Apple device users will soon be able to tap into buy now, pay later loans from Affirm for purchases, the companies said Tuesday.

Apple users will soon be able to use Affirm's "buy now, pay later" loans to pay for things, the companies said Tuesday.


Companies that make Apple products said Tuesday that users will soon be able to get loans from Affirm to buy things and pay for them later.

This year, Affirm, a San Francisco-based fintech company, said in a report that U.S. Apple Pay users on iPhones and iPads will be able to use it. That’s what Apple said in its update.

Affirm said in an email message, “This gives users more payment choices and offers the comfort, comfort, and security of Apple Pay along with the elements users love in Affirm—flexibility, transparency, and no late or hidden fees.”

This is good news for Affirm and the buy now, pay later business in general. Investors were worried that Apple would make it harder for stand-alone providers like Affirm to do business when it released its own BNPL product last year. However, the fact that Apple chose to include Affirm goods in its ecosystem shows that the fintech company has something special to give.

For example, Apple’s BNPL loan lets people pay for goods over six weeks in four payments. Affirm, on the other hand, has several longer-term options that can be paid back over a year or more. The businesses didn’t give any information about the new loan terms.

“In the end, we think that Affirm’s strong brand and advanced underwriting technology give it a moat that Apple probably couldn’t copy on its own,” Dan Dolev, an analyst at Mizuho Securities, wrote in a research note.

Citi and Synchrony

It was also announced that Apple Pay users in the U.S. would be able to get monthly loans through credit and debit cards issued by Citigroup, Synchrony, and Fiserv. After becoming very popular during the COVID crisis, traditional credit card companies have started to offer monthly loans in the style of BNPL.

In an email, Synchrony said that it was planning personalized monthly loans with deals based on the size of the transaction and the retailer involved. These deals could include lower interest rates and longer loan terms.

“This announcement with Apple allows Synchrony to expand our flexible payment choices and provide our merchants the chance to grow their company in a growing mobile payments ecosystem,” said Mike Bopp, chief growth officer of Synchrony, in an email.

Around the world, more than 500 million people use Apple Pay. In the U.S., Apple Pay has the largest market share for its mobile payment and digital cash program.

Apple stock was up 7.3% on Tuesday, while Affirm stock was up 11%.

Even though Affirm said it would take time for the partnership to make a big difference in its income, the company’s stock went up.

The company said in its filing that it did not think the partnership would have a big effect on its sales or gross merchandise amount in fiscal year 2025.

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