Buy-now, pay-later (BNPL) network Apple Pay customers can now access Affirm. The integration, which was disclosed on Monday (Sept. 16), enables Apple Pay users in the United States to pay for purchases via iPhone and iPad over time using Affirm. The payments are divided into biweekly or monthly installments.
In order to utilize the service, consumers with iOS 18 and iPadOS 18 or later can select “Other Cards & Pay Later Options” during the checkout process on their Apple device. This selection will precede an eligibility inquiry that will not impact their credit score. The report also discovered that nearly 60% of consumers utilize pay-later plans to aid in the improved management of their spending on large-ticket purchases, and 63% of BNPL users cited cash flow management as a significant factor in their decision to use the payment method.Users who are approved will be presented with personalized payment plans and will be able to choose the one that is most suitable for them. Affirm reported earnings last month that demonstrated a 31% year-over-year increase in gross merchandise volume (GMV), which amounted to $7.2 billion, and a 48% increase in revenue, which amounted to $659 million.
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Industry Comments
“We are thrilled to bring the power of Affirm to Apple Pay users in the U.S. and the retailers where they shop,” Vishal Kapoor, Affirm’s senior vice president of product, said in a news release. “This integration combines the ease, convenience and security of Apple Pay alongside the features users love in Affirm — flexibility, transparency and no late or hidden fees.”
“We are excited to provide users with even more flexibility and choice when making a purchase using Apple Pay with the introduction of Affirm loans at checkout with Apple Pay,” added Jennifer Bailey, vice president of Apple Pay and Apple Wallet.
“This gives users access to Affirm’s pay-over-time options right at the point of purchase, and leverages the easy, secure and private experience that our users already enjoy with Apple Pay.”
CEO Max Levchin told analysts on an earnings call that potential reductions in interest rates could increase BNPL usage.
“The most exciting thing about reductions at that fund rate is we’ll just have more active users. … We’ll have more repeat users, because we’ll be able to approve more people,” Levchin said.
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