Affirm and Shopify Expand Pay-Later Pact to Canada

Affirm and Shopify have expanded their pay-later offering beyond U.S. borders.

The companies announced Wednesday (April 9) that Shopify merchants in Canada who have signed up for early access can begin offering the Affirm-powered Shop Pay Installments program, marking its first availability outside the U.S.

“We’re thrilled to launch Shop Pay Installments in early access to Canada as our first step beyond the U.S.,” Kaz Nejatian, Shopify’s chief operating officer, said in a news release.

“Our partnership with Affirm expands our global reach, giving shoppers the flexibility to pay over time, and drives higher conversion rates for merchants worldwide.”

According to the release, Shop Pay Installments will be made available in general access to Shopify merchants in Canada and the U.K. this summer, with cross-border commerce capabilities between the U.S., Canada, and U.K. expected to follow.

The companies first announced plans to expand Shop Pay Installments — which lets customers make payments in customized biweekly or monthly intervals — in February.

After launching in the U.K. and Canada, the companies plan to expand their partnership to Australia and Western Europe, beginning with France, Germany and the Netherlands.

“As Shop Pay Installments launches in each new market, local merchants will be able to seamlessly activate the product directly from their Shopify admin dashboard — no additional development or technical integration required,” the release added.

The expanded partnership comes at a moment when — as PYMNTS wrote earlier this week — buy now, pay later (BNPL) options are “rapidly becoming a permanent fixture in how consumers budget, shop and pay.”

To get a more expansive view of the pay-later industry, PYMNTS spoke with five industry leaders for the new eBook, “Reimagining Consumer Finance: The Strategic Rise of Buy Now, Pay Later.”

Among those experts is Affirm founder/CEO Max Levchin, who sees the sector transforming into a trusted, ubiquitous service, much like American Express became a household name in credit.

In his opinion, consumers enjoy BNPL’s predictability and sense of control over repayment more than the ability to borrow.

“Our appeal is not that it’s some cool way of borrowing money,” he said of his company.

Rather, the appeal lies in the ability to eliminate late fees and hidden costs while improving merchants’ conversion rates and average transaction values.

Meanwhile, recent PYMNTS Intelligence research looks at the popularity of BNPL among more affluent consumers for both luxury purchases and essentials.

“Maybe they have maxed out their credit cards and have an expensive auto repair. Maybe the card they want to use comes with perks and rewards that they want to tap into for another purchase,” PYMNTS wrote Wednesday.

“What’s clear is that the alternative credit option has become mainstream for the majority of higher earners.”