In LATAM, installment payments are not a luxury: they are a necessity. Offering installment payments in your Shopify store can be the difference between closing a sale or losing it to a competitor that does offer them. I've seen it in dozens of stores in Mexico and Colombia: enabling installments can increase the average order value by 30% to 60%, because a customer who can't pay $3,000 MXN upfront can pay $600 MXN a month for 5 months.
The problem is that most Shopify store owners in LATAM don't know what options are available to them, which ones apply to their country, how they integrate with Shopify, and what commissions they charge. That's exactly what we're going to solve in this article.
I'm going to explain all the available options for Mexico and Colombia, how to set them up in Shopify, what commissions you should consider in your pricing strategy, and how to communicate installments in your store to maximize conversion.
Why installment payments are key for e-commerce in LATAM
In Mexico, over 60% of credit card transactions are made with interest-free installments. In Colombia, consumer credit is one of the main drivers of retail trade. Installment payments are not an additional feature: they are a Latin American consumer expectation.
The data you should keep in mind:
- The average order value increases by 30% to 60% when installments are offered, because the customer evaluates the monthly cost, not the total
- Cart abandonment rates are significantly reduced when the customer sees the option to pay in installments before checkout
- High-ticket products ($1,500 MXN or more) benefit the most from offering installments
- 40% of online shoppers in Mexico prefer to pay in installments even if they have the money available, due to the benefit of personal cash flow
- Stores that display the installment price on the product page have conversion rates up to 25% higher than those that only show the total price
The question is not whether you should offer installments. The question is which option is best for your business, your country, and your pricing model.
Installment payment options for Shopify in Mexico
Mexico has one of the most developed installment payment ecosystems in LATAM. These are the main options available for Shopify stores:
Kueski Pay
Kueski Pay is the most popular Buy Now Pay Later (BNPL) option in Mexico. It allows your customers to pay in bi-weekly or monthly installments without needing a credit card, using only their CURP and basic data. This is especially valuable because it reaches a segment of customers who do not have access to traditional bank credit.
Key features:
- Payment in 2 to 12 bi-weekly installments without a credit card
- Instant approval in seconds
- The merchant receives full payment immediately (Kueski assumes the credit risk)
- Available for customers over 18 with a valid CURP
- Integration available in the Shopify App Store
- Merchant commission: between 4% and 8% per transaction (varies by volume and agreement)
Ideal for: stores with products from $500 to $15,000 MXN that want to reach customers without a credit card.
Aplazo
Aplazo is another Mexican BNPL solution with a presence also in Colombia. It offers instant financing without a credit card and has a direct integration with Shopify.
Key features:
- Payment in 2 to 24 bi-weekly installments
- No credit card needed, only official identification
- The merchant receives full payment within 24-48 hours
- Installment widget displayed on the product page and at checkout
- Available in Mexico and Colombia
- Merchant commission: between 3.5% and 7% per transaction
Ideal for: stores selling in Mexico and Colombia that want a single solution for both markets.
Interest-free installments with Mexican bank cards (MSI)
Meses Sin Intereses (MSI - Interest-Free Installments) are the most used installment payment method in Mexico. They work through the credit cards of major banks (BBVA, Santander, Citibanamex, HSBC, Banorte, etc.) and allow the customer to pay in 3, 6, 9, or 12 months without paying interest.
How it works for the merchant:
- The bank charges the merchant a commission for offering MSI (generally between 3% and 8% depending on the term and bank)
- The merchant receives full payment immediately, the bank assumes the cost of financing
- Requires a payment terminal or gateway that supports MSI
Gateways that support MSI in Shopify for Mexico:
- Conekta: supports MSI with major Mexican cards. Native integration with Shopify.
- OpenPay (by BBVA): supports MSI and has Shopify integration.
- Mercado Pago: supports installments with Mexican cards in Shopify.
- Clip: primarily for physical points of sale, but has online payment options.
PayPal installments
PayPal offers its own installment payment option in Mexico through "Pay Later." It is available to customers with a PayPal account and allows payment in 4 interest-free installments. Integration with Shopify is native through the PayPal channel.
🚨 Choosing the wrong payment gateway can cost you thousands of pesos in unnecessary commissions or leave you without access to MSI. Before setting up any installment option, it is essential to understand the real commissions, settlement times, and compatibility with your business model. At yosoyexperto.com, I analyze your specific case and recommend the combination of gateways that maximizes your sales and minimizes your costs — it's one of the decisions that has the greatest impact on your store's profitability.
Installment payment options for Shopify in Colombia
Colombia has a very active installment payment ecosystem, with both banking and fintech solutions that integrate with Shopify.
Aplazo in Colombia
As I mentioned before, Aplazo also operates in Colombia with the same features as in Mexico. It is one of the most solid BNPL options for stores selling in both countries.
Addi
Addi is the leading BNPL solution in Colombia. It allows customers to buy now and pay in monthly installments without a credit card, with instant approval.
Key features:
- Payment in 1 to 36 monthly installments
- Approval in seconds with Colombian ID
- The merchant receives full payment within 24-48 hours
- Installment widget on product page and checkout
- Shopify integration available
- Also operates in Brazil and Mexico
Ideal for: Colombian stores with products of $100,000 COP or more that want to reach customers without a credit card.
Installments with Colombian bank cards
As in Mexico, Colombian credit cards (Bancolombia, Davivienda, Banco de Bogotá, etc.) offer installment payment options. To accept them in your Shopify store, you need a Colombian payment gateway:
- PayU Colombia: one of the most used gateways in Colombia, supports installments with local cards and Shopify integration
- Wompi (by Bancolombia): Bancolombia's gateway with support for installments and good Shopify integration
- Mercado Pago Colombia: supports installments with Colombian cards
- Bold: Colombian solution with installment payment options and a good mobile experience
Sistecrédito and Alkosto Financiero
For Colombian stores selling mass consumer products, Sistecrédito is a very popular consumer financing option in middle and lower strata. Although its integration with Shopify is more complex, it is worth evaluating if your target audience uses it.
Shop Pay Installments: Shopify's native option
Shop Pay Installments is Shopify's native installment payment solution, developed in partnership with Affirm. It allows customers to pay in 4 interest-free bi-weekly installments or in 3 to 24 months with interest.
The bad news for LATAM: Shop Pay Installments is currently only available in the United States and Canada. If your store operates in Mexico or Colombia, you will need one of the local solutions I mentioned above.
However, if you have customers in the United States or plan to expand to that market, Shop Pay Installments is the easiest option to activate because it is natively integrated into Shopify Payments and requires no additional configuration.
Shop Pay Installments features (for the US market):
- 4 interest-free bi-weekly installments for purchases from $50 to $999 USD
- 3 to 24 months with interest for purchases from $150 to $17,500 USD
- No additional merchant commission (included in the Shopify Payments fee)
- The merchant receives full payment immediately
- Automatically displayed on the product page and at checkout
💡 Correctly setting up multiple payment gateways in Shopify — including installments — is more complex than it seems. A configuration error can cause customers not to see the installment option, payments not to be processed correctly, or you to pay double commissions. If you want everything to work well from day one, purchase an hourly package at yosoyexperto.com/precios — I will configure your payment gateways, activate installments, and verify that the checkout works perfectly on mobile and desktop.
How to set up installment payments in Shopify step by step
The configuration process varies depending on the solution you choose, but the general flow is similar for all BNPL options and local gateways.
Kueski Pay configuration in Shopify
- Create your merchant account in Kueski Pay at kueskipay.com and complete your business verification process (may take 2-5 business days)
- Install the Kueski Pay app from the Shopify App Store
- Connect your Kueski Pay account with your Shopify store using the credentials provided to you
- Configure the installment widget to appear on your product pages (automatically displays the bi-weekly price)
- Activate Kueski Pay as a payment method in Settings > Payments > Alternative payment providers
- Place a test order to verify that the entire flow works correctly
Aplazo configuration in Shopify
- Register as a merchant on Aplazo at aplazo.com and complete your business verification
- Install the Aplazo app from the Shopify App Store
- Connect your account with the API credentials provided by Aplazo
- Configure the widget to display the installment price on your product pages
- Activate Aplazo as a payment method in Shopify's payment settings
- Verify the integration with a test order
MSI with Conekta configuration in Shopify
- Create your account at Conekta at conekta.com and complete the KYC process (business identity verification)
- Install the Conekta app from the Shopify App Store
- Connect your account with your Conekta API keys (public and private)
- Activate Meses Sin Intereses (MSI) in the Conekta settings (you must explicitly request it, it is not active by default)
- Configure the available terms: 3, 6, 9, or 12 MSI according to your agreement with Conekta
- Activate Conekta as a payment method in Shopify and verify with a test order
Addi configuration in Shopify (Colombia)
- Register as a commercial partner with Addi at addi.com and complete verification
- Install the Addi integration for Shopify (available in the App Store or via direct integration)
- Configure the installment widget for your product pages
- Activate Addi as a payment method in Shopify's settings
- Verify the complete flow with a test order
Commissions and costs: what no one tells you
This is where most store owners get unpleasant surprises. Installment solution commissions are real and must be accounted for in your pricing strategy.
Commission summary per solution
Kueski Pay: 4% to 8% per transaction (varies by monthly volume and commercial agreement)
Aplazo: 3.5% to 7% per transaction
Addi (Colombia): 3% to 6% per transaction
MSI with Conekta: 3% to 8% depending on the term (3 MSI = ~3%, 12 MSI = ~7-8%)
MSI with Mercado Pago: 3.29% + basic VAT + additional commission for MSI depending on the term
PayU Colombia: 3.49% + VAT per transaction with installments
How to calculate the real impact on your margin
Suppose you sell a product for $2,000 MXN with a 40% margin ($800 MXN gross profit). If you activate 6-month MSI with a 5% commission:
- Commission: $2,000 x 5% = $100 MXN
- Gross profit after commission: $800 - $100 = $700 MXN
- Effective margin: 35% instead of 40%
The question is: does the increase in sales volume generated by offering installments compensate for that margin reduction? In most cases I've seen in LATAM, the answer is yes, especially for high-ticket products.
Strategies for managing commissions
- Absorb the commission: you include it in your operating cost and do not pass it on to the customer. This works if your margin allows it.
- Differentiated pricing: a slightly higher price for installment payments vs. upfront payment. You must communicate this clearly to avoid friction.
- Minimum threshold for installments: activate installments only for purchases above a certain amount where the average ticket justifies the commission.
- Negotiate better rates: once you have volume, you can negotiate lower commissions directly with the provider.
How to communicate installments in your store to sell more
Having installments available but not communicating them well is leaving money on the table. I've seen it in dozens of stores in LATAM: the difference between showing "$3,000 MXN" and showing "$3,000 MXN or 6 payments of $500 MXN" can be 20-30% in conversion.
Where to display the installment price
- Product page: Below the main price, display the installment price. Most installment apps include a widget that does this automatically.
- Collection page: If your theme allows it, display the installment price on product cards in the listing.
- Cart: Remind the customer that they can pay in installments before reaching checkout.
- Checkout: The installment payment method should be visible and easy to select.
- Homepage: If installments are a key differentiator for your store, mention them in your main banner or a benefits section.
- Social media and ads: Include the installment price in your ad creatives. "Get it from $X per month!" converts better than just the total price.
How to phrase the installment message
Language matters. These phrases convert better in the Mexican and Colombian markets:
- “6 months interest-free with participating cards”
- “Pay in 12 bi-weekly installments with Kueski Pay, no credit card needed”
- “From $X per month with Aplazo”
- “Take it today, pay later”
- “Instant approval, no credit bureau check” (for BNPL solutions)
💡 Displaying the installment price on the product page is one of the changes with the greatest impact on conversion you can make today. If you already have an installment solution installed but it's not appearing correctly in your store, or if you want to set everything up from scratch with the best option for your business, hire an hourly package at yosoyexperto.com/precios — we'll solve it in a single session and you'll start seeing the impact on your sales immediately.
How to adjust your pricing strategy with installments
Offering installments changes the psychology of your customers' purchases, and that has implications for how you should think about your pricing strategy.
The effect of monthly price on perceived value
When a customer sees "$4,800 MXN," their brain compares it to other things they can buy with that money. When they see "$800 MXN per month for 6 months," they compare it to their recurring monthly expenses (Netflix, Spotify, daily coffee). The second comparison almost always favors the purchase.
"From X per month" pricing strategy
If your catalog has products with different prices, you can use the installment price of the most accessible product as a hook: "Products from $299 per month." This reduces the perceived barrier to entry and attracts more qualified traffic.
Bundling with installments
Installments make bundles (product packages) much more attractive. A bundle of $5,000 MXN may seem expensive, but "$833 per month for 6 months" is very affordable. Consider creating specific bundles designed to be sold in installments.
Seasons and campaigns with installments
El Buen Fin in Mexico and Black Friday in Colombia are the seasons where installments have the greatest impact. Plan specific campaigns that highlight the financing options available in your store during these dates.
Common mistakes when offering installments on Shopify
After setting up installments in dozens of stores in LATAM, these are the mistakes I see most often:
Mistake 1: Not checking that the installment widget appears on mobile
Many installment widgets look good on desktop but don't appear or look bad on mobile. Since most traffic in LATAM is mobile, this can mean that most of your customers never see the installment option. Always check on mobile after setup.
Mistake 2: Not considering commissions in the selling price
Activating installments without adjusting your pricing strategy can significantly erode your margin. Calculate the real impact before activating and decide whether to absorb the commission or partially pass it on to the price.
Mistake 3: Offering installments on low-ticket products
Installments make more sense for products of $500 MXN or more. For products of $100-200 MXN, the commission can eat up the entire margin, and the customer probably doesn't need financing for that amount. Set a minimum amount to activate installments.
Mistake 4: Having multiple installment solutions without a strategy
Installing Kueski Pay, Aplazo, and MSI at the same time without a clear strategy can confuse the customer at checkout. Define which is your primary option and which are complementary.
Mistake 5: Not communicating installments in marketing
Having installments available but not mentioning them in your ads, social media, and emails is a huge missed opportunity. Installments are a differentiator that you should actively communicate.
Mistake 6: Not placing a test order before launching
Always place a complete test order with each installment payment method before communicating it to your customers. Verify that the payment is processed, that you receive the notification in Shopify, and that the customer receives the correct confirmation.
Conclusion: offering installment payments on Shopify is one of the best investments for your store in LATAM
If your Shopify store operates in Mexico or Colombia and you still don't offer installment payments, you're losing sales every day to competitors who do. The Latin American consumer expects to be able to pay in installments, especially for medium and high-ticket products.
The key is to choose the right solution for your market and business model, set it up well from the start, consider commissions in your pricing strategy, and actively communicate installments at all customer touchpoints.
Do you want me to analyze your store, recommend the best combination of installment solutions for your business, and configure everything correctly? Book a session or hire an hourly package at yosoyexperto.com. It's one of the configurations with the biggest impact on sales you can make in your store today.
Frequently asked questions about installment payments on Shopify
Does Kueski Pay work for customers with no credit history?
Yes, that's precisely Kueski Pay's value proposition. It uses its own credit scoring model based on alternative data (not just credit bureau), which allows it to approve customers that traditional banks would reject. This opens your store to a segment of customers who otherwise wouldn't be able to buy from you.
Can I offer MSI and BNPL at the same time in my Shopify store?
Yes, you can have multiple payment methods active simultaneously. For example, MSI with Conekta for credit card customers and Kueski Pay for customers without a credit card. The customer chooses at checkout which they prefer. The key is that the checkout doesn't look overloaded with options.
How long does it take for payment for an installment sale to be credited?
It depends on the solution. With Kueski Pay and Aplazo, the merchant receives full payment within 24-48 business hours, regardless of how many installments the customer pays. With bank-issued MSI through Conekta, the settlement time is similar to any card transaction (1-3 business days).
What happens if a customer doesn't pay their installments with Kueski Pay or Aplazo?
That's the risk Kueski Pay and Aplazo assume, not you. As a merchant, you receive full payment immediately, and the collection management with the customer is the responsibility of the BNPL provider. This is one of the great advantages of these solutions compared to offering direct credit.
Do I need Shopify Payments to offer installments in Mexico?
No. Shopify Payments is not available in Mexico (at the time of writing this article). Installment solutions for Mexico (Kueski Pay, Aplazo, Conekta, Mercado Pago) function as alternative payment providers in Shopify, regardless of whether you have Shopify Payments or not.
Do installments work for international sales from Mexico?
Generally not. Kueski Pay, Aplazo, and Mexican bank-issued MSIs are designed for customers with Mexican documents (CURP, Mexican bank cards). If you sell to customers in other countries, you will need specific solutions for each market or global solutions like PayPal Pay Later.
