For commerce companies selling big-ticket items, it can be challenging to move buyers from consideration to checkout. But sticker shock doesn’t have to be a sticking point. That’s where buy now, pay later (BNPL) plans come in. BNPL plans like Shop Pay Installments can drive more sales by allowing buyers to split large purchases into smaller, more manageable payments over time.
With Shop Pay Installments purchasing power, retailers can show your buyers their purchasing power even earlier in the buying process. Now you can display estimated payment amounts directly on your product pages—making it easier for customers to check out with confidence.
Here’s how the internet’s best-converting checkout prequalifies buyers, helps you increase your conversion rates and average order value.
Table of contents
- What is Shop Pay Installments purchasing power?
- What are Shop Pay Installments purchasing power banners?
- What are the benefits of Shop Pay Installments banners?
- How Shop Pay Installments purchasing power banners work
- Add purchasing power banners to your product pages
- Shop Pay Installments purchasing power FAQ
What is Shop Pay Installments purchasing power?
Shop Pay Installments purchasing power estimates how much a buyer is eligible to spend on a retailer’s store. Shop Pay Installments informs buyers of their purchasing power directly in your online store, helping them understand how far their money can go.
Businesses using Shop Pay Installments experience up to a 50% increase in average order value and up to 28% fewer abandoned carts.*
Shop Pay Installments automatically prequalifies buyers the first time they choose the BNPL option on a Shopify store. After a buyer is deemed prequalified, they can shop at any other participating store, without going through the prequalification process again. Prequalification refreshes every seven days, ensuring that information stays current and buyers know their payment options.
Here's an example of how it works. Let's say a buyer is interested in buying a $1,001 side table. Shop Pay Installments informs the customer that they can buy it today, by choosing a plan to pay $90.35 monthly over 12 months at 15% APR. Rather than abandoning their cart, the customer knows they can make their order now, and choose the payment plan that best fits their budget.
Purchasing power estimates help your customers understand their payment options, so they can complete their purchase while selecting a budget-friendly plan. Purchasing power allows businesses to provide customers with the information they need to buy with confidence.
Retailers can also understand how many of their buyers are prequalified. Not all buyers will be prequalified, and some may be declined based on specific criteria. This is only revealed if buyers interact actively with the purchasing power features. Businesses can use prequalification status data in marketing efforts, with messages like, “[X number] of Shop buyers are already prequalified for installments.”
Buyers who know their payment options upfront are more likely to complete checkout. They’re also more likely to add more items to their cart, increasing average order value. It’s a win-win for customers and retailers.
What are Shop Pay Installments purchasing power banners?
Shop Pay Installments banners are strategically placed within your online store and display a buyer’s estimated purchasing power amount and available. payment options. The banners help your customers see they might be eligible for a buy now, pay later plan. Banners can appear in two places in your store: on the product detail page and in carts.
Product detail page banners
A product detail page banner is exactly what it sounds like: a banner that shows an estimated payment amount on your product’s webpage. These banners appear directly below the full price of a product. Product detail page banners let your customers see their payment options early in their buying journey, so they can make an informed purchase on their terms.
If a buyer isn’t logged in, the product detail page will remain unchanged. For buyers who are logged in and prequalified, Shop Pay Installments can display their eligible purchasing power directly on the page. During checkout, prequalified buyers will be informed of their status and the exact amount they are prequalified for, increasing transparency and building trust in the purchasing process.
Cart banners
Purchasing power banners also display in your customer’s cart. Your customers can see cart banners below the subtotal on the cart page before completing checkout. Cart banners help customers see they might be eligible for flexible payments, so they’re more likely to make the purchase.
What are the benefits of Shop Pay Installments banners?
Higher conversion rate
Shop Pay Installments banners make it clear to customers that paying in full isn’t their only option. With product detail page banners, you can reach customers as soon as they’re interested in a product and keep them on the path to checkout. When customers know manageable payment options are available, they’re more likely to buy higher-priced items. In fact, businesses using Shop Pay Installments experience up to 28% fewer abandoned carts.*
Increased average order value (AOV)
Companies using Shop Pay Installments see up to a 50% increase in average order value.* When customers know they can pay incrementally instead of all at once, they’re more likely to add other items to their carts. Banners on both the product detail page and cart ensure your customers know their options.
Sleep brand Pillow Cube has seen the positive impact Shop Payment Installments can have first hand.
“Shop Pay Installments is now 6.5% of our GMV [gross merchandise volume]. We’ve also seen a consistent increase in our average order value rate,” says Will Beck, director of business development at Pillow Cube.
For Pillow Cube, Shop Pay Installments drove 10 times more installments revenue than its previous provider.
Shop Pay Installments is now 6.5% of our GMV. We’ve also seen a consistent increase in our average order value rate.
Improved customer confidence
Purchasing power banners on your product detail pages and in carts provide the transparency customers need to make informed purchases. With estimated payment options and a prequalification amount provided upfront, purchasing power banners help customers understand how your products fit into their budget. Customers get a clear picture of pricing, so they feel more confident completing bigger purchases and adding more to their carts.
How Shop Pay Installments purchasing power banners work
Shop Pay Installments purchasing power banners are only available to businesses based in the United States, selling in USD, and that have both Shopify Payments and Shop Pay activated.
If you’re eligible and using default themes, banners will be shown on your store automatically. For retailers using custom themes, you can use the following help center resources to add your banners:
If you’re using custom themes, you can also work with a Shopify Expert partner at HeyCarson to help you set up your banners free of charge.
Add purchasing power banners to your product pages
Knowledge is purchasing power. Give your customers more insight into their payment options and drive higher conversion rates and larger cart sizes. Shop Pay Installments purchasing power banners ensure your customers know they can make the most of their budget, so you can make the sale.
Read more
- How Shop Pay Installments Drove 10x More Installments Revenue for Pillow Cube
- Shop Pay Is the Best-Converting Accelerated Checkout on the Internet
- Shop Pay Installments Is the Best ‘Buy Now, Pay Later’ Option
- Shop Pay Installments Introduces Monthly Payment Options
- Introducing Shop Pay Installments Premium: Increase Order Value With More Extended Payback Periods
- Buy Now, Pay Later: A Tool for Driving Online Sales
Shop Pay Installments purchasing power FAQ
Is my store eligible for Shop Pay Installments?
In order to use Shop Pay Installments, you need to be based in the United States, selling in USD, and have both Shopify Payments and Shop Pay activated.
Log in to check your eligibility and add Shopify’s buy now, pay later solution in just a few clicks. With Shop Pay Installments, you can track sales and fees right from your store’s admin.
What happens if customers don’t make their payments?
Shop Pay Installments is powered and serviced by Affirm. Affirm is responsible for collecting installment payments from your customers, and you aren’t at risk if your customers stop making payments. You’ll always get paid in full, upfront.
How do I add purchasing power banners to my product pages and cart?
To add purchasing power banners to your store, you can use the help center instructions below:
If you need help, you can also work with a Shopify Expert at HeyCarson to set up your banners at no cost to you.
*These statistics are based on internal Shopify data. The sample size consisted of 281 merchants using Shop Pay Installments with varying financial packages. Individual results may vary.
Purchasing power is an estimate of what a consumer can spend using Shop Pay Installments. Rates from 0%–36% APR. Payment options through Shop Pay Installments are subject to eligibility, may not be available everywhere, and are provided by Affirm’s lending partners: affirm.com/lenders. Options depend on your purchase amount, and a down payment may be required. More options may be available upon approval. State notices to consumers: affirm.com/licenses.
