With the official launch of Shop Pay Installments, the Shopify-Affirm partnership is finally reaping dividends.
Earlier this month, Affirm and Shopify announced that they were bringing Shop Pay Installments, a custom-built BNPL solution for the e-commerce platform, to all of Shopify’s U.S. merchants. Affirm benefits from the partnership with a native integration that gives it access to 1.7 million Shopify merchants and millions more in customers.
Affirm hasn’t had a terribly rough year — GMV and active consumers grew 83 percent and 60 percent year-over-year, respectively. Affirm also more than doubled merchant volume on its platform from last year — 141 percent growth, according to its third quarter results. However, its position in the market has been shaken quite a bit. In Q42018, Affirm accounted for 78 percent of all top BNPL app downloads in the U.S. — by Q12021, Afterpay and Klarna made up a combined 60 percent of BNPL downloads and reduced Affirm to just 16 percent.
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