Fintech: Apple may squash the buy now, pay later party

Late entry into Apple’s new market doesn’t always quiver through existing companies.But that Reported advance Paying later to buy now is rolling up expert stock. Australia’s Afterpay and Zip, and the US-listed Affirm all lost about one-tenth of their share value.

It’s no wonder BNPL is intriguing to Apple. The $ 30 trillion advertised total addressable market size, including global retail, is exaggerated. But attractive growth forecasts are on a healthier foundation. Worldpay expects usage to double from 2.1% for online payments last year to 4.2% by 2024. The e-commerce group Zalando has launched its own service. Try first and pay later service.

Size and loyal customers are important advantages. Apple has both. An estimated 500 million iPhone users have Apple Pay enabled. It reduces the total of Australian rivals. If one-fifth of those customers become active BNPL customers, Apple will be in the same stadium as Klarna. Privately held Swedish FinTech claims 90 million active clients, but not all of them use BNPL services.

Klarna’s competitors are trying to expand their footsteps through acquisitions. Zip has purchased Quadpay, Twisto, and Spotii over the past year or so, providing access to the United States, Europe, and the Middle East, respectively. This extends reach, but means juggling different software platforms. Others, especially in Southeast Asia, have grown by bolting BNPL products to existing SuperAppli, or Merchant Services in the case of PineLabs of India.

Klarna’s advertising, influencers, and reach of over 250,000 merchants help build a loyal consumer base. But Apple’s broader ecosystem makes users more tenacious. Customers with Apple Pay may find it easier to pay in installments.

Clarna Make a loss, Apple’s bumper profits and multiple sources of revenue give you the flexibility to lower prices and gain market share. PayPal on Wednesday Late fee exemption We’re already on the road to BNPL payments in Australia.

If Apple goes ahead, it will hit overvalued sectors that are already facing regulatory threats. But that would be far from a confession of death. Instead, expect reduced ratings and more integration.

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Fintech: Apple may squash the buy now, pay later party Source link Fintech: Apple may squash the buy now, pay later party

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