When checking out on a purchase from a Shopify-hosted merchant, consumers will be able to split their purchases into four biweekly payments with no interest charges or additional fees, Shopify said.
The system will be powered by Affirm and is expected to begin by year-end.
“Eligible U.S. Shopify merchants who elect to offer Shop Pay Installments to their customers will not have to worry about collecting future payments from customers,” the companies said in a statement.
“They will receive the full purchase amount, less fees, upfront, and Affirm will handle payment collection.”
“It’s critical for businesses to make it easy for their customers to buy from them,” said Kaz Nejatian, general manager of the financial solutions team at Shopify, Ottawa.
“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.”
As for San Francisco-based Affirm’s view, “With the acceleration of online spending, many small businesses must reinvent themselves,” said Chief Executive Max Levchin, who is also a co-founder of PayPal. (PYPL) - Get Report
“This includes embracing the rising importance of e-commerce strategies and meeting consumers, particularly young shoppers, where they are.”
Shopify shares recently traded little changed just above $954. The stock has more than doubled year to date.