Existing buy-now-pay-later brands such as Klarna, Afterpay and Affirm have seen usage skyrocket in the US over the past 18 months, with each devoting marketing dollars to awareness of their brands. A recent report from Student Beans, which works with brands on student loyalty programs, found that buy now, pay later is a major trend with Gen Z students, 30% of US-based Gen Z students using the service and 21% of UK-based Gen Z students using it.
In the US, the top five buy now, pay later apps saw 11 million installs on the App Store and Google Play in the first five months of 2022, up 26% from the prior year period, according to Sensor Tower, a data provider.
But Millerbernd noted that Apple’s offering will be particularly appealing to customers because of its ease of use.
“Before, you had to choose from several buy now, pay later companies,” she said, noting that customers also had to do their research — some buy now, pay later, brands charge premium rates. interest, some charge late fees, and some have different return policies. “If a merchant or retailer worked with one, you had to decide, create an account and accept the service code,” she added. “Now you will have one source.”