Apple’s long-awaited buy now, pay later (BNPL) offering finally started rolling out this week, with some of its 55.8 million US Apple Pay users (according to our new March 2023 forecast) gaining access to a prerelease version. Merchants and competitors alike are watching to see what it offers consumers—and whether it can break into the already crowded BNPL field.
Our analyst team has identified five Apple Pay Later features as key to this early rollout. Read on to learn how valuable each will be to BNPL users at large—based on our exclusive survey data—as well as which BNPL users could be most valuable for Apple.
Below we evaluate how five of Apple Pay Later’s key features are aligned with BNPL user interest, based on July 2022 survey data from our recent US Buy Now, Pay Later Feature Demand Report.
Respondents were asked to rate 49 BNPL features on a scale of 1 to 5, where 1 meant “not valuable” and 5 meant “extremely valuable”; “neutral” was not an option. Please see the report for detailed methodology and a deep dive into full results.
Make a loan payment without paying a service fee: “extremely valuable” to 52% of BNPL users
See all possible fees at checkout: “extremely valuable” to 44% of BNPL users
Pay your loan using your debit card: “extremely valuable” to 40% of BNPL users
Stop sharing data with marketers in-app: ranked “extremely valuable” by 39% of BNPL users
Report payment history to credit agencies: ranked “extremely valuable” by 32% of BNPL users
Apple’s greatest benefit from launching a BNPL service is in driving engagement—across not just Apple Pay but also its wider product offerings. Our survey data reveals great interest among three groups of BNPL users in particular: iPhone users, young BNPL users, and high-income users.
While intention data doesn’t guarantee consumer action, Apple should focus on these groups to maximize engagement:
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