After making the decision to purchase a product, the customer will find themself at checkout. There’s a chance they’ll want to split the cost into smaller, manageable payments. Or, at least, the checkout should be hassle-free. That’s where Shop Pay and Afterpay come in.
These advanced solutions are ensuring payment flexibility to the buyers, which in turn, is improving the customer experience in the store. But how do Shop Pay and Afterpay differ? And, which one suits your needs?
To that end, this blog will compare Shop Pay and Afterpay, breaking down the key factors in the process. You’ll see when the Shopify experts choose and integrate which one. That means a more informed decision on your part. So let’s begin.
Shop Pay vs Afterpay: Comparison Table
Factor
Shop Pay
Afterpay
Installment Payments
Yes (min. $50 purchase)
Yes (4 interest-free installments)
Platform Availability
Shopify stores only
100,000+ retailers (online/in-store)
Global Reach
Primarily U.S., limited globally
Strong in the U.S., Australia, and Europe
Payment Schedule
Installments are paid every two weeks
4 payments over 6 weeks
Late Fees
None
$8–$10 per missed payment
Merchant Fees
Shopify transaction fees apply
Volume/region-based fees
Choose Shop Pay if you mainly shop at Shopify stores and want the fastest checkout. And you can pick Afterpay if you need BNPL flexibility across multiple retailers.
What is Shop Pay?
Shop Pay is a fast and secure checkout solution by Shopify, designed to streamline online purchases for both shoppers and merchants. It allows customers to save their payment and shipping details for quicker future checkouts across any Shopify-powered store.
How Shop Pay Works
At Checkout: Select Shop Pay as your payment method (available only on Shopify stores).
Choose Installments: Opt for Shop Pay Installments (if eligible) to split the cost into 4 interest-free payments.
First Payment (25%): Charged immediately; remaining 3 payments deducted automatically every two weeks.
No Interest or Fees: As long as payments are made on time.
Key Features of Shop Pay
Shopify-exclusive: Only available on stores using Shopify’s platform.
One-Tap Checkout: Saves payment/shipping details for faster future purchases.
Installment Option: Split payments into 4 interest-free parts (via Shop Pay Installments).
Carbon Neutral: Offsets shipping emissions for eco-conscious shoppers.
Merchant Benefits: Boosts conversion rates with streamlined checkout.
Pros of Shop Pay
Lightning-fast Checkout: Saved payment/shipping details speed up purchases.
Seamless Shopify Integration: Smoother experience for merchants & shoppers.
Interest-free Installments: No fees if paid on time (via Shop Pay Installments).
Eco-friendly Perk: Carbon-neutral shipping at no extra cost.
Cons of Shop Pay
Shopify-only: Only works on Shopify-powered stores.
Limited BNPL Flexibility: Fewer retailers compared to Afterpay.
Approval Required: Not all shoppers qualify for installments.
Ideal for frequent online shoppers, Shop Pay speeds up transactions while offering flexible payment options. Businesses benefit from higher conversion rates due to a smoother checkout experience.
What is Afterpay?
Afterpay is a popular buy now, pay later (BNPL) service that lets shoppers split purchases into four interest-free installments, paid every two weeks. Unlike traditional credit, Afterpay performs a soft credit check. And, it requires no lengthy application and charges no interest, as long as payments are made on time.
How Afterpay Works
Select Afterpay at Checkout: Available at thousands of stores (online & in-person).
Split into 4 Payments: First payment (25%) due at purchase; rest auto-debited biweekly.
No Interest: If paid on schedule (late fees apply for missed payments).
Instant Approval: Soft credit check, no lengthy application.
Key Features of Afterpay
Wide Acceptance: Works at thousands of stores (online & in-person), not just Shopify.
Pay-in-4 Model: No interest if paid on time (first 25% at checkout, rest biweekly).
No Credit Impact: Soft credit check, no hard inquiry or long application.
Late Fees (No Interest): Missed payments incur fees, but no compounding of debt.
Virtual Card Option: Use Afterpay even at non-partnered stores (in supported regions).
Pros of Afterpay
Wider Acceptance: Works at thousands of stores (online & in-store).
No Interest Ever: Only late fees if payments are missed.
No Full Upfront Cost: Only the first payment (25%) is due at checkout.
Virtual Card Option: Use at non-partnered stores (select regions).
Cons of Afterpay
Late Fees Add Up: Missed payments trigger charges.
Smaller Purchases Only: Lower spending limits than credit cards.
Less Merchant Control: Businesses can’t customize the BNPL experience as with Shop Pay.
Afterpay is ideal for budget-conscious shoppers who want flexibility without credit cards. Merchants benefit from higher average order values and increased conversions.
See which one’s better for your store and customers
When choosing between Shop Pay and Afterpay, understanding their core differences helps shoppers and merchants make informed decisions.
Buy Now, Pay Later
Shop Pay integrates seamlessly with Shopify stores, offering installment payments only for purchases above $50. It’s one-click checkout speeds up transactions, but the BNPL feature is limited to pre-approved users.
Afterpay, on the other hand, works across a vast network of retailers, both online and in-store, with no minimum spend requirement (varies by merchant). It’s a standalone BNPL service, making it more versatile for shoppers.
Verdict: Afterpay wins for broader accessibility.
Credit Checks
Shop Pay uses a soft credit check for installment eligibility, focusing on purchase history and Shopify account activity. Approval is quick but not guaranteed.
Afterpay also performs a soft credit check but leans more on real-time spending behavior, approving most users instantly. Neither service reports to credit bureaus unless payments are missed (Afterpay may report delinquencies).
Verdict: Tie—both are lenient, but Afterpay approves more users instantly.
Spending Limit
Shop Pay imposes no preset spending cap, but installment limits depend on your approval tier and purchase amount (minimum $50).
Afterpay starts new users with lower limits (e.g., $200–$500), increasing over time with responsible usage. High-ticket items may require partial upfront payment.
Verdict: Shop Pay for higher initial flexibility; Afterpay for gradual credit building.
Payment Schedule
Both services split payments into four interest-free installments. But Shop Pay deducts payments biweekly, aligning with Shopify’s checkout flow.
Afterpay spreads payments over six weeks (first at checkout, then every two weeks). Missed payments trigger late fees with Afterpay, while Shop Pay simply pauses future installments.
Verdict: Shop Pay for predictable billing; Afterpay for slightly longer timelines.
Transaction Fees & Commission
Shop Pay charges standard Shopify payment processing fees (2.4–2.9% + $0.30/transaction). Merchants pay no extra BNPL commission.
Afterpay charges merchants 4–6% per transaction, plus a fixed fee, but absorbs the cost of late fees. These fees are often offset by higher conversion rates.
Verdict: Shop Pay is cheaper for merchants; Afterpay’s fees justify wider reach.
Final Verdict
For shoppers, Afterpay is ideal for universal BNPL access or Shop Pay for faster Shopify checkouts. And for merchants, Shop Pay reduces fees, while Afterpay boosts sales volume.
All in all, Afterpay wins for flexibility, and Shop Pay wins for Shopify-centric efficiency. But if you need help with choosing the right payment for your store, get help from our dedicated Shopify development company.
FAQs on Shop Pay and Afterpay
Do Shop Pay and Afterpay charge interest?
No—both services offer interest-free installments if payments are made on time. Afterpay charges late fees, while Shop Pay pauses future payments without penalties.
Which one has higher approval odds?
Afterpay approves most users instantly with a soft credit check. Shop Pay’s installments require eligibility checks based on Shopify’s purchase history.
Are there spending limits?
Shop Pay has no preset limit (minimum $50 for installments). Afterpay starts new users with lower limits (e.g., $200–$500), increasing over time.
Can I use both Shop Pay and Afterpay for the same purchase?
No, you must choose one payment method at checkout. They cannot be combined for a single transaction.
Which is Better? Shop Pay or Afterpay?
The right buy now, pay later (BNPL) service depends on where you shop and what you value most. Choose Shop Pay if you frequently buy from Shopify stores and want a faster checkout with carbon-neutral shipping. Choose Afterpay if you prefer flexibility across thousands of retailers, both online and in-store.
There’s no clear “winner”—just the best fit for your spending habits. If convenience within Shopify matters most, go with Shop Pay. If you want BNPL freedom everywhere, Afterpay is the way to go.
Priyanka, a dedicated Content Manager at Brainspate since 2023, thrives on her love for eCommerce. With engaging writing, she enlightens readers, leaving an indelible impact in the digital landscape.
