: Returns can be more involved, as merchants must coordinate with the BNPL provider to halt or adjust a customer's payment schedule.

While Shop Pay Installments is the most seamless native option, Shopify supports several third-party providers via its App Store :

: BNPL transaction fees typically range from 1.5% to 7%, which is higher than standard credit card processing.

: When customers can pay over time, they are more likely to upgrade to premium items or add more to their cart. Studies show AOV increases of 20% to 50% after enabling installment options.

: A global leader popular in fashion and beauty, offering "Pay in 4" or monthly financing up to 24 months.

: High upfront costs are a leading cause of abandoned carts. Merchants using BNPL options have reported cart abandonment reductions of up to 28% .

Integrating BNPL, particularly through native solutions like Shop Pay Installments , provides measurable benefits for online stores:

: A major advantage is that merchants receive the full payment upfront (minus fees) from the provider, who then assumes the risk of customer default.