Apple Pay Later was unveiled Monday at the company’s annual Worldwide Developers Conference. Unlike other buy now, pay later platforms, the service is integrated directly into the iPhone’s Wallet app, which comes installed on every new iPhone. Another Affirm competitor, Klarna, recently announced plans to eliminate 10% of its staff. By contrast, Levchin says Affirm is continuing to hire engineers. “We’re gearing up for time to shine for growth,” he said. Apple’s plans could present a challenge for competitors focused on short-term lending, Levchin said.
Max Levchin, CEO of Affirm Holdings Inc., said he is unconcerned about Apple Inc.’s impending purchase now, pay later service since his business offers more comprehensive and long-term plans. In an interview with Bloomberg Television on Tuesday, Levchin said, “I don’t believe there’s much fear.” “Everyone engaged has a lot of opportunity for improvement.” According to him, buy now, pay later accounts for less than 5% of all transactions in the United States. According to Levchin, Affirm’s loan plans range from six weeks to 60 months, whereas Apple’s strategy is to break Apple Pay purchases into four instalments over six weeks. By telling more consumers about purchase now, pay later offerings, the Apple service “creates a pretty good tailwind for us,” he added.
While Apple has announced only the short-term plan, it is also working on additional financial products, including long-term plans called Apple Pay Monthly Installments that could eventually rival Affirm Most Read from Bloomberg Businessweek The IRS Is Coming for Your Venmo Income America’s Inequality Problem Just Improved for the First Time in a Generation Sheryl Sandberg’s Legacy Is an Internet of Targeted, Automated Ads Ukraine’s Tactics Are Showing Smaller Countries How to Fight Back How Chicken Became the Only Meat Everyone Agrees On