Affirm has announced a strategic partnership with Apple Pay, integrating its Buy Now, Pay Later (BNPL) services into the popular mobile payment platform. This collaboration will allow Apple Pay users to access Affirm’s BNPL loans when making purchases on iPhones and iPads later this year. This move signifies a significant expansion of payment flexibility for Apple customers and a boost for the growing BNPL sector.
This integration means that when using Apple Pay on their Apple devices, consumers will see Affirm as a payment option for eligible purchases. While Apple is also expected to offer its own instalment loan options through credit and debit cards with partners like Citigroup, Synchrony, and Fiserv, Affirm brings its established expertise in longer-term BNPL solutions to the Apple Pay ecosystem. Affirm’s offerings typically include repayment periods extending beyond the six-week, four-instalment structure often associated with short-term BNPL, potentially reaching a year or more.
Image showing the Affirm logo, representing Affirm’s Buy Now, Pay Later service and its partnership strategy.
The partnership aims to provide Apple Pay users with greater choice and convenience in how they manage their payments. By incorporating Affirm, Apple Pay enhances its appeal by offering users the flexibility and transparency that are hallmarks of Affirm’s service, including no late or hidden fees. For Affirm, this partnership provides access to Apple Pay’s extensive user base, potentially accelerating the adoption of its BNPL services.
The broader context of this partnership includes the increasing popularity of BNPL and the response from traditional financial institutions. As the BNPL market has grown, traditional credit card companies have also begun to introduce BNPL-style instalment loans. Synchrony, for example, has indicated plans to offer personalized instalment loan options with promotional rates, demonstrating the wider trend towards flexible payment solutions in the financial landscape.
While the specifics of the loan terms offered through this partnership have not been disclosed, Affirm has stated that it does not anticipate a material impact on its revenue or gross merchandise volume in the fiscal year 2025. This suggests a longer-term strategic focus for Affirm in partnering with Apple Pay, aiming to solidify its position in the evolving mobile payments market and reach a broader customer base seeking flexible payment options.
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