--- title: "Shopify Buy Now Pay Later Setup Guide" description: "Set up BNPL on Shopify with Afterpay, Klarna, and Shop Pay Installments. Step-by-step configuration, provider comparison, and optimization tips for maximum conversion impact." url: https://easyappsecom.com/guides/shopify-buy-now-pay-later-setup.html date: 2026-03-20 --- # Shopify Buy Now Pay Later Setup Guide EasyApps Ecommerce Shopify Buy Now Pay Later Setup: Complete Configuration Guide for Maximum Conversions By Jack Smith — Updated March 20, 2026 — 14 min read Key takeaway: BNPL options increase checkout conversion by 20-30% and are expected by 60% of online shoppers in 2026. Setup takes under 30 minutes for most providers. Merchants receive full payment upfront while customers pay in installments. BNPL Overview for Shopify Buy Now Pay Later has evolved from a niche feature to a customer expectation. In 2026, 60% of online shoppers expect BNPL options at checkout, and 35% have abandoned a purchase because BNPL was not available. For Shopify merchants, adding BNPL is one of the highest-ROI checkout optimizations available. The BNPL model is simple from the merchant's perspective. The customer selects an installment plan at checkout. The BNPL provider approves the customer instantly and pays you the full order amount (minus a processing fee) within 1-3 business days. The provider then collects installment payments from the customer over time. You bear no credit risk. Multiple BNPL providers integrate with Shopify: Shop Pay Installments (Shopify's native solution), Afterpay (owned by Block/Square), Klarna (Swedish fintech), and Affirm (US-based). Each has different strengths, pricing, and geographic coverage. Most stores benefit from offering 2-3 providers to maximize customer coverage. The setup process for each provider is straightforward and typically takes 15-30 minutes. The most time-consuming part is not the technical setup but the optimization: configuring product page messaging, testing the checkout flow, and monitoring performance metrics to ensure BNPL is driving the expected conversion and AOV improvements. Shop Pay Installments Configuration Shop Pay Installments is the easiest BNPL to set up on Shopify because it is built into Shopify Payments. No additional app installation is required — just toggle it on in your payment settings. Step-by-Step Setup Navigate to Settings, then Payments, then Shopify Payments, then Manage. Scroll to the Shop Pay section. Enable Shop Pay Installments by checking the box. Choose your installment options: Pay in 4 (for orders $50-999), Monthly Installments (for orders $150-17,500), or both. Click Save. After saving, Shop Pay Installments appears automatically at checkout for eligible orders. The customer sees the installment option alongside standard payment methods. No additional configuration is needed for checkout integration. Adding Product Page Banners To show installment pricing on product pages, add the Shop Pay Installments banner to your theme. In your theme editor, navigate to the product page template. Look for a "Shop Pay Installments banner" section or block. If your theme supports it, enable it and position it below the product price. If your theme does not have a built-in installment banner, add it manually using Shopify's shop-pay-installment-banner web component. Add the following snippet to your product template below the price element. The banner automatically calculates and displays the per-installment amount based on the current product price. Verification After setup, test the complete flow. Visit a product page and verify the installment banner shows the correct per-payment amount. Add the product to cart and proceed to checkout. Verify the Shop Pay Installments option appears in the payment methods. Select it and confirm the payment schedule is displayed correctly. Afterpay Integration Guide Afterpay is the most recognized BNPL brand among younger shoppers. It offers pay-in-4 installments with no interest and no fees for customers who pay on time. Afterpay has over 16 million active users in the US alone. Installation Install the Afterpay app from the Shopify App Store. The app connects your store to Afterpay's payment network. You will need to create an Afterpay merchant account during installation. The approval process typically takes 1-2 business days, though some merchants are approved instantly. After approval, Afterpay appears as a payment method at checkout. The app also adds an Afterpay messaging widget to your product pages and cart that shows the per-installment amount. Configuration In the Afterpay app settings, configure the minimum and maximum order amounts for Afterpay eligibility. The default range is $35-$1,000. Adjust these thresholds based on your product pricing. Also configure the product page widget style to match your store's design — Afterpay offers several badge styles and color options. Afterpay charges merchants 4-6% per transaction plus $0.30 per transaction. The exact rate depends on your sales volume and industry. Higher-volume merchants can negotiate lower rates. Compare this to the conversion lift Afterpay provides — for most stores, the ROI is strongly positive. Optimization Tips Place the Afterpay badge prominently below the product price on all product pages. Enable Afterpay messaging on collection pages as well — showing "from $X/payment" in product grids increases click-through rates. Use Afterpay's cross-marketing features to appear in Afterpay's Shop Directory, which drives additional traffic to your store from Afterpay's customer base. Klarna Setup on Shopify Klarna offers the broadest range of payment options among BNPL providers: Pay in 4, Pay in 30 days, and longer-term financing with monthly payments. This flexibility makes Klarna ideal for stores selling products across a wide price range. Installation Install the Klarna Payments app from the Shopify App Store. Create a Klarna merchant account during the installation process. Klarna's merchant approval typically takes 1-3 business days. Once approved, Klarna payment methods appear at checkout. Klarna supports merchants in 45+ countries across North America, Europe, and Oceania. If you sell internationally, Klarna provides broader coverage than Shop Pay Installments (US only) or Afterpay (US, UK, Australia, Canada). Payment Options Configuration In the Klarna app, choose which payment options to offer. Pay in 4 splits the purchase into four interest-free biweekly payments. Pay in 30 gives the customer 30 days to pay with no interest. Financing offers monthly payments over 6-36 months, potentially with interest based on the customer's credit profile. For most stores, enable Pay in 4 and Pay in 30. These interest-free options have the highest adoption rates. Add longer-term financing only if you sell products above $500 where 4-payment plans produce per-installment amounts above $125. On-Site Messaging Klarna provides on-site messaging widgets for product pages, cart pages, and collection pages. Configure these in the Klarna app settings. The widgets dynamically show the per-installment amount and Klarna's recognizable pink branding. Place them directly below the product price for maximum visibility. Klarna also offers a "Sign in with Klarna" feature that allows Klarna customers to auto-fill their checkout information. This combines BNPL functionality with express checkout speed, creating a powerful dual benefit for Klarna users. Affirm Financing Configuration Affirm specializes in longer-term financing for higher-priced items. It offers monthly payment plans from 3 to 60 months, making it the best choice for stores selling products above $500. Installation and Approval Install the Affirm app from the Shopify App Store. Create an Affirm merchant account. Affirm's approval process takes 2-5 business days and includes a review of your product category and business history. Not all product categories are eligible — Affirm does not support certain categories like financial products or gambling. Configuration After approval, configure Affirm in the app settings. Set the financing terms you want to offer: 0% APR for 3-12 months (merchant-subsidized), or customer-financed APR for longer terms. Merchant-subsidized 0% APR plans cost more in processing fees (typ...