Is Apple late coming to the BNPL game with Apple Pay Later?

Buy Now, Pay Later (BNPL) payment methods, also known as split-payment or installment services because they allow the consumer to split payment for the good/service into installments, were back again in the hot seat: Apple officially announced its split-pay service for Apple Pay (Apply Pay Later) — sinking the stocks of Affirm, Klarna and more BNPL providers.

Andrew Edem, head of Innovation at PPRO, a global provider of digital payments infrastructure, found the timing of Apple’s announcement poor: BNPL is past the peak of the hype cycle. He says Apple now faces significant headwinds, from regulatory concerns (CFPB probe) to the slowing economy & rising interest rates. 

“Because Apple is late to the game here, Andrew expects the BNPL market to get interesting in terms of how each player navigates these upcoming challenges,” Edem says. “At the same time, the popularity of BNPL cannot be denied: Online purchases using BNPL are growing at a rate of 39% a year and 54% of millennials now use the method.”

About Apple Pay Later

Apple Pay Later was announced at the 2022 Worldwide Developer Conference and provides users in the US with a way to split the cost of an Apple Pay purchase into four equal payments spread over six weeks, with zero interest and no fees. Users can track, and repay Apple Pay Later payments within Wallet. 

Users can apply for Apple Pay Later when they’re checking out with Apple Pay, or in Wallet. Additionally, with Apple Pay Order Tracking, users can receive detailed receipts and order tracking information in Wallet for Apple Pay purchases with participating merchants.