Apple Inc. debuted its “buy now, pay later” service on Tuesday in the US, posing a threat to the fintech industry, dominated by companies like Affirm Holdings and the Swedish payments business Klarna. According to the firm, Apple Pay Later will let customers split purchases into four instalments over six weeks with no interest or fees.
According to the firm, customers can request loans between $50 and $1,000, which they can use for online and in-app purchases on their iPhone or iPad at shops that support Apple Pay.
Just like Apple, will other companies will also launch “buy now, pay later?”
Other companies would’ve taken a look at Apple’s announcement today because they are a ubiquitous name. Apple Pay Later will wallop some of the other players. This will take a bite out of other players’ market share,” said Danni Hewson, AJ Bell’s director of financial analysis. According to Hewson, Apple Pay Later will be a disruptor as customers hunt for the simplest way to buy what they want because inflation has made purchasing more expensive.
Pandemic-related lockdowns in 2020 drove users to online payment platforms, increasing demand for fintech firms that provide BNPL services, particularly among millennials and Gen Z clients.

Affirm went public in an IPO, while digital payments behemoths like PayPal Holdings Inc and Block Inc have entered the market through acquisitions.
Since then, the sector’s fortunes have changed due to rising interest rates and soaring inflation, which have reduced purchasing power and made consumers tighten their purse strings. Affirm Holdings Inc., a BNPL company, had its shares drop by more than 7% in noon trade, while PayPal saw a decline of roughly 1.5%. According to the firm, over 85% of U.S. retailers accept Apple Pay.
Mastercard enables the “Pay Later” option
According to the business, the Mastercard Installments programme enables Apple Pay Later, and Goldman Sachs issued the Mastercard payment credential. Big players in digital payments, like Block Inc. and PayPal Holdings Inc., have entered the market through acquisitions, and Affirm went public with a multibillion-dollar IPO.
Since then, the sector’s fortunes have changed due to rising interest rates and soaring inflation, which have reduced purchasing power and made consumers tighten their purse strings. As per the firm, over 85% of U.S. retailers accept Apple Pay.
Affirm Holdings Inc., a BNPL company, had its shares drop by more than 7% in noon trade, while PayPal saw a decline of roughly 1.5%. The business added that Goldman Sachs issued the Mastercard payment credential and that Apple Pay Later is supported by the Mastercard Installments programme.