Buy Now Pay Later

Affirm Powers POS Credit On Shopify

With the buy now, pay later (BNPL) movement on the rise, Affirm will be working with Shopify so its U.S. merchants can offer a BNPL payment option to their customers, the two companies said in a release. Affirm’s program essentially provides buyers of a wide range of products with a short-term loan that can be repaid through regular installments.

The companies said the Shopify BNPL product, which is entering a testing phase, will be called Shop Pay Installments. Shopify offers a subscription software service that provides an eCommerce platform for online stores and retail point-of-sale (POS) systems.

“With the acceleration of online spending, many small businesses must reinvent themselves. This includes embracing the rising importance of eCommerce strategies and meeting consumers, particularly young shoppers, where they are,” said Max Levchin, founder and CEO of Affirm, in the release. He added that Shopify has “the gold standard of eCommerce platforms for businesses that want to sell direct-to-consumer.”

“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,” said Kaz Nejatian, vice president and general manager of Shopify’s financial solutions team. “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.”

Affirm said that its BNPL product helps merchants “see an increase in average order value and overall sales.”

Use of this type of installment credit has been building up steam among investors, consumers and providers for the last few years. The coronavirus crisis has spurred on this trend.

This alternative method of paying for purchases “on credit” got a boost with the news that Visa Installments, a new POS credit product, is being tested in pilot markets across the U.S.

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NEW PYMNTS STUDY: LEVERAGING THE DIGITAL BANKING SHIFT – SEPTEMBER 2020  

The September 2020 Leveraging The Digital Banking Shift Study, PYMNTS examines consumers’ growing use of online and mobile tools to open and manage accounts as well as the factors that are paramount in building and maintaining trust in the current economic environment. The report is based on a survey of nearly 2,200 account-holding U.S. consumers.

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