Add Afterpay to Shopify: A Guide
Step 1: Understand Afterpay and Shopify Integration
Familiarize Yourself with Afterpay’s Merchant Requirements
Before you begin, ensure your business meets Afterpay’s eligibility criteria. Afterpay typically requires businesses to be registered in the country they operate, sell products that are not on their restricted products list (e.g., certain services, highly regulated goods, or digital products without a physical component), and have an average order value that aligns with their typical payment plans. You’ll also need a valid business bank account for settlement. Review Afterpay’s official merchant terms and conditions for the most up-to-date and specific requirements relevant to your region (e.g., Afterpay US, AU, NZ, CA, UK).
Review Shopify’s Payment Gateway Options
Shopify supports various payment gateways, and Afterpay integrates as an alternative payment method. It’s crucial to understand that Afterpay isn’t a direct credit card processor but rather a “buy now, pay later” solution. When integrated, it will appear as an option alongside credit card payments at your checkout. Shopify’s platform facilitates this integration through its Apps section or by enabling it directly within the Payments settings under “Alternative payment methods.”
Step 2: Set Up Your Afterpay Merchant Account
Apply for an Afterpay Merchant Account
Navigate to the Afterpay merchant application portal for your region (e.g., Afterpay US for Retailers). You will be prompted to provide detailed business information, including your business name, ABN/EIN, website URL, estimated monthly sales volume, average order value, and bank account details for payouts. The application process typically involves an initial review, and Afterpay may contact you for further verification or documentation. Be prepared to provide proof of business registration and financial statements if requested.
Complete Afterpay’s Onboarding Process
Once your application is approved, Afterpay will guide you through their onboarding process. This usually involves signing a merchant agreement and receiving your unique Merchant ID and Secret Key. These credentials are vital for connecting Afterpay to your Shopify store. Afterpay may also provide resources and best practices for integrating their service and marketing it to your customers. Ensure you securely store your Merchant ID and Secret Key, as they are sensitive credentials.
Step 3: Integrate Afterpay with Your Shopify Store
Install the Afterpay Payment Gateway on Shopify
Log in to your Shopify admin panel. Go to “Settings” (usually found in the bottom left corner) and then click on “Payments.” Scroll down to the “Alternative payment methods” section and click “Choose alternative payment.” Search for “Afterpay” (or “Clearpay” if you are in the UK) in the list and select it. You will then be prompted to enter your Afterpay Merchant ID and Secret Key, which you obtained during the Afterpay onboarding process. Click “Activate” or “Connect” to establish the connection.
Configure Afterpay Settings within Shopify
After activating Afterpay, you may have additional configuration options. These typically include setting a minimum and maximum order value for Afterpay to be available (e.g., Afterpay is often available for orders between $35 and $1,000, but these limits can vary by region and merchant agreement). You can also choose whether to display Afterpay’s messaging widgets on product pages and the cart page, which inform customers about the “buy now, pay later” option. Ensure these settings align with your business strategy and Afterpay’s guidelines. Save any changes you make.
Step 4: Test and Launch Afterpay on Your Store
Perform Test Transactions with Afterpay
Before making Afterpay live for all customers, it’s crucial to perform test transactions to ensure everything is working correctly. You can do this by setting your Shopify store to “test mode” if available, or by placing a small, refundable order yourself using Afterpay. Go through the entire checkout process as a customer would, selecting Afterpay as the payment method. Verify that you are redirected to the Afterpay payment portal, can complete the payment steps, and that the order is correctly processed and appears in your Shopify admin and Afterpay merchant portal. Then, process a refund for your test order to confirm that functionality as well.
Announce Afterpay Availability to Your Customers
Once you’ve confirmed Afterpay is fully functional, make an announcement to your customers! Update your website’s FAQ page, add a banner to your homepage, send out an email newsletter, and post on social media. Highlight the benefits of using Afterpay, such as paying in four interest-free installments. Consider adding Afterpay’s branding assets (logos, messaging) to your product pages, cart page, and checkout to increase visibility and encourage adoption. Afterpay usually provides these marketing materials in their merchant portal.
FAQs about Afterpay on Shopify
Q: What are the typical fees associated with offering Afterpay?
A: Afterpay charges merchants a per-transaction fee and a fixed fee (e.g., a percentage plus a small flat fee) for each sale processed through their platform. These fees can vary based on your business type, volume, and the region you operate in. It’s essential to discuss the specific fee structure with Afterpay during your application process, as these costs directly impact your profit margins. Afterpay typically covers the risk of customer non-payment, but chargeback fees may apply in certain situations.
Q: How long does it take for Afterpay payments to settle in my bank account?
A: Afterpay generally settles funds to your nominated business bank account within 1-3 business days after the customer’s purchase, regardless of whether the customer has completed all their installment payments. This quick settlement is a significant benefit for merchants, improving cash flow compared to traditional layaway plans. The exact timing can depend on your bank’s processing times and the day of the week the transaction occurred.
Q: Can I customize the Afterpay messaging on my Shopify store?
A: Yes, Afterpay provides various widgets and messaging options that you can integrate into your Shopify store. These often include informational banners on product pages that show the breakdown of payments (e.g., “4 interest-free payments of $X”). You can usually enable or disable these widgets and, in some cases, adjust their placement or appearance within your Shopify theme settings or through a dedicated Afterpay app if available. Ensure any customization adheres to Afterpay’s brand guidelines.
Q: What happens if a customer doesn’t pay their Afterpay installments?
A: When a customer uses Afterpay, Afterpay takes on the credit risk. If a customer fails to make their installment payments, Afterpay handles the collection process directly with the customer. As a merchant, you have already received the full payment (minus Afterpay’s fees) for the order. This means you are generally not responsible for collecting overdue payments from customers who used Afterpay, which is a key advantage of offering the service.
