Zip vs Afterpay vs Shop Pay Installments: Which Should Your Shopify Store Use?
The right buy now pay later option depends on where your store is registered, whether you use Shopify Payments, and how much setup you want. Here is how the three compare.
Short answer: choose by country first. Shop Pay Installments is the simplest option if your store is in the US, Canada or the UK and already runs Shopify Payments. Afterpay and Zip are separate integrations, and Zip's Shopify app only covers Australia and the US. Fees change often and differ by contract, so confirm the rate in your own merchant account before deciding. Checked against Shopify, Zip and Afterpay documentation, October 2026.
Which buy now pay later option does my country support?
Country is the filter that eliminates options fastest. Each provider supports a different set of store locations on Shopify, and an unsupported option simply will not appear in your admin.
| | Shop Pay Installments | Afterpay | Zip | |---|---|---|---| | Store locations | US, Canada, UK | Separate apps for the US and for the rest of the world (check Afterpay's Shopify guide for your country) | Australia, US (per Zip's Shopify docs) | | Needs Shopify Payments | Yes | No, separate merchant account | No, separate merchant account | | Setup | Activate in Shopify admin | Install app, add Merchant ID and Secret Key | Install regional app, add integration keys | | Order range | $35–$30,000 (US, CA); £50–£30,000 (UK) | Set by Afterpay | Set by Zip |
Shopify's help center lists Shop Pay Installments for online stores in the United States, Canada and the United Kingdom, plus US retail locations. Zip's developer documentation lists Australia and the United States for its Shopify app. Afterpay's own documentation describes one Shopify app for the United States and another for the rest of the world.
How does Shop Pay Installments work for a merchant?
Shop Pay Installments is built into Shopify checkout and run by Affirm. After you capture the payment for an order, Shopify says you receive the full amount, minus transaction fees, within 1 to 3 business days. Affirm, not the merchant, is responsible for collecting the installments from the customer.
Eligibility has conditions. Shopify requires Shopify Payments and Shop Pay to be active, and a business entity in the US, Canada or the UK with the matching selling currency. Gift cards and subscription products are excluded, and the order must fall between $35 and $30,000 in the US and Canada, or £50 and £30,000 in the UK, including discounts, shipping and taxes.
One detail affects refunds. Shopify's FAQ says transaction fees are not returned to the merchant when you issue a refund. A store with a high return rate, such as clothing, should factor that into the real cost of the option.
What does Afterpay need to run on Shopify?
Afterpay needs its own merchant account and a Shopify app, so approval and setup happen outside Shopify. Its documentation says you go to Settings → Payments → Afterpay in Shopify admin and enter your Merchant ID and Secret Key to activate it.
The most common reason Afterpay does not appear at checkout is a currency mismatch. Afterpay's help center says a store's base currency that differs from the Afterpay account's region keeps the option from showing. Check that your Shopify base currency and your Afterpay region agree before debugging anything else.
What does Zip need to run on Shopify?
Zip also needs its own merchant account, plus the regional payment app for your country. Zip's developer documentation stresses that there are separate versions of the payment app per supported country, and that you pick the integration guide matching your region.
The setup has two phases: install and enable the payment app with the integration keys from your onboarding email or Merchant Dashboard, then add on-site messaging so shoppers see the instalment option before checkout. If Zip is installed but does not show, the cause is usually in the first phase. See Zip Pay not showing at Shopify checkout for a checklist, and how to add Zip Pay to Shopify for the full setup.
How do the fees compare?
Published fee numbers for these three vary by country, contract and plan, so I am not quoting a figure as fact. Third-party roundups put Afterpay at roughly 4% to 6% plus a small fixed fee per transaction, and Shop Pay Installments in a similar or higher single-digit range. Shopify's help pages do not list a single merchant rate for Shop Pay Installments in the sections I checked.
Get the real number from the source. For Shop Pay Installments, check your Shopify Payments rates. For Afterpay and Zip, the rate is in your merchant agreement. Then compare each against your average order value and margin, because a percentage fee on a low-margin product costs more than it looks.
What do customers pay with each option?
Customer terms differ, and they affect whether shoppers trust the option. Shopify's FAQ says Shop Pay Installments interest of 0% to 36% APR might apply, subject to country and regional limits. Afterpay and Zip use different consumer fee structures, including late fees, that change over time.
Read each provider's current consumer terms before you advertise "interest-free" or "no fees" on your product pages. Advertising rules vary by country, and a claim that is wrong for your market is a bigger problem than the lost conversion.
Which one should I pick for my store?
Match the choice to your situation. The three cases below cover most stores.
Store in the US, Canada or the UK on Shopify Payments. Start with Shop Pay Installments. Activation happens inside Shopify, payout arrives within 1 to 3 business days, and there is no separate merchant application. Add Afterpay later only if your customers ask for it by name.
Store in Australia. Zip and Afterpay are the options Shopify's own documentation points to for the market, since Shop Pay Installments is not listed there. Many Australian shoppers already recognize both names, so choose by the fee you are quoted and the checkout experience.
Store in the US that does not use Shopify Payments. Shop Pay Installments is unavailable, so the choice is between Afterpay and Zip. Compare approval requirements and the fee in your merchant agreement.
Running two options is reasonable. Running all three adds checkout clutter and extra scripts on every product page, so add an option only when you have a reason.
Does buy now pay later actually increase conversion?
I could not find independent evidence that I would quote as a number. Providers and agencies publish uplift figures, but those are vendor-published, and they come from different stores and product types. Treat them as claims, not as expectations for your store.
The reliable method is to test. Run the option for a few weeks, compare average order value and conversion against the prior period or a matching period, and keep it only if the numbers justify the fee.
What if the integration will not work?
Most failures come from a short list: a currency or region mismatch, an unactivated merchant account, a missing on-site messaging block in the theme, or an order outside the provider's range. I fixed this kind of problem on Yesugod, where the client wanted Zip Pay installments but could not get the integration working. See the Yesugod case study and the DMVG case study.
If you want the integration set up or debugged on your store, see my Shopify development services or get in touch with your store URL and country.
Related
- How to add Zip Pay to Shopify (and fix common errors)
- Zip Pay not showing at Shopify checkout: fix checklist
- Shopify different image on collection page (metafield)
Sources
Frequently asked questions
Which is best for a Shopify store: Zip, Afterpay or Shop Pay Installments?
It depends on where your store is registered. Shop Pay Installments covers the US, Canada and the UK but needs Shopify Payments. Zip's Shopify app supports Australia and the US. Afterpay has separate Shopify apps for the US and the rest of the world. Pick the one your country supports, then decide on setup effort.
Do I need Shopify Payments for Shop Pay Installments?
Yes. Shopify's help center says merchants need Shopify Payments and Shop Pay activated, plus a business entity in the US, Canada or the UK.
Do merchants get paid upfront with Shop Pay Installments?
Yes. Shopify states you receive full payment, minus transaction fees, within 1 to 3 business days after capture, and that Affirm is responsible for collecting the installments from the customer.
Can I offer more than one buy now pay later option?
Yes, Shopify allows several payment methods. Each one adds a checkout option and usually a messaging widget, so most stores pick one or two rather than all three.
Do these options increase conversion?
I could not find independent evidence that I would quote. Provider and agency claims exist, but they are vendor-published. Test it on your own store with a before and after comparison.
Want this built on your store?
This is the kind of thing I build — custom-coded into your existing theme, no app and no monthly fee. Tell me what you need and I'll tell you what it takes, honestly, before you commit to anything.
