The technology company enabled a new service called “Apple Pay Later.” Users will be able to divide their purchases into 4 interest-free payments.
apple incthe American technology company, this week launched a new “buy now, pay later” service, for now available only on USA. The move is expected to change the fintech sector, once dominated by firms like Affirm Holdings and the Swedish payment company klarna.
The service, known as Apple Pay Laterwill allow users to divide purchases into four payments Distributed in six weeks without interest or commissions. In addition, they may request loans between $50 and $1,000, which can be used for purchases online and at merchants that accept Apple Pay.
“Apple Pay Later is going to hurt some competitors. Other companies will have taken a look at Apple’s announcement today because they are such a ubiquitous name. This will take a bite out of the market share of others,” he said Danni Hewsonhead of financial analysis at A. J. Bell.
In 2020, within the framework of the isolation due to the pandemic, buyers began to prefer the platforms of pay on line, which fueled the demand for fintech companies that offer buy-now-pay-later services. Digital payment giants like PayPal and Block Inc expanded into the industry through acquisitions, while Affirm went public in a multi-million dollar initial offering.
Since then, the fortunes of the sector have changed due to rising interest rates and inflation, which have reduced purchasing power and forced consumers to “tighten their belts.” Faced with the shares of Affirm Holdings Inc falling more than 7%, and those of PayPal 1.5%, Apple Pay is accepted by more than 85% of US merchants.
Source: Ambito
