Apple on Tuesday introduced Apple Pay Later in the U.S. Designed with users’ financial health in mind, Apple Pay Later allows users to split purchases into four payments, spread over six weeks with no interest and no fees. A financial analyst says it will “absolutely wallop” the Buy Now Pay Later (BNPL) marketplace.
“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 an ubiquitous name. This will take a bite out of the market share of other players,” said Danni Hewson, head of financial analysis at AJ Bell.
BNPL firm Affirm’s shares fell more than 7%, while PayPal closed about 1% lower.
In 2020, pandemic-related lockdowns turned shoppers to online payment platforms, bolstering demand for fintech companies offering BNPL services, especially to millennials and Gen Z customers… The sector’s fortunes have since turned as rising interest rates and red-hot inflation dampened purchasing power and forced consumers to tighten their purse strings.
“We expect Apple to tread cautiously, especially in this macro environment,” said Christopher Brendler, analyst at D.A. Davidson, alluding to its decision to not use a partner and underwrite, fund, and collect on the loans directly.
MacDailyNews Take: With Apple Pay Later here, Affirm, Afterpay, Klarna, and the other BNPL outfits should be very worried.
Please help support MacDailyNews. Click or tap here to support our independent tech blog. Thank you!
Support MacDailyNews at no extra cost to you by using this link to shop at Amazon.