Member Exclusive, Payments

Affirm’s new deal with Shopify bakes it into Shop Pay Installments

  • The partnership gives Affirm a new distribution route with access to 1.7 million merchants.
  • A Barclays report says investors are underappreciating the partnership but that there’s no need.
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Affirm’s new deal with Shopify bakes it into Shop Pay Installments

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. 

As such, the launch of Shop Pay Installments couldn’t have come at a better time. 


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