How to Enable Buy Now, Pay Later Options on Shopify: A Guide to Boost Sales

Increase Your Conversions with Shop Pay Installments, PayPal Pay in 4, and More

In today’s e-commerce landscape, offering flexible payment options is key to boosting conversions and enhancing customer loyalty. A popular method is Buy Now, Pay Later (BNPL), which allows customers to break down their payments into smaller, interest-free installments. With Shopify, you can easily integrate a variety of BNPL options, offering your customers the flexibility they desire. In this post, we'll walk you through how to set up Shop Pay Installments, PayPal Pay in 4, and other popular BNPL apps like Affirm, Afterpay, Sezzle, and Klarna on your Shopify store.

Why Offer Buy Now, Pay Later on Your Shopify Store?

Increase Conversion Rates: Customers are more likely to complete a purchase when they can pay in smaller, manageable amounts.
Reduce Cart Abandonment: BNPL options provide an added layer of comfort, encouraging customers to finalize their purchase.
Enhance Customer Loyalty: By offering flexible payment plans, you show customers that you value their shopping experience.

Buy Now, Pay Later Options on Shopify

1. Shop Pay Installments by Shopify

Shop Pay Installments allows customers to split their payments into four interest-free installments, making it easy for them to manage their budgets.

How to Enable Shop Pay Installments on Shopify:

Log in to your Shopify admin panel and go to Settings > Payments.
Under the "Shopify Payments" section, find Shop Pay Installments and click Manage.
Select Enable Shop Pay Installments and follow the on-screen instructions.

For more information, visit Shopify's BNPL guide.

2. PayPal Pay in 4

PayPal’s "Pay in 4" feature is automatically enabled when you set up PayPal Express Checkout on Shopify. It is available in the US, UK, France, Germany, Spain, and Australia.

How to Enable PayPal Pay in 4 on Shopify:

Go to Settings > Payments in your Shopify admin.
Click on Activate PayPal Express Checkout and connect your PayPal business account.
If you do not see the above option, add this code to your Shopify theme.
Once set up, PayPal Pay in 4 will automatically be available to your customers at checkout.

Pro Tip: Highlight BNPL options on product pages to entice customers.

Other BNPL Options for Shopify

3. Affirm

Affirm offers customers the flexibility to pay over time with clear, interest-free payment plans. Orders can be split into monthly installments, providing an alternative for higher-priced products.

Key Features:

Available for orders from $50 to $17,500 USD.
Flexible payment plans ranging from 3 to 36 months.
Simple, transparent terms with no hidden fees.

How to Install Affirm on Shopify:

Go to the Shopify App Store.
Search for "Affirm" and select the Affirm app.
Click Add App to install it on your Shopify store.
Set up your Affirm merchant account by following the on-screen instructions.
Once installed, Affirm will appear as a payment option at checkout.

4. Afterpay

Afterpay allows customers to pay for their purchases in four interest-free installments over six weeks. It's a popular BNPL option known for its ease of use and instant approval process.

Key Features:

Split payments into four equal, interest-free installments.
Available for orders from $35 to $2,000 USD.
Instant approval decision for customers.

How to Install Afterpay on Shopify:

Visit the Shopify App Store and search for "Afterpay".
Select the Afterpay app and click Add App.
Create an Afterpay merchant account if you don't have one.
Follow the installation instructions provided in the app to integrate Afterpay into your store.
Afterpay will automatically appear as a payment option at checkout.

5. Sezzle

Sezzle provides customers with the ability to split their purchase into four interest-free payments over six weeks. It is known for its user-friendly interface and quick approval process.

Key Features:

Split payments into four installments.
No interest or hidden fees for customers.
Sezzle pays merchants upfront for the full purchase amount.

How to Install Sezzle on Shopify:

Go to the Shopify App Store and search for "Sezzle".
Select the Sezzle app and click Add App.
Create a Sezzle merchant account or log in if you already have one.
Follow the setup guide to integrate Sezzle with your Shopify store.
After integration, Sezzle will become a payment option for your customers during checkout.

6. Klarna

Klarna offers multiple BNPL options, including "Pay in 4" and "Pay Later," giving customers the flexibility to choose the payment plan that suits them best.

Key Features:

Multiple payment options: Pay in 4, Pay Later, and Financing.
No interest or fees for Pay in 4 options.
Klarna assumes the credit risk, so you receive the payment in full upfront.

How to Install Klarna on Shopify:

Go to the Shopify App Store and search for "Klarna".
Select the Klarna app and click Add App to install it on your store.
Create a Klarna merchant account if you don’t have one.
Follow the setup instructions to connect Klarna to your Shopify store.
Once enabled, Klarna will appear as a payment option for your customers.

7. Splitit

Splitit allows customers to split their payments into monthly, interest-free installments using their existing credit cards, without the need for additional applications or credit checks.

Key Features:

Customers use their existing credit limit without additional fees or interest.
Available for orders up to the customer’s credit card limit.
Merchants receive full payment upfront.

How to Install Splitit on Shopify:

Go to the Shopify App Store and search for "Splitit."
Click Add App and install it on your Shopify store.
Create a Splitit merchant account or log in if you already have one.
Follow the setup instructions to integrate Splitit into your checkout process.
Once configured, Splitit will be available as a payment option at checkout.

8. Zip (Previously QuadPay)

Zip (formerly known as QuadPay) offers customers the flexibility to pay in four interest-free installments over six weeks.

Key Features:

Four equal payments, paid over six weeks.
Available for orders ranging from $35 to $1,500 USD.
Merchants receive the full payment upfront, while Zip manages the customer payments.

How to Install Zip on Shopify:

Visit the Shopify App Store and search for "Zip."
Select Zip and click Add App.
Create a Zip merchant account or log in if you already have one.
Follow the integration guide to add Zip as a payment option to your Shopify checkout.
After installation, Zip will appear as an option for customers at checkout.

Best Practices for Using BNPL Options on Shopify

Promote Your BNPL Options: Make it clear on product pages and throughout your site that customers have flexible payment options available. This can include banners, product descriptions, and callouts at checkout.
Set Order Minimums: Ensure customers know the minimum order requirements for each BNPL option to avoid confusion.
Use BNPL in Marketing: Promote BNPL options via email, social media, and SMS campaigns, especially during sales events like BFCM.
Monitor Customer Feedback: Pay attention to how customers respond to BNPL options. This feedback can help you optimize your payment strategies and marketing efforts.

Conclusion

Offering Buy Now, Pay Later options on your Shopify store can significantly increase conversions, reduce cart abandonment, and enhance customer loyalty. With a variety of options like Shop Pay Installments, PayPal Pay in 4, Affirm, Afterpay, Sezzle, Klarna, Splitit and Zip you can provide your customers with the flexibility they need to make purchases confidently.