Apple announces Apple Pay Later, letting US users split the cost of an Apple Pay purchase into four equal payments over six weeks without interest or late fees
Apple today announced a major update to Apple Pay called Apple Pay Later, which will allow users to split the cost …
TechCrunchKyle Wiggers
Context & Ripple Effects
The service turns a previously reported Apple-Goldman installment-payment plan into an Apple Pay feature. Related coverage shortly afterward says Apple, rather than a bank partner, would handle lending through Apple Financing LLC, including credit checks and loan decisions.
The announcement began a staged U.S. rollout: Apple later offered early access to select users before opening Apple Pay Later to all eligible U.S. users. That progression makes the launch an expansion of Apple Pay from checkout method into credit delivery.
First-order effects
U.S. Apple Pay users gain a four-payment, six-week payment option for eligible purchases, with no interest or late fees described in the announcement.
Apple assumes a direct role in underwriting and lending through its Apple Financing subsidiary, rather than limiting Apple Pay to payment orchestration.
Second-order effects
Affirm faces a wallet-native installment option at the Apple Pay checkout, a competitive threat anticipated in reporting that characterized Apple’s plan as a rival service.
Merchants that already accept Apple Pay can offer installment payments through the same checkout flow, making Apple’s payment ecosystem more consequential to purchase financing.
Third-order effects
If Apple continues to pair wallet distribution with its own underwriting, consumer-finance competition shifts toward platform owners that control both the checkout interface and the credit decision.
The phased availability shown in later coverage suggests embedded credit will be governed by eligibility and rollout controls inside operating-system payment platforms, not solely by standalone lenders.
The trend:Apple Pay Later is part of the shift from standalone buy-now-pay-later providers toward credit products embedded directly in major payment platforms.
Buy Now Pay Later coming to Apple Pay, Affirm stock takes a hit. I expect Klarna's down round to be reduced even further and key question will be if layoffs were deep enough. BNPL is now a commodity feature and risky given it's effectively a subprime loan product. https://twitter…
@munster_gene I might have to disagree with you, Apple entering BNPL will give credibility to the BNPL industry. Rgulators recently set their scope on the industry. Its been viewed as a predatory service as of late.
All of these layaway/buy now, pay later apps are doing mad damage to people's finances and credit. 43% of ppl who use klarna, after pay, etc miss a payment and it looks like Apple wants parts now too. 43% of people missing payments and getting hit with penalties is horrendous.
Notable (though unsurprising) on Apple Pay Later is a reference to “users' financial health”, which is similar to banks launching their BNPL-like products. Interesting What sort of affordability checks does this mean in practice? https://twitter.com/...
Apple confirmed plans to launch its own buy now, pay later loans. Interesting timing given the twin challenges of inflation and higher interest rates facing the BNPL space.. Will Apple's move be enough to keep driving the hype around BNPL? https://www.cnbc.com/... #WWDC22
Useful piece, pointing out that other BNPL providers are under a bit of pressure. I think Apple is being greedy and irresponsible getting into BNPL, and the timing isn't good, either, because of the pressures that are bearing down on other providers. https://twitter.com/...