Apple to offer buy now, pay later option with Affirm

Apple users will be able to choose “buy now, pay later” loans with the company Affirm as part of an update coming to Apple’s operating system later this year, Apple said Tuesday as part of a series of announced updates.

The feature to use Affirm will be available to users in the U.S. when they use Apple Pay as part of updates that will be included in iOS 18 that will be released in the fall.

“This provides users with additional payment choices, and offers the ease, convenience and security of Apple Pay alongside the features users love in Affirm – flexibility, transparency and no late or hidden fees,” Affirm said in an email statement to CNBC.

The additional option for Apple Pay users comes after the Consumer Financial Protection Bureau (CFPB) in May moved to classify Affirm and other popular “buy now, pay later” applications as credit cards in a move that would add customer protections for suers.

The service from Affirm and other companies, including Klarna and PayPal, allow consumers to pay for products in interest-free installments.

At the time of the CFPB’s announcement, Affirm said it was “encouraged” by the move to promote “consistent industry standards.”

Klarna, however, said it was “baffling that the CFPB fails to acknowledge the fundamental differences between [buy now, pay later] and credit cards.”

The update to Apple Pay is part of a series of updates coming to the new operating systems for iPhone, iPad and Mac devices announced during the company’s annual developer’s conference.

The company also announced a notable partnership with OpenAI to integrate ChatGPT into Apple devices, as well as updates to Apple’s own artificial intelligence features through Apple Intelligence and advancements in Siri.