Setting up Afterpay on your Shopify store is a great way to give your customers more flexible payment options and potentially increase your average order value. Afterpay is a buy-now-pay-later payment solution that allows customers to make purchases and pay for them in installments, without interest or fees (unless a payment is late). In this article, we’ll walk you through the steps to set up Afterpay on your Shopify store.
How Afterpay works
We need to know what we are integrating here. Afterpay is a popular “buy now, pay later” payment service that allows customers to make purchases and pay for them in installments over time. While it doesn’t charge interest on purchases, Afterpay does earn money in a few different ways:
- Merchant fees: Afterpay charges a fee to retailers for each transaction processed through its service. This fee is usually a percentage of the total transaction value and is paid by the retailer.
- Late fees: If a customer misses a payment, Afterpay may charge a late fee. This fee can vary depending on the country and the specific terms of the purchase.
- Foreign exchange fees: In countries where Afterpay operates across borders, it may charge a foreign exchange fee for transactions made in currencies other than the local currency.
- Customer acquisition: Afterpay also earns money by partnering with retailers to drive traffic to their sites and acquire new customers. By offering Afterpay as a payment option, retailers can attract shoppers who might not otherwise make a purchase due to the high cost upfront.
Overall, Afterpay’s revenue model is based on a combination of merchant fees and late fees, as well as additional fees in some cases. By offering a convenient and flexible payment option, Afterpay has become a popular choice among consumers, particularly for online shopping. However, it’s important for customers to under
Set up Afterpay on Shopify
Now that we understand Afterpay, let’s learn how to set up Afterpay on Shopify.
Step 1: Create an Afterpay Account
Before you can set up Afterpay on your Shopify store, you’ll need to create an Afterpay account. Go to the Afterpay website and sign up for an account. You’ll need to provide some basic information about your business, including your merchant ID and the country of your Afterpay account. Once you’ve created your account, you’ll be able to access the Afterpay merchant portal.
Step 2: Install the Afterpay App on your Shopify Store
To set up Afterpay on your Shopify store, you’ll need to install the Afterpay app. Go to the Shopify App Store and search for “Afterpay”. Once you find the Afterpay app, click “Add app” to install it on your store.
Step 3: Configure the Afterpay Payment Settings
After you’ve installed the Afterpay app, you’ll need to configure the payment settings. To do this, go to your Shopify admin panel and click on “Settings” and then “Payments”. Scroll down to the “Alternative payments” section and click “Choose alternative payment”. Select “Afterpay” from the list of payment providers.
You’ll need to enter your Afterpay merchant ID and select the countries where you want to offer Afterpay as a payment option. You can also choose whether you want to offer full upfront payments or flexible payment options. You can also set up late fees and interest rates if you choose to offer the flexible payment option.
Step 4: Add the Afterpay Snippet to your Shopify Theme
To make Afterpay visible on your product and cart pages, you’ll need to add the Afterpay snippet to your Shopify theme. This involves editing your theme’s code, so it’s important to be careful and follow the instructions carefully. If you’re not comfortable editing code, you may want to hire a developer to help you.
To add the Afterpay snippet, go to your Shopify theme and click on “Edit code”. Navigate to the “product-template.liquid” file and add the Afterpay widget code where you want it to appear on the product page. Then, navigate to the “cart-template.liquid” file and add the Afterpay widget code where you want it to appear on the cart page.
Step 5: Test Afterpay on your Shopify Checkout Page
After you’ve set up Afterpay on your Shopify store, it’s important to test it to make sure it’s working correctly. Add a product to your cart and go through the checkout process to see if Afterpay is appearing as a payment option. If everything looks good, you’re all set!
Setting up Afterpay on your Shopify store is a great way to give your customers more payment options and potentially increase your average order value. By following this simple guide, you can add the Afterpay payment option to your online store and start offering your customers a flexible payment solution. However, it’s important to keep in mind that Afterpay does come with some risks, such as late fees and potential credit risk for your customers. As a store owner, it’s important to make sure you’re transparent with your customers about the Afterpay option and its associated risks.