Apple Introduces New Buy Now, Pay Later Option to Pay

Apple has announced that Klarna is now available as a payment option with Apple Pay. This integration of the buy now, pay later (BNPL) service occurs shortly after Apple discontinued its own BNPL service, Pay Later, which was introduced in 2023.

Klarna offers users the ability to purchase products in four interest-free installments. Although BNPL services like Klarna are becoming increasingly popular, surveys indicate that these services might encourage excessive spending.

These types of loans are also challenging to monitor since they are often not reported to credit agencies. Earlier in the year, the Consumer Financial Protection Bureau established a rule categorizing BNPL services as credit card providers. This classification requires them to handle disputed purchases and issue refunds for returned items.

In addition to Klarna, Apple Pay integrated the BNPL service Affirm in September. Both Klarna and Affirm can be accessed through Apple Pay on iOS 18 and iPadOS 18.

Apple Pay is also introducing several previously announced updates. These include enabling the service on third-party desktop browsers such as Chrome and implementing the “Tap to Provision” feature, which allows users to add new cards by tapping them on the back of an iPhone.

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