Apple is stopping its BNPL program. What does it mean for the BNPL market?

"June 17 2024, Apple said that it has stopped issuing loans through Apple Pay Later, its buy-now-pay-later program that launched last year.

BNPL has been hot in the past, with multiple fintechs worldwide pouring money to the game. Most of them are making loss so far.

With this news, is that a signal that there is no future in BNPL? That will sweat out the people working in BNPL.

Would that simply mean that the pie is not big enough for Apple? Not worth the headache for Apple?

Instead of dropping the late payment program entirely, they switch to another approach with less headache: outsource it to the specialist partners. Starting later this year, users across the globe will be able to access installment loans offered through credit and debit cards, as well as lenders, when checking out with Apple Pay.

So what does it mean for BNPL companies? Anything to learn from this strategic shift?

It's early to say, but surely the pie is not as big as everyone hoped for, and the risk is great.

Do you still want to become a bank, or to take over Visa, Master etc with the BNPL road? Definitely more challenging than you planned.

So keep working, source the best tools, techs, and people, and keep running, fast. "

Author

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