Affirm partners with Apple Pay

Following this announcement, Apple device customers will have the possibility to tap into Buy Now, Pay Later (BNPL) loans from Affirm later this year. Affirm will surface as an option for Apple Pay clients on iPhones and iPads later this year, while instalment loans via credit and debit cards are expected to be available on Apple Pay in the US Citigroup, Synchrony, and Fiserv-related issuers.

In addition, both companies will focus on meeting the needs, preferences, and demands of customers and users in an ever-evolving market, while also prioritising the process of remaining compliant with the regulatory requirements and laws of the industry. 

More information on the announcement

The initiative will provide users and customers with additional payment choices, as well as the ease, convenience, and security of Apple Pay, alongside the features and capabilities users benefit from Affirm. This includes flexibility, transparency, and no late or hidden fees. 

The partnership is also expected to boost Affirm and the BNPL sector in general. While Apple’s Buy Now, Pay Later loan will give customers the possibility to repay purchases in four installments over six weeks, Affirm has a suite of longer-term offerings that can be repaid over a year or more.

At the same time, Apple mentioned that instalment loans via credit and debit cards are expected to be available on Apple Pay in the US with Citigroup, Synchrony, and Fiserv-related issuers. Traditional credit card players have also begun offering BNPL-style instalment loans after their popularity surged during the COVID-19 pandemic. For example, Synchrony also mentioned that it was planning personalised instalment loans with promotions that are based on the transaction size and the merchant that is involved. This will take place with the possible use of promotional interest rates and loan durations. The company will also focus on scaling flexible payment options and provide merchants with the ability to expand their presence in a growing mobile payments ecosystem. 

The companies did not provide any further details or information on the terms of the new loans. In addition, Affirm does not expect this collaboration to have a material impact on revenue or gross merchandise volume in the fiscal year of 2025.