- Shopify Inc (NYSE: SHOP) and Affirm have announced a partnership. These are the details.
Shopify Inc (NYSE: SHOP) and Affirm have announced a partnership where Affirm — a transparent and flexible alternative to credit cards — will exclusively power Shopify’s Shop Pay Installments in the United States. Later this year, Affirm’s buy now, pay later financing solution will be made available for eligible Shopify merchants in the U.S. — who want to offer this flexible payment option to their customers.
Upon checkout, approved Shop Pay customers will be able to split their total purchase amount into four equal, bi-weekly interest-free payments. And 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 that decide 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) up front. And Affirm will handle payment collection.
Affirm merchants who are offering consumers a similar pay-over-time option today see an increase in average order value and overall sales. And Affirm and Shopify will begin testing in the coming months with Shop Pay Installments expected to be made available to eligible U.S. merchants starting later this year.
Affirm was launched with the mission of creating honest financial products and services that empower consumers and improve lives. And the company’s goal is to revolutionize the banking industry to be more accountable and accessible to consumers.
And Affirm does this by providing millions of shoppers an alternative to traditional credit cards at the point of sale, giving them the flexibility to buy now and make simple monthly payments for their purchases. And unlike payment options that have compounding interest and unexpected costs, Affirm shows consumers upfront exactly what they’ll pay each month — with no hidden fees and no surprises.
KEY QUOTES:
“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.”
— Max Levchin, Founder and CEO of Affirm
“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.”
— Kaz Nejatian, VP and GM of Shopify’s Financial Solutions Team
