: When customers can pay over time, they are more likely to upgrade to premium items or add more to their cart. Studies show AOV increases of 20% to 50% after enabling installment options.
Integrating BNPL, particularly through native solutions like Shop Pay Installments , provides measurable benefits for online stores:
The rise of Buy Now, Pay Later (BNPL) services has transformed the e-commerce landscape, and for merchants, these tools have become essential for driving growth. By allowing customers to split their purchase costs into manageable installments, BNPL solutions directly address the psychological barriers of "sticker shock" and budget constraints. The Impact on Key Business Metrics shopify buy now pay later
: A major advantage is that merchants receive the full payment upfront (minus fees) from the provider, who then assumes the risk of customer default.
Ultimately, BNPL is shifting from a "luxury" feature to a standard expectation at checkout , especially for brands targeting younger, mobile-first audiences. Getting paid for orders placed using Shop Pay Installments : When customers can pay over time, they
: Highly favored by younger demographics (Gen Z and Millennials), focusing on interest-free biweekly payments .
: High upfront costs are a leading cause of abandoned carts. Merchants using BNPL options have reported cart abandonment reductions of up to 28% . By allowing customers to split their purchase costs
While Shop Pay Installments is the most seamless native option, Shopify supports several third-party providers via its App Store :