Say Buy Now Pay Later Loans Coming Later This Year


Chris Ratcliffe | Bloomberg | fake images

Apple Device users will soon be able to access loans to buy now and pay later Say for purchases, the companies said Tuesday.

Affirm will appear as an option for US Apple Pay users on iPhones and iPads later this year, the San Francisco-based fintech company said in a statement. Apple confirmed the news in its own update.

“This provides users with additional payment options and offers the ease, convenience and security of Apple Pay along with the features users love in Affirm: flexibility, transparency and no late or hidden payment fees,” Affirm said in an email statement.

The move is a boost for Affirm and the buy now, pay later industry in general. When Apple introduced its own BNPL product last year, investors were concerned that the tech giant would displace independent providers like Affirm. But the fact that Apple has decided to also allow Affirm products in its ecosystem shows that the fintech company has something unique to offer.

For example, while Apple's BNPL loan allows users to pay for purchases in four installments over six weeks, Affirm has a variety of longer-term offers that can be paid off over a year or more. The companies did not provide details on the terms of the new loans.

“The bottom line, in our view, is that Affirm's strong brand and sophisticated subscription technology has a moat that Apple probably couldn't replicate on its own,” Dan Dolev, an analyst at Mizuho Securities, said in a research note.

Citi, Synchrony

Apple also said that installment loans via credit and debit cards would be available on Apple Pay in the US with citi group, Synchrony and Fiserv-Related issuers. Traditional credit card players have started offering BNPL-style installment loans after their popularity surged during the Covid pandemic.

Thanks to the ubiquity of the iPhone, Apple Pay has more than 500 million users worldwide and leading market share in the US for its mobile payments platform and digital wallet.

Affirm shares rose 5% in morning trading Tuesday, while Apple shares rose 6.2%.

Affirm shares rose even though the company indicated the partnership would take time to significantly boost its revenue.

“Affirm does not expect this partnership to have a material impact on revenue or gross merchandise volume in fiscal 2025,” the company said in its filing.

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