Everything you need to know about Shop pay installments and How does it work in Shopify store?
Shoppers today expect more flexible payment options at checkout. In June 2021 Shopify launches an shop pay installments solution. Customers now have more flexibility when it comes to paying, while merchants can drive more sales and still get paid in full upfront. In this article, we will provide everything you need to know about shop pay installments for your Shopify store.
What is Shop Pay Installments?
Shopify Shop Pay Installments is a flexible payment option that can help customers buy your products by dividing their purchase amount into four equal, fortnightly, interest-free payments.
Shop Pay offers customers the option to pay the entire order at checkout or in installment for orders between 50 USD and 17,500 USD. You can let your customers have what they want, when they want it by using the Shop Pay Shopify payment option, which offers the choice of paying in full at checkout or splitting the transaction, raising the average order value.
There are no interest, late or additional fees and your customer credit score is not affected when a customer chooses Shopify Shop Payments. You can enhance your sales opportunities and grow new customers this way.
When a customer views your product, the following information about Installment Purchases will be displayed:
- Installment amount is calculated.
- Link to know more about Shopify Shop Payments
- Latest regulatory and compliance information
Besides, Shopify Installment Purchases can also improve conversion rates and average order value by letting customers know they have the option to pay for certain orders in installment.
How does the Shopify Shop Pay Installments work?
Steps to take:
- Add in the required items to the cart.
- Check out using the Shop Pay Shopify payment option.
- To pay in installments, select Shopify Shop Pay Installments
- Client chooses the way four installments break down occurs:
- Make the first payment at checkout.
- Make the first payment two weeks later after purchase.
- Customers receive email reminders of upcoming charges until the remaining three payments are charged.
For merchant: Once the order is completed in step 4, you will receive the full upfront payment through Shopify Payments, excluding the Shopify Shop Pay Installments usage fee.
Activate Shop Pay Installments
Steps to take:
- From your Shopify admin, go to Settings > Payments.
- In the Shopify Payments section, click Manage.
- In the Shop Pay section, check Shop Pay Installments
- Accept the terms and conditions, then click Save.
Steps to automatically add Shopify Shop Payments product page banners
- Go to your Shopify Admin, and click Online Store > Themes.
- Click the “Update Theme” option when updating your theme to let your customers know you accept the installment banner.
- Click Review changes and
- Further click Got it.
- Based on your preferences, review and adjust the placement of the Shop Pay Installments product banner.
- Click Save , followed by
- Click Save and Publish.
To pay with Shop Pay Installments
Steps to take:
- Fill your cart, then choose Shop Pay at checkout.
- Choose to pay in installments and tap Continue.
- Select the installments option that best suits you.
4. Choose a debit or credit card to use for payment, then tap Continue.
5. Follow the steps to verify your identity this usually takes just a few moments.
6. If you agree to the terms, click Agree, then tap Authorize purchase.
7. Enter the 6-digit verification code that was sent to your phone.
Impact of Shopify Shop installment purchases
More flexibility, more sales
Shop Pay Installments helps shoppers increase their purchasing power by buying big tickets at a more affordable price through payment plans that best fit their budget. Merchants benefit from higher conversions, fewer cart abandonments, more purchases, and new customer conversions. Shop Pay Installment is the best buy now, pay later solution for Shopify merchants.
Average order volume increased
Shop Pay Installments allow buyers to maximize their budget and increase their purchasing power by allowing them to pay in smaller amounts over time. This extra purchasing power translates into more sales and larger orders.
One in four sellers have observed 50% higher average order volume with Shop Pay Installment. Our ‘buy now, pay later’ product gives buyers more flexibility to purchase items with higher fare and pay with a larger cart size, knowing they can pay by time.
Fast, seamless payment experience
Purchase Installment is the only buy now, pay later solution fully integrated into Shopify with no redirects and no overselling. Additionally, merchants benefit from one-touch checkout with Shop Pay, which accelerates checkout by 4x and provides access to a network of over 100 million shoppers. Shop app users can easily track orders and installment plans in Shop. Make them more valuable customers because they spend 17% more than non-users.
Tap into Shop Pay user base
Installment is one of the many great features of Shop Pay, Shopify’s fastest payment option, for buyers. With Installment Purchases, merchants can also tap into Shop Pay’s active and engaged base of 60 million users.
These buyers used express checkout to benefit from its advanced features, such as one-tap checkout, free carbon offsets, and package tracking on the Shop app. In addition to having access to all these advantages, buyers can now choose to pay in 4 equal installments at participating stores that offer Shop Pay Installments.
Conclusion
Based on the above information, Shop Pay Installments will be the best option to integrate into your Shopify store. Shopify Shop Pay Installments interest-free borrowing and budgeting features allow your customers to gain more flexibility in spending patterns and adopt new technologies to help manage their budgets. This will make it more likely that the customer will return on their next purchase decision.
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