How to Offer Installment Plans in WooCommerce to Boost High-Ticket Sales

You have a great product. Customers want it. They add it to their cart. But when they see the $600+ total, they freeze.

This price shock is the #1 killer of high-ticket eCommerce sales. 

The solution isn’t to lower your prices, but instead it’s to offer installment plans. 

By breaking that $600 into three manageable payments of $200 or six payments of $100, you can increase conversion rates by up to 30%.

But the secret most store owners miss is that you don’t need expensive BNPL services or clunky deposit plugins to do this. 

In this guide, we’ll show you how to use a finite subscription strategy to build a frictionless, automated installment system that you control.

Why You Need Installment Plans (The Math Behind the Conversion)

Before we get into the technical setup, it is vital to understand why installment plans work. It isn’t just about affordability; it’s about perceived value and risk reduction.

When a customer sees a product for $600, their brain processes the pain of paying that lump sum immediately. 

When they see “$200/month for 3 months” or “$100/month for 6 months”, the psychological barrier lowers significantly.

Data suggests that offering installment plans:

• Eliminate upfront purchase resistance: Multiple smaller payments remove the emotional barrier of a single large payment. This makes consumers in control.
  
• Make premium products accessible to more buyers: If you’re selling luxury items, high-value digital courses, tech gadgets, etc., installment payments instantly expand your audience.
  
• Increase average order value (AOV): Customers are willing to buy premium versions or add-ons when the immediate cost is lower.

• Reduce cart abandonment: Remove the price objection at the product page or checkout.
  
• Compete with big brands: Amazon, Apple, and Walmart all offer installment options. By running installments, your WooCommerce business is ready to compete with them.
  
• Build loyalty: You are offering a financial service directly to them, building trust rather than handing them off to a third-party bank.

The 2 Practical Ways to Offer Installments in WooCommerce

There are two primary ways to handle this. One is hands-off but expensive; the other is hands-on but highly profitable.

1. The finite subscription strategy

The first method is the finite subscription strategy. Instead of handing your customers off to a third-party bank, you act as the bank using a plugin.

For this, we use Sublium, a dedicated WooCommerce subscription and billing plugin. It allows you to create flexible payment plans, handle recurring billing, and automatically stop charging the customer after a set number of cycles.

How it works:

You use Sublium to create an installment plan that charges the customer’s credit card $200/month for exactly 3 months.

Pros

• Standard Stripe/PayPal fees, no BNPL surcharges
• 100% approval rate, no credit checks required
• You maintain full control of the sales experience
• Dunning, retries, invoices, and notifications are automated

Cons

• You take responsibility for payment failures (though plugins largely handle this for you)

This approach is ideal if you want to maximize margins, retain customer control, and offer flexible plans to every buyer without external approval barriers.

2. Stripe’s built-In BNPL (Klarna, Afterpay, Affirm)

If you’re using Stripe, you can enable BNPL providers directly from your Stripe settings. Customers can then choose a financing option at checkout, and Stripe handles the rest.

How it works:

The customer selects a BNPL method during checkout. The provider pays you upfront (minus processing fees) and collects payments from the customer over time.

Pros

• You receive the full payment instantly
• No collection or billing responsibilities
• Zero risk of customer non-payment

Cons

• High fees (often 4-6% + 30¢ per transaction charges)
• Customer data and experience shift to the BNPL provider
• Some buyers get rejected by the credit check, even if they have the money

BNPL is convenient, but it’s also expensive and gives away customer ownership.

Method 1: How to Set Up Finite Installment Plans in WooCommerce? (Step-by-Step)

Here is the exact process for creating an automated installment plan with Sublium, where you control the terms.

Step 1: Install and activate Sublium (all-in-one subscription plugin)

First, install Sublium, an all-in-one subscription and billing plugin for WooCommerce.

It supports finite billing cycles (weekly, monthly payments), smart retries for failed payments with support of Stripe, PayPal and Square gateways.

Make sure to activate it on your WordPress website.

Step 2: Create a WooCommerce product for installment

You can apply installments to a new product, an existing product, or a variable item.

To create one, go to Products ⇨ Add New.

Enter your product details (name, description, price, and images). 

Keep it as a ‘Simple Product’ (You can add this product to the installment plan created with Sublium in the next step).

One done, publish it to create a new product.

As you can see, we’ve added a smartphone (physical item). You can even create a digital product or course.

Step 3: Add a new installment plan in Sublium

Navigate to Sublium ⇨ Plans and click on ‘Create Plan’.

Enter the name of your plan, select Installments, and click on ‘Create’ to add this plan.

Your plan will be created for a default 2-part installment payment.

Step 4: Configure your WooCommerce installment plan

Click on the plan or the pencil icon to start customizing it.

Configure the following installment options:

• Installment Count: How many payments the customer will make (e.g., 3)
  
• Interval: The time between each payment (e.g., 1 month).
  
• Plan Name: Give your plan a clear, descriptive name, such as “3-Month Payment Plan”.
  
• Down Payments: Optional upfront payment if you want the customer to pay a portion immediately.
  
• Plan Information: Use this field to describe the plan details for your customers, such as “Pay in 3 easy monthly installments of $166, no interest”.

Once configured, click ‘Update’ to save your changes.

Sublium gives you complete flexibility to add more installment plans (such as 6-month or 12-month installments) as well.

And these get added one below the other like this:

Step 5: Specify your WooCommerce product in the installment plan

On the Products tab, hit the ‘Add Product’ button.

Enter the name of your product or select a product by assigning the category.

Once you’ve selected the product, click on ‘Add’.

Sublium will automatically set the product price as per your installment plan.

You can even exclude a product from your installment plan. Plus, you can allow a one-time purchase of the product.

Click on ‘Save’ when done.

You also have the convenience of adding multiple products to a subscription plan.

Make sure to activate all installment plans in Sublium by toggling them on.

Well done, your installment plans in WooCommerce are now set up!

Testing WooCommerce installments with Sublium

Sublium integrates with various payment gateways, including Stripe, Square, and PayPal.

Integrate it from the Payment Gateways section.

Refer to our official documentation on integrating payment gateways with subscriptions.

Make sure to enable test or sandbox mode when testing your installment plans.

Go to the product page and there you’ll see all the installment options:

Select your preferred installment plan and add the product to the shopping cart.

Head to the checkout page (which, by the way, is created with FunnelKit). Here, you can see all the details of your installment plan and payment options.

Place a test order and it’ll process your payment automatically.

You’ll land on the thank you page with order confirmation details:

You’ll also receive a confirmation subscription with installment emails, which can be changed with Sublium.

Method 2: How to Set Up WooCommerce Installment Plans with Stripe BNPL Gateway? (Step-by-Step)

Follow the step-by-step instructions to offer installment payments in WooCommerce using Stripe’s built-in Buy Now Pay Later options.

Step 1: Install and activate Stripe Gateway for WooCommerce

Go to Plugins ⇨ Add New and search for FunnelKit Stripe Gateway.

Install and activate the plugin. Once done, connect Stripe with WooCommerce using a simple onboarding wizard.

Refer to the official setup and onboarding guide here to set up WooCommerce – Stripe integration.

Step 2: Enable Stripe BNPL options

Navigate to WooCommerce ⇨ Settings ⇨ Payments.

Scroll down and click ‘Enable’ next to Klarna, Afterpay, or Affirm (whichever you want).

These gateways operate in certain countries and currencies, such as:

• Affirm: Mainly the US and Canada
• Klarna: EU, UK, and 45+ countries
• Afterpay/Clearpay: US, Canada, UK, Australia, and New Zealand

This will enable the BNPL payment gateways in your WooCommerce store.

Once done, hit ‘Manage’ to start setting up your payment option.

Step 3: Configure the Stripe BNPL payments in WooCommerce

Click ‘Manage’ and configure the display settings of BNPL payments:

• Title: How the payment name appears on different pages
  
• Description: Short explanation of the installment option
  
• Message Location: Placement of the promotional message on the product page, cart, and checkout page
  
• Selling Locations and Specific Countries: Restrict or allow specific countries

Once done, click on ‘Save Changes’ to update the settings.

Testing the WooCommerce installment setup via Stripe BNPL

Before going live, switch Stripe to either ‘Test’ or ‘Admin Only Test’ mode from the Stripe Settings tab.

Visit the WooCommerce product page and add the product to your cart.

Select the BNPL option, such as Klarna, at checkout and hit the place order button.

A Klarna pop-up window will appear, prompting you to verify your phone number.

After successful verification and credit check, you choose your payment plan and confirm payment with Klarna.

After this, your order will be successfully placed and you’ll be taken to the order confirmation page.

If you get rejected in the credit check process, your payment will fail.

Stripe BNPL vs. Sublium Installment Plan: Quick Summary

Here’s a quick summary table of creating WooCommerce installments with Sublium and Stripe BNPL:

Feature	Sublium (Finite Subscription Strategy)	Stripe BNPL (Klarna, Afterpay, Affirm)
Who handles the financing	You act as the payment provider	BNPL provider finances the customer
How do you get paid	Installments collected over time	You get the full amount upfront
Fees	Standard Stripe/PayPal (~2.9%)	Higher BNPL fees (often 4–6% + 30¢)
Customer approval	100% approval	Buyer must pass BNPL credit eligibility
Ownership of customer experience	You fully control the process	Customer is redirected to the provider flow
Risk of non-payment	Small (handled via dunning and retries)	Zero (BNPL takes on the risk)
Data ownership	You keep all customer relationship data	BNPL may control major parts of communication
Automation	Automatic billing + dunning + emails	Fully automated on the BNPL side
Setup complexity	Takes a few minutes (plugin setup)	Takes a few clicks in Stripe settings
Best for	Maximizing margins and customer LTV	Fast, hands-off installment handling
Ideal business type	High-ticket products, coaching, courses, memberships, electronic goods	General eCommerce stores needing instant cash flow without overhead

If you want higher profit, more flexibility, and total control, Sublium’s finite installment system is the better choice.

7 Best Practices to Follow When Setting Up WooCommerce Installment Plans

Simply enabling installment payments isn’t enough. To get the best results, your checkout should be clear, trustworthy, mobile-friendly, and fully automated.

These best practices help you reduce friction, increase conversions, and maximize revenue recovery.

1. Keep installment options simple

Offering too many payment plans can overwhelm customers. Stick to 2-4 clearly defined plans (e.g., 3, 6, or 12 monthly payments).

Always show the total price, installment amount, and duration clearly to avoid confusion.

Use phrases like “Pay $124 x 6 months, no interest!” to make the plan attractive.

You can also show pricing tables for one-time payment and installment plans to highlight the benefits.

2. Be transparent about pricing and policies

Customers should know exactly what they are committing to.

Make sure you clearly explain the monthly payment amount, the total installment amount, and what happens if a payment fails.

Sublium includes built-in payment retry and automated recovery workflows that handle most failures without manual intervention.

Also, ensure your installment structure complies with any local financial regulations.

Update your terms and conditions (T&C) to strictly outline that this is a payment plan, not a cancel-anytime rental. If a payment fails, the customer remains liable for the full balance.

3. Optimize for mobile checkout

Most eCommerce buyers shop on mobile devices, so your checkout must clearly display the payment plan on smaller screens.

Using a dedicated checkout plugin (instead of the default WooCommerce checkout) can reduce unnecessary fields, cut extra steps, and improve conversion rates.

The smoother the mobile experience, the more likely a customer complete the purchase.

4. Leverage email communication

Email plays a major role in improving installment completion rates.

Use it to confirm the plan and billing schedule immediately, send reminders before upcoming payments, and notify users if a payment fails.

Include dunning (recovery) emails with clear instructions and retry attempts. Sublium lets you customize your emails and reduces missed payments.

5. Automate where possible

Automation prevents revenue loss and reduces manual workload.

With Sublium, you can:

• Automatically process recurring payments
• Trigger retries when payments fail
• Send reminder and recovery emails
• Maintain reporting and notifications for every stage

This keeps the process smooth and minimizes administrative effort.

6. Use analytics to refine your plans

Regularly track performance to refine your offer. Monitor conversion rates for each plan, upcoming payments, failed payments, and plan cancellations.

Sublium provides built-in reporting so you can measure what’s working. 

Adjust pricing, installment count, or communication strategy based on real data and not assumptions.

7. Build trust through branding

Installments require customer confidence.

Strengthen trust by including testimonials or reviews, clear refund and support policies, recognizable and secure payment options, and SSL/trust badges.

These elements reduce anxiety, especially for high-ticket products.

Key Takeaway: By keeping your installment plans simple, transparent, automated, and data-driven, you can improve checkout completion rates, reduce abandoned carts, and deliver a better overall customer experience.

Frequently Asked Questions (FAQs) on Installment Plans

Conclusion: Stop Losing Sales to Price Shock

Offering installment plans in WooCommerce is no longer just a “nice-to-have”. It is essential for high-ticket conversions.

Whether you choose Sublium’s flexible finite installment model or enable Stripe’s Buy Now Pay Later providers like Klarna, Afterpay, or Affirm, you open the door to higher conversions, larger average order values, and reduced checkout friction.

If you want maximum control, higher profit margins, and a fully brand-owned experience, Sublium’s installment plan system is the stronger choice. 

It keeps the entire payment and communication flow within your business while giving customers a predictable, automated payment schedule.

On the other hand, if you want a quick, turnkey “set and forget” solution, Stripe BNPL offers instant payouts and zero credit risk, perfect for stores that want speed and simplicity without extra management.

Either way, your customers win. And when your customers win, your store does too.

So go ahead – don’t let price shock kill another sale. Set up your installment plan today and watch your average order value climb.