct might be to pass, as she hadn’t budgeted for the purchase. But wait!

Upon checkout, she notices an option for Shop Pay Installments. She clicks to learn more and discovers she can pay just $300 every month for four months.

Suddenly, that couch is not just a dream, it’s an affordable reality. The store converts her from a casual browser into a BUYER, showcasing just how powerful Shop Pay Installments can be for driving sales.

Comparing BNPL Providers

While Shop Pay Installments is an excellent option, it’s important to be aware of other BNPL providers available for Shopify that you might want to explore:

Affirm: Offers users flexible payment options with low interest rates. Some users pay no fees for short-term loans.
Afterpay: Known for its popularity among younger customers, it's a reliable provider that does not charge interest.
Sezzle: This option allows customers to split purchases while also building credit.
Klarna: Provides several payment options through a widely recognized platform. Notably, they offer product-specific promotions.

It's wise to consider the pros and cons of each option to determine what aligns best with your customer base.

Conclusion

Integrating a BNPL solution such as Shop Pay Installments can be REVOLUTIONARY for your Shopify store. It not only fills your cash registers but also boosts customer satisfaction, makes purchases more manageable, and expands your customer base. By offering payment flexibility, you are directly addressing the needs of the modern consumer and paving the way for a more thriving business.

Don't just stay stagnant—evolve with your customers needs! Enhance customer experience with easy payment options & check out Arsturn to create a customized chatbot that encapsulates your brand's charm and engages visitors before they exit your site. No credit card required for the free trial, start your chatbot journey today!

Join thousands leveraging conversational AI to turn visitors into loyal customers and connect deeply with their audience across digital channels. Boost engagement & conversions seamlessly with Arsturn today.

Start transforming your store's 💰 sales journey with BNPL and chatbots now!