diff --git a/Documentation/git-clone.adoc b/Documentation/git-clone.adoc
index 27e4d13942..07f7cf1a98 100644
--- a/Documentation/git-clone.adoc
+++ b/Documentation/git-clone.adoc
@@ -350,7 +350,10 @@ or `--mirror` is given)
 
 `--ref-storage-format=<format>`::
 
-Specify the given ref storage format for the repository. The valid values are:
+Specify the given ref storage _<format>_ for the repository. Backends that
+require additional configuration accept a payload in the form
+`<format>://<payload>`, for example a connection string identifying the
+database that shall store the references. The valid values are:
 +
 include::ref-storage-format.adoc[]
 
diff --git a/Documentation/git-init.adoc b/Documentation/git-init.adoc
index 73e1f787cb..b02af22ad1 100644
--- a/Documentation/git-init.adoc
+++ b/Documentation/git-init.adoc
@@ -58,7 +58,10 @@ values are `sha1` and (if enabled) `sha256`.  `sha1` is the default.
 include::object-format-disclaimer.adoc[]
 
 `--ref-storage-format=<format>`::
-Specify the given ref storage _<format>_ for the repository. The valid values are:
+Specify the given ref storage _<format>_ for the repository. Backends that
+require additional configuration accept a payload in the form
+`<format>://<payload>`, for example a connection string identifying the
+database that shall store the references. The valid values are:
 +
 include::ref-storage-format.adoc[]
 
diff --git a/builtin/clone.c b/builtin/clone.c
index dd722e4de1..9812aaec8f 100644
--- a/builtin/clone.c
+++ b/builtin/clone.c
@@ -901,7 +901,7 @@ int cmd_clone(int argc,
 	char *option_origin = NULL;
 	struct string_list option_not = STRING_LIST_INIT_NODUP;
 	const char *real_git_dir = NULL;
-	const char *ref_storage_format_str = NULL;
+	const char *ref_storage_format_uri = NULL;
 	const char *option_upload_pack = "git-upload-pack";
 	int option_progress = -1;
 	int option_sparse_checkout = 0;
@@ -981,7 +981,7 @@ int cmd_clone(int argc,
 			 N_("any cloned submodules will be shallow")),
 		OPT_STRING(0, "separate-git-dir", &real_git_dir, N_("gitdir"),
 			   N_("separate git dir from working tree")),
-		OPT_STRING(0, "ref-storage-format", &ref_storage_format_str, N_("format"),
+		OPT_STRING(0, "ref-storage-format", &ref_storage_format_uri, N_("format"),
 			   N_("specify the reference storage format to use")),
 		OPT_ALIAS_F(0, "ref-format", "ref-storage-format", PARSE_OPT_HIDDEN),
 		OPT_STRING_LIST('c', "config", &option_config, N_("key=value"),
@@ -1028,10 +1028,10 @@ int cmd_clone(int argc,
 	if (option_single_branch == -1)
 		option_single_branch = deepen ? 1 : 0;
 
-	if (ref_storage_format_str) {
-		ref_storage_format = ref_storage_format_by_name(ref_storage_format_str);
+	if (ref_storage_format_uri) {
+		ref_storage_format = ref_storage_format_by_uri(ref_storage_format_uri, NULL);
 		if (ref_storage_format == REF_STORAGE_FORMAT_UNKNOWN)
-			die(_("unknown ref storage format '%s'"), ref_storage_format_str);
+			die(_("unknown ref storage format '%s'"), ref_storage_format_uri);
 	}
 
 	if (option_mirror) {
@@ -1187,7 +1187,7 @@ int cmd_clone(int argc,
 	 * their on-disk data structures.
 	 */
 	init_db(the_repository, git_dir, real_git_dir, work_tree, option_template,
-		GIT_HASH_UNKNOWN, ref_storage_format, NULL,
+		GIT_HASH_UNKNOWN, ref_storage_format_uri, NULL,
 		do_not_override_repo_unix_permissions,
 		INIT_DB_QUIET | INIT_DB_SKIP_REFDB);
 
diff --git a/builtin/init-db.c b/builtin/init-db.c
index 1612413af0..7a65d1673b 100644
--- a/builtin/init-db.c
+++ b/builtin/init-db.c
@@ -83,10 +83,9 @@ int cmd_init_db(int argc,
 	unsigned int flags = 0;
 	int bare = startup_info->force_bare_repository ? 1 : -1;
 	const char *object_format = NULL;
-	const char *ref_storage_format_str = NULL;
+	const char *ref_storage_format_uri = NULL;
 	const char *initial_branch = NULL;
 	int hash_algo = GIT_HASH_UNKNOWN;
-	enum ref_storage_format ref_storage_format = REF_STORAGE_FORMAT_UNKNOWN;
 	int init_shared_repository = -1;
 	const struct option init_db_options[] = {
 		OPT_STRING(0, "template", &template_dir, N_("template-directory"),
@@ -109,7 +108,7 @@ int cmd_init_db(int argc,
 			   N_("override the name of the initial branch")),
 		OPT_STRING(0, "object-format", &object_format, N_("hash"),
 			   N_("specify the hash algorithm to use")),
-		OPT_STRING(0, "ref-storage-format", &ref_storage_format_str, N_("format"),
+		OPT_STRING(0, "ref-storage-format", &ref_storage_format_uri, N_("format"),
 			   N_("specify the reference storage format to use")),
 		OPT_ALIAS_F(0, "ref-format", "ref-storage-format", PARSE_OPT_HIDDEN),
 		OPT_END()
@@ -174,12 +173,6 @@ int cmd_init_db(int argc,
 			die(_("unknown hash algorithm '%s'"), object_format);
 	}
 
-	if (ref_storage_format_str) {
-		ref_storage_format = ref_storage_format_by_name(ref_storage_format_str);
-		if (ref_storage_format == REF_STORAGE_FORMAT_UNKNOWN)
-			die(_("unknown ref storage format '%s'"), ref_storage_format_str);
-	}
-
 	if (init_shared_repository != -1)
 		repo_settings_set_shared_repository(the_repository, init_shared_repository);
 
@@ -250,8 +243,8 @@ int cmd_init_db(int argc,
 
 	flags |= INIT_DB_EXIST_OK;
 	ret = init_db(the_repository, git_dir, real_git_dir, work_tree,
-		      template_dir, hash_algo, ref_storage_format, initial_branch,
-		      init_shared_repository, flags);
+		      template_dir, hash_algo, ref_storage_format_uri,
+		      initial_branch, init_shared_repository, flags);
 
 	free(template_dir_to_free);
 	free(real_git_dir_to_free);
diff --git a/setup.c b/setup.c
index df8cbf196d..13f4a0aba9 100644
--- a/setup.c
+++ b/setup.c
@@ -2727,7 +2727,8 @@ out:
 }
 
 static void repository_format_configure(struct repository_format *repo_fmt,
-					int hash, enum ref_storage_format ref_storage_format)
+					int hash,
+					const char *ref_storage_format_uri)
 {
 	struct default_format_config cfg = {
 		.hash = GIT_HASH_UNKNOWN,
@@ -2738,6 +2739,7 @@ static void repository_format_configure(struct repository_format *repo_fmt,
 		.ignore_repo = 1,
 		.ignore_worktree = 1,
 	};
+	enum ref_storage_format ref_storage_format;
 	char *ref_storage_payload = NULL;
 	const char *env;
 
@@ -2791,8 +2793,12 @@ static void repository_format_configure(struct repository_format *repo_fmt,
 	 *   7. Otherwise, we fall back to the default ref storage format
 	 *      compiled into Git.
 	 */
-	if (ref_storage_format != REF_STORAGE_FORMAT_UNKNOWN) {
-		/* nothing to do */
+	if (ref_storage_format_uri) {
+		ref_storage_format = ref_storage_format_by_uri(ref_storage_format_uri,
+							       &ref_storage_payload);
+		if (ref_storage_format == REF_STORAGE_FORMAT_UNKNOWN)
+			die(_("unknown ref storage format specified via command line: '%s'"),
+			    ref_storage_format_uri);
 	} else if ((env = getenv(GIT_REF_STORAGE_FORMAT_ENVIRONMENT))) {
 		ref_storage_format = ref_storage_format_by_uri(env, &ref_storage_payload);
 		if (ref_storage_format == REF_STORAGE_FORMAT_UNKNOWN)
@@ -2845,7 +2851,7 @@ int init_db(struct repository *repo,
 	    const char *real_git_dir,
 	    const char *worktree,
 	    const char *template_dir, int hash,
-	    enum ref_storage_format ref_storage_format,
+	    const char *ref_storage_format_uri,
 	    const char *initial_branch,
 	    int init_shared_repository, unsigned int flags)
 {
@@ -2882,7 +2888,7 @@ int init_db(struct repository *repo,
 	 * is an attempt to reinitialize new repository with an old tool.
 	 */
 	read_and_verify_repository_format(&repo_fmt, repo_get_git_dir(repo), NULL);
-	repository_format_configure(&repo_fmt, hash, ref_storage_format);
+	repository_format_configure(&repo_fmt, hash, ref_storage_format_uri);
 	if (apply_repository_format(repo, &repo_fmt, APPLY_REPOSITORY_FORMAT_HONOR_ENV, &err) < 0)
 		die("%s", err.buf);
 
diff --git a/setup.h b/setup.h
index 763fd384e8..f04d2984b4 100644
--- a/setup.h
+++ b/setup.h
@@ -265,7 +265,7 @@ int init_db(struct repository *repo,
 	    const char *real_git_dir,
 	    const char *worktree,
 	    const char *template_dir, int hash_algo,
-	    enum ref_storage_format ref_storage_format,
+	    const char *ref_storage_format_uri,
 	    const char *initial_branch, int init_shared_repository,
 	    unsigned int flags);
 void initialize_repository_version(struct repository *repo,
diff --git a/t/t0001-init.sh b/t/t0001-init.sh
index fe5bc3d3e1..f1d227f271 100755
--- a/t/t0001-init.sh
+++ b/t/t0001-init.sh
@@ -833,7 +833,7 @@ done
 test_expect_success 'init with --ref-storage-format=garbage' '
 	test_when_finished "rm -rf refformat" &&
 	cat >expect <<-EOF &&
-	fatal: unknown ref storage format ${SQ}garbage${SQ}
+	fatal: unknown ref storage format specified via command line: ${SQ}garbage${SQ}
 	EOF
 	test_must_fail git init --ref-storage-format=garbage refformat 2>err &&
 	test_cmp expect err
diff --git a/t/t1423-ref-backend.sh b/t/t1423-ref-backend.sh
index 525b2a19b4..ee2bb66b99 100755
--- a/t/t1423-ref-backend.sh
+++ b/t/t1423-ref-backend.sh
@@ -254,6 +254,36 @@ test_expect_success 'initializing repository with alt ref directory' '
 	)
 '
 
+test_expect_success 'initializing repository with --ref-storage-format and payload' '
+	test_when_finished "rm -rf repo refdir" &&
+	mkdir refdir &&
+	BACKEND="$(test_detect_ref_format)://$(pwd)/refdir" &&
+	git init --ref-storage-format="$BACKEND" repo &&
+	verify_files_exist repo/.git refdir &&
+
+	git -C repo config get extensions.refstorage >actual &&
+	echo $BACKEND >expect &&
+	test_cmp expect actual &&
+
+	test_commit -C repo 1 &&
+	git -C repo refs list >out &&
+	test_grep "refs/tags/1" out &&
+
+	# Reinitializing the repository is fine when not specifying any format.
+	git -C repo init &&
+	# Reinitializing with the same backend is fine, too.
+	git -C repo init --ref-storage-format="$BACKEND" &&
+	# Reinitializing without a payload should fail.
+	test_must_fail git -C repo init --ref-storage-format="$(test_detect_ref_format)" 2>err &&
+	test_grep "attempt to reinitialize repository with different reference storage payload" err &&
+	# Reinitializing with a different payload should fail, too.
+	test_must_fail git -C repo init --ref-storage-format="$(test_detect_ref_format)://$(pwd)/other" 2>err &&
+	test_grep "attempt to reinitialize repository with different reference storage payload" err &&
+
+	git -C repo config get extensions.refstorage >actual &&
+	test_cmp expect actual
+'
+
 test_expect_success 'cloning repository with alt ref directory' '
 	test_when_finished "rm -rf source repo refdir" &&
 	mkdir refdir &&