APPLE'S GAME-CHANGER: INTRODUCING BUY NOW, PAY LATER WITH AFFIRM

With digital wallets becoming more necessary in daily life, Apple once again expects to lead the way. Starting this spring, Apple Pay users will gain new financial flexibility, right from their iPhones and iPads. Following its recent partnership with the fintech company Affirm, Apple’s ‘buy now, pay later’ (BNPL) is about to take on a new digital dimension in the Apple universe. And what a neat partnership it is.

THE DAWN OF A NEW FINANCIAL ERA WITH APPLE PAY

Beginning with the next versions of iOS 18 and iPadOS 18, due in the fall, Apple Pay will get a new feature that changes our thinking about purchases. But what exactly is it, and what will it mean to regular iPhone and iPad users? In short, it means greater flexibility without compromising security, and without sacrificing the ease of use that has characterised purchases made with Apple’s digital wallet since the technology was introduced seven years ago. It’s really one component of a much larger movement that signals the company’s desire to provide a unified, one-stop tech ecosystem that meets all the needs of the digital age.

PARTNERING WITH AFFIRM: A STRATEGIC MASTERSTROKE

The Affirm deal is interesting on several levels. Affirm’s platform is world-class and its expertise in BNPL also makes it a good partner for Apple, which has always tried to foreground a seamless integration of world-class services into its ecosystem. For Apple, a company that doesn’t want to repeat bad software experiences, it is essential to have financial services of the highest quality for its users, and this is what Affirm’s deal with Apple achieves.

THE MECHANICS OF BNPL IN APPLE PAY

At its centre is a basic idea: giving users the ability to buy now and pay later, via Apple Pay. It is not about deferring payments per se. It is about opening up the ecosystem to users who can now spread out the expense of the things they purchase over time, without interest, if they choose to do so. (The terms of installments is set by Affirm and participating merchants.) The addition of Affirm to the Apple app ecosystem allows the user to operate within the confines of its partner ecosystems, by committing to a financial payment structure that facilitates more flexible and transparent spending.

APPLE'S VISION FOR FINANCIAL INCLUSIVITY

In bringing BNPL to Apple Pay, Apple is not merely adding a bell or whistle to its functionality, but making it accessible to a larger section of the population who are just beginning to gain access to financial services. By bringing in the BNPL concept, Apple is addressing the diverse financial needs of its user base, extending an olive branch to those who are yet to access the formal credit system. Critics might baulk at the thought of Apple introducing a new way of amassing debt, but with inflation hitting home harder than before, perhaps the yellow brick road that BNPL lays out will help consumers climb out of crisis.

PROTECTING CONSUMERS IN THE BNPL SPACE

This greater focus on consumer protection is another reason why Apple’s entry into BNPL with Affirm is such a positive step: not only is Apple arguing that users deserve both the flexibility of BNPL and the protections of an integrated experience with a provider they know and trust, mainstreaming this offering can come with a significant increase in the protection its users enjoy. It represents an extension of Apple’s longstanding focus on user safety and security over its platforms.

WHAT LIES AHEAD FOR APPLE PAY AND BNPL?

Looking forward, with the BNPL integration into Apple Pay, this could be a marker for the next wave of change in digital payments, and how we all approach them in the long term. This feature should be part of iOS 18 and iPadOS 18 when it’s rolled out, and we can only wonder how it will impact the users’ spending habits, and if it will prompt further BNPL adoption in different platforms.

EXPLORING THE WORLD OF APPLE

In essence, Apple is a tech company that’s promoting innovation, simplicity and safety – where if anything is possible in fintech, people had better believe that Apple has done it first, better and with the consumer in mind. Along with the iPhone’s mobile app revolution, Apple Pay’s ephemeral BNPL, having entered the shopper’s experience through Apple Pay, is the latest brilliant mating of finance with technology, and it wants there to be one less thing on the consumer’s mind. Safety.

This is less about making purchases more convenient and more about improving the financial lot of Apple users While we wait for this feature to roll out officially, it is clear that, once again, Apple is driving an epochal digital shift that brings control of finance to the fingertips of millions.