Affirm and Shopify Expand Pay-Later Pact to Canada and UK

Buy now, pay later (BNPL) network Affirm has expanded its partnership with eCommerce infrastructure company Shopify.

The renewed agreement, announced Thursday (Feb. 20), makes Affirm the exclusive pay-over-time provider for Shopify’s Shop Pay Installments program in the U.S. and Shopify’s home country of Canada, with plans to expand into the U.K.

“Given the success of our long-standing partnership with Affirm in the U.S., bringing them to our merchants internationally is a no brainer,” Kaz Nejatian, Shopify’s chief operating officer, said in a news release.

“Affirm’s premier technology, world-class team, and commitment to transparency make them a natural fit to continue supporting merchants in the Shopify ecosystem, and we look forward to bringing this same value to our merchants in Canada, the U.K., and beyond,” he added.

In the coming months, eligible Shopify merchants in Canada will be able to offer Shop Pay Installments powered by Affirm at checkout, letting customers make payments in customized biweekly or monthly installments.

Launched in 2021, Shop Pay Installments has seen millions of customers use the payment option throughout Shopify’s network of merchants, the release added.

“Five years ago, Shopify and Affirm teamed up to create a bespoke payment solution that helps all kinds of businesses thrive by giving their customers more choice and flexibility,” said Max Levchin, founder and CEO of Affirm. “Since then, millions of consumers in the U.S. have relied on the value Shop Pay Installments offers, and we’ve heard from merchants all over the world who are clamoring for the growth potential it provides.”

Earlier this month, Affirm posted positive quarterly earnings fueled by a strong holiday shopping season and the ongoing adoption of BNPL options, with revenues up 47% to $866 million.

“We are five months away from our chosen target date to turn Affirm operating income positive, but it should be apparent to a casual observer that we are nearly there today — mark it zero,” Affirm founder and CEO Max Levchin wrote in the company’s letter to its investors.

As for BNPL’s momentum overall, recent research by PYMNTS Intelligence shows that pay-later options were attracting widespread use among consumers versus payments compared to traditional credit cards. The data showed that — as 2024 came to a close — 56% of consumers reported using installment payment options in the last year.

“Within the various pay-later offerings, BNPL was a standout, as 76% of BNPL users said they were highly satisfied with the experience of using BNPL to make everyday purchases and large-ticket transactions,” PYMNTS wrote earlier this week.