Apple has integrated Klarna as an option at checkout within Apple Pay. This addition of the buy now pay later (BNPL) service follows the closure of Apple’s own BNPL service, Pay Later, which was discontinued months after its launch in 2023.
Klarna offers users the ability to make purchases in four interest-free installments. Despite the growing popularity of BNPL services like Klarna, surveys indicate that these services might contribute to increased consumer spending.
These BNPL loans are challenging to monitor since they are often not reported to credit bureaus. In early 2024, the Consumer Financial Protection Bureau issued a regulation classifying BNPL services as credit card providers. This rule mandates that they investigate disputed purchases and provide refunds for returned products.
In addition to Klarna, Apple Pay included the BNPL service Affirm in its app in September. Both Klarna and Affirm are accessible through Apple Pay on devices running iOS 18 and iPadOS 18.
There are additional updates being introduced to Apple Pay, such as compatibility with third-party desktop browsers like Chrome. Additionally, Apple is deploying a “Tap to Provision” feature, which allows users to add new cards by tapping them on the back of their iPhones.
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