How to add Afterpay to Shopify

TL;DR

• Afterpay allows customers to buy now and pay in four equal installments, increasing sales and reducing cart abandonment.

• It’s available in countries like Australia, the US, UK, and New Zealand, and works with Shopify payments or compatible gateways.

• To add Afterpay, check eligibility, create an Afterpay merchant account, and get your API credentials.

• Afterpay can increase conversion rates, boost average order value, and attract younger customers.

• It offers no hidden fees or interest for customers who pay on time, building trust and encouraging repeat purchases.

• Amazon sellers can benefit from an Amazon consultant to help set up Afterpay, optimize their  Shopify store, and grow their business.

Did you know that 44% of shoppers are more likely to buy if they can use a service like Afterpay?

Adding Afterpay to your Shopify store could help boost your sales and attract more customers. Afterpay lets buyers buy now and pay later in easy installments, which makes it easier for them to afford your products.

By offering Afterpay, customers can pay in four equal payments, which can lead to more sales and higher order values. Many Amazon sellers using Afterpay often see a 20-30% increase in sales and a drop in cart abandonment.

In this guide, we’ll show you how to add Afterpay to your Shopify store. From checking if you're eligible to setting it up as a payment method, we’ll walk you through everything you need to know. Offering Afterpay will make shopping easier for your customers and help grow your business. 

What is Afterpay? 

Afterpay lets customers buy now and pay later in four equal payments over six weeks. If they pay on time, there are no extra charges. This helps them manage their budget easily. For businesses, Afterpay pays the full amount upfront, so there’s no risk of missing payments.  It’s a simple and safe way to make shopping easier for both customers and store owners.

This concept can be understood with an example: Imagine you’re selling high-end kitchen appliances on Amazon. A potential customer wants to buy a $400 coffee machine but hesitates due to the price. With Afterpay, they can split the cost into four payments of $100 over six weeks, making the purchase more affordable. 

You, as the seller, receive the full $400 immediately from Afterpay, reducing your financial risk while increasing your sales. This payment option can help drive more conversions and reduce abandoned carts, especially for higher-priced products.

Why offer Afterpay on Shopify?

Adding Afterpay to Shopify can help your store in many ways. 

• More sales: Customers buy more when they can pay in smaller amounts. Many stores report a 22-30% increase in sales after adding Afterpay, leading to more revenue. For that, you can choose Shopify ecommerce development experts who audit your Shopify store and identify the best for your business. 

• Higher order value: Shoppers add extra items when they can split payments. A customer planning to buy a $50 item may add another $50 item because they don’t have to pay all at once.

• Better shopping experience: Customers like flexible payments and are more likely to return. Offering Afterpay can make them choose your store over others.

• Fewer abandoned carts: High prices scare customers away, but Afterpay lets them pay in parts, making purchases more affordable.

• Attract more shoppers: Many buyers look for stores that accept Afterpay. Promoting it can bring in new customers who prefer to pay in installments.

• Steady cash flow: You get your money upfront while customers pay over time. This keeps your business running smoothly without payment delays.

Requirement  for adding Afterpay to Shopify

Before adding Afterpay, ensure you meet the necessary conditions to qualify. Checking these factors in advance will help you avoid setup issues and ensure a smooth integration process.

1. Check eligibility

Afterpay is available in multiple countries, allowing businesses in these regions to offer flexible payment options to their customers. If your store operates in one of these locations, you can integrate Afterpay and take advantage of its benefits.

2. Create an Afterpay merchant account 

To start using Afterpay,  you need to follow these simple steps:

• Go to Afterpay’s website and sign up.

• Fill in your business details, including store name, industry, contact info, and bank details.

• Upload required documents like tax ID or business registration proof.

• Afterpay will review your application, which may take a few days.

• Once approved, you’ll receive an email with your Merchant ID and Secret Key.

• Log in to your Afterpay merchant dashboard to confirm your details and set payment preferences.

After completing these steps, your store is ready to integrate Afterpay into Shopify and start offering customers flexible payment options.

3. Verify Shopify plan compatibility

Before integrating Afterpay, check if your Shopify plan allows it:

• If you use Shopify payments, you can integrate Afterpay directly without any additional setup.

• If Shopify payments are unavailable in your country, you will need to use an alternative payment gateway that supports Afterpay. Some gateways may charge additional fees, so check their terms before proceeding.

• Ensure your Shopify store is on a plan that allows third-party payment providers, as some lower-tier plans may have restrictions.

• Verify that Afterpay is enabled in your country’s Shopify settings to avoid any compatibility issues.

If you’re unsure, contact Shopify support or check your Shopify dashboard under settings > payments to see your available payment options. You can also refer to Afterpay’s official documentation for integration guidelines specific to your region.

How to add Afterpay to Shopify?

Adding Afterpay to your Shopify store is a simple way to let customers pay in installments. Here’s how to do it:

Step 1: Check eligibility 

First, make sure you’re eligible for Afterpay. It’s available in countries like Australia, the US, UK, and New Zealand. Also, your store must use Shopify payments or a compatible payment gateway to work with Afterpay. If your store meets these conditions, you’re ready to continue.

Step 2: Get Afterpay API credentials

Next, create an Afterpay merchant account by signing up on the Afterpay website. After signing up, you’ll receive API credentials (like a Merchant ID and API Key) that allow Shopify to connect with Afterpay. Keep these credentials safe, as you’ll need them to set up the payment method.

Step 3: Add Afterpay to Shopify

Now, it’s time to add Afterpay to your store:

• Go to Shopify admin and click Settings > payments.

• Scroll down to Alternative payment methods and select Afterpay.

• Enter the API credentials you got from Afterpay and click Save.

Once done, Afterpay will appear as a payment option at checkout, giving your customers more flexibility and helping boost sales. Furthermore, you can opt for Shopify store development services that provide real-time support and expert guidance. 

Benefits of using Afterpay on Shopify

Adding Afterpay to your Shopify store can bring several benefits that help grow your business and increase customer satisfaction. Here’s why you should consider using it:

• Increase conversion rates: Afterpay allows customers to split their payments into four equal installments, making it easier for them to afford your products. This flexibility encourages more customers to complete their purchase, improving your conversion rates. 

• Boost average order value (AOV): Shoppers are more likely to add extra items to their cart when they know they can pay in installments. This leads to a higher average order value and more revenue for your store.

• Attract more customers: Afterpay is especially popular with younger shoppers. Offering this option can attract a broader customer base, including those who prefer the flexibility of buy-now-pay-later services.

• No hidden fees or interest: Afterpay doesn’t charge interest or hidden fees if customers pay on time, which makes it an appealing option for buyers. This builds trust and encourages repeat purchases.

• Reduce cart abandonment: Offering Afterpay can help reduce cart abandonment by making it easier for customers to afford larger purchases. The ability to break payments into smaller amounts gives shoppers more confidence to complete their orders.

By adding Afterpay, you can improve the shopping experience for your customers and see an increase in sales and customer loyalty.

Final thoughts

Adding Afterpay to your Shopify store is a smart way to give your customers flexible payment options. This can help increase your sales and make it easier for customers to complete their purchases. 

If you're an Amazon seller looking to grow your business on Shopify, an Amazon consultant can help. We can guide you through setting up Afterpay, improving your store, and creating strategies to boost your sales. With expert help, you can make your Shopify store more successful and offer a better shopping experience for your customers.