Apple is hosting its Worldwide Developers Conference (WWDC) this week and for fanboys like me, the event is an opportunity to see new hardware and software that the tech giant is planning to release. But this year, Apple announced during its keynote address on Monday, that it is expanding its presence in the financial services industry, as well.
Apple already has a credit card and a digital wallet called Apple Pay, and is now planning to offer a Buy Now, Pay Later product called Apple Pay Later. The announcement was so popular that after it was made on Monday, the stock prices of other BNPL firms dropped because the expectation is that Apple will take over a sizable chunk of the market once it releases its new service.
With Apple Pay Later, users will make one payment at the time of purchase and then three more payments every two weeks. All the payments will be made via Apple Pay’s digital wallet and users will be able to make payments in advance, if they want. Apple Pay Later will be available everywhere Apple Pay is accepted online or using the Mastercard network, according to the company.
The Chief Executive Officer of Affirm said yesterday that there is still a lot of room for the BNPL sector to grow and Apple’s involvement creates a “tailwind” for everyone in the industry. The BNPL space could grow to be a $40 billion industry by the end of the decade, according to one estimate. For the ARM industry, BNPL offers a new type of debt to be collected, especially as more consumers start missing their payments
