Shopify (SHOP) shares surged 5.01% in intraday trading after the e-commerce giant announced an acceleration of its global expansion plans for Shop Pay Installments, in partnership with Affirm (AFRM). This move marks a significant step in Shopify's international growth strategy and its commitment to providing flexible payment options for consumers worldwide.

The expansion begins with early access for Canadian merchants, allowing them to offer Shop Pay Installments to their customers. Shopify plans to make the service generally available in Canada and the UK this summer, with cross-border commerce capabilities between the US, Canada, and UK to follow. Furthermore, the company has set its sights on Australia and key markets in Western Europe, including France, Germany, and the Netherlands.

Investors are reacting positively to this news, as it demonstrates Shopify's potential for increased merchant adoption and consumer engagement on a global scale. The expansion of Shop Pay Installments, which has seen widespread use in the US since its launch in 2021, is expected to drive higher conversion rates for merchants and provide more flexible payment options for shoppers, potentially boosting Shopify's transaction volume and revenue in new markets.