diff --git a/commerce_checkout_login.info b/commerce_checkout_login.info
index 89359e4..a25c032 100644
--- a/commerce_checkout_login.info
+++ b/commerce_checkout_login.info
@@ -3,6 +3,7 @@ description = Adds an inline login form to the Account Information checkout pane
 package = Commerce (contrib)
 dependencies[] = commerce_checkout
 dependencies[] = commerce_order
+dependencies[] = entity
 core = 7.x
 
 ; Simple tests
diff --git a/commerce_checkout_login.module b/commerce_checkout_login.module
index e812f22..5f10c36 100644
--- a/commerce_checkout_login.module
+++ b/commerce_checkout_login.module
@@ -5,6 +5,51 @@
  * Adds an inline login form to the Account Information checkout pane.
  */
 
+/**
+ * Implements hook_form_FORM_ID_alter().
+ *
+ * Capture checkout pane settings
+ */
+function commerce_checkout_login_form_commerce_checkout_pane_settings_form_alter(&$form, &$form_state, $form_id) {
+  // Exit if not account checkout pane
+  if (empty($form['checkout_pane']) || empty($form['checkout_pane']['#value']) ||
+      empty($form['checkout_pane']['#value']['pane_id']) || $form['checkout_pane']['#value']['pane_id'] != 'account') {
+    return;
+  }
+
+  $form['settings']['commerce_checkout_login'] = array(
+    '#type' => 'fieldset',
+    '#title' => t('Commerce checkout login configuration'),
+  );
+  $settings_form = &$form['settings']['commerce_checkout_login'];
+
+  $settings_form['commerce_checkout_login_existing_user_login_required'] = array(
+    '#type' => 'checkbox',
+    '#title' => t('Require login of existing users.'),
+    '#description' => t('If checked, the password field is required to proceed to the next checkout page. The customer will be logged in and the order converted to an authenticated user order.'),
+    '#default_value' => variable_get('commerce_checkout_login_existing_user_login_required', FALSE),
+  );
+
+  $settings_form['commerce_checkout_login_new_user_create'] = array(
+    '#type' => 'checkbox',
+    '#title' => t('Automatically create a user account for new customers'),
+    '#description' => t('If checked, a new user will be created based on the order\'s email address.  The user is created on submit of the checkout page.'),
+    '#default_value' => variable_get('commerce_checkout_login_new_user_create', FALSE),
+  );
+  $settings_form['commerce_checkout_login_new_user_login'] = array(
+    '#type' => 'checkbox',
+    '#title' => t('Automatically login the new user.'),
+    '#description' => t('If checked, the new user will be logged in and the order converted to an authenticated user order.'),
+    '#default_value' => variable_get('commerce_checkout_login_new_user_login', FALSE),
+    '#prefix' => '<div style="margin-left:2em;">',
+    '#suffix' => '</div>',
+    '#states' => array(
+      'invisible' => array(
+       ':input[name="commerce_checkout_login_new_user_create"]' => array('checked' => FALSE),
+      ),
+    ),
+  );
+}
 
 /**
  * Implements hook_form_FORM_ID_alter().
@@ -34,6 +79,8 @@ function commerce_checkout_login_form_commerce_checkout_form_alter(&$form, &$for
         form_set_error('account][login][mail', $error);
       }
       elseif ($account = user_load_by_mail($mail)) {
+        $login_required = variable_get('commerce_checkout_login_existing_user_login_required', FALSE);
+
         // If a user already exists for the given e-mail address, display a
         // message letting the customer know this.
         $form['account']['login']['mail']['#description'] = t('There is already an account registered to %mail. You can login now to use your account information during checkout.', array('%mail' => $mail));
@@ -41,6 +88,7 @@ function commerce_checkout_login_form_commerce_checkout_form_alter(&$form, &$for
         $form['account']['login']['password'] = array(
           '#type' => 'password',
           '#title' => t('Password'),
+          '#required' => $login_required,
         );
 
         $form['account']['login']['login_now'] = array(
@@ -50,6 +98,18 @@ function commerce_checkout_login_form_commerce_checkout_form_alter(&$form, &$for
           '#validate' => array('commerce_checkout_login_checkout_form_validate'),
           '#submit' => array('commerce_checkout_login_checkout_form_submit'),
         );
+
+        // Add validate and submit to overall checkout form if login is required
+        if ($login_required && isset($form['buttons']['continue'])) {
+          $form['buttons']['continue']['#validate'][] = 'commerce_checkout_login_checkout_form_validate';
+          $form['buttons']['continue']['#submit'][] = 'commerce_checkout_login_checkout_form_submit';
+        }
+      }
+      elseif (variable_get('commerce_checkout_login_new_user_create', FALSE)) {
+        // New user creation
+        if (isset($form['buttons']['continue'])) {
+          $form['buttons']['continue']['#submit'][] = 'commerce_checkout_login_checkout_form_new_user_submit';
+        }
       }
     }
   }
@@ -87,7 +147,7 @@ function commerce_checkout_login_checkout_form_validate($form, &$form_state) {
 }
 
 /**
- * Submit callback: attempt a login of the user now.
+ * Submit callback: attempt a login an existing user.
  */
 function commerce_checkout_login_checkout_form_submit($form, &$form_state) {
   global $user;
@@ -106,3 +166,60 @@ function commerce_checkout_login_checkout_form_submit($form, &$form_state) {
     unset($form_state['commerce_checkout_login_uid']);
   }
 }
+
+/**
+ * Submit callback: attempt to create the user and login.
+ */
+function commerce_checkout_login_checkout_form_new_user_submit($form, &$form_state) {
+  global $user;
+
+  $values = &$form_state['values'];
+
+  // Exit if user has logged in since the pane form was created
+  if (!empty($user->uid)) {
+    /** @todo: check $order->uid and commerce_cart_order_convert() ? ******/
+    return;
+  }
+
+  // Load a fresh order object
+  $order = commerce_order_load($form_state['order']->order_id);
+
+  // Ensure order mail is as entered in form
+  if (empty($order->mail) && !empty($values['account']['login']['mail'])) {
+    $order->mail = $values['account']['login']['mail'];
+  }
+
+  // Wrap the order object
+  $order_wrapper = entity_metadata_wrapper('commerce_order', $order);
+
+  // Get generated user name
+  $username = $order_wrapper->mail_username->value();
+
+  // Exit if user got created already
+  if (user_load_by_name($username) || (!empty($order->mail) && user_load_by_mail($order->mail))) {
+    return;
+  }
+
+  // Create new user
+  $account = user_save(NULL, array(
+    'name' => $username,
+    'mail' => $order->mail,
+    'init' => $order->mail,
+    'status' => 1,
+    'timezone' =>  variable_get('user_default_timezone', DRUPAL_USER_TIMEZONE_DEFAULT) ? '' : variable_get('date_default_timezone', ''),
+  ));
+
+  if (!empty($account)) {
+    if (variable_get('commerce_checkout_login_new_user_login', FALSE)) {
+      // Load the specified user into the global $user variable.
+      $user = $account;
+
+      // "Finalize" the login by triggering the appropriate system messages, IP
+      // address and login timestamp logging, and user login hook.
+      user_login_finalize();
+
+      // Convert the current cart order to an authenticated cart for the current user
+      commerce_cart_order_convert($order, $user);
+    }
+  }
+}