Does Shopify Let You Pay in Installments? A Comprehensive Guide to Maximizing Your Shop Pay Installments

Table of Contents

  1. Introduction
  2. What Are Shop Pay Installments?
  3. Benefits for Merchants and Customers
  4. How to Activate Shop Pay Installments
  5. Considerations and Potential Drawbacks
  6. Conclusion
  7. FAQ


Have you ever found yourself at the checkout of your favorite online store, wishing there were a way to spread the cost of your purchase over a period of time, rather than paying the full amount upfront? If so, you're not alone. With the rise of "Buy Now, Pay Later" (BNPL) options, many shoppers are looking for more flexible payment solutions. This brings us to an intriguing question for Shopify store owners and customers alike: does Shopify let you pay in installments?

In this blog post, we're going to dive deep into the world of Shopify's own installment payment option, known as Shop Pay Installments. Whether you're a seasoned Shopify merchant or a shopper curious about your payment options, this guide aims to provide you with a thorough understanding of what Shop Pay Installments offer. From eligibility requirements to activating the feature in your store, we'll cover everything you need to know to make informed decisions about using installment payments. By the end, you'll understand how Shop Pay Installments can both enhance the shopping experience and potentially boost your store's conversion rates and average order value.

What Are Shop Pay Installments?

Shop Pay Installments is a flexible payment option provided by Shopify, allowing customers to split their purchase into smaller, more manageable payments. This service applies to orders ranging from $50 to $20,000 and is available both online and in physical stores. However, it's important to note that this feature is exclusively offered to Shopify merchants based in the United States, dealing in USD, who have Shopify Payments and Shop Pay activated on their platforms.

Shoppers can choose between paying in four interest-free, biweekly payments or selecting a monthly installment plan for up to 24 months. While the former option carries no extra fees, interest or late, the latter might involve interest rates from 10 to 36% APR, depending on the specific terms.

Benefits for Merchants and Customers

For Merchants:

  1. Increased Average Order Value: Offering an installment payment option encourages customers to make larger purchases since the upfront cost is reduced.
  2. Improved Conversion Rates: The flexibility of installment payments can convert hesitant buyers into confident ones, reducing cart abandonment.
  3. Immediate Payment: Merchants receive the total payment for each installment order upfront, eliminating the need to chase down payments.
  4. No Hidden Fees: Customers appreciate transparency in payment options, which can enhance their trust and loyalty towards your brand.

For Customers:

  1. Payment Flexibility: Shoppers can enjoy the convenience of spreading the cost of their purchases over time without the burden of added fees or interest, in most cases.
  2. Higher Purchasing Power: This payment method can empower customers to afford bigger ticket items by breaking down the payment into more manageable amounts.

How to Activate Shop Pay Installments

Setting up Shop Pay Installments requires a few straightforward steps. Merchants must ensure they're based in the U.S., selling in USD, and have both Shopify Payments and Shop Pay enabled. Once these criteria are met, you can activate Shop Pay Installments from the Payments section in your Shopify admin panel. Shopify also provides a marketing toolkit to help you promote this payment option to your customers.

Considerations and Potential Drawbacks

While offering Shop Pay Installments has clear benefits, there are a few considerations to keep in mind:

  • Eligibility Restrictions: Since the option is only available to U.S.-based merchants and their customers, it limits the applicability for international transactions.
  • Possible Interest Rates: Depending on the chosen installment plan, customers might need to pay interest, which can affect the overall appeal of this option for them.


Shop Pay Installments is a powerful tool in the Shopify merchant's arsenal, enhancing the customer shopping experience by providing a flexible, transparent, and user-friendly option to pay in installments. By understanding how to activate and effectively utilize Shop Pay Installments, merchants can potentially see improved conversion rates, heightened average order values, and build stronger customer relationships.

As e-commerce continues to evolve, staying informed about and offering various payment options can set your Shopify store apart and meet the dynamic needs of today's shoppers. Consider integrating Shop Pay Installments into your payment methods to unlock these benefits and drive your business forward.


Q: Are Shop Pay Installments available to merchants outside the U.S.? A: No, Shop Pay Installments are currently available exclusively to merchants based in the United States who sell in USD and have Shopify Payments and Shop Pay activated.

Q: Do customers accrue any late fees for missed payments? A: For the four biweekly payments, there are no late fees. However, the monthly installment plans could involve interest rates, affecting the total cost if not managed properly.

Q: How quickly do merchants get paid for installment purchases? A: Merchants receive full payment for installment orders within 1 to 3 business days, excluding the fee incurred for using Shop Pay Installments.

Q: Can Shop Pay Installments be used for any product? A: Shop Pay Installments can be applied to nearly all products, excluding gift cards and subscription products, provided the order amount falls within the eligible range of $50 to $20,000.