Afterpay vs. Shop Pay: What’s the Difference (2024)?

By James LePage
 on January 24, 2022

Afterpay vs. Shop Pay: What’s the Difference (2024)?

By James LePage
 on January 24, 2022

If you're interested in starting an online business or store, you will come across both Afterpay and Shop Pay as your payment options. Both may seem like they’re the same, and while they may have some similarities, there are quite a few differences between the two that you should be aware of. 

Buy now pay later services are getting more popular now than ever before, especially since more people are turning to the Internet to do the majority of their shopping. As a bonus, this payment type adds a layer of flexibility to your shopping experience. Due to its popularity, some businesses have seen a significant surge in purchase amounts and sales. 

This guide walks you through both Afterpay and Shop Pay options, what each one is, when to use them, and the benefits of both to help you make the best decision for your website and business goals. 

Afterpay vs. Shop Pay: What Are They?


Afterpay — This popular and much-talked-about “buy now, pay later” service lets online and in-store customers purchase a product and make four equal bi-weekly payments. Afterpay is readily available to buyers, and they can choose from thousands of stores and brands. This makes shopping for clothes, electronics, stationery, beauty easier and more convenient. What’s better, you can find new brands being added regularly, and Afterpay works with you to stay on budget.

shop pay

Shop Pay — Shop Pay, another form of payment through Shopify, lets shoppers save shipping, billing, and credit card information to speed up the checkout process. Shop Pay competes against checkout buttons like PayPay, Amazon Pay, Google Pay, and Apple Pay. Save up to five shipping addresses and credit cards, and you can rest assured that your information is secured since it does SMS text verification via a cell phone. Even though buyers have the option of splitting their purchase into four equal payments with no interest or fees or paying in full, sellers get paid upfront for the entire purchase.

How Do They Work For Sellers?

Afterpay — Gains access to a large and growing number of shoppers who enjoy the benefits of buying now and paying later instead of using credit cards. During the website creation, sellers can add Afterpay as a checkout option, but you’ll need to have a positive rating of 98% or higher to get approved for Afterpay.

  • Sellers are paid within three business days.
  • Afterpay workers with the buyer for payments
  • There’s a 4.95% fee for the total purchase, including shipping costs will be charged.

Shop Pay — Sellers who choose Shop Pay will enjoy how easy and straightforward it is. Customers just enter their billing, shipping, and credit card information after they’ve selected to pay using the Shop Pay option at check out. Once you’ve entered that information, the system saves it for a much faster checkout for next time. There are built-in security measures to protect the seller’s information by sending a code directly to their mobile number that’s registered with Shop Pay.

When Do Sellers Get Paid?

Afterpay — Payments, which are called reconciliation payments, are started when an order is approved and processed by Afterpay. They’re made depending on the reconciliation processing time that was agreed upon. Then, an email is sent to the email address on file for reconciliation that describes the total payment that’s going to be paid. 

  • Merchant fees are calculated and removed from each transaction before payment is sent to the seller.
  • Disbursements are made through ACH payments to the bank account.
  • There may be delays due to weekend settlements and holidays due to process times and bank operating hours.

Shop Pay — Sellers will receive their full payment for the order within one to three business days, without having to collect any payments from the customers. Payments are made through Affirm, and they’re sent to the same bank account used for Shopify Payments. Shopify-supported payments vary depending on third-party providers to process the transactions.

  • Third-party providers could charge extra fees and impose rules about what you can sell using their service.
  • If the payment provider accepts credit card payments, there may be a delay between the customer who pays for the item and when you, the seller, get paid.
  • After the payment is processed, it will go to your merchant account. 
  • You can either accept money orders or bank transfers.
  • Need to activate Shopify payments as the payment provider. If not, there’s a transaction fee for all orders going through the checkout system.

Are There Fees?

Afterpay — The seller pays 30 cents per transaction and a 4% to 6% commission fee. The larger the transaction, the lower your percentage fee will be. 

Shop Pay — There could be different transaction fees for online purchases. With credit card transactions, the issuer and credit card company charge a small fee. However, for most countries, you won't see any transaction fees for orders using Shopify Payments. Depending on your subscription plan with Shopify, you may only have a credit card processing fee. If you're using a third-party payment provider with them, there's a fee for each transaction.

Afterpay vs. Shop Pay: Additional Facts to Know


  • Buyers must be 18 years of age to use
  • Must have a valid email address, mobile number, and US delivery address
  • Must have a US-issued credit or debit card for purchases
  • Buyers are limited to a $500 purchase to start, but that limit will increase over time depending on how you use it and if you make on-time payments.
  • Four equal payments are due every two weeks, with the first payment paid during checkout.
  • Accepts Mastercard, Visa, and debit cards issued in the US

Shop Pay

  • Must be at least 18 years old
  • Billing information must match the bank account on file
  • Valid and supported credit or debit card
  • Installment agreements for orders between $50 and $3,000, which include discounts, taxes, and shipping.
  • Shoppers can pay in full during checkout or split the purchase into four equal and interest-free installment payments.
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10 months ago

Shopify doesn't actually give you the option of paying in instalments. And it keeps hijacking the afterpay option.

Article By
James LePage
James LePage is the founder of Isotropic, a WordPress education company and digital agency. He is also the founder of, a venture backed startup bringing AI to WordPress creators.
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