Despite the benefits, merchants must weigh the costs and operational changes:

Ultimately, BNPL is shifting from a "luxury" feature to a standard expectation at checkout , especially for brands targeting younger, mobile-first audiences. Getting paid for orders placed using Shop Pay Installments

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

: 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.

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

: Highly favored by younger demographics (Gen Z and Millennials), focusing on interest-free biweekly payments .

Shopify Buy Now Pay Later May 2026

Despite the benefits, merchants must weigh the costs and operational changes:

Ultimately, BNPL is shifting from a "luxury" feature to a standard expectation at checkout , especially for brands targeting younger, mobile-first audiences. Getting paid for orders placed using Shop Pay Installments shopify buy now pay later

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

: 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. Studies show AOV increases of 20% to 50%

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

: Highly favored by younger demographics (Gen Z and Millennials), focusing on interest-free biweekly payments .