Apple Inc. may have entered the buy-now-pay-later market late, but it is quickly making its mark and disrupting the competition. A recent survey conducted by J.D. Power revealed that nearly 20% of users who used a buy-now-pay-later service in the first three months of Apple Pay Later’s launch opted for Apple’s offering.
While Apple didn’t surpass the adoption rate of BNPL services from PayPal Holdings Inc. or Afterpay, they did outperform Sezzle Inc. and Zip Co. Ltd., two established players in the industry known for their BNPL services.
One key advantage that Apple has is its wide presence and strong brand reputation. Unlike other brands that struggle to gain users, Apple can leverage the popularity of Apple Pay, which is widely available on merchant sites.
The survey also found that consumers displayed more confidence in using Apple Pay Later compared to other BNPL services, mainly due to Apple’s credibility and trustworthiness as a brand.
Apple’s success in this market doesn’t come as a surprise. With their constant innovation and user-centric approach, Apple has consistently disrupted various industries, and it seems that the buy-now-pay-later market is no exception.
Overall, Apple’s entry into the buy-now-pay-later space has already started to reshape the industry, and it will be interesting to see how this trend unfolds in the coming months.
Apple Pay Later Gains Traction Among PayPal and Zip Users
Apple’s foray into the Buy Now Pay Later (BNPL) market seems to be off to a promising start. According to a recent survey, users of PayPal and Zip, two prominent financial services companies, have shown a keen interest in trying out Apple Pay Later.
The survey results highlighted that PayPal users, who tend to be older and financially well-off, were among the most willing to embrace Apple’s new payment option. This finding suggests that brand trust and ease of use are key factors favoring Apple’s entrance into the BNPL space. Interestingly, Zip users, though younger, also displayed a significant willingness to give Apple Pay Later a try. These users, too, exhibited a healthy financial profile relative to their age group.
Moreover, the survey revealed that customers in the BNPL market show little loyalty to any particular service provider. This lack of loyalty works in Apple’s favor as it enters the market with its considerable brand presence.
Apple Pay Later was introduced in late March and has since allowed consumers to split their purchases into installments over time. This offering is part of Apple’s wider strategy to deepen its involvement in the financial services industry. Additionally, the company has collaborated with Goldman Sachs to offer an Apple-branded credit card. In April, it further expanded its financial services portfolio by introducing a savings account exclusively for Apple Cardholders.
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