The long-term goal may not be letting customers pay later it could well be letting them pay any way they want to.Ī version of this story first appeared on. The company is making a big fintech play with the goal of taking more of its financial infrastructure in-house. “This is another tentacle for them to get into customers’ everyday life,” he said.Īnd “buy now, pay later” may be just one product among many that Apple has in mind. Mike Taiano, a senior director at Fitch’s North American Banks Group, sees it simply.Apple doesn’t need to woo existing “buy now, pay later” customers away from the services they use. What matters to Apple is keeping customers attached to those iPhones. Adults who make between $50,000 and $100,000 are most likely to use “buy now, pay later.” Research from the Ascent also shows that 45% of those customers are using “buy now, pay later” to afford something that didn’t already fit into their budgets. are Gen Z or millennial, according to a report from eMarketer. About three-quarters of pay-later users in the U.S.Third-party surveys consistently show that Apple customers have higher incomes and spend more than Android users. The typical Apple customer differs from the kind of customer “buy now, pay later” companies have talked about serving - typically a younger customer turned off by credit cards.“This is an opportunity to greatly expand ‘buy now, pay later’ services to people who haven’t used them in the past,” said Ian Rasmussen, who co-leads the North American asset-backed securities ratings group at Fitch Ratings.The wide reach of iPhones among consumers and Apple Pay among merchants - particularly at retail, where the pay-later companies are trying to use cards to boost usage - is key to Pay Later’s success. Eliminating or reducing “friction” is “a huge factor” in getting consumers to take the deal, said Harry Kohl, a director at Fitch Ratings.Īpple’s advantage is that it’s already in your pocket. Either way, a tight integration at the moment of checkout is key.Other tools are the virtual and physical cards that allow customers to pay online or in-store, like Affirm’s Debit+ card or the Klarna Card.
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