Apple’s recent announcement that it will be discontinuing its pay later service, Affirm, may actually benefit the fintech company in the long run. Affirm, which is listed on the NASDAQ under the ticker symbol AFRM, offers consumers the option to purchase items online and pay for them later in installments with no hidden fees or penalties. The service has gained traction in recent years, especially among younger shoppers who prefer the flexibility of paying for big-ticket items over time.
While Apple’s decision to exit the pay later market may seem like a setback for Affirm, it could actually be a growth driver for the company. With Apple out of the picture, Affirm will have less competition in the pay later space, allowing it to attract more customers and expand its market share. Additionally, Affirm’s partnership with major retailers such as Walmart and Peloton gives it a competitive edge over other pay later services, as it offers consumers more options for where they can use the service.
Furthermore, Apple’s exit from the pay later market could also benefit Affirm in terms of brand recognition. With Apple no longer offering its own pay later service, consumers may turn to Affirm as the next best option, leading to increased awareness and adoption of the service. This could result in a boost in revenues for Affirm, as more consumers turn to the company for their pay later needs.
Additionally, the pandemic has accelerated the shift towards online shopping, with more consumers opting to make purchases online rather than in-store. This trend plays to Affirm’s strengths, as it offers consumers a convenient and flexible way to pay for their online purchases. As more consumers turn to online shopping, the demand for pay later services is expected to rise, further benefiting Affirm in the long run.
Overall, Apple’s exit from the pay later market may initially seem like a setback for Affirm, but in the long run, it could actually be a growth driver for the company. With less competition in the space, Affirm has the opportunity to attract more customers, expand its market share, and increase brand recognition. Additionally, the shift towards online shopping and the increased demand for pay later services bode well for Affirm’s future growth prospects. Investors should keep an eye on Affirm as it continues to capitalize on the opportunities presented by Apple’s exit from the pay later market.
