Apple Pay Later, tech giant’s BNPL entry, off to strong start
Apple may be a Johnny-come-lately in the buy now, pay later sector, but it certainly is gaining ground with consumers fast. Apple Pay Later has already bypassed some popular brands in market share, including Sezzle and Zip, according to J.D. Power research.
Apple began phasing in its buy now, pay later service in late March and research by J.D. Power shows it has taken off like a rocket.
In a survey of 8,000 consumers in May and June, 33.8% said they had used some form of buy now, pay later in the previous 90 days. Of the BNPL users, nearly one-fifth — 19% — said that they had used Apple Pay Later in its first three months.
Though Apple is not in the leading position, its 19% share of BNPL users is impressive and exceeds some brands that have been around longer, including Sezzle and Zip.
Miles Tullo, managing director of banking and payments at J.D. Power, attributes this to the strength of Apple’s brand recognition, the quality of its technology and the increasing breadth of its intertwined financial services portfolio. All of its services, including the Apple Card, Apple Savings, Apple Cash and the Apple Pay digital wallet, work only with the company’s iPhone.
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