Apple Pay Later May Upend BNPL Area

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

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

In its release, the corporate mentioned 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 monitor, 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 monitor, 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 choice ought to work robotically. Retailers on Shopify, BigCommerce, and different platforms can activate Apple Pay.

Apple’s BNPL Benefit

Apple Pay Later might supply 4 vital benefits for buyers in comparison with different companies.

Large consumer base. By some estimates, 9 out of 10 bodily retail places in the USA settle for Apple Pay. Furthermore, roughly 48% of U.S. smartphones are Apple gadgets. Backside line, Apple’s large consumer base might quickly allow vital market share within the BNPL house.

Trusted model. Many customers 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.

Straightforward to entry. The service is on the market in Apple Pockets. Buyers can apply for brand new loans, monitor excellent loans, and handle compensation 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 on occasion. A client’s personal financial institution could cost, for instance, a debit price, however Apple Pay Later itself is affordable.


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

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

Sellers can tout Apple Pay Later — significantly to buyers on an iPhone — and the comfort of splitting purchases into interest-free installments. Promotional choices might embody a banner on checkout pages and even an embedded video demonstrating methods 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 buyers know they’re working with Apple.

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