How Offering Financing Options Can Boost Ecommerce Conversions
Imagine you’re asking a customer to spend $600 on a cooler, a tent, or a set of skis. Even if the value is clear, that price tag can still feel like a hurdle. But what if they could split it into four payments—interest-free?
That's the power of offering financing options at checkout. It reduces friction, increases average order value, and helps you convert more visitors into buyers—especially for high-ticket or seasonal products.
At Campfire Commerce, we help Shopify brands implement smart, brand-aligned financing tools that don’t just get more carts across the line—they help protect margin and create better customer experiences.
This guide breaks down:
Why financing boosts conversions
How to implement it strategically
The top 5 financing solutions for Shopify merchants in 2025
Why Financing Drives More Conversions (With Data to Back It Up)
Financing isn’t just for big-box stores anymore. Today’s DTC brands are using flexible payment options to:
Lower cart abandonment: 48% of customers abandon carts due to unexpected costs
Boost AOV: Orders made using financing are often 15–30% higher
Reach younger audiences: Millennials and Gen Z expect buy-now-pay-later (BNPL) at checkout
Increase price transparency: When framed correctly, monthly payments reduce price resistance
Key Stat:
A Shopify Plus case study showed that merchants who offered BNPL saw a 50% increase in checkout conversion compared to those who didn’t.
The Right Way to Implement Financing on Shopify
It’s not just about slapping a payment plan logo at checkout. To do this well:
1. Offer financing inline on product pages
Show payment plan options alongside or underneath your price. Use language like “Starting at $55/mo with Affirm” or “4 payments of $125 with Shop Pay Installments.”
2. Reinforce it on cart and checkout
Don’t rely on customers to remember. Repeat the message throughout the buyer journey—especially on higher-ticket or bundle products.
3. Use financing data to personalize
Tag customers who purchase with BNPL. Use Klaviyo or Triple Whale to track AOV and retention behavior for financing vs. non-financing customers.
4. Align with your brand tone
Don’t over-commercialize it. If you’re a premium gear brand, present financing as “flexible adventure budgeting”—not “pay later if you’re broke.”
The Top 5 Financing Options for Shopify Stores in 2025
Shop Pay Installments (via Affirm)
https://www.shopify.com/shop-pay-installments
Why it’s great:
Fully native to Shopify
Seamless checkout UX
Supports 4 interest-free payments or monthly installment options (up to 12 months)
No extra app required—just enable in Shopify Payments settings
Best for:
Brands already using Shopify Payments who want fast, trustworthy BNPL with minimal setup.
Important:
Requires Shopify Payments and is only available to US-based merchants.
Affirm (Standalone App)
https://www.affirm.com/business
Why it’s great:
Trusted BNPL partner with deep brand recognition
Offers monthly installments up to 36 months
Merchants can control terms and tailor financing thresholds
Best for:
High-ticket brands selling items over $500+ who want longer-term financing options and greater flexibility than Shop Pay.
Pro Tip:
Affirm provides marketing support and allows you to prequalify customers for higher-priced SKUs on PDPs.
Afterpay
Why it’s great:
4 easy payments, interest-free
Extremely popular with fashion, beauty, and younger audiences
Strong brand familiarity = higher usage rates
Best for:
Mid-priced items and lifestyle brands targeting Millennial and Gen Z consumers.
Note:
Afterpay owns the customer relationship—meaning post-purchase messaging is limited.
Klarna
Why it’s great:
Global reach: ideal for international brands
Multiple payment models (pay now, pay later, financing, subscriptions)
Smooth checkout UX and strong marketing assets
Best for:
Brands with international audiences or those seeking advanced financing options and tailored campaigns.
Pro Tip:
Klarna can be integrated via Shopify app or custom implementation for greater control over design and messaging.
Sezzle
Why it’s great:
Strong emphasis on ethical, credit-building financing
Appeals to mission-driven and budget-conscious shoppers
Offers 0% interest installment payments
Best for:
Sustainable, ethical, or value-conscious brands looking for a financing partner that matches their values.
Note:
Not as widely adopted as Affirm or Afterpay, but offers strong customer loyalty among niche audiences.
Bonus: Where to Promote Financing Across Your Funnel
To maximize the ROI of your financing program:
Product Pages: Show pricing breakdown ("or 4 payments of $85") with logos
Cart Page: Reinforce monthly payment options before checkout
Email Marketing: Use Klaviyo to segment high-intent browsers and recover carts with financing messaging
Ad Creative: Frame offers around affordability ("Get geared up for just $49/month")
Bundles + Upsells: Use tools like Rebuy to combine AOV increases with flexible financing options
Conclusion: Financing Isn’t a Gimmick—It’s a Growth Lever
Offering flexible payment options doesn’t cheapen your brand—it removes barriers for your best customers. Whether you’re selling $400 tents, $600 coolers, or $150 jackets, financing helps customers say “yes” with less friction and more confidence.
At Campfire Commerce, we help Shopify brands implement financing options that increase AOV, improve UX, and align with your brand’s tone—without breaking your tech stack or complicating checkout.
Want help implementing the right financing solution for your store?
Let’s talk.