Apple Inc (NASDAQ: AAPL) is expanding its payment offerings within Apple Pay, providing users with more flexible online and in-app purchase options. The company is introducing installment loan features and increasing the availability of rewards programs.
With the release of iOS 18, eligible U.S. users can now access installment loan options from buy-now-pay-later company Affirm Holdings, Inc (NASDAQ: AFRM) when using Apple Pay online or in apps.
Similarly, users in the U.K. can take advantage of installment plans through Monzo Flex, allowing them to spread out payments over time. Additionally, U.S. and U.K. users can now opt for Klarna's flexible payment options at checkout.
Apple isn't stopping there, future updates will allow users in the U.S. to access installment payment options from several significant issuers, including Citigroup, Inc (NYSE: C) and Synchrony Financial (NYSE: SYF), with more options available through participating Apple Pay issuers like Fiserv, Inc (NYSE: FI).
This feature will extend internationally, with planned rollouts in Australia through ANZ, Singapore via DBS, and Spain with CaixaBank. In the U.K., users can access installment payments from HSBC (NYSE: HSBC), NewDay, and Zilch.
Global BNPL transactions have the potential to grow by $450 billion between 2021 and 2026 as per Statista.
Apple Pay is also expanding its usability on third-party web browsers.
Furthermore, starting next year, U.S. customers using PayPal Holdings, Inc (NASDAQ: PYPL) in Apple Wallet will be able to see their PayPal balance when using their PayPal debit card.
Apple phased out its BNPL service, Apple Pay Later, earlier in 2024, offering BNPL users the ability to manage loans through the Wallet app.
Earlier in 2024, Visa Inc (NYSE: V) launched a new e-commerce tech with facial recognition payments like Apple Pay and simplified payment methods in partnership with Affirm.
Price Action: AAPL stock is down 0.19% at $232.21 at last check Thursday.