Exec of Affirm pay later admits he isn’t concerned about Apple eating his lunch

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The CEO Max Levchin of Affirm says his company won’t be impacted by Apple’s impending buy now, pay later service. According to a new feature in iOS 16, Apple Pay purchases can now be spread out across four fortnightly instalments.

Even though Apple Pay Later is now a part of the equation, Levchin believes that his own company still has a great deal of room for expansion, as he stated in an interview with Bloomberg.

During an interview with Bloomberg Television on Tuesday, Levchin stated, “I don’t think there’s much fear.” In my opinion, everyone engaged has a lot of space to improve. Buying now and paying later is employed in less than 5% of transactions in the United States, according to him.

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In contrast to Apple’s six-week payment window, Affirm offers a range of loan terms ranging from six weeks to five years. Rather than seeing Apple’s entry into the pay later market as a negative, Levchin sees it as a positive since it produces a “tailwind” that encourages customers to think about paying later. Affirm may attract clients who choose to spread their payments out over a longer period of time.

Klarna CEO Sebastian Siemiatkowski echoes this sentiment, saying, “Plagiarism is also the greatest kind of flattery.” He, too, believes that Apple’s entry into the market will benefit consumers.

There are no fees or interest charges for Apple’s new pay-later option, but customers will have to wait until this fall to use it. In iOS 16, Apple Pay Later will be included, which was unveiled at the WWDC22 opening keynote on Monday. A beta version is currently available to developers, but it will not be released to the general public until later this year.

Also read: Apple’s new ‘Like’ animation isn’t showing up for everyone when they tweet using the #WWDC22 hashtag

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