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The issuer wants concessions from Apple to protect it from some of the issues Goldman Sachs has dealt with

The Big Tech firm鈥檚 reach and loyal customer base can help it attract users to Apple Pay Later鈥攊f it launches. The product could be especially popular among younger consumers who have embraced BNPL and may already use Apple Pay. Apple鈥檚 BNPL debut may worry incumbent providers like Affirm and Klarna, which have yet to turn a profit. Tumbling valuations have rocked the industry.

It had 50.8 million Apple Pay users in 2022, versus 46 million consumer and SMB customers who were mobile active at JPMorgan Chase. It鈥檚 already encroaching on Gen Z mindshare. When Gen Zers were asked which providers they鈥檇 consider for their banking products and services, Apple tied for second place with 鈥渕y current primary bank and credit union.鈥� (PayPal was the most cited provider.).

Apple Pay adoption among the Apple faithful offers a master class on brand loyalty. By 2017鈥攖hree years after Apple Pay launched, which allowed Apple Wallet (then called Apple Passbook) users to pay at retailers via their iPhones鈥�17.1% of iOS users were using it to make payments, per our forecast. That same year, Apple Pay Cash (later renamed Apple Cash) brought peer-to-peer functionality to Wallet.

Apple Pay is the No. 1 proximity mobile payment platform by users in the US. No. 2 is the Starbucks mobile app, followed by Google Pay. Creating seamless ways for consumers to buy in-store enhances the retail experience. Use this chart:. Push to modernize mobile payment technology in-stores. Emphasize consumers鈥� need for convenience. More like this:.

To overcome account opening headwinds, credit card marketers can explore credit card subscriptions, net worth data collection, and wallet-first cardholder experiences.

The bigger picture: Google is transforming its mobile wallet to better compete against the likes of Apple Pay. Most recently, it decided to shut down the Google Pay app and consolidate its most popular features into Google Wallet.

The digital wallet鈥檚 rollout has been slow, but we expect strong uptake in 2025 thanks to its innovative features and bank integrations

Big Tech鈥檚 entry into BNPL should also shake up the industry: Apple Pay Later stands to capitalize on Apple鈥檚 huge user base. To prepare for these, Affirm and other BNPL firms need to keep a lid on costs and prioritize products likely to yield the highest return on investment.

Apple Pay checks out. The stat: Apple Pay ranked No. 1 for payment apps used within the last month, followed by Cash App. Our view: Gen Z鈥檚 affinity for Apple-branded products and services put its mobile payment app at the top of their list. And now, with the launch of Apple Pay Later, it may become a fast favorite among teen buy now, pay later (BNPL) users.

Payment apps threaten to take the place of banks: Many, like Apple Pay and Venmo, offer checking-account-like features right in the app. The share of Gen Z digital-only bank account holders will grow 29.5% compounded annually from 2023 through 2026, which means neobanks have a real chance to win out. Digital gaming is also knocking.

Delayed spending: Apple recently announced it was discontinuing its buy now, pay later (BNPL) service in the US, and instead will soon offer third-party options in Apple Pay. Which BNPL provider is the largest by payment value? A) PayPal. B) Klarna. C) Afterpay. D) Affirm.

It already offers Apple Pay, Apple Cash (with Green Dot), Apple Card (with Goldman Sachs), and Tap to Pay on iPhone (with Stripe and Block). And it recently launched a high-yield savings account for its credit card customers.

We correctly called Apple exploring BNPL, after it teased Apple Pay Later. And Meta, Google, and Amazon have built out the financial services they offer, although have all taken very different approaches. Our hyper-personalization prediction: We foresaw that new players would build hyper-personalized experiences to help consumers take control of their finances.

Why this matters: Currently, Apple Pay and Apple Wallet have exclusive access to the iPhone鈥檚 NFC payment features. This exclusivity has helped Apple Pay and Apple Wallet dominate the mobile wallet industry. Letting other companies offer their own NFC payment features could change the dynamic of the whole industry as other mobile wallets fight for Apple鈥檚 share of users in the EU.

That鈥檚 why PayPal, Venmo, Cash App, Apple Pay, Google Pay, and Samsung Pay are quickly introducing novel features鈥攐r quickly copying ones from competitors. The pace of commerce management feature innovation is reaching a frenzy. Six months ago, we identified four emerging features that digital wallets could add to centralize purchasing within consumers鈥� wallets of choice:.

I've said before that Apple Pay being adopted for the New York City subway was what got to adopt Apple Pay. It's that one thing that makes it easier that then becomes second nature everywhere. One thing that might stop Just Walk Out from being adopted everywhere is that the Scan and Go at Sam's Club has the ads opportunity, which is another revenue source, which Just Walk Out does not have.

As they regroup, they鈥檒l have to contend with a multitude of challenges, like regulatory scrutiny and the entrance of Apple Pay Later. But Affirm鈥檚 more cautious approach should put the company in a better position to withstand those challenges and grow. We expect 88.2 million US consumers will use BNPL in 2023, up 33.9% YoY, per our forecast.

Some 48.7% of US consumers aged 18 to 34 have used PayPal and 34.5% have used Apple Pay to make a recent purchase, per our April 2024 Ecommerce Survey. This was originally featured in the Retail Daily newsletter. For more retail insights, statistics, and trends, subscribe here.

These include PayPal, Apple Pay, and Venmo. 4. Consumers are spending more time with mobile ecommerce apps. Last year, consumers worldwide spent 12% more time on mobile ecommerce apps compared with 2021, per Adjust.

Almost 30% of consumers plan to use PayPal for holiday shopping, and about 15% plan to use Apple Pay, per i2c and PYMNTS. Twenty-eight percent of shoppers said they鈥檒l use their rewards points to purchase gifts, highlighting another way consumers are trying to save money.

Apple Pay comes built into iPhones, giving it a huge advantage among Apple-loving US consumers, specifically Gen Zers. Apple is furthering its push into finance with its buy now, pay later (BNPL) offering, Apple Pay Later, and its new high-yield savings account, which could tap into customers interested in financial services integration with their digital wallet, said Toplin.

That includes accommodating the growing number of users wanting to use Apple Pay or buy now, pay later (BNPL) methods. The COVID-19 pandemic was a tipping point for many consumers who adopted mobile wallets, and the growth of people using their smartphone to pay regularly is a positive sign for mobile point-of-sale (mPOS) terminals, Morris said.

Online retailers need to respond to Gen Z鈥檚 love of Apple Pay. More than one-third of US Gen Zers have used BNPL recently.

Apple introduces Apple Pay Later. Pinterest brings shopping to Shuffles. The five categories where Amazon will increase its ecommerce sales share. Instacart, Klarna, Shopify deepen ties with ChatGPT. Yesterday鈥檚 Chart of the Day: Funnel vision.