Customers now most frequently employ the Buy Now Pay Later (BNPL) form of consumer financing. They can receive offers from BNPL at the point of sale, regardless of whether they plan to purchase an expensive or cheap item. The ability to spread out payments over some time and, in certain circumstances, do so without incurring any additional fees has made BNPL the most popular consumer financing option worldwide.
This prompted Apple, a huge technological business, to deploy BNPL services and provide consumer finance to their customers directly, without assistance from Fintech startups or other third parties. This is expected to be a great advantage for them, as BNPL is still on the path of development and is attracting more buyers, it will most likely increase the sales for apple and give more people the possibility to use POS financing and get the products they need.
BNPL Success
BNPL lending has experienced massive growth in recent years, especially after the pandemic when everyone started to use online e-commerce websites to make purchases. The statistics from Globadata indicate that the trend will continue and the Buy Now Pay Later lending system will experience further growth in the years to come.
Apple decided to deploy a service of BNPL lending after it achieved great success in the consumer finance market because the corporation is not recognized for being a pioneer but for joining something established.
Due to the popularity of consumer financing, large Fintech companies are also growing their operations. In order to better serve customers, a top worldwide lending platform of ChargeAfter plans to add more lenders by the end of this year as more consumers want to fund their needs.
Rivals and Regulations
While there are many competitors on the market, Apple is just beginning to use the consumer financing technique. Numerous new businesses have been founded as a result of BNPL lending’s success, and there are now hundreds of Fintech firms competing for new clients. It would seem like an issue for Apple given how well-known global lending platforms are, but most of them have uncontrolled platforms that provide poor services to customers, so Apple would benefit greatly from developing clever, customized solutions for their clients.
New regulations have begun in the US and Europe as a result of the market’s availability of unregulated businesses, which were offering consumers poor services and excessive interest fees, particularly when the fees increased in the event of late payments. This has impacted numerous Fintech businesses and caused them to lose both their retail and consumer clientele. As they will be prepared for the new laws and will tailor their services to them, it could be advantageous for Apple’s recently developed BNPL services.
However, it only has an impact on the market’s smaller Fintech firms. It may be difficult for Apple’s consumer financing option to establish itself among the top players in the consumer finance industry, such as ChargeAfter, Affirm, or Klarna, as these companies are still growing their services. They could be competitors because, for example, ChargeAfter solely receives revenue from merchants while offering BNPL financing services to customers without imposing any additional fees. Therefore, Apple should be cautious when choosing the services it will provide to its customers. Their competitors can easily provide superior solutions because they have the resources and knowledge to do so.
BNPL Develops and Adjusts
Large organizations must adapt and provide new services in order to compete in the competitive market, as many Fintech companies are now providing consumer financing on their lending platforms. In order to become industry leaders in a certain field, several companies, therefore, therefore offer various new features. Some of them already provide more flexible payment options, making them preferable to others on the occasion that a customer requires a longer repayment period. For customers and merchants to review the information while purchasing and throughout the repayment process, some offered more transparent and accessible financing platforms.
ChargeAfter is a leader in providing clients with financing choices thanks to the Waterfall finance system it has already implemented in its financing platform. The method offers customers the quickest experience possible as connecting to the most relevant lender on the platform and receiving the best loan only requires the completion of one application. Therefore, ChargeAfter’s global lending platform is the ideal option if you want to receive the loan that is the most appropriate for you.
Buy Now Pay Later will Make Apple Stronger
Apple’s decision to offer BNPL lending is another smart move that will increase their chances of selling more of their products, particularly because new systems and gadgets will be released in September, the same month that BNPL services will be offered by Apple.
Since Gen Zers and Millennials, who also heavily rely on BNPL consumer financing, are the main buyers of the technology, experts believe that this is the strongest move. According to a study, BNPL lending encourages more purchases and modifies consumers’ purchasing habits when it comes to more luxurious and pricey goods. It is obvious that Apple is utilizing these habits in order to boost future sales.
Future Risks
New aspects of consumer financing can also come with concerns, according to experts, as unregulated financing platforms and widespread use of BNPL lending have increased the number of delinquent loans among consumers.
According to the data, BNPL debts that have not been repaid are growing annually and are already posing a serious concern for consumers. Customers should exercise caution before utilizing it and should carefully evaluate their ability to make payments, especially in light of the strength of a large firm like Apple, which has the potential to draw a sizable number of users to utilize their new BNPL services.
About ChargeAfter
ChargeAfter is a leading multi-lender platform for Buy Now pay later (BNPL) Consumer Financing. It connects businesses with the most reliable lenders, enabling them to offer customers the greatest financing solutions. With the best system of Waterfall Financing, ChargeAfter guarantees BNPL lending to every shopper, by matching the most relevant lender to every client. Using the unique consumer financing technology, ChargeAfter provides all parties, merchants, lenders, and consumers, with the best shopping experience. Phoenix, MUFG, VISA, Bradesco, BBVA, Synchrony, PICO Partners, CITI, Propel Venture Partners, Plug and Play, and other companies worldwide are among the investors of ChargeAfter.