Apple to Revamp Buy Now, Pay Later Service

Apple has announced its decision to discontinue its buy now, pay later service introduced last year. However, the tech giant will be launching a new version of the service through third-party providers like Affirm later this year. The buy now, pay later (BNPL) trend has gained significant traction, especially during the COVID-19 pandemic, driving $75 billion in online spending in 2023, marking a 14.3% increase from the previous year.

The new payment solution from Apple aims to provide more flexibility to users globally in collaboration with Apple Pay-enabled banks and lenders. Users who are currently using Apple's BNPL service, Apple Pay Later, will still be able to manage and repay their loans through the Wallet app.

Apple Pay users will soon have access to new installment loan options, including the ability to apply for BNPL loans directly through Affirm when using Apple Pay. This strategic move positions Apple as a significant player in the BNPL market, putting it in direct competition with providers like Affirm.

Industry analysts view Apple's shift towards offering BNPL products through Apple Pay as a strategic decision to enhance customer relationships and mitigate risks. While Apple may explore partnerships with other BNPL providers in the future, Affirm's technology and user-friendly approach make it a preferred choice.

Despite a slight decline in Affirm's stock, attributed to lower-than-expected retail sales data in May, the BNPL market continues to evolve. Apple's entry into the market is expected to reshape the landscape and provide consumers with more payment options, ultimately benefiting the users.