Increasingly we’re also starting to hear about financials problems on the consumer side. I’ve been reading a lot about potential problems with consumer spending especially as unemployment started to reach some really scary levels. Now And now here’s the challenge, I think, for our merchants that kind of depend on consumer spending.
Is there something we can do to kind of help address this because you know a lot of them are using credit cards and credit cards often charge really, really high rates. So how do we help our merchants that are looking to sell products to consumers that might stop thinking about buying things as they start worrying about taking on debt.
Yes So consumers are always looking for flexible ways to pay. They want to be able to better manage their monthly budget. Understand where money is going. So really excited to let you know that we’re working with a partner to announce installments will be which will be available in Shop Pay later on this year in the United States.
Installments, so in other words, instead of paying for the entire item upfront you can actually split the purchase over several payments. Is that how it's working? Yeah, absolutely. So when a consumer or buyer is ready to check out through Shop Pay they can choose to pay in installments at no additional cost to them. Their payment is split into four equal parts, and they pay that over time.
There is no interest and no fees at all. That is amazing. So I can just imagine this is going to be hugely hugely impactful for our merchants both that are selling larger ticket items larger price items, as well as those that are offering smaller price items because it really just improves the conversion rate for those merchants.
Yes And that’s the idea. We believe that this will enable merchants to sell more, enable you to sell more. Increase your cart sizes and inevitably increase conversion rate because there is that new choice of how you a consumer wants to pay. And what I love again. And I think you mentioned a few times.
But it just bears repeating this doesn’t add any additional interest to consumers as they think about splitting the purchase over multiple periods of time. So multiple months multiple weeks, I guess? Split to four over months. So if you want to do $400 that would be $400 split into four. So OK. So that’s amazing.
So installments, an incredible new feature that’s coming to Shopify is this coming out sometime this year. Later this year. OK So later this year. And so our merchants that are thinking about how they can improve conversion and how they can help get their buyers to buy more on their sites and not have to worry about potential credit card issues that they might have they can actually now start using installment by the end of this year.
That’s correct. And just to add to that is integrated into Shop Pay. So with Shop Pay. We already have 40 million users worldwide 4 times faster checkout in two times higher conversion rate than regular checkout. So you already get to take advantage of what exists today with Shop Pay.
And now with installments they’ll just be even better. Yes So we started sharing some of that data around Shop Pay. And I just like it. It bears repeating. This is something that our merchants can enable and it both makes a better consumer experience.
So when I go in I Shop it makes it so much easier. I don’t have to fill up pages and pages of checkout and on the consumer side, it’s better. And then on the merchant side the merchants actually it improves their conversion rate. So they actually end up seeing more sales as well. That’s correct. It’s makes things seamless and a lot easier for their buyer thus increasing the conversion rate for them. That’s amazing. So shop pay is available right now. All of our merchants can go. Turn that on. And later in the year, we’re bringing installments to Shop Pay as well.