By setting up a payment plan, you can split your product's cost into several smaller payments.
Let’s say you’re a creator who offers a service like coaching. If you sell a package of four sessions, you can create a payment plan so that your clients get billed in four installments, based on a frequency of your choosing (monthly, quarterly, or yearly).
This makes your coaching packages more budget-friendly for customers who might not be able to afford paying the full price in one go.
Payment plans are different from subscriptions.
With payment plans, you get to choose how many times the customer is charged.
With subscriptions, the customer is charged on a recurring basis for an indefinite number of times until they cancel.
If you’re ready to create a payment plan, let’s walk through the process.
How to create a payment plan
Go through the steps for creating a new product. Then, under the Product price settings, select the Payment plans pricing method.
Fill out:
Your product's total price (not the price of each installment).
The number of installments customers can pay in. This must be a whole number, and the minimum number of installments you can offer is two.
The frequency of payments, i.e., monthly, quarterly, or yearly.
Your product's product type and tax code. The Product Type and Tax Code fields will appear if you've enabled VAT collection. Learn how to enable VAT collection and how to configure these fields in our guide to collecting VAT for product purchases.
Your price's currency.
When you enter these pricing details, our handy calculator will break down the payment cost for you:
Click Next, and complete the rest of the product creation process.
When you publish your product, it'll be ready for sale, with customers being able to pay in installments.
Payment plan FAQs
For how long will customers have access to the product?
If you’re offering a payment plan for a digital product or newsletter, customers will retain access regardless of their subscription status.
This means that once their payment plan is complete, the customer will continue to have access to the product.
Can I add a discount?
Yes! With installment payments, the discount will be applied to each payment. Here's how to add a discount to your product.
What if a customer's payment fails?
If a customer's payment fails, we will retry their method of payment four times. After four failed retries, their subscription to the product will be canceled.
Can customers cancel their payments?
No, not at this time.
If a customer wants to cancel before they’ve completed all installments, they'll need to reach out to you (the creator) so you can cancel their payment plan from their subscriber profile and process a refund, if necessary.
If a customer unsubscribes, will their payments stop?
If a customer unsubscribes from your email list (using the unsubscribe link in your emails), their payments will not be canceled.
You will need to cancel the installments for them, which you can do from their subscriber profile (see previous section).