Set up Shop Pay Installments in Shopify
Shop Pay Installments lets your customers split an order into smaller payments while you receive the full amount upfront. It is available only to stores that meet the eligibility requirements, have both Shopify Payments and Shop Pay activated, and have a business entity in the United States, Canada, or the United Kingdom, with the selling currency to match.
Written · Shopify admin, desktop steps · 4 minutes read
The worked example
| Order | $480.00 |
| Installments | 4 payments of $120.00 |
| APR on the standard option | 0% |
| Merchant receives | $480.00 upfront |
| Countries | United States, Canada, United Kingdom |
| Setting | Settings > Payments > Manage > Shop Pay Installments |
Download the record: installments-schedule.csv (153 bytes).
A payment schedule for the $480.00 order in this tutorial, with the four installments and the running balance. The installment column sums to $480.00.
1Check the eligibility
Shop Pay Installments is available only to stores that meet Shop Pay Installments eligibility requirements, have both Shopify Payments and Shop Pay activated, and have a business entity in the United States with USD as the selling currency, Canada with CAD, or the United Kingdom with GBP. If Shop Pay Installments is not displayed in the Shop Pay section, review the eligibility requirements for your store.
2Open Payments settings
From your Shopify admin, go to Settings > Payments.
3Open the Shopify Payments section
In the Shopify Payments section, click Manage.
4Select Shop Pay Installments
In the Shop Pay section, select Shop Pay Installments, and then click Save. After Shop Pay Installments is activated on an entity, it is available at checkout only for orders that are processed by that entity, and only when the checkout currency matches the entity's selling currency.
5Check the premium options
To check your eligibility for Premium installments options, click Manage under Shop Pay Installments. Eligibility for Premium installments options is determined using your store's overall average order value, not the average order value of each entity.
6Check the checkout shows the split
Place a test order and confirm the checkout offers the installment option. On a $480.00 order the customer sees four payments of $120.00, and you receive the full $480.00 upfront.
The arithmetic
The standard option is four equal payments at 0% APR:
| Order | Payments | Each payment | Merchant receives |
|---|---|---|---|
| $480.00 | 4 | $120.00 | $480.00 upfront |
| $360.00 | 4 | $90.00 | $360.00 upfront |
| $240.00 | 4 | $60.00 | $240.00 upfront |
Each payment is the order total divided by four: $480.00 divided by 4 is $120.00, $360.00 divided by 4 is $90.00, and $240.00 divided by 4 is $60.00. With 0% APR the four payments add up to exactly the order total, so the customer pays no interest on the standard option.
Held at the counter
Installments are per entity, not per store. For existing business entities, you activate Shop Pay Installments separately on each eligible entity, including secondary entities. Turning it on for the primary entity does not turn it on for a secondary entity.
The currency must match the entity. After Shop Pay Installments is activated on an entity, it is available at checkout only for orders that are processed by that entity, and only when the checkout currency matches the entity's selling currency. A USD order cannot use a CAD entity's installments.
Missing from the menu means ineligible. If Shop Pay Installments is not displayed in the Shop Pay section, review the eligibility requirements for your store. Do not look for it in another menu: the option appears only when the store qualifies.
Sources
- Activating Shop Pay Installments — Shopify's help pages: the eligibility requirements, the activation steps, the per-entity rule, and the premium options note.