Apple introduces a buy-now, pay-later option in the U.S.

Apple introduces a buy-now, pay-later option in the U.S.
Image: Reuters

Apple’s buy now, pay later service, which launched in the United States on Tuesday, is anticipated to disrupt the financial technology sector, which is now dominated by businesses such as Affirm Holdings and the Swedish payments startup Klarna.

Apple Pay Later, the new service, will enable consumers stretch out payments over a longer period of time (up to six weeks) without paying any extra expenses or interest.

The company claims that clients may apply for loans ranging from $50 to $1,000 to use in establishments that accept Apple Pay for iPhone and iPad purchases.

“Apple Pay Later will utterly decimate its rivals. Apple is such a well-known brand that rivals definitely saw their news release today. This will eat into the profitability of competitive enterprises ” Danni Hewson, the director of financial analysis at AJ Bell, said as much.

Apple Pay Later will be a game-changer, according to Hewson, since consumers are seeking more convenient payment solutions when their buying power declines owing to rising costs.

In 2020, demand for BNPL services offered by fintech companies surged owing to the increasing use of alternative payment methods caused by shop closures caused by pandemics.

Affirm went public with a multibillion dollar IPO, while PayPal Holdings Inc and Block Inc acquired their way into the market.

Increasing loan rates and skyrocketing inflation, both of which have restricted consumer spending, have altered the industry’s fortune.

The corporation says that more than 85 percent of retailers in the United States accept Apple Pay.

At lunchtime trade, shares of BNPL business PayPal were down around 1.5% while shares of Affirm Holdings Inc dropped more than 7%.

According to the company, Apple Pay Later is made possible through the Mastercard Installments program and Goldman Sachs-issued Mastercard payment credentials.

About News Team

Hi, I'm Alex Perez, an experienced writer with a focus on lifestyle and culture news. From food and fashion to travel and entertainment, I love exploring the latest trends and sharing my insights with readers. I also have a strong interest in world news and business, and enjoy covering breaking stories and events.

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