Apple Inc. is set to introduce several new features to Apple Pay and Apple Wallet later this year, as part of the company’s annual iOS update arriving in the fall.
These features will further integrate financing, rewards, and buy now, pay later options into the iPhone, making it easier for users to manage their payments and take advantage of various financial services.
One of the most significant changes for consumers will be the ability for banks to offer multiple forms of financing to customers within Apple Pay. In addition to using credit or debit cards, iPhone users will soon be able to pay using rewards points or programs through their Apple devices.
This means that banks will have the opportunity to provide other forms of financing through the same credit cards, such as buy now, pay later, monthly installment plans, or the use of reward points.
Affirm, a buy now, pay later company, will be integrated into Apple Pay, allowing customers to apply for an account with Affirm directly within the app. This news caused Affirm’s shares to rise nearly 5% on Tuesday. Apple clarified that its own buy now, pay later service, called Apple Pay Later, will continue to be available, and other major buy now, pay later companies like Klarna will also have the ability to integrate into Apple Wallet.
Since its introduction nearly a decade ago, Apple Pay has become a significant force in mobile and digital payments, alongside Apple Wallet.
Almost all banks and credit card companies have integrated their credit and debit cards with Apple Pay, and mobile concert tickets have become standard issue. Additionally, some states are experimenting with issuing digital drivers’ licenses through the platform.
Despite its success, Apple Pay has been limited by the fact that it is only available on iOS devices, which account for approximately one-third of the smartphone market.
However, Apple announced that later this year, users will be able to use Apple Pay on Windows computers and Google’s Chrome browser by scanning a code and approving the transaction on their phone.
The Associated Press contributed to this article.