Apple enters BNPL market as regulation and competition intensify

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During WWDC Keynote, Apple announced many changes and updates to its hardware and software. In addition, it is expected to improve various operating systems and computers, as well as plans to expand its presence in the field of financial technology.

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Apple has been growing as a consumer finance company for some time, most notably thanks to Apple Pay and the launch of a branded credit card in recent years. However, while it has built enough market footprint to make a difference in the consumer fintech market, it is not considered a fintech company on its own.

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This may change. During its WWDC keynote, Apple announced a new service called Apple Pay later this will allow consumers to make mobile and online purchases divided into four payments within six weeks at the millions of U.S. retailers that already accept Apple Pay. The offer will not include fees or other charges, the company said, requiring only a “soft” credit check and viewing user details. Transaction History with Apple.

This concept should be familiar to you. The installment payment method, often described as “buy now, pay later” or BNPL, has become a darling of startups in recent years, with companies like Affirm (which has partnerships with Stripe and Amazon) embracing a consumer credit option. up to public markets. Klarna reached epic scale as a private BNPL company and we recently saw Block the purchase after payment, BNPL provider and merger between Sezzle and Zip.

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“We are rapidly seeing BNPL providers evolve into more full-featured digital wallets that include “pay in one payment” in addition to installments, and we have seen traditional digital wallets such as PayPal add installment payment functionality. So it’s no surprise that Apple has added this feature,” Dinah Ford, senior analyst at Gartner, told TechCrunch via email. “BNPL has proven popular with consumers and merchants as a way to increase sales. This will likely help increase the use of Apple Pay and will be a logical extension of their growing financial relationship with Apple users.”

“Banks, lenders and merchants should not see Apple Pay Later as a threat, but rather as an opportunity to carve out a niche in what has become the payment standard.” Jifiti CEO Yaakov Martin

TechCrunch reports on the many BNPL startups around the world, each chasing scale with slight model variations, sometimes focusing on specific verticals or other forms of customer segmentation. How will all these BNPL-focused providers behave when Apple breaks into their market? We got an early idea of ​​what investors are thinking, at least when Affirm shares sold after news from Apple.

But this is only one company, one result. What about outfits like Afterpay and Affirm? Will the Apple news upset their apple carts? And that we should consider the potential impact of the Apple news on the smaller, regional or otherwise niche BNPL players that have raised so much capital over the past few years? TechCrunch wanted to find out.


It is worth noting that the BNPL sector has been under some pressure in recent months. After confirming the share price returned to earth after a period of investor interest, Klarna was forced to change its fundraising hopes, lowering his score pursue the new capital.

Company stays on the defensive. TechCrunch wrote about the economy of the BNPL world. hereif you want to go deeper.

To better understand how Apple will impact a well-funded, albeit slightly ailing, market, TechCrunch reached out to and received responses from many of the big vendors in the BNPL space, including Affirm, Afterpay, and Splitit. Klarna declined to comment.

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