iOS 18 Now Offers Financing via Affirm After 'Apple Pay Later' Discontinued

[MacRumors]

In June, Apple discontinued its year-old buy-now, pay-later service called Apple Pay Later, which let qualifying customers split a purchase made with Apple Pay into four equal payments over six weeks, with no interest or fees. Instead, Apple said customers in the U.S. would be able to apply for loans from buy-now, pay-later company Affirm when they check out with Apple Pay, starting with iOS 18 and iPadOS 18.

Alongside the release of iOS 18 and iPadOS 18 today, Affirm has officially announced its financing partnership with Apple and shared more details. Starting today, qualifying Apple Pay users in the U.S. can use Affirm to split eligible purchases into biweekly or monthly payments "for as low as 0% APR," according to the press release.

iOS 18 and iPadOS 18 users can select "Other Cards & Pay Later Options" when checking out with Apple Pay, choose Affirm, and complete an eligibility check with no credit score impact. Approved customers can then choose a payment plan.

Via: 9to5Mac

Article Link: iOS 18 Now Offers Financing via Affirm After 'Apple Pay Later' Discontinued

 

[rotvaldi]

Goldman Sachs RIP​

 

[GermanSuplex]

Paying cash is always best, but this is alternative for those responsible and is one of the better companies out there. It’s more flexible than Apple Pay Later and the interest is usually low and you can avoid it anytime by paying a purchase off in the app.

 

[ProbablyDylan]

The UX of Apple Pay Later will be hard to beat but I understand why they needed to kill it and open things up.

 

[jz0309]

While I have no plans to ever use this, options is a good thing, but, why does this require ios18????

 

[tyrnnsrs]

It's also used in Canada by Apple. They previously used Paybright which I guess now is owned by Affirm. But now it just is straight up Affirm. The process this year for pre-ordering was so much smoother than other years where you could get the payment plans pre-setup and approved so all you had to do on release day was get your order in.

 

[onenorth]

Paying cash is always best, but this is alternative for those responsible and is one of the better companies out there. It’s more flexible than Apple Pay Later and the interest is usually low and you can avoid it anytime by paying a purchase off in the app.

I presume when you say "cash" you mean "in full" because my iPhone doesn't have a place to insert bills or coins.

Whenever someone offers me zero percent I take it. Why use my money now when I can use someone else's for free, at least temporarily? And maybe boost my credit score too. My credit score tends to be higher when I take out loans and repay them on time than when I am not taking out any loans or carrying any credit debt. So these short-term loans might not be a bad thing as long as one is not defaulting on them. YMMV.

 

[ItachiSBT]

In Canada is definitely not 0% APR. I currently see 7.99 that is a lot.

 

[Velroy]

If you can't afford to pay cash upfront then you can't afford it period.

And certainly you do not need anything Apple sells.

Paying in installments is extremely expensive and 100% wasted money, and only used by people who'd really need those payment fees and interest payments for more important things

 

[ItachiSBT]

If you can't afford to pay cash upfront then you can't afford it period.

And certainly you do not need anything Apple sells.

Paying in installments is extremely expensive and 100% wasted money, and only used by people who'd really need those payment fees and interest payments for more important things

It depends on the conditions. It's stupid to not use installments with 0% APR.

If the item cost 2000, you split the payment in 2 years, you put the 2000 in a saving account and take the money out every month to pay the installments. At the end of the 2 years you will have paid the phone but still have money in the account because you earned interests.

In other words, 0% APR means they are giving you free money. No idea why i should not take it.

If it's not 0% APR then you are right.

 

[nightfox818]

It depends on the conditions. It's stupid to not use installments with 0% APR.

If the item cost 2000, you split the payment in 2 years, you put the 2000 in a saving account and take the money out every month to pay the installments. At the end of the 2 years you will have paid the phone but still have money in the account because you earned interests.

In other words, 0% APR means they are giving you free money. No idea why i should not take it.

If it's not 0% APR then you are right.

100% always use someone else’s money for free.

 

[Apple$]

Wonder if this will allow Affirm financing in other countries?

 

[Will Tisdale 🎗]

Tacky getting a loan shark to provide this service when Apple has more than enough money at hand to do it themselves. I wonder how much Apple is making from each loan taken out? 30%?

 

[Mr. Heckles]

If you can't afford to pay cash upfront then you can't afford it period.

And certainly you do not need anything Apple sells.

You don’t know people’s background and you’re not in their shoes. This feature works on other things, not just Apple.
I didn’t pay cash upfront buying my house and car 🙄

Paying in installments is extremely expensive and 100% wasted money, and only used by people who'd really need those payment fees and interest payments for more important things

My current vehicle has 0% financing, why would I bother even paying it upfront?
If a person uses this and gets 0%, so what?

I love how people are quick to judge others when they are not in their shoes. I was there at one point in my life, and I got out. Stuff happens beyond our control and we sometimes have to make sacrifices to survive.

 

[ThomasJL]

Affirm to split eligible purchases into biweekly or monthly payments "for as low as 0% APR," according to the press release.

Does "for as low as 0% APR" mean it could possibly be higher than 0% APR? Although I don't know the answer to that question, it wouldn't surprise me if Apple started charging interest because Tim Cook is so unethical that it wouldn't be surprising if he decided to act like a bankster.

 

[sw1tcher]

Paying cash is always best

And miss out on the 2% to 5% cash back you get from credit cards and the extended warranty?

 

[Mr. Heckles]

And miss out on the 2% to 5% cash back you get from credit cards and the extended warranty?

This is what I do. My new card fives me 3.5% on food and entertainment purchase.

 

[sw1tcher]

Does "for as low as 0% APR" mean it could possibly be higher than 0% APR?

APR for Affirm loans range from 0% to 36%. The APR will depend on your credit score, length of loan, and other factors.

Join the Affirm Partner Program

As an Affirm Partner, you’ll be able to tap into our premium network and unlock the powerful tools, resources, and support you need to drive your business—and help your merchants build theirs.

www.affirm.com

Payment options through Affirm are provided by these lending partners: affirm.com/lenders. Your rate will be 0–36% APR based on credit, and is subject to an eligibility check. Affirm Pay in 4 payment option is 0% APR. Options depend on your purchase amount, may vary by merchant, and may not be available in all states. A down payment may be required. For example, a $800 purchase could be split into 12 monthly payments of $72.21 at 15% APR, or 4 interest-free payments of $200 every 2 weeks.

 

[sw1tcher]

Tacky getting a loan shark to provide this service when Apple has more than enough money at hand to do it themselves. I wonder how much Apple is making from each loan taken out? 30%?

Unless Apple has some sort of special arrangement, partnering up with Affirm is actually costing Apple money since merchant partners (i.e. Apple) have to pay Affirm a merchant discount rate (MDR) plus a transaction fee. The MDR and transaction fee could be something like 5.99% + $0.30 per transaction.

https://businesshub.affirm.com/hc/en-us/articles/5995432933652-Getting-started-with-Affirm-Frequently-asked-questions-before-starting

Merchant fees

What is my fee?

For our merchant partners, we charge a merchant discount rate (MDR) and transaction fee. The exact fee we charge is based on a few factors, including the program option you choose, your business size, and your business’s risk profile based on data we've gathered from working with thousands of businesses.

A typical Affirm fee is a base percentage + $X.XX per transaction — but this can vary by business type and size. We don’t charge integration fees, annual fees, or monthly fees. Once you create an Affirm merchant account and submit a few pieces of information about your business, you’ll see additional details about our various financing program offerings and associated fees.


Then there's the cost with customer returns/refunds. Affirm does not refund the transaction fee if a customer decides to return the puchase. Similar to processing a credit card refund, Apple eats those fees.

 

[leicaman]

The problem with Apple' solutions is the terms were stupidly too short. Six weeks? Paypal gives a minimum of six months!

 

[Apleeseed84]

If you can't afford to pay cash upfront then you can't afford it period.

And certainly you do not need anything Apple sells.

Paying in installments is extremely expensive and 100% wasted money, and only used by people who'd really need those payment fees and interest payments for more important things

You've never used it but sometimes my money is tied up and can pay it off within 4 payments, which will be 0%. I've used affirm so many times I can pay it off that fast, but if you want to extend it for 6 months of 12% the highest APR I've seen is 20%. But you can pay off the whole amount before your time is up and avoid the APR altogether.

 

[Velroy]

It depends on the conditions. It's stupid to not use installments with 0% APR.

If the item cost 2000, you split the payment in 2 years, you put the 2000 in a saving account and take the money out every month to pay the installments. At the end of the 2 years you will have paid the phone but still have money in the account because you earned interests.

In other words, 0% APR means they are giving you free money. No idea why i should not take it.

If it's not 0% APR then you are right.

Sure, but why would they ever offer 0%? That sounds like the worst business decision you could make

 

[Velroy]

You don’t know people’s background and you’re not in their shoes. This feature works on other things, not just Apple.
I didn’t pay cash upfront buying my house and car 🙄

My current vehicle has 0% financing, why would I bother even paying it upfront?
If a person uses this and gets 0%, so what?

I love how people are quick to judge others when they are not in their shoes. I was there at one point in my life, and I got out. Stuff happens beyond our control and we sometimes have to make sacrifices to survive.

A house is an investment, that's fine to pay in installments. And since you need to pay rent anyway, buying a house doesn't cost you anything more than renting would.

A car is not an investment, and you shouldn't buy one that's well beyond your means. You'll just lose tons of money. Cars are just there to get you from A to B, an older cheaper used car will do that. You can find a good car for a couple of grand if you're not picky. That brand new SUV is a luxury, not a survival item

 

[NetMage]

Cars are just there to get you from A to B, an older cheaper used car will do that. You can find a good car for a couple of grand if you're not picky. That brand new SUV is a luxury, not a survival item

Until it breaks down and leaves you stranded and you lose your job.

Living only for survival is stupid unless you can't afford a better life. And if you can't, why do you have an IPhone? Just buy a $100 Android.

 

[svish]

Good to know about this.