Apple users will soon have the ability to utilize buy now, pay later loans from Affirm for their purchases, the two companies revealed on Tuesday. This collaboration will make Affirm an option for U.S. Apple Pay users on their iPhones and iPads later this year, as shared by the San Francisco-based fintech company in an official filing.
Affirm highlighted that this new integration will provide users with more payment choices, combining the convenience and security of Apple Pay with the flexibility and transparency that Affirm is known for. The fact that Apple has chosen to include Affirm products in its ecosystem alongside its own buy now, pay later product is a significant boost for Affirm and the entire sector.
While Apple’s buy now, pay later loan allows users to repay their purchases in four installments over six weeks, Affirm offers a range of longer-term options that can extend over a year or even more. This diversity in repayment options is one of the key aspects where Affirm stands out and has unique value to offer.
Analysts like Dan Dolev from Mizuho Securities believe that Affirm’s strong brand and advanced underwriting technology give it a competitive advantage that Apple cannot easily replicate. This suggests that the partnership is a strategic move that benefits both companies, catering to the different needs and preferences of users.
In addition to the collaboration with Affirm, Apple also announced that installment loans through credit and debit cards will be accessible via Apple Pay in the U.S. in partnership with Citigroup, Synchrony, and Fiserv-related issuers. This expansion indicates Apple’s commitment to providing a comprehensive array of financial services to its users.
Despite the positive market response with Affirm’s stock rising 5% and Apple’s stock climbing 6.2%, Affirm shared that they do not anticipate a significant impact on revenue or gross merchandise volume from the partnership in fiscal year 2025. This indicates a long-term strategy focused on enhancing user experience rather than immediate financial gains.
The collaboration between Apple and Affirm to offer buy now, pay later loans to Apple Pay users reflects a strategic approach to catering to diverse consumer needs and preferences in the digital payment space. This partnership not only highlights the value of Affirm’s unique offerings but also underlines Apple’s commitment to providing a comprehensive financial ecosystem for its users.
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