The popularity of Buy Now, Pay Later (BNPL) services surged during the COVID-19 pandemic, contributing to $75 billion in online spending in 2023, an increase of 14.3% from 2022 according to Adobe Analytics. Apple has announced a strategic move to enhance its BNPL offerings by integrating new installment loan options through Affirm, a leading BNPL provider. This new collaboration will allow users to apply for BNPL loans directly through Affirm while using Apple Pay, offering more flexibility and convenience for consumers. Existing users of Apple’s previous BNPL option, Apple Pay Later, can still manage their loans via the Wallet app. Analysts had previously seen Apple's BNPL service as a competitor to existing providers like Affirm; however, this new partnership signifies a shift in strategy. Apple aims to retain customer relationships by offering various payment options through Apple Pay, minimizing risk and enhancing user experience. The partnership could expand in the future to include other providers like Klarna, leveraging Affirm's technology and underwriting expertise. The move highlights Apple's commitment to providing flexible payment solutions globally, in collaboration with Apple Pay-enabled banks and lenders.
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