Following this announcement, users can make Apple Pay purchases over USD 75 using Citi Flex Pay. The default payback period is three months, with longer payback durations available with a monthly fee. Flex Pay can be used when making purchases on websites or in apps.
To use Citi Flex Pay, an eligible Citi credit card needs to be added to Apple Pay. When making a purchase, users can select the Citi credit card and then select the option to pay later.
Apple previously had its own BNPL service called Apple Pay Later, but it was discontinued in 2024, less than a year after launching, due to the launch of new loan features. The change will enable Apple Pay users to make purchases and access instalment loans through Affirm. Apple's other US partners include Klarna and Synchrony, which provide over time options for users.
More than 40% of Americans say they have used BNPL services, according to a Lending Tree survey. The loans are designed to encourage consumers to borrow in order to spend more, with users being subject to fees if they miss payments.
In 2021, BNPL loans totalled USD 24 billion, up from USD 2 billion in 2019, according to CFPB’s report. The popular payment option is used globally in stores and online.
Financial regulators issue rules designed to protect consumers. For example, in May, the CFPB mandated that BNPL lenders give consumers the same protections that apply to conventional credit cards, including the right to dispute charges and receive a refund from a lender after returning a purchase made with a BNPL loan.
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