On: Apple introduces Apple Pay Later

[lotsofpulp]

But Apple BNPL applies to all merchants that accept Apple Pay. I cannot imagine that Target/Albertsons/Trader Joes/Costco/etc agreed to pay an extra 3% in payment processing fees if their customer chooses to use Apple BNPL.

[coolspot → lotsofpulp]

Apple is taking the fee from cash back % (2% on everything).

Amazon does the same - you can buy a thing with 0% APR in 6 monthly payments, but you lose your Amazon card 5% cash back.

[lotsofpulp → coolspot]

I am referring to this line in the bitsaboutmoney.com article:

>BNPLs pitch themselves to businesses as more marketing efforts and less simple payments rails. They’re more expensive than cards by about 300 bps.

I assume this is all the same as Goldman Sachs’ Apple credit card. The same payment fees from merchant to Goldman Sachs, and then Apple might get a little too. Since Goldman is taking all the underwriting risk, I would be surprised if Apple is getting the lions’ share.

Apple’s reward is their devices becoming more popular among people who cannot get credit cards and might find utility in Apple BNPL.