Apple device users will soon have access to buy now, pay later loans through Affirm, as announced by both companies. This collaboration is set to enhance the payment options available to iPhone and iPad users in the U.S. by integrating Affirm into Apple Pay later this year. The introduction of this feature aims to combine the convenience and security of Apple Pay with the flexibility and transparency associated with Affirm’s services.

The inclusion of Affirm as a buy now, pay later option within Apple Pay signifies a significant advancement for both companies. Despite concerns that Apple’s entry into the BNPL market last year would overshadow standalone providers like Affirm, the decision to integrate Affirm’s offerings reveals the unique value that the fintech company brings to the table. While Apple’s BNPL product allows users to spread payments over four installments within six weeks, Affirm’s range of long-term options allows for repayment stretching over a year or more.

The move is seen as a positive development for Affirm and the entire buy now, pay later sector. Investors are reassured by Affirm’s strong brand and sophisticated underwriting technology, factors that set it apart from potential competition such as Apple. The overlap between traditional credit card providers and BNPL services has intensified, with prominent players like Citigroup, Synchrony, and Fiserv-related issuers now offering installment loans through Apple Pay in the U.S.

While shares of both Affirm and Apple saw a boost following the announcement, it is noted that the partnership is not expected to have a significant impact on Affirm’s revenue in the near term. Affirm acknowledged that the revenue and gross merchandise volume from the collaboration with Apple would not be material until fiscal year 2025. Despite this, the market reception of the partnership highlights the potential for further growth and innovation in the buy now, pay later space.

The partnership between Apple and Affirm marks a milestone in the evolution of payment options available to Apple device users in the U.S. The integration of Affirm’s buy now, pay later services into Apple Pay underscores the commitment to providing users with greater flexibility and transparency in managing their finances. As the collaboration takes shape later this year, it will be interesting to see how consumers respond to the enhanced payment choices and the impact it has on the broader financial technology landscape.


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