In a significant development in the financial technology sector, Apple has announced the integration of Affirm’s payment plan feature into its latest operating systems, iOS 18 and iPadOS 18. This move comes after the tech giant discontinued its Apple Pay Later service, which had been in operation for a year, in June of this year.
Apple Pay Later, a buy now, pay later (BNPL) service, allowed eligible customers to pay for their Apple Pay orders in four installments over six weeks without incurring any interest or fees. However, the company decided to discontinue the service, prompting a search for alternative payment solutions.
Enter Affirm, a financial technology company that has now been integrated into Apple’s ecosystem. Starting with iOS 18 and iPadOS 18, users in the United States will be able to apply for a payment plan through Affirm when using Apple Pay for their purchases. This partnership was officially announced by Affirm today, providing more details about the collaboration.
Affirm’s payment plan allows users to choose between paying every two weeks or every month, and IT之家 reports that the news release from Affirm emphasized annual interest rates as low as 0%. When making a payment using Apple Pay, iOS 18 and iPadOS 18 users will have the option to choose other cards and BNPL options, followed by selecting Affirm.
Qualified users will see their exclusive payment plans and can choose the one that best suits their needs. To confirm their purchase, users can double-tap the side button and use Face ID or Touch ID for authentication. For users who already have an Affirm Card, there will be an option to use Affirm on Apple Pay during checkout.
Affirm has made it clear that each transaction will be underwritten separately, ensuring that consumers will not incur any late fees or unexpected charges, thus upholding their long-standing commitment to consumer loans.
The integration of Affirm’s payment plan into Apple’s operating systems marks a significant shift in Apple’s approach to financial services. By discontinuing Apple Pay Later and partnering with Affirm, Apple is not only diversifying its payment options but also providing users with a more flexible and potentially cost-effective way to pay for their purchases.
This move is particularly interesting in light of recent reports that Goldman Sachs, which had been rumored to be considering taking over the Apple Card business, is facing challenges with its credit card business due to relaxed lending standards, leading to a bad debt rate exceeding 10%.
As Apple continues to expand its financial services offerings, the integration of Affirm’s payment plan into its operating systems is a strategic move that could potentially benefit both the company and its customers. By providing users with more payment options and potentially lower interest rates, Apple is likely to increase customer satisfaction and loyalty.
In conclusion, the integration of Affirm’s payment plan into iOS 18 and iPadOS 18 is a significant development in the financial technology sector. It marks a new era for Apple in terms of financial services and could have far-reaching implications for both the company and its users.
Views: 0