Shop Pay Options: Installments, One-Tap Checkout, and More

Understanding Shop Pay Options For Your Ecommerce Business

Shop Pay is one of several checkout options available to Shopify merchants. It is designed to increase speed and convenience at checkout, especially for returning customers.

For ecommerce businesses using Shopify, understanding how Shop Pay works is useful when evaluating different payment options. It is also important to understand how it compares to standard checkout and how it may affect the customer's experience.

This article explains the different features and setup steps for Shop Pay, including how installments work, how to activate it, and how to use it to support your storefront's goals.

What Is Shop Pay And How Does It Work

Shop Pay is Shopify's accelerated checkout system that saves customer information for faster future purchases. When shoppers use Shop Pay for the first time, they enter their email, shipping details, and payment method. This information is securely stored for later use.

On return visits to any store with Shop Pay, customers receive a verification code via text message. After entering this code, they can complete checkout with a single tap instead of re-entering all their information.

The main advantage is speed—Shop Pay checkouts are up to four times faster than regular checkouts. Shop Pay's lightweight JavaScript implementation enables 4x faster checkout speeds compared to conventional payment gateways, with median transaction completion times of 8.2 seconds versus 34.5 seconds for standard checkouts. This reduces friction that often leads to abandoned carts.

The main advantage is speed—Shop Pay checkouts are up to four times faster than regular checkouts. This reduces friction that often leads to abandoned carts. External studies demonstrate that Shop Pay converts 50% better than guest checkouts and outperforms competing accelerated payment systems by at least 10%.

• Security focus: Shop Pay encrypts payment details and uses two-factor authentication through text message verification
• Mobile optimization: The checkout process works smoothly on phones and tablets
• Cross-store functionality: Information saved on one Shopify store works across all stores using Shop Pay

Shop Pay also appears on social media platforms like Instagram and Facebook where Shopify merchants sell products. This creates a consistent experience regardless of where customers shop.

How Shop Pay Installments Let Customers Shop And Pay Over Time

Shop Pay Installments divides purchase costs into smaller, more manageable payments. This buy-now-pay-later option helps customers buy products they might otherwise delay purchasing due to budget constraints.

For merchants, offering installment options often increases average order value. The introduction of Shop Pay Installments correlates with a 22-50% increase in Average Order Value across verticals, with luxury brands seeing 63% higher AOV when offering 36-month payment plans. Customers tend to add more items to their cart when they can spread payments over time without immediate budget pressure.

OptionPayment StructureInterestTypical Purchase RangePay in 4Four equal payments every two weeksNo interest$35-$1,000Monthly paymentsMultiple payments over 3-36 monthsMay include interest$150-$30,000

When a customer selects Shop Pay Installments at checkout, they see a quick application form. Approval typically takes just seconds, with no disruption to the shopping experience.

For merchants, offering installment options often increases average order value. Customers tend to add more items to their cart when they can spread payments over time without immediate budget pressure.

Cart abandonment rates also tend to drop when flexible payment options are available. Many shoppers abandon carts when faced with a total price higher than expected, but installments make these purchases more accessible.

Does Shop Pay Credit Check Or Affect Financing

Shop Pay partners with Affirm to handle the financial side of installment payments. The credit check process varies depending on which payment plan the customer chooses.

For Pay in 4 plans (four bi-weekly payments), Affirm typically performs only a soft credit check. This type of inquiry doesn't impact credit scores and is mainly used to verify identity and basic eligibility.

• Soft credit check: Doesn't affect credit score, used for Pay in 4 plans
• Hard credit check: May affect credit score, sometimes used for monthly payment plans with larger purchase amounts

Monthly payment plans, especially for larger purchases, might require a more thorough evaluation including a hard credit check. These checks can temporarily lower credit scores by a few points.

The approval process happens during checkout and takes only seconds in most cases. Approval rates vary based on factors like credit history, income, and current financial obligations.

Customers who don't qualify for installments can still complete their purchase using regular payment methods like credit cards or Shop Pay's standard one-tap checkout.

Setting Up Shop Pay In 4 Steps For Your Ecommerce Business

1. Enable Shopify Payments

Shop Pay requires Shopify Payments to be active on your store. Log into your Shopify admin dashboard, click "Settings" in the lower left, then select "Payments." If you haven't already set up Shopify Payments, you'll need to complete this step first.

During setup, you'll provide basic business information and banking details for deposits. Shopify Payments is available in 17 countries, including the US, Canada, UK, and Australia.

2. Activate Shop Pay And Shop Pay Installments

Once Shopify Payments is active, find the "Accelerated checkouts" section in your payment settings. Toggle on Shop Pay to enable the one-tap checkout feature. For installments, click "Manage" next to Shop Pay Installments and follow the prompts to activate.

The activation process is straightforward, but Shopify may review your store before fully enabling installments. This review typically takes 1-2 business days and helps ensure your store meets their requirements.

3. Configure Shop Pay Payment Options

After activation, you can customize how Shop Pay works in your store. Set minimum and maximum order values for installment eligibility—typically starting at $35 minimum. You can also choose whether all products are eligible or exclude certain items.

The messaging that appears on product pages and at checkout can be adjusted in your theme settings. Clear communication about payment options often increases conversion rates.

4. Test The Checkout Experience

Before announcing Shop Pay options to customers, place a test order to verify everything works correctly. Use the Shopify test payment mode to avoid actual charges. Check both the customer-facing checkout flow and the merchant view of orders in your admin dashboard.

Pay special attention to how installment options appear during checkout and ensure the messaging is clear. Testing helps identify any issues before real customers encounter them.

Practical Tips To Maximize Conversions With Shop Pay Options

1. Simplify Your Product Pages

Adding Shop Pay information directly on product pages helps customers know their payment options before reaching checkout. This transparency can influence purchasing decisions, especially for higher-priced items.

Place a simple message like "Pay in 4 interest-free payments of $XX.XX with Shop Pay" near your "Add to Cart" button. This calculation helps customers mentally break down the purchase into manageable amounts.

![Example of Shop Pay messaging on a product page]

Many themes allow you to add this automatically through theme settings, without editing code. Platter's theme includes built-in support for displaying installment messaging in the optimal location.

2. Highlight Shop Pay 4 Payments At Checkout

The checkout page is your last chance to convert hesitant shoppers. Clear messaging about Shop Pay options can provide the final push needed to complete a purchase.

Focus on the most appealing aspects of Shop Pay:

• No interest on Pay in 4 plans
• Quick approval process
• Secure payment handling
• Flexible payment scheduling

Avoid cluttering the checkout with too many messages. Simple, direct information about payment options works best for reducing last-minute cart abandonment.

3. Promote Shop Pay Later In Marketing

Extend the reach of your Shop Pay options by including them in your marketing materials. Email campaigns announcing "Now offering interest-free installment payments" can bring previous visitors back to your store.

Social media posts highlighting "Shop now, pay later" options often generate engagement, especially before holidays or shopping seasons when budgets are tight.

For abandoned cart emails, mentioning flexible payment options directly addresses one of the most common reasons shoppers leave without purchasing—concern about the total cost.

Elevate Your Storefront With Flexible Payments

Adding Shop Pay options to your Shopify store is more than just another payment method—it's a way to meet modern shopper expectations. Today's customers value flexibility and convenience in how they pay.

The technical setup is straightforward, but the real value comes from thoughtful integration throughout the shopping experience. From product pages to checkout to marketing, consistent messaging about payment options creates confidence.

For stores using Platter's theme and app solutions, Shop Pay integration is even simpler. Our checkout extensions work seamlessly with Shop Pay to create a streamlined experience that maintains the look and feel of your brand throughout the payment process.

Post-purchase, Platter's tools continue supporting the customer journey with order tracking and communication that acknowledges their chosen payment method. This consistency builds trust and encourages repeat purchases.

Flexible payment options like Shop Pay help bridge the gap between what customers want and what they can afford right now. By removing this barrier, you create a shopping experience that feels accessible and customer-focused.

To explore how Platter can help optimize your Shopify storefront's payment experience and other key conversion elements, book a demo with our team.

FAQs About Advanced Shop Pay Options

Can customers combine Shop Pay Installments with discount codes?

Yes, customers can typically use discount codes alongside Shop Pay Installments. The discount is applied to the total purchase amount first, then the remaining balance is divided into installment payments. This allows shoppers to benefit from both sales and flexible payment options simultaneously.

Do international customers face additional fees when using Shop Pay?

International transactions using Shop Pay may include currency conversion fees depending on the customer's location and payment method. These fees are typically set by the customer's bank or credit card company rather than by Shopify or the merchant.

How does Shop Pay work with post-purchase upsells?

Shop Pay can work with post-purchase upsell apps, but the implementation varies by app. When a customer accepts an upsell after completing their initial purchase, they'll generally need to approve an additional charge using their saved Shop Pay information, which maintains the security of the transaction.