 What happened: Though retailers have long offered payments in installments to shoppers, the buy now, pay later (BNPL) phenomenon took off during the COVID-19 pandemic as online shopping rates accelerated and brands looked for new ways to drive sales. Affirm and Klarna were two of the biggest names to take advantage of that demand, with PayPal launching its Pay in 4 option. Why it matters: Apple launched its own BNPL offering, Apple Pay Later, on Tuesday, featuring loans that will be as high as $1,000 and bringing reach to 85% of U.S. retailers, according to the company. Where to see the impact: Given Apple’s existing presence at retail and more than 6.4 million Apple Card users who already depend on the brand for credit, Apple Pay Later will pose a challenge to incumbents in the BNPL space, despite their existing growth trajectories. |