Say, a point of sale credit provider currently working with over 2000 merchants, has partnered with the digital commerce marketplace, Shopify, to offer “Buy Now, Pay Later” payment options for merchants.
Approved “Shop Pay” customers will have the option of dividing their total bill, at the time of payment, into four equal payments, biweekly, without having to pay interest or other additional charges. Merchants participating in the offer will reportedly receive upfront payments (after a service fee has been deducted) and Affirm will collect payments from customers.
Max Levchin, founder and CEO of Affirm, stated that merchants who offer their customers an installment payment or installment plans generally see an increase in the number of purchases and people also buy more items when they are allowed to make smaller payments. .
“With online spending accelerating, many small businesses must reinvent themselves. By partnering with Shopify, the gold standard of commerce platforms for businesses that want to sell directly to consumers, we can help merchants seamlessly enable a payment option at checkout. By doing so, we are helping them reach new customers, particularly Gen Z and Millennials, who are looking for more transparent and flexible forms of payment. “
Affirm and Shopify confirmed that they would begin testing in the coming months. Shop Pay installment plans will be offered to approved US merchants later this year.
Buy now, pay later options have become increasingly popular around the world.
Afterpay, a digital platform that offers interest-free installment payment plans for online purchases, recently revealed which will offer “Buy Now Pay Later” payments for physical retail stores in the US market to buyers paying with Google Pay.
Fintech Spotii based in the United Arab Emirates (UAE) “Buy now, pay later” Announced on July 5, 2020 that Daman Investments had invested in its operations. Spotii is a digital payments platform that focuses on fashion, beauty and lifestyle brands.
PayPal (NASDAQ: PYPL) Announced This month it is expanding its “buy now, pay later” solutions to France, with a new installment product that will allow customers to split purchases into four equal payments over three months, virtually anywhere PayPal is offered.