Apple Replaces Pay Later with Affirm After One Year

Thursday, June 27, 2024 – Apple’s launch of Buy Now, Pay Later (BNPL) in March 2023 was shut down, allowing Affirm to continue the service, as announced Reuters on June 18, 2024. ¹

Apple introduced the Buy Now, Pay Later service for users in the US to purchase in four payments, providing loans ranging from $50 to $1000.

Meanwhile, Apple released an announcement on June 11, 2024, regarding the new features that would be embedded in Apple, particularly Apple Pay.

Analysts observed that Apple’s Pay Later feature and Affirm’s system are competitive with their unique offerings.

In addition, Apple’s decision to collaborate with Affirm would be profitable, according to reports.

Analysts also see that the infrastructure of fintech company Affirm would consist of diversified options based on its repayment system compared to Apple.

However, the Apple Wallet App would continue to be accessible for current BNPL users to pay the loans.

In the US, customers with credit cards from Discover, Synchrony, or banks that use Fiserv for Apple Pay will soon be able to redeem their rewards earned through purchases made with Apple Pay.

Fiserv is a US-based multinational company that provides financial technology (fintech) and services to clients across the financial services sector.

Access to debit and credit cards for installments with Apple Pay will begin in Australia with ANZ; in Spain with CaixaBank; in the U.K. with HSBC and Monzo; and in the U.S. with Citi, Synchrony, and issuers with Fiserv.

Affirm will enable US residents to apply for loans once they check out with Apple Pay. ((apple.com: https://www.apple.com/newsroom/2024/06/new-features-come-to-apple-services-this-fall/))

Reports said that Affirm’s shares have surged 11% while Apple’s remained at 7.3%, highlighting the new step would widen its operations as at third week of June.

Affirm is a buy now, pay later (BNPL) lender providing short-term loans for in-store and online purchases. It allows customers to select their payment schedule and make payments via the Affirm app or at affirm.com. Affirm assures borrowers that they will know the total payment amount upfront, with no hidden fees or compound interest. Additionally, Affirm offers flexible payment plans.

1. reuters.com: https://www.reuters.com/technology/apple-turns-third-parties-buy-now-pay-later-after-sunsetting-product-2024-06-18/ [↩]