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A meditation retreat, soccer camp for the kids—big-ticket purchases often deliver the biggest emotional return. These are milestone moments, bucket-list experiences, and personal investments. But they often come with a higher price tag. And seeing that larger number upfront can cause customers to hesitate or abandon their purchase altogether. The good news is that Payment Plans are built to solve exactly this.
This new pricing feature from Squarespace lets you split high-priced services into upfront deposits and scheduled installments, making larger purchases feel more manageable and justifiable for customers. Payment plans are also built directly into Squarespace's order management, payment tracking, and email notification systems, so you can offer flexible payments without adding manual admin work.
Below, we’ll cover how payment plans can help service businesses fill more bookings, create a more professional customer experience, and save time managing payments.
The nature of high-priced services
Picture an online store selling screen-printed T-shirts. Many customers will land on the site, add a $45 shirt to their cart, and check out without much hesitation. The product and price point don’t require a major decision-making process. Service businesses operate differently, especially at higher price points.
Someone shopping for language classes, a hands-on workshop, or coaching package may be looking at a purchase that costs ten times that of our T-shirt shopper. That higher total can introduce hesitation and lead to drop-off before checkout. Instead of completing the booking immediately, customers may pause to check their bank balance, compare alternatives, or reconsider if they’re ready to commit.
Some service providers try to hack a solution with manual deposits or off-platform payment arrangements. But this approach carries downsides: more admin work, scattered payment tracking, and a less than ideal customer experience.
Payment plans offer a simpler option. They make higher-ticket services feel more approachable, without requiring extra tools or manual follow-up.
What are payment plans (and how do they work)
Put simply, payment plans split a total service cost into an upfront deposit followed by scheduled, incremental installments. Breaking a larger purchase into smaller payments more closely matches what customers are willing to spend at a given time. They only need to commit to the deposit amount today, which can make the decision feel more manageable.
It’s also important to distinguish payment plans from subscriptions or buy now, pay later (BNPL) services. With subscriptions, customers pay recurring charges for ongoing access to a product or service. With BNPL services like Klarna or Afterpay, customers receive the purchase immediately while repaying a financed balance over time, often through a third-party lender—and sometimes with interest. If either of those options fits your business model better, Squarespace supports them as well.
Why payment plans increase demand and order value
The connection between lower upfront costs and higher conversion rates is well documented. ActivityPay published test results showing that tour operators consistently saw 30–40% higher conversion rates after introducing installment payment options.
Researchers have also studied the psychology behind installment payments. A study from the American Marketing Association found that consumers paying in installments felt “less financially constrained,” even when spending the same total amount. Harvard Business Review also reported that installment payment options can increase average order value, with customers spending roughly 10% more on purchases.
Beyond increasing conversions and order value, payment plans can also help business owners operate more efficiently. Earlier commitments from customers can improve capacity planning, provide more accurate headcounts, and reduce no-shows.
Best practices for structuring payment plans
If you’re ready to offer payment plans, a good place to start is structuring the deposit. You can set either a fixed upfront amount like $300, or a percentage of the total price, like 20% due at booking. From there, choose the installment frequency and payment timeline—for example, three payments collected every month.
Transparent communication is critical throughout the experience. Customers should understand exactly when payments will be collected and how the schedule works before completing their purchase.
You should also clarify cancellation and refund policies, including them in confirmation emails so customers can easily reference the details later if plans change. Another benefit of payment plans is that if a customer must cancel their booking, and has already paid their deposit, issuing a refund has a smaller impact on both parties.
Creating a better customer experience
While payment plans increase conversions, they also make for a smoother, more professional customer experience. This type of early interaction also sets the stage for the service quality you provide later on.
Customers sense less financial pressure when they can spread out payments over time, improving their overall feelings toward your business and the transaction. Clear schedules and transparent pricing also help build confidence during checkout.
The experience after purchase matters too. Predictable billing, automated reminders, and professional communication throughout the payment process can reinforce trust and help customers feel supported from booking to completion.
Saving time and staying organized
When it comes to installment payments, automation covers much of the tedious day-to-day work for you. Squarespace automatically handles payment collection and reminders, reducing the need for manual follow-up. Automation also minimizes tracking errors and makes it easier to check payment statuses.
Because everything is housed within Squarespace, you can manage orders, customer details, and payment history from one place instead of juggling multiple platforms or external tools. That centralized system helps simplify operations while reducing additional software costs.
Getting started with payment plans on Squarespace
Payment plans are built directly into Squarespace, so there’s no need to connect to a third-party tool.
To get started, follow these steps:
Open the Pages panel and click a store page.
Double-click a product to open the product editor.
In the Inventory section, ensure the product price is $100 or more.
Under Payment options and click Payment plan.
Click Create New, or click Duplicate a recent plan to reuse an existing setup.
Enter the Initial deposit amount. Toggle % or $ to set the deposit as a percentage of the total or a flat currency amount.
Click Number of installments and select between one and six installments.
Select the Installment timing. Choose a regular interval (weekly, biweekly, monthly) or choose a custom schedule. For custom schedules, click the calendar icon to select specific due dates. Ensure the final installment date falls before the service begins so you collect the full balance before customers attend.
Select the Payment plan availability. You can choose None to keep the plan permanently active, Select specific deadline to choose an expiration date for regular intervals, or 7 days before first installment to automatically have custom schedules expire one week before billing begins.
Click Save, then click Save and Publish again in the product editor.
See our full instructions for payment plans—covering setup, tracking, receipts, cancelations, and more—in our Help Center guide.