Affirm are an American lending company and have now partnered with the globally known ecommerce giants, Shopify. This new tag-team are offering customers payment plans for online purchases, and will be available to all US based Shopify stores.
While Affirm's financing options have already been available to select Shopify stores (including Boosted Boards), today's launch rolls out the feature to all merchants on the platform. If you are wondering how these new payment plans will work then, as a store owner all you have to do is opt into the payment option. This is the same method to how Shopify allow merchants accept Bitcoin.
Store owners have the decision of choosing how many instalments customers will be able to have in their payment plans. The company explained that this is because different item categories traditionally have different payment plan lengths. For example, customers normally prefer to pay off clothing in a shorter period of time than an item like a laptop or cell phone.
The CEO of the company, Max Levchin, has said that merchants who have adopted payment plans to their stores have experience a 30% increase in sales after using the financing platform to customers. The company is also seeing repeat purchases from 36 percent of Affirm users, which shows how valuable the new integration could be to Shopify merchants.
However this instalment payment plan may not be best for store owners that sell items that are off a lower retail value, it will still be great for store owner that sell items that are on the more expensive end of Shopify ecommerce spectrum.
In other ecommerce news this week...
Find out how Asda tries to redesign cluttered ecommerce site in a bid to adopt a lifestyle approach... https://twitter.com/fransgerber/status/636837463630172160
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Former Flipkart directors show sellers how to crack ecommerce... https://twitter.com/bsindia/status/637175300070084608
How to Design an Checkout Flow That Converts ... https://twitter.com/GrowthHackers/status/637102576341794816