With some researchers signaling that buy now pay later (BNPL) services will represent a ~$40 billion business by the end of this decade, fintechs across the board are rushing to bring flexible payment options to their users. Though the field has quickly grown crowded with dedicated BNPL giants like Klarna now joined by traditional banks and retailers developing their own payment platforms, one company that has stayed out of the fray is Apple. Although the bellwether announced an Apple Pay Later feature months ago, it has stayed mum on the issue ever since.
However, Apple is no longer waiting on the sidelines. According to the company, Apple Pay Later will be brought to a randomly selected group of Apple Pay users immediately, and will push the service to all iOS users within the next few months. Credit matters related to the new payment plan service will be handled through subsidiary company Apple Financing.
“Many people are looking for flexible payment options, which is why we’re excited to provide our users with Apple Pay Later,” said Jennifer Bailey, Vice President of Apple Pay, in a launch press release. “Apple Pay Later was designed with our users’ financial health in mind, so it has no fees and no interest, and can be used and managed within Wallet, making it easier for consumers to make informed and responsible borrowing decisions.”