Confirms buy now, pay later loans will be available later this year | Wilnesh News

apple Equipment owners will soon be able to take advantage of buy now, pay later loans confirm For the purchase, the companies said on Tuesday.

Affirm will become an option for Apple Pay users on iPhone and iPad in the United States later this year, the San Francisco-based fintech said in a statement. Archive. Apple also confirmed the news renew.

“This gives users additional payment options and delivers the ease, convenience and security of Apple Pay with the Affirm features users love – flexibility, transparency and no late or hidden fees,” Affirm said in an emailed statement. .

The move boosts Affirm and the buy now, pay later industry in general. When Apple launches its own BNPL product Last year, investors worried that the tech giant would crowd out independent providers like Affirm. But the fact that Apple decided to also allow Affirm products in its ecosystem suggests that the fintech company has something unique to offer.

Apple’s BNPL loan, for example, allows users to repay their purchases in four installments over six weeks, while Affirm offers a range of longer-term products that can be repaid over a year or more. The companies did not provide details on the terms of the new loans.

“We believe the bottom line is that Affirm’s strong brand and advanced underwriting technology have moats that Apple may not be able to replicate on its own,” Mizuho Securities analyst Dan Dolev said in a research note.

Apple also stated that in the United States, Apple Pay can be used for installment loans through credit cards and debit cards. Citigroup, synchronicity and FeserRelevant Issuers. Traditional credit card players have begun dedication BNPL-style installment loans surge in popularity during coronavirus pandemic

Synchrony said in an email that it is planning to personalize installment loan promotions based on transaction size and merchants involved, and may use promotional rates and loan terms.

“This announcement with Apple marks an opportunity for Synchrony to expand our flexible payment options and provide our merchants with opportunities to expand their business in the growing mobile payments ecosystem,” Mike Bopp, Synchrony’s chief growth officer, said in an email. Ability.

Thanks to the popularity of the iPhone, Apple Pay has surpassed 500 million Users are spread all over the world, and the mobile payment and digital wallet platform leads the market share in the United States.

Affirm’s shares rose 11% on Tuesday, while Apple’s shares rose 7.3%.

Affirm’s stock price rose even though it said the partnership would take some time to significantly boost its revenue.

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