The “Buy Now, Pay Later” trend continues to climb in 2022. Each day, more eCommerce stores (and even retail shops) are offering this financing option to their customers. Buy Now, Pay Later was initially popular with Gen Z shoppers, who have limited access to credit. Today, most online shoppers now leverage this to purchase big ticket items in affordable installments.
For our clients launching a new product, we found offering split payments to be an effective strategy in increasing pre-orders for a new innovation.
Here are the top split payment apps that we’ve used for our pre-order clients on Shopify:
Best Overall: Klarna
Klarna was very easy to implement and had the ability to remit payment to new clients. Rainfactory utilized Klarna for Onewheel which increased their sales by 15% and Reform RX which increased their sales by 30%.
Based on our experience with Affirm, we concluded that this option works well for new companies, but it really depends on your Affirm representative understanding your business. There are a few more steps in the integration process, but it works very well. Rainfactory used Affirm for CLMBR and Ecoflow.
Honorable Mention: Splitit
Splitit is a fairly new split payment app. It is a great option to split up payments with no fees. Rainfactory’s client Biktrix found success with offering Splitit for their online store after the successful crowdfunding campaign for the Juggernaut HD Duo, which made over $1.3 million on Indiegogo.