Apple announced on Tuesday, June 11, that customers will soon have the option for "buy now, pay later" (BNPL) loans in partnership with fintech firm Affirm.
Apple Pay Soon to Allow Users BNPL Loans
Affirm said in a filing that later this year, Apple Pay customers in the US would have the option to use Affirm with their iPhones and iPads. Apple verified This in a blog post.
In an email to CNBC, Affirm said the new payment option gives customers additional alternatives while still providing the same features that customers enjoy about the service, such as transparency, simplicity of use, and no late or hidden penalties. The company also said that customers will appreciate the security and convenience of Apple Pay.
Affirm allows customers to pay for products over six weeks in four equal payments and offers a variety of longer-term options with repayment terms of a year or more.
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Apple Partners With More Lenders
Apple also said that in the United States, issuers affiliated with Citigroup, Synchrony, and Fiserv could provide installment loans via Apple Pay using credit and debit cards, CNBC reported. Following a meteoric rise in demand during the COVID-19 pandemic, many established credit card companies have started providing installment loans in BNPL.
In an email, Synchrony announced its plans to provide tailored installment loans with attractive interest rates and repayment periods based on the transaction amount and the participating retailer.
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