Apple Takes On BNPL Segment With Pay Later Service

At the WWDC 2022, Apple took the wraps off a flurry of new software features and new iterations of its various operating systems. Besides these, the company also launched the new MacBook models at the developer conference. That's not all as Apple announced a pay-later option, which enables it to foray into finance.

The Apple Pay Later payment feature is a much-awaited addition to the Wallet app. This announcement has affected the shares of Affirm Holdings Inc. by 6%, which offers the same kind of pay-later service.

Apple Pay Later

The Apple Pay Later payment service will be integrated into the digital wallet and it will let users to pay back any purchase made using Apple Pay in four installments. It was announced that the buy now, pay later option will involve zero interest rates and no late fees. Apple Pay Later is available wherever Apple Pay can be used, be it in-app purchases or online shopping.

What's more, this payment feature offers an installment plan, which will be fully integrated with the existing point-of-sale terminals. Eventually, retailers do not have to upgrade their PoS systems to support the Apple Pay Later service. In addition to this, Apple Pay Later can be tracked as well as managed via the Apple Wallet app installed on the device.

Prior to Apple Pay Later, the company entered the buy now, pay later segment with the Apple Credit Card. It let users to make monthly installment payments with no interest cost. However, it was applicable only for select products and not for all products. Also, it was supported only at select Apple Store locations.

It goes without saying that the Apple Pay Later service will compete against the likes of giants in this segment such as Klarna and Affirm. Moreover, the company announced that it plans to launch the service to help its users who want to replace their physical wallet completely. For a widespread rollout, the company is working towards launching state-approved digital drivers licences among other necessities.

Having said that, we can expect the Apple Pay Later service to be rolled out in India after getting approvals. Also, this payment service might help attract more buyers to upgrade to Apple products.