Apple on Monday announced it will expand its Apple Pay services with a buy now, pay later (BNPL) option.
Called Apple Pay Later, the financial service allows users to split purchases into four equal payments over six weeks without interest or late fees. Apple announced the move at its latest Worldwide Developers Conference.
Apple Pay later is powered by Goldman Sachs and will roll out initially in the U.S., both in apps and online. Merchants including Shopify require no additional integration to roll out the service.
The global BNPL size is expected to reach 39.41 billion dollars by 2030 where the retail goods category, including fashion, contributed for the largest market share last year, owing to an increase in the consumers spending on daily essential goods and having increased payment options with retailers.
Apple will face stiff competition from Affirm, Amazon’s BNPL partner, OpenPay, Klarna and Square.
Insights from Grand View Research show a myriad of unexpected issues stemming from lockdowns, including restrictions on the movement of goods, social distancing measures, and the growing awareness of BNPL payment method prompted various companies to adopt these solutions to provide a better customer experience. As a result, BNPL solution providers witnessed exponential growth in their customer base and transaction volumes.