Running a successful Shopify store isn’t just about having great products—it’s also about offering customers flexible payment options that make shopping easier. One of the most popular methods in recent years is Afterpay, a “buy now, pay later” (BNPL) solution that allows customers to split their purchases into smaller installments with no interest if payments are made on time. For merchants, this can mean fewer abandoned carts, higher average order values, and happier customers.
If you’re wondering how to integrate Afterpay into your Shopify store, this guide will walk you through everything step by step—from understanding how it works to setting it up, customizing it, and making the most of it.
What is Afterpay and How Does it Work?
At its core, Afterpay is a BNPL (Buy Now, Pay Later) service. Instead of paying the full cost upfront, customers can split their purchase into four equal installments paid every two weeks.
Here’s a simple example:
- If a customer buys a $200 item, they’ll pay $50 at checkout.
- The remaining $150 will be paid in three equal biweekly payments of $50.
- As long as payments are made on time, the customer doesn’t pay any interest or extra fees.
Why do customers love Afterpay?
- Flexibility: They can buy higher-ticket items without the financial burden of paying in full.
- Accessibility: Younger customers, especially Gen Z and Millennials, often prefer BNPL to credit cards.
- No hidden costs: Unlike credit cards with high interest, Afterpay charges no interest if payments are on time.
Why should merchants use Afterpay?
- Increased conversions: Shoppers are less likely to abandon their carts when they see they can split payments.
- Higher average order values (AOV): Customers are willing to spend more if they don’t have to pay everything at once.
- Broader customer base: You can attract customers who might not otherwise buy due to budget constraints.
In fact, many Shopify stores report that simply adding Afterpay visibly improves sales performance.
Requirements Before Adding Afterpay to Shopify
Before diving into setup, you need to make sure you meet Afterpay’s requirements.
- Shopify Store
- You must have an active Shopify store already set up with products and payment settings.
- Region Eligibility
- Afterpay is not available everywhere. It currently operates in the U.S., Canada, Australia, New Zealand, and parts of Europe (as Clearpay). If your store operates outside these regions, you may not be able to offer it.
- Business Eligibility
- Certain industries are restricted. For example, Afterpay usually doesn’t support merchants selling alcohol, gambling-related products, firearms, or adult content.
- Your business must comply with Shopify’s own payment policies as well.
- Afterpay Merchant Account
- You’ll need to apply for and get approved as an Afterpay merchant. This gives you the credentials required to connect Afterpay to your Shopify store.
Meeting these requirements ensures a smooth setup process.
Steps to Add Afterpay to Shopify
Here’s the complete process, broken down into manageable steps.
Step 1: Apply for an Afterpay Merchant Account
- Go to Afterpay’s official site.
- Navigate to the Business or For Merchants section.
- Click Sign Up and complete the merchant application form.
- You’ll need details like your business name, website URL, Shopify store link, product categories, and bank details.
- Submit the application and wait for review.
The approval process can take anywhere from a few days to a week, depending on your business type and region. Once approved, you’ll receive your Merchant ID and Secret Key. Keep these handy—you’ll need them to connect Afterpay to Shopify.
Step 2: Add Afterpay in Shopify Payments
- Log into Shopify Admin.
- Go to Settings > Payments.
- Scroll down to Alternative Payment Methods.
- Click Choose Alternative Payment.
- Search for Afterpay (or Clearpay in Europe).
- Select it and click Activate.
- Enter the Merchant ID and Secret Key provided by Afterpay.
- Save your settings.
Once saved, Afterpay becomes an available payment method at checkout.
Step 3: Customize Afterpay Display on Your Store
Enabling Afterpay isn’t enough—you need to make sure shoppers see it.
Add Messaging to Product Pages
- Example: “or 4 interest-free payments of $25 with Afterpay.”
- Shopify themes can be customized to show this message automatically under the product price.
Use Afterpay Widgets
- Afterpay provides widgets and logos you can integrate into your store.
- Place them strategically on product pages, cart pages, and even your homepage.
Include Afterpay in Marketing Materials
- Add “Now offering Afterpay” banners to your website.
- Highlight it in your email marketing campaigns and social media posts.
By doing this, you let customers know upfront that Afterpay is an option—making them more likely to buy.
Testing and Confirming Setup
Before going live, you should confirm everything works smoothly.
- Place a test order using Afterpay.
- Walk through the checkout process like a customer.
- Confirm that the order shows up in your Shopify Admin.
- Log into your Afterpay Merchant Portal to make sure the transaction appears there too.
Testing ensures your customers won’t run into issues when paying with Afterpay.
Tips to Maximize Sales with Afterpay
Adding Afterpay can give you a big boost—but you’ll get the most out of it by actively promoting it.
- Homepage Callouts
- Add a hero banner or announcement bar saying: “Shop now, pay later with Afterpay.”
- Encourage Larger Purchases
- Example: Instead of a $300 upfront payment, frame it as “4 payments of $75.”
- This psychological shift makes higher-priced items more attractive.
- Leverage Holidays and Special Events
- During peak shopping seasons (Black Friday, Christmas, Back-to-School), highlight Afterpay as a stress-free way to buy gifts.
- Use Customer Reviews
- Share testimonials from shoppers who used Afterpay to emphasize its convenience and reliability.
- Social Media Marketing
- Create short posts or reels showing how easy it is to check out with Afterpay.
When promoted well, Afterpay can become a key driver of conversions.
Troubleshooting Common Issues
Even with a smooth setup, you might run into hiccups. Here are common issues and solutions:
- Afterpay not showing at checkout
- Ensure your store is in a supported region.
- Double-check currency compatibility (e.g., USD, AUD, GBP).
- Invalid API Credentials
- Recheck your Merchant ID and Secret Key for typos.
- Customer Eligibility Issues
- Not all customers qualify for Afterpay. If they don’t meet Afterpay’s requirements, the option won’t appear for them.
- Theme Customization Problems
- If Afterpay messaging isn’t displaying properly on product pages, check if your theme supports it or manually add the widget code.
If you’re stuck, Afterpay has a merchant support team you can contact directly.
Conclusion
Adding Afterpay to your Shopify store isn’t just a technical tweak—it’s a powerful business move that can transform your sales. Customers today value flexibility, and by offering them a way to “buy now, pay later,” you make your store more attractive, accessible, and competitive.
The process is straightforward: apply for an Afterpay merchant account, enable it in Shopify, customize how it’s displayed, and test to ensure everything works. From there, the real magic happens when you actively promote Afterpay through your product pages, marketing campaigns, and customer communications.
By doing so, you’ll not only reduce cart abandonment but also encourage larger purchases and foster stronger customer loyalty. In the fast-moving world of eCommerce, that kind of edge is invaluable. If you haven’t added Afterpay yet, now is the time—it might just be the upgrade your Shopify store needs to reach the next level.
