The news: Affirm expanded its partnership with Shopify, bringing Shop Pay installments to the UK, per a press release.

Why this matters: Affirm stands to pick up volume from Shopify’s base of merchants, who can in turn reap the rewards of increased conversion rates and higher basket sizes: In the US, shoppers who use buy now, pay later (BNPL) increased their likelihood of checking out from 17% to 26%, per Harvard Business Review. Completed BNPL transactions have 10% larger basket sizes on average compared with before installment loans were available.

UK strategy: Affirm is trying to build out in a competitive market. 

• PayPal remains Europe’s No. 1 digital payment provider, per Worldpay’s 2025 Global Payment Report. 
• Klarna also rates the UK as its third-largest market, boasting 11 million active consumers and over 675,000 participating merchants in the UK, per a press release.

With PayPal's buy button also available on Shopify’s checkout page, Affirm will have to offer competitive terms for consumers—say, better interest rates for longer-term loans—to edge out the competition.

Our take: PayPal and Klarna’s deep entrenchment in the UK will make it difficult for other BNPL contenders to make advances. Powering Shop Pay installments could help Affirm accelerate its foray into the country thanks to Shopify’s established network of merchants and brand recognition.