Apple has just launched its “buy now, pay later” (BNPL) service in the United States, allowing customers to split their bills into four installments over six weeks with no interest or fees.
The “buy now, pay later” service, as its name suggests, will enable customers to purchase any product without making a down payment and pay for it in four small payments spread out over six weeks, making purchases simpler.
It has been suggested that Apple has launched the “Apple Pay Later” service as a rival to companies like “Klarna” and “Affirm Holdings,” which both provide users with similar BNPL services and have dominated the fintech industry for some time.
Apple Pay Later, a new feature, is currently only available to a select group of users in the United States before being made available to a broader audience in the coming months.
Once pursued the Apple Pay Later, clients can get a credit of $50 to $1,000 for their on the web and in-application buys from any vender that acknowledges Apple Pay as an installment technique.
Because Apple Pay is accepted by more than 85% of all US retailers, this feature has the potential to become extremely popular in the US.
Despite the fact that Apple Pay has a sizable user base throughout the European Union and some Asian nations, it faces stiff competition. However, once features like Apple Pay Later are made available, Apple Pay will undoubtedly overtake the competition in those regions as well.
Apple Pay Later will unquestionably overwhelm other players. Because Apple is a household name, other businesses would have looked at the announcement today. When discussing the new feature, AJ Bell’s head financial analyst, Danni Hewson, stated, “This will take a bite out of the market share of other players.”
Affirm Holdings and PayPal both experienced a 7 percent and 1 percent decrease in their share prices immediately following the announcement of Apple Pay Later.