STRATEGY · OCT 16, 2026 · 4 MIN READ
Afterpay on Shopify: Setup, Fees and Tips for Australian Stores (2026)
How to add Afterpay to a Shopify store in Australia, what it costs merchants, how it compares with Zip, and how to show it on product pages.
Buy now, pay later is part of how many Australians shop online, and Afterpay is the name most shoppers know. On Shopify, Afterpay is added through its own payment app rather than built into Shopify Payments. This guide covers how to set it up, what it costs, how it compares with Zip, and how to show it on product pages.
The short answer: install Afterpay's Shopify payment app, connect your Afterpay merchant account, and activate it under Settings > Payments. Your store address and currency must match your Afterpay account region, so AUD for an Australian account. Afterpay charges a fixed fee plus a percentage on each order, set in your merchant agreement, and pays you typically within five business days. Shopify's own Shop Pay Installments isn't available in Australia.
How Afterpay works for you and your customers
- For the shopper: they split the purchase into instalments and receive the order straight away.
- For you: Afterpay pays the order on the customer's behalf, deducts its fee, and sends you the balance, "typically up to five business days" after the purchase (Afterpay merchant fees).
- Collections: Afterpay collects the instalments from the shopper, so you don't chase payments.
What Afterpay costs
Afterpay doesn't publish its rates. It says the fee "comprises a fixed fee, plus a percentage amount", that online and in-store fees can differ, and that your merchant agreement sets the details (Afterpay).
Industry guides commonly report a percentage of about 4–6% plus about 30 cents per order, depending on your industry and volume (KC Web Design). Treat this as an estimate. Your quote from Afterpay is the real number.
That is more than a typical card payment, so the case for Afterpay rests on whether it lifts conversion and order value enough for your products. Track Afterpay's share of orders and average order value after launch.
Setting up Afterpay on Shopify
Before you start, check your store settings (Afterpay developer guide):
- Store address: under Settings > General, the country must match your Afterpay account region.
- Store currency: set to AUD for an Australian Afterpay account.
- Payment capture: "Automatically at checkout" or "Automatically when order is fulfilled" should be on. Manual capture also works, with its own setup steps.
Then add Afterpay at checkout:
- Apply for an Afterpay merchant account if you don't have one.
- Install the Afterpay payment app from the Shopify App Store.
- Sign in to your Afterpay business account when prompted and choose the merchant account for your store.
- Connect, then activate it under Settings > Payments. Leave test mode off for your live store.
- Place a test order to check Afterpay appears at checkout and the order arrives in Shopify.
See Afterpay's Shopify checkout guide for the full steps.
Show Afterpay on product pages
Shoppers who use buy now, pay later look for it before checkout. Afterpay offers an on-site messaging app that shows the instalment price on product, collection and cart pages. Keep it light: one line under the price is enough, and check that it doesn't slow your pages or push content down on mobile. See our Core Web Vitals guide.
Afterpay or Zip?
| Afterpay | Zip | |
|---|---|---|
| How it's added to Shopify | Afterpay payment app | Zip payment app |
| Merchant fees | Fixed fee plus a percentage, set in your agreement | Set in your merchant agreement |
| Settlement | Typically up to five business days | Check your Zip agreement |
Sources: Afterpay and Zip developer docs.
Many Australian stores offer both, because some shoppers only use one. Watch the checkout: too many payment buttons can make it harder to choose.
Afterpay on Shopify Plus
On Shopify Plus, you can control when Afterpay appears with your own checkout rules, built as custom apps with Shopify Functions. Examples include hiding it for wholesale customers, for orders above a set value, or for products that can't be returned. See Shopify Plus in Australia.
Frequently asked questions
Does Shopify support Afterpay in Australia? Yes. Afterpay connects to Shopify through its own payment app. Your store address and currency must match your Afterpay account region.
How much does Afterpay charge merchants? Afterpay charges a fixed fee plus a percentage per order, set in your merchant agreement. It doesn't publish rates; industry guides report about 4–6% plus about 30 cents.
When does Afterpay pay merchants? Afterpay says it pays online merchants "typically up to five business days" after the purchase, less its fee.
Is Shop Pay Installments available in Australia? No. Shopify offers Shop Pay Installments in the US, Canada and the UK, so Australian stores use providers such as Afterpay and Zip.
Can I offer Afterpay and Zip together? Yes. Both have Shopify payment apps, and many Australian stores offer both.
Does Afterpay work for B2B orders? Buy now, pay later is designed for consumers. On Shopify Plus, you can hide Afterpay for wholesale customers with checkout rules.
Need help setting up payments?
We set up Afterpay, Zip, GST and Australian shipping as part of every Australian Shopify build. See our Shopify Plus agency for Australia, how we handle Neto to Shopify migrations, or book a free consultation.
Have a project in mind?
Talk to the team behind complex migrations, custom apps and government platforms — book a free 30-minute call or send us a note.