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Saturday, September 16, 2023

Apple Pay Later Might Upend BNPL House

Apple first introduced its plan to create a purchase now, pay later possibility for the Apple Pockets in July 2021, nevertheless it was not till this week that the service formally launched.

Apple Pay Later permits U.S. customers to separate purchases — retail, ecommerce, in-app — into 4, interest-free funds. The service might encourage some customers to make purchases sooner, which, in flip, may enhance each omnichannel retail and ecommerce.

In its launch, the corporate stated its new BNPL service was created “with customers’ monetary well being in thoughts,” including:

Apple Pay Later permits customers to separate purchases into 4 funds unfold over six weeks with no curiosity or charges. Customers can simply observe, handle, and repay their Apple Pay Later loans in a single handy location in Apple Pockets. Customers can apply for Apple Pay Later loans of $50 to $1,000, which can be utilized for on-line and in-app purchases made on iPhone and iPad with retailers that settle for Apple Pay.

Screenshot of three iPhone screens with separate Apple Pay Later interfaces.

Customers can observe, handle, and repay their Apple Pay Later loans in Apple Pockets. Click on picture to enlarge. Supply: Apple.

Retailers already accepting Apple Pay want no further motion — the BNPL possibility ought to work mechanically. Retailers on Shopify, BigCommerce, and different platforms can activate Apple Pay.

Apple’s BNPL Benefit

Apple Pay Later might supply 4 vital benefits for customers in comparison with different providers.

Huge consumer base. By some estimates, 9 out of 10 bodily retail places in the US settle for Apple Pay. Furthermore, roughly 48% of U.S. smartphones are Apple units. Backside line, Apple’s huge consumer base might quickly allow vital market share in the BNPL area.

Trusted model. Many shoppers may decide Apple Pay Later over different suppliers or use BNPL for the primary time as a result of they belief the Apple model and its fame for delivering safe, high quality services.

Simple to entry. The service is out there in Apple Pockets. Customers can apply for brand spanking new loans, observe excellent loans, and handle reimbursement in an app they have already got. As soon as the patron has added it, Pay Later ought to be prepared for purchases.

Cheap. The service doesn’t cost curiosity and has no charges if the patron remits on-time funds. Even people flush with money may take into account taking out an interest-free, $1,000 mortgage once in a while. A consumer’s personal financial institution might cost, for instance, a debit payment, however Apple Pay Later itself is reasonable.


The launch of Apple Pay Later might immediate certified customers to attempt the service, making a short-term bump in gross sales.

retailers ought to first make sure that they’ll settle for Apple Pay. Most ecommerce platforms permit sellers to simply accept Apple Pay and show its button.

Sellers can tout Apple Pay Later — significantly to customers on an iPhone — and the comfort of splitting purchases into interest-free installments. Promotional choices might embrace a banner on checkout pages and even an embedded video demonstrating learn how to use the service or, for that matter, different BNPL suppliers.

There’s additionally the chance to leverage Apple’s model. By providing Apple Pay Later, retailers may benefit from the belief and loyalty related to the corporate. This affiliation might construct credibility — fostering belief and inspiring repeat purchases, as customers know they’re working with Apple.

Finally, retailers might not know definitively if Apple Pay Later drives new or sooner gross sales. Nonetheless, there’s no draw back to selling it.

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