Why Customers Love Deposit Payments: 7 Stats Shopify Merchants Need to Know

The sticker shock is real. A customer falls in love with your handcrafted furniture, custom jewelry, or limited-edition product—then sees the price tag and abandons their cart. It's a story that plays out thousands of times daily across Shopify stores worldwide. But what if there was a way to turn those hesitant browsers into confident buyers? That's exactly what deposit payments are doing for forward-thinking merchants, creating a win-win that's transforming how we think about payment processing and cash flow.

Let's dive into why shoppers are increasingly gravitating toward stores that offer deposit-based pre-orders and split payments—and why your store might be missing out.

What are Shopify deposit payments?

Deposit payments let customers secure their purchase by paying just a portion upfront, with the rest due later. Think of it as a commitment handshake—the customer says "I want this," and you say "It's yours" without either party having to go all-in financially from day one. This approach works wonders for high-value purchases, custom creations, or pre-orders where products aren't immediately ready to ship.

The numbers speak volumes—according to Juniper Research, global BNPL transaction value is projected to grow by 106% from 2021 to 2028. That's not just a trend; it's a fundamental shift in how people want to shop.

How deposit payments work for merchants and customers

Here's the beauty of it: you set a deposit amount—usually between 20-50% of the total price. Your customer pays this initial amount to lock in their order, then completes the payment according to whatever payment schedule you've established. No complex contracts or confusing terms—just straightforward payment flexibility that creates immediate customer commitment while giving you working capital upfront.

Apps like Split Payments make this process practically effortless for Shopify stores. They handle everything from the initial deposit payments to final payment capture, so you can focus on creating amazing products rather than chasing payments.

Why Shopify Shoppers Prefer Deposits?

Increased purchasing flexibility

Today's shoppers don't just want flexibility—they demand it. Baymard Institute research shows that 11% of users will abandon if an alternative payment method isn’t available. That's potential revenue walking out your virtual door!

Deposit-based purchasing breaks down those barriers. It lets customers say "yes" to items they love without the immediate financial pressure of full payment. This is especially powerful for those high-value purchases where sticker shock might otherwise kill the sale.

Financial planning benefits for shoppers

Let's face it—most people don't think about purchases the way accountants do. Payment psychology research consistently shows consumers prefer spreading costs over time rather than making one big financial commitment. Installment payments and deposits align perfectly with how people naturally budget in their minds.

By offering partial payments, you're not just making sales easier—you're actually working with your customers' natural financial thinking patterns, helping them manage their money while getting what they want.

Building trust through staged payment options

For custom products or pre-orders, deposit payments create something special: mutual skin in the game. Your customer shows they're serious with their deposit, while you demonstrate your commitment to delivering their perfect item.

This shared investment builds trust—gold dust for new customers who might hesitate to pay everything upfront to a store they've never bought from before. It's like a trust bridge that benefits everyone.

7 Key Statistics That Prove Customers Love Deposit Payments

Stat #1: Increase in overall sales

A variety of merchant case studies show 10–20% uplifts from deposit/pre-order widgets, depending on product type—while high-value items often see 15–25% boosts in conversion when partial payments are enabled.

Successful pre-order campaigns, which often feature deposit or partial-payment options, can increase overall sales by up to 40% compared to standard launch strategies.

Why such a lift? Because that lower initial payment removes the psychological barrier to purchase. It transforms "I can't afford this right now" into "I can definitely manage this today." That's powerful stuff.

Stat #2: Increased average order value with split payments

When customers can spread payments, something magical happens to your bottom line. Klarna’s merchant network reports that Buy Now, Pay Later can boost AOV by 30–40% on average. When that financial pressure valve is released, customers feel comfortable upgrading or adding complementary items to their purchase.

Stat #3: Customer retention and loyalty impacts

The relationship doesn't end after the first purchase—it gets stronger. According to a 2022 Salesforce report, consumers who pay via installment methods are 20–25% more likely to make a repeat purchase within 6 months. That payment flexibility creates such a positive customer experience that people can't wait to come back for more.

Stat #4: Reduction in cart abandonment rates

Cart abandonment—the silent killer of e-commerce profits. But here's the good news: implementing deposit payments slashes cart abandonment by up to 25% for items over $200 [Statista]. That's because the initial payment hurdle feels more like a step than a wall, making purchases feel accessible rather than intimidating.

Stat #5: Customer satisfaction metrics when using deposits

Happy customers are repeat customers. Businesses offering payment options like deposits report higher customer satisfaction scores. And it makes sense—A 2022 PwC global payments survey found 71% of consumers said flexible payment plans improve satisfaction, and 78% said they’re more likely to buy if they can pace payments.

Stat #6: Completion rates with deposit options

When Guise™ introduced a $1 deposit option for its Shopify pre-orders, 95% of customers who placed the deposit went on to complete the full purchase when the product shipped.

This is game-changing for seasonal products, limited editions, or made-to-order items. Not only do you secure sales earlier, but you also gain invaluable production planning insights from those early commitments.

Stat #7: Post-purchase customer experience improvements

Buyer's remorse? Not with deposits. A 2021 Ipsos survey found 82% of installment-payment users felt more in control and less buyer’s remorse. The staged payment approach creates a more positive psychological relationship with larger purchases—customers feel they made a smart, measured decision rather than an impulsive splurge.

Implementing Deposit Payments in Your Shopify Store

Which payment is best for Shopify?

Shopify Payments is fantastic for standard transactions, but it doesn't natively support deposit payments or installment plans. That's where specialized apps like Split Payments come in—they work alongside your existing payment gateway to enable these flexible options without disrupting your current setup.

The sweet spot? Using Shopify Payments for standard transactions while implementing a dedicated solution for those valuable deposit-based sales. Best of both worlds.

How to set up deposit payments in your Shopify store

Getting started with deposit payments in your Shopify store is surprisingly straightforward:

1. Install a dedicated app like Split Payments that specializes in partial payments

2. Choose which products should offer deposit options (hint: start with your highest-priced items)

3. Set your preferred deposit amount percentages based on product categories

4. Create a clear payment schedule for remaining balances

5. Add transparent messaging about the deposit system on your product pages

Once set up, the entire payment system runs on autopilot—collecting deposits, sending payment reminders, and processing final payments without you lifting a finger.

Best practices for deposit amount configuration

Finding that Goldilocks zone for deposit amounts is crucial. Too high, and you lose the "accessible payment" advantage; too low, and you risk insufficient customer commitment.

Successful merchants typically follow these guidelines:

• For items under $500: 30-40% deposit

• For items $500-2000: 20-30% deposit

• For luxury items over $2000: 15-25% deposit

• For custom or made-to-order: 40-50% deposit

The Business Benefits of Offering Deposit Payments

What are the benefits of Shopify Balance?

While Shopify Balance offers excellent financial management tools, it doesn't directly handle deposit payment functionality. But when paired with deposit payment apps, it becomes a powerful system for tracking split payments, managing incoming funds, and monitoring transaction fees.

The cashback rewards and APY reward features of Shopify Balance become even more valuable when you're managing the increased cash flow from a deposit system. Your money works harder for you while it's waiting to be reinvested.

Improved inventory management and forecasting

Deposit-based pre-orders are like a crystal ball for inventory planning. When customers commit with deposits, you gain visibility into future demand, allowing for more accurate purchasing and production scheduling.

This predictability dramatically reduces overstocking risks and improves cash flow by aligning inventory investments with confirmed future sales. No more guessing games about what will sell—you'll know before you invest.

Reduced financial risk with upfront partial payments

Perhaps the biggest benefit of deposit payments is the significant reduction in financial risk. By securing partial payment upfront, you reduce exposure to complete order cancellations while gaining immediate working capital.

This sales security is particularly valuable for custom products, made-to-order items, or businesses with tight margins where order cancellations can have devastating financial impacts. It's like insurance for your revenue stream.