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Apple Pay Announces Buy Now, Pay Later Service

Apple Pay Announces Buy Now, Pay Later Service

JP Alegre

Thursday, March 30 2023, 04:32:00:PM

Apple Inc (Nasdaq: AAPL) on Tuesday introduced Apple Pay Later, its ‘buy now, pay later’ (BNPL) service that will allow users to split purchases into four payments over six weeks with no interest or fees. 

“Apple Pay Later was designed with our users’ financial health in mind, so it has no fees and no interest, and can be used and managed within Wallet, making it easier for consumers to make informed and responsible borrowing decisions,” said Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet. 


The service’s prerelease version will be available to a set of randomly selected users for now, with a nationwide rollout planned in the next few months. With it, users can get loans between $50 and $1,000 for online and in-app purchases made on iPhones and iPads with merchants that accept Apple Pay. Apple Pay currently has an 85% penetration among US retailers.

"Apple Pay Later will absolutely wallop some of the other players. Other companies would've taken a look at Apple's announcement today because they are a ubiquitous name. This will take a bite out of the market share of other players," Danni Hewson, head of financial analysis at AJ Bell, told Reuters.

Apple’s newest move is expected to disrupt the space, but observers are noting the need to be more cautious given the current macro climate. 

Demand for BNPL increased in the pandemic when users turned to online platforms for payments but this has since changed with soaring inflation and interest rates. The tech giant may be taking some risk by deciding to underwrite, fund, and collect on the loans on its own.

Information for this briefing was found via Apple, Reuters, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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