Note: This article covers installment-payment services available to merchants selling in Japan, which are specific to the Japanese market. The information below will not be directly relevant if you are not selling in the Japanese market.
Installment payments, which let customers split a purchase amount across multiple payments, are a useful option not only for stores selling high-priced items, but also for stores selling relatively inexpensive products, in the sense that they broaden the range of available payment options. Adding installment payments can also help improve customer satisfaction and increase sales.
This article clearly explains questions like "Is it possible to offer installment payments on Shopify?" and "Which payment services can be used to add installment payments?" Please use it as a reference when considering adding installment payments to your Shopify store.
Does Shopify Have an Installment Payment Option?
Unfortunately, Shopify Payments, Shopify's standard payment service, does not offer an installment payment option. Shopify's own payment service "Shop Pay" does have an installment payment option, but as of May 2025, Japanese stores are not eligible to use Shop Pay Installments.
However, by adding a payment service provider that supports installment payments, it is possible to implement installment payments on a Japanese Shopify store as well. Let's look at this in detail.
3 Installment-Payment Services Available in Japan for Shopify
Here are three payment services offering installment payments that can be used with a Japanese Shopify store. Each has different characteristics, so choose the one best suited to your store's size, products, and target customers.
GMO Epsilon
Image source: GMO Epsilon
GMO Epsilon is a payment service provider that lets you add a wide range of payment methods at once. It supports credit card installment payments and revolving payments, and integrates smoothly with Shopify.
Initial fees and processing fees are free. The monthly usage fee starts at as little as 2,980 yen (excl. tax), making it easy to add. (As of May 2025.) It's also highly trusted for security, and has been adopted by more than 42,000 companies. Note, however, that a screening process is required to get started.
Available installment counts are 3, 5, 6, 10, 12, 15, 18, 20, and 24 payments, plus revolving payments, for 10 options in total. Adding installment payments incurs an additional monthly fee of 500 yen (excl. tax). (As of May 2025.) A separate screening process is also required when adding the installment payment option, so please keep this in mind.
Note that installment payments can only be used for credit card payments on physical goods.
The blog article below explains GMO Epsilon in detail. Please use it as a reference.
Paidy
Image source: Paidy
Paidy is a later-payment service that requires no credit card, letting customers use it with just an email address and mobile phone number. Thanks to this ease of use, it's popular with younger customers who don't own a credit card, and is used by more than 700,000 merchants.
Beyond the standard "pay next month" option, customers can also choose to split payment into 3, 6, or 12 installments.
Paidy has no initial fee or monthly usage fee — merchants only pay a payment processing fee. (As of May 2025.) Even with installment payments, merchants are paid the following month, and Paidy 100% guarantees the sales amount, so stores can get started with no risk. Note that adding 6- or 12-installment later payment requires a separate application.
SB Payment Service
Image source: SB Payment Service
SB Payment Service is a payment service provider offered by the SoftBank Group. Beyond credit card payment, it supports more than 40 payment methods, including carrier billing and convenience store payment. Installment and revolving payments are included among these.
Its strength lies in the reliability and stable systems that come with being a major provider, making it well suited to large stores or those with a diverse customer base. It also integrates with Shopify and offers flexible customization to fit each business's needs.
Note, however, that a screening process is required to get started, and building the system takes time, so plan to apply well in advance. Costs include an initial fee, monthly fee, and other charges. (As of May 2025.) Specific costs vary by industry and transaction volume, so please contact SB Payment Service directly for details.
Main Benefits of Adding Installment Payments to Shopify
Adding installment payments brings many benefits to Shopify store owners. Here are three of the main ones.
Lowers the Barrier to Purchasing High-Priced Items
The biggest benefit of adding installment payments is that it effectively lowers the barrier for customers to purchase high-priced items. Even for products where paying the full amount at once feels difficult, reducing the monthly burden can ease customers' psychological resistance to purchasing.
For example, furniture, home appliances, luxury brand goods, or expensive online courses often have a high total price, which can be one reason customers hesitate to buy. However, splitting this total into 3, 6, or 12 installments lightens the burden of each individual payment, making the purchase more attainable.
This can be expected to capture potential customers who previously didn't buy because of the price, expanding sales opportunities.
Can Be Expected to Raise Average Order Value and Sales
Adding installment payments can also help increase the average amount spent per customer.
For example, when a customer is considering purchasing a specific product, you can suggest a related or upgraded item. Being able to pitch something like "with installment payments, you can add this for just an extra ¥XX a month" makes it easier to encourage cross-selling and upselling.
As a result, customers may end up spending more than originally budgeted, which can be expected to increase overall store sales.
Can Improve Customer Satisfaction and Repeat Purchase Rate
Having more payment options directly improves convenience for customers, which in turn boosts customer satisfaction. Offering a flexible payment method like installments in particular makes it easier to give the impression that "this store thinks about its customers."
A satisfying purchase experience builds trust in the store and increases the likelihood of repeat purchases. Customers who use installment payments may also become loyal, repeat customers of the store going forward.
Points to Note When Adding Installment Payments
While installment payments offer significant benefits, there are also several points to note when adding them.
Refund Processing and Risk Management When an Installment Payment Is Canceled
After a customer purchases a product using installment payments, they may, for various reasons, wish to cancel or return it. Refund processing in this case can be more complex than with a lump-sum payment. In particular, if the installment payment process has already progressed through the payment service provider, complex procedures may be required among the merchant, the customer, and the payment provider, depending on when the cancellation occurs. There's also the risk of malicious cases, such as a customer becoming unreachable partway through payment after having received the goods. In many cases, the payment service provider assumes these risks, but it's a good idea to confirm the contract terms and scope of guarantee before adding the service, just in case.
Fee Structure and Payout Cycle for Installment Payments
When adding installment payments through a payment service provider, always check the fee structure and payout cycle.
Payment service providers vary — some charge an initial fee and monthly usage fee, some charge an additional fee just for adding installment payments, and some are free to use. Some also charge a transfer fee when sales proceeds are paid out. Since the presence or absence of these usage fees and transfer fees directly affects the store's profit, careful comparison is needed.
Additionally, the time it takes for sales proceeds to actually reach the store's account (the payout cycle) also varies by payment service. To keep cash flow healthy, compare not just the fee structure but also the payout cycle comprehensively, and choose the service that best fits your business model.
Add the Installment Payment Service That Fits Your Shopify Store!
This article explained how to add installment payments to Shopify.
While Shopify's standard payment service doesn't support installment payments, using a payment service provider makes it possible to add installment payments to your store.
That said, when adding it, it's important to compare each service's characteristics, fees, and payout cycle, and choose the one best suited to your store.
Use the information here as a reference when considering adding installment payments.
Finally, the blog article below introduces other payment methods available on Shopify besides installment payments. If you're considering expanding your payment options, please use it as a reference.
