Affirm announced that it will power the new Shopify "buy now, pay later" program called Shop Pay Installments in the U.S.

Shopify eligible merchants in the U.S. will be able offer instant financing to customers, allowing them to split payments into four equal, interest-free, bi-weekly installments. Merchants will get the entire purchase price up front, while Affirm will be responsible for collecting the balance.

"With the acceleration of online spending, many small businesses must reinvent themselves," Max Levchin, founder and CEO at Affirm, said in a press release. "This includes embracing the rising importance of e-commerce strategies and meeting consumers, particularly young shoppers, where they are."

Kaz Nejatian, vice president and general manager of Shopify's financial solutions team, said the new program will offer more choice and flexibility to customers while helping merchants boost conversion and overall sales.

Affirm and Shopify will begin testing the service and then launch a full rollout later this year.