In its upcoming fall iOS update, Apple will add buy now, pay later services to Apple Pay and Apple Wallet. Apple Pay will also be available on Windows-driven PCs and Google’s Chrome browser, giving consumers even more flexibility in how they pay.
The BNPL services will be offered through Affirm, and Apple users will be able to apply for an Affirm account directly in Apple Pay. Apple will continue offering its own buy now, pay later service, Apple Pay Later, and the tech giant said it could integrate other BNPL providers like Klarna in the future.
Apple Pay will also support BNPL-style installment plans through credit and debit cards issued by Fiserv, Citigroup, and Synchrony. Users will be able to receive rewards points when using credit cards linked to Apple’s app.
Affirmation for Affirm
The inclusion of Affirm in addition to Apple’s BNPL offering is a strong affirmation of Affirm’s unique platform. Known for its Pay in 4 purchase plans, Affirm recently added two short-term payment options to complement its array of installment plans. That flexibility isn’t something Apple can replicate on its own.
Affirm’s leadership has already stated that the partnership won’t have a substantial impact on revenue or merchandise volume until 2025. Regardless, Affirm stock jumped more than 10% after the Apple Pay news.
Loosening the Ecosystem
The impact might not be immediate, but Affirm will likely see a substantial sales boost from Apple Pay’s 500 million users. The app is the U.S. market share leader among mobile payment and digital wallet platforms.
One of the main limitations for Apple Pay has been Apple’s ecosystem. The company’s tight grip on its platform has been criticized by app developers and regulators alike for years. That’s why it’s significant that, with the new iOS update, Apple Pay will be available on Chrome browsers and Windows computers.
The move means customers don’t have to have their iPhone with them to scan a code and approve Apple Pay transactions. It also means Apple isn’t dependent on iPhone sales, which have been slumping, to keep its mobile wallet at the front of the pack.