Apple enters the BNPL space
The Big Tech company wants to compete with Klarna and other major players...
According to the Q4 2021 BNPL Survey, BNPL payments in the United States could reach $82 billion in 2022. And of course… the tech giant wants a piece of the pie.
Apple Pay Later is available for all in-app as well as online purchases, It “splits purchases into four equal payments over six weeks without interest or late fees” (a proposition that is similar to competitors’ such as AfterPay and Klarna). Users manage payments via the Wallet app; Apple is also adding order tracking to the wallet.
While BNPL has grown tremendously over the years, the industry has faced a few setbacks. Sweden-based Klarna has faced massive losses after incurring significant operating expenses to enter new international markets (including the US). The industry has also been criticized for being a “debt spiral” for certain population groups.
That being said… because of Apple’s positive reputation and ubiquity, Apple Pay Later may do very well.