Apple has expanded its payments innovation, now partnering with Affirm to offer buy now, pay later (BNPL) payment options directly at the point of sale for in-store iPhone transactions, just as US-based BNPL spending crossed $111 billion in 2024, up 18% year over year. This powerful retail partnership signals the next wave of consumer finance, where flexibility, choice, and digital convenience are rapidly redefining shopping on America’s Main Street.
A New Era of Shop-and-Split Instore
Previously, Apple Pay users could access Affirm’s BNPL options online or in-app. With this integration, shoppers at physical stores can now split purchases into biweekly or monthly payments through Apple Pay, all while enjoying secure, contactless checkout on their iPhones.
Affirm’s senior vice president of product, Vishal Kapoor, said, “This gives Apple Pay users in the U.S. added flexibility and transparency at even more checkouts.”
Users can make everyday or big-ticket purchases in person, breaking the total into interest-free or low-interest installments—spanning 0% to 36% APR based on eligibility and Affirm’s terms. Approval is instant, with the BNPL option now as seamless as any Apple Pay tap.
Apple’s June press release previewed these enhancements, stating that offering loan offers from eligible cards (including Affirm) “would give users even more flexibility and choice” with every Apple Pay purchase.
Mobile Wallets, BNPL, and the Changing U.S. Consumer
The integration is another marker of how mobile wallets and pay-over-time tools have become daily habits. PYMNTS research finds that BNPL is now used by more than 27% of Gen Z and 21% of Millennials for monthly purchases, and over 60% of all U.S. shoppers want installment options at checkout for purchases over $200.
Jennifer Bailey, vice president of Apple Pay and Apple Wallet, explained, “We are excited to provide users with even more flexibility and choice when making a purchase using Apple Pay with the introduction of Affirm loans at checkout with Apple Pay. This gives users access to Affirm’s pay-over-time options right at the point of purchase, and leverages the easy, secure, and private experience that our users already enjoy with Apple Pay.”
Affirm’s Accelerating Growth—and BNPL Mainstreaming
Affirm’s latest earnings reinforce the partnership’s logic: the company hit new highs for gross merchandise volume (GMV) in June 2025, citing heavy adoption for both online and in-person transactions driven by 0% APR monthly loans. CEO Max Levchin told investors, “On the demand for our service, you see the acceleration in GMV and the new record in that sense.”
In August, Affirm deepened its BNPL reach through integrations with Google and Stripe—now, Apple Pay’s store-level partnership brings the service to millions of additional shoppers, spanning grocery stores, electronics, department stores, and more.
Why Pay Over Time is Now an American Habit
For 2025, U.S. BNPL users are forecast to exceed 69 million, with average transaction values continuing to rise, especially at physical retail. PYMNTS’ research shows that nearly 43% of shoppers would forgo a purchase if BNPL is not offered, and over 80% are more likely to buy from retailers with pay-over-time at checkout. Apparel, electronics, travel, and home goods remain the leading categories for installment plans.
Apple’s seamless interface, combined with Affirm’s flexible terms, is expected to drive further mass adoption, especially as inflation and rising costs prompt more consumers to manage spending and cash flow month-to-month.
Looking Ahead: The Future of Payment Choice
The Apple Pay and Affirm partnership not only expands payment selection but also sets a benchmark for embedded finance—where lending, approval, and checkout unite within a flawless tap-to-pay flow.
In an omnichannel world, shoppers expect the same financial empowerment at the register as they do online. Apple’s rollout shows that BNPL’s influence in physical retail is just beginning, and in 2025, “buy now, pay later” is a genuine cornerstone of the American shopping experience.
