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Buy Now Pay Later with Shop Pay

Buy Now Pay Later with Shop Pay

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What is Shop Pay?

Have you been a on a boutique online shop lately and wondered what that new Shop Pay option was all about? Shop Pay is a new buy now pay later option available in online shops that are powered by Shopify. 

Shop Pay allows you to save your information in your favorite stores for faster checkout next time. Shop Pay saves your shipping, billing, and payment information making it easier for you to check out fast and also pay in 4 easy installments. 

Shop Pay Buy Now Pay Later, How it Works

You have two options at checkout when you use Shop Pay. You can pay for the purchase in full, like a regular purchase. You can also choose Shop Pay Installments, which allows you to ‘buy now pay later.’

When you choose buy now pay later with Shop Pay you commit to making 4 equal payments, with 25% of the total paid at the time of purchase and the remaining 3 paid in equal intervals. To be eligible for Shop Pay Buy Now Pay Later, you must have a US shipping address.

Does Shop Pay check your credit?

Shop Pay Buy Now Pay Later does not affect your credit score. Affirm performs a soft credit check which is the equivalent of you checking your own credit. Since there’s no formal application for credit, it doesn’t affect your credit score. The inquiry doesn’t even show up on your credit report.

However, this also means that the payments you make using Shop Pay (Affirm), are not reported to the credit bureaus. This means you won’t get credit for on-time installment payments – it’s not a credit-builder account.

Is Shop Pay and Affirm the same?

Shop Pay installment agreements are powered by Affirm. The program is now available for all Shopify merchants in the US. Shop Pay powered by Affirm keeps you on the original website, so there’s a lower risk of fraudulent activity going to a third-party site.

Does Shop Pay charge a fee?

Shop Pay doesn’t charge any extra fees. Merchants and customers don’t pay anything for the service. Rather than paying for the total in full, you can break up your total in four equal installments without paying anything extra.

What stores use Shop Pay?

You can use Shop Pay anywhere you see the ShopPay symbol. It’s only available through Shopify stores, but it’s easy to spot by looking for the symbol on company websites and checkout pages.

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