Affirm, Shopify launch Shop Pay in Australia

Affirm and Shopify have launched their Shop Pay Installments service in Australia. The launch marks Affirm's return to the Australian market and an expansion of its global partnership with the e-commerce platform.

Powered exclusively by Affirm, the service provides Australian shoppers with the option to pay for purchases over time. It uses the existing Shop Pay button that millions of customers already use. The companies state there are no hidden fees.

"Australians helped shape Buy Now, Pay Later as we know it, which is why we expect more from it than most," said Nitin Kashid, Australia Country Manager at Affirm, in the press release. He stated that Affirm built Shop Pay Installments for the future, offering flexible terms without late fees.

Service Details and Merchant Adoption

Shop Pay Installments allows eligible shoppers to split their purchases into fortnightly or monthly payments. Upon approval, shoppers can choose between interest-free or interest-bearing payment plans. They see the total cost before committing to a purchase.

Affirm underwrites each transaction individually, making real-time credit decisions. The company says it only approves shoppers after assessing their ability to repay. Affirm charges no late fees, account fees, or compounding interest.

For Shopify's Australian merchants, activating the service is described as simple. It can be switched on through the Shopify admin dashboard in a few clicks. The companies suggest it gives businesses of all sizes a tool to increase conversion rates and grow average basket sizes.

Global Context and Consumer Trust

Shop Pay Installments first launched in 2021. Since then, millions of shoppers have made billions of dollars in purchases using the service, according to the source. It is described as one of Shopify's most popular payment options in the US, Canada, and the UK.

"Shop Pay is the world’s highest-converting checkout, adopted by over 250 million buyers globally," said Rohit Mishra, VP of Product, Payments & Cross-Border at Shopify. He stated that with Affirm, merchants can extend that value by offering a simple and trusted way to pay over time.

The companies highlighted consumer loyalty in North America. There, more than 90% of Affirm purchases come from repeat customers. They cite this as a sign that a fair and transparent experience encourages repeat business.

Shopify and Affirm say they are continuing to roll out Shop Pay Installments to additional countries. They are targeting markets where merchants and consumers demand fair, high-performing pay-later options. The service is presented as an option merchants can endorse and customers can rely on.