Manzana is rolling out a new feature for Apple Pay that allows you to pay for purchases in four interest-free installments. Apple Pay will have Buy Now Pay Later (BNPL) feature integrated directly and will receive the name of Apple PayLater in the new iOS 16.
Buy now, pay later services have been on the rise. It will now be possible to pay in installments for six weeks through Apple Pay Later. The first payment will be made in advance and the other three every fifteen days. Payments are managed in your wallet, and you can pay them in advance if you wish.
“Users can request Apple Pay Later when they check out with Apple Pay, or in their wallet“Apple said in a press release. «Apple Pay Later is available anywhere Apple Pay is accepted online or in the app, using the Mastercard network«.
This function has been presented along with many other advances that the company will bring in the coming months. Among them are a new version of its custom desktop processor, the M2, and a more ambitious automotive integration that brings Apple software to the dash and speedometer.
Apple will be a great competitor for the sector
Apple’s intention to enter the BNPL world indicates that this is an expanding market with great business opportunities. And it is that the COVID-19 pandemic has contributed to its growth thanks to offering an alternative to the consumer in which the pressure of consumers with financial limitations is eliminated. Above all, it is a form of payment that triumphs among users of Generation Z. «Demand is likely to continue to rise as rising cost of living and inflationary pressures push more consumers towards BNPL solutions.» ensures Beyza Karakoy, Associate Analyst at GlobalData, a leading data and analytics company.
Apple’s intention to enter the financial services sector was seen at the beginning of the year with the acquisition of British fintech Credit Kudos. This movement has already put companies such as Klarna, Clearpay and Affirm, who see in this new player a great competitor. Apple has enough liquidity to enter this sector, while other companies are forced to raise large investment rounds to continue operating.
The credibility of a company like Apple can bring security to the sector, since in recent months the BNPL has been receiving harsh criticism. «However, the sector is still in dire need of regulation. More transparency is needed to ensure that consumers understand that they are racking up debt through BNPL, which can negatively affect their credit scores. Regulators such as the Financial Conduct Authority (FCA) will pay close attention to BNPL following its rapid growth in 2021« Explain Amrit Dhami, Associate Analyst at GlobalData.
According to GlobalData’s Ecommerce Analytics, Apple Pay was the most used digital wallet in the US for e-commerce transactions, beating Google Pay, Samsung Pay and even Klarna. «By integrating Apple Pay Later into Apple Wallet, it will be easier for US consumers to adopt Apple Pay Later. Additionally, making this a payment option available at checkout for Apple Pay users will also give Apple an advantage over other BNPL providers, as competitors are unlikely to integrate into the Apple Pay system.” He says Chris Dinga, Payments Analyst at GlobalData.
