Shopify expands Affirm partnership to bring BNPL offering to Canadian merchants

A pair of hands holding a mobile phone which has the Shopify logo on it
Affirm has powered Shop Pay Installments for US-based merchants since 2021.

Canadian e-commerce giant Shopify has renewed and expanded its exclusivity agreement with San Francisco-based buy now, pay later (BNPL) tech company Affirm to bring its once United States (US)-restricted partnership to Canada and beyond. 

The renewed multi-year partnership maintains Affirm as the exclusive BNPL provider for Shop Pay Installments in the US, as well as permits the partnership to grow into new markets worldwide, starting with exclusivity in Canada with plans to enter the United Kingdom. 

Shopify COO Kaz Nejatian said bringing the partnership to its international merchants is “a no brainer.”

Shopify and Affirm first struck the partnership in 2020, and later launched Shop Pay Installments for eligible US-based Shopify merchants in 2021. The partnership was last renewed in 2022. Affirm entered the Canadian market on its own in 2021, when it acquired Canadian BNPL firm PayBright for $340 million CAD. 

Shop Pay Installments, powered by Affirm’s technology, gives consumers who use Shop Pay and the Shop App access to a variable payment installment plan when purchasing products from merchants that have the option enabled. 

Shopify chief operating officer (COO) Kaz Nejatian said in a statement that, given the success of the partnership in the US, bringing the partnership to its international merchants is “a no brainer.” 

“Affirm’s premier technology, world-class team, and commitment to transparency make them a natural fit to continue supporting merchants in the Shopify ecosystem, and we look forward to bringing this same value to our merchants in Canada, the U.K., and beyond,” Nejatian said.

RELATED: Shopify’s strong Q4 earnings complicated by Kanye West Nazi T-shirt controversy

Eligible Shopify merchants in Canada will be able to offer Shop Pay Installments at checkout in the coming months, Affirm said in a statement, adding it will allow approved customers to choose from customized biweekly and monthly payment plans with annual interest rates as low as zero percent. 

Earlier this month, Shopify’s strong fourth-quarter earnings call was overshadowed by reaction to Kanye West selling a Nazi t-shirt via his Shopify-powered storefront Yeezy.com, which was taken down after nearly two days with no public comment on the matter. 

Disclosure: BetaKit majority owner Good Future is the family office of two former Shopify leaders, Arati Sharma and Satish Kanwar.

Feature image courtesy Burst.

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