Affirm CEO says he’s not worried about Apple Pay Later rival

AFFIRM chief executive officer Max Levchin said he’s not worried about Apple’s upcoming buy now, pay later service, because his company offers more extensive and longer-term plans.

“I don’t think there’s much concern,” Levchin said Tuesday (Jun 7) in an interview on Bloomberg Television. “There’s a lot of room for growth for all involved.” Buy now, pay later is used for fewer than 5 per cent of US transactions, he said. 

Affirm offers lending plans from 6 weeks to 60 months, compared with Apple’s plan to split up Apple Pay purchases over 4 payments across 6 weeks, Levchin said. The Apple service “creates a really nice tailwind for us” by informing more people about buy now, pay later services, he said.

Apple Pay Later was unveiled Monday at the company’s annual Worldwide Developers Conference. Unlike other buy now, pay later platforms, the service is integrated directly into the iPhone’s Wallet app, which comes installed on every new iPhone.

Another Affirm competitor, Klarna, recently announced plans to eliminate 10 per cent of its staff. By contrast, Levchin says Affirm is continuing to hire engineers. “We’re gearing up for time to shine for growth,” he said.

Apple’s plans could present a challenge for competitors focused on short-term lending, Levchin said. 

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While Apple has announced only the short-term plan, it is also working on additional financial products, including long-term plans called Apple Pay Monthly Installments that could eventually rival Affirm. BLOOMBERG