Apple Pay Later raises New Concerns
Following the announcement that Apple will be joining the buy now, pay later (BNPL) market with Apple Pay Later;
Beyza Karakoy, Associate Analyst at GlobalData, a leading data and analytics company, comments:
“Apple’s intention to expand its payments capabilities by exploring new financial products is indicative of the growing opportunities offered by fintech. The COVID-19 pandemic contributed greatly to the growth of BNPL, which has become an important trend in the payments industry as it lifts pressure from financially constrained consumers. Demand is likely to continue to increase as the rising cost of living and inflationary pressures will push more consumers towards BNPL solutions.
“Apple’s acquisition of British fintech Credit Kudos earlier this year signalled its desire to expand further into financial services and reap the benefits offered by fintech. However, the arrival of big tech will raise new concerns about the lack of regulatory oversight in the BNPL market. Apple’s move will represent a new challenge for fintech companies such as Klarna, Clearpay, and Affirm, which currently dominate the market.”
Amrit Dhami, Associate Analyst at GlobalData, comments:
“Generation Z has been a big driver of the growth of BNPL services as they are wary of credit card fees and prefer to spread their purchases over a longer period. BNPL is convenient for consumers and lucrative for retailers as it reduces cart abandonment.
“The BNPL sector now has big tech’s stamp of approval. This will be great for consumers as, even though Apple wasn’t first to market, its involvement should encourage more competitors to enter the space and spur more favorable contracts for consumers. Of course, there’s potential for Apple to stifle competition in the market but, with brands like Klarna and Affirm becoming household names, savvy consumers should not be blindsided by Apple’s offerings.
“Apple’s credibility could help to combat negative publicity in the BNPL market around the lack of transparency of contracts and the obscured impact of BNPL services on consumers’ credit scores. However, the sector is still in dire need of regulation. More transparency is needed to ensure consumers understand that they are accruing debt through BNPL, which can negatively affect their credit scores. Regulators like the Financial Conduct Authority (FCA) will pay close attention to BNPL following its rapid growth in 2021.”
Chris Dinga, Payments Analyst at GlobalData, offers his view:
“Although Apple is entering a saturated sector that is gradually attracting attention from regulators, Apple already has loyal customers so it will be able to directly promote its service to consumers familiar with its products and Apple Pay.
“According to GlobalData’s Ecommerce Analytics, Apple Pay was the leading digital wallet in the US for ecommerce transactions, putting it ahead of Google Pay, Samsung Pay, and even Klarna. By integrating Apple Pay Later into the Apple Wallet, it will make it easy for US consumers to adopt Apple Pay Later. Further, making this a payment option available at checkout for Apple Pay users will also give Apple an advantage over other BNPL providers, as competitors are not likely to be integrated within the Apple Pay system.
“Additionally, unlike its BNPL competitors such as Klarna and Affirm, Apple has enough cash reserves to finance the project over time, whereas its competitors are raising questions about their ability to turn a profit once regulations are introduced. Companies such as Apple and PayPal have enough cash reserve that they could adjust their BNPL revenue model and make it profitable if they need to due to new regulations.”
Please support our work…
TheAppWhisperer has always had a dual mission: to promote the most talented mobile artists of the day and to support ambitious, inquisitive viewers the world over. As the years passTheAppWhisperer has gained readers and viewers and found new venues for that exchange.
All this work thrives with the support of our community.
Please consider making adonationto TheAppWhisperer as this New Year commences because your support helps protect our independence and it means we can keep delivering the promotion of mobile artists thats open for everyone around the world. Every contribution, however big or small, is so valuable for our future.
Joanne Carter
Joanne Carter is a British photography journalist, editor, curator, and the founder of *TheAppWhisperer.com*, one of the world’s leading platforms dedicated to mobile photography and art. Since its launch in 2009, TheAppWhisperer has become an international hub for artists of all levels to discover, learn, exhibit, and engage with contemporary photographic practice.Built on principles of inclusivity, accessibility, and artistic excellence, Joanne has spent almost two decades championing mobile photography as a serious artistic medium. Through interviews, critical essays, exhibitions, competitions, and education, she has helped shape and document the evolution of mobile art on a global scale.Her work has taken her internationally, lecturing on photography and mobile art at institutions and events including the Museum of Art in Seoul, South Korea, alongside appearances in the UK and Europe. She has served as a juror for international photography and mobile art awards across Portugal, Canada, the United States, South Korea, Italy, and the UK.Joanne is also the founder of *TheAppWhispererPrintSales.com*, one of the first online galleries dedicated exclusively to collectible mobile art, connecting artists with collectors across Europe, the United States, and Asia.Before founding TheAppWhisperer, Joanne worked extensively in print journalism and photographic publishing, including roles at a paparazzi photo agency and as deputy editor of a leading photography magazine. Her freelance journalism, criticism, and commentary have been published widely in both the UK and the US, with bylines in *The Times*, *The Sunday Times*, *The Guardian*, *Popular Photography*, *NikonPro*, *DPReview*, *Which?*, *Vogue Italia*, *LensCulture*, the *BBC*, and more recently, the *Financial Times*, where her published letters on photography continue to contribute to wider conversations around the medium.Alongside her editorial and curatorial work, Joanne’s own photographic practice has been exhibited internationally across the UK, Europe, South Korea, and the United States. Her work increasingly explores themes of grief, loss, death, memory, and the body.Her current research interests centre on grief, death, and poverty, with forthcoming postgraduate study leading towards doctoral research in these areas.Joanne is currently developing new long-form writing and photographic projects and is available for commissions, editorial projects, speaking engagements, and collaborations.Contact: joannetheappwhisperer@gmail.com)
