Apple delves deeper into payments

Apple is overhauling how customers interact with financing at the point of sale by integrating installment loans directly into the Apple Pay checkout flow. This move effectively replaces the standalone 'Apple Pay Later' product with a broader ecosystem. For retailers, this means your customers can soon access pre-approved monthly installment offers from their existing credit card issuers and third-party lenders like Affirm right inside their iPhone wallet. The technical barrier for merchants is lowering. Apple is using AI to surface the best payment options for customers automatically. If you already accept Apple Pay, you will likely be able to offer these flexible payment terms without managing multiple balance sheets or complex integrations. Customers will see their available rewards points and financing options in one view, which typically drives higher conversion rates and larger basket sizes. This update signals a shift from niche Buy Now, Pay Later apps toward a world where financing is a native feature of the smartphone. Operators should prepare for a shift in customer behavior where shoppers expect to see 'split pay' options even if you haven't manually installed a specific BNPL provider on your site.

Source: Payments Dive

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