How the Partnership Works for Australian Merchants
US-based fintech Affirm is re-entering the Australian market through a new partnership with Shopify, launching Shop Pay Installments for local merchants. The buy-now-pay-later service, powered exclusively by Affirm, becomes available to eligible Australian retailers starting August 28, 2026.
Breaking news
Hidden Currency Costs Haunt Football Transfer Deadline Day
What Are Bank Statement Business Loans? (2026)
Nasdaq Verafin Partners with Q6 Cyber to Enhance Dark Web Fraud Detection
Uganda’s Mobile Money Legacy Shapes Its Digital Future in 2026The expanded collaboration integrates Affirm's installment payment technology directly into Shopify's Shop Pay checkout system. This marks Affirm's return to Australia after previously exiting the market, leveraging Shopify's extensive merchant network to offer consumers flexible payment options at checkout.
Under the agreement, Australian Shopify merchants can now offer Shop Pay Installments to their customers, with Affirm serving as the exclusive provider of the installment financing. The service allows shoppers to split purchases into interest-free payments, while merchants benefit from increased conversion rates and average order values. Shopify handles the integration within its existing checkout infrastructure, reducing technical barriers for retailers.
What This Means for Australia's BNPL Landscape?
The re-entry signals renewed competition in Australia's crowded buy-now-pay-later sector, where Afterpay, Zip, and other providers already operate. Affirm's exclusive deal with Shopify gives it direct access to thousands of Australian online stores using the platform. Industry analysts note that Affirm's return could pressure existing players to enhance their offerings or adjust pricing structures.
For consumers, the addition of Shop Pay Installments provides another interest-free payment option when shopping online. The service typically allows purchases to be divided into four equal payments over six weeks, with eligibility based on credit checks. Affirm states that funds are deposited directly into merchants' accounts, streamlining the payment process.
The partnership also strengthens Shopify's position in Australia, where it competes with other e-commerce platforms. By offering integrated financial services, Shopify aims to create a more comprehensive ecosystem for online retailers.
Looking ahead, Affirm's re-entry into Australia through Shopify may influence how global fintech companies approach the market. Rather than establishing standalone operations, partnerships with established platforms could become the preferred strategy for international expansion.
Frequently Asked Questions
When can Australian merchants start using Shop Pay Installments? Australian Shopify merchants can begin offering Shop Pay Installments starting August 28, 2026, with the service rolling out gradually across eligible retailers.
Is Affirm the only provider for Shop Pay Installments in Australia? Yes, Affirm serves as the exclusive provider of installment financing for Shop Pay in the Australian market under this expanded partnership.
How do consumers benefit from the new Shop Pay Installments option? Consumers can split eligible purchases into interest-free payments, typically four equal installments over six weeks, providing more flexible payment options at checkout.
