Apple and Synchrony Partner to Launch New Apple Pay Installments Service in the US

Apple and Synchrony Partner to Launch New Apple Pay Installments Service in the USFollowing the discontinuation of its own buy-now-pay-later (BNPL) service, Apple Pay Later, Apple recently announced a partnership with Synchrony Financial to introduce a new BNPL offering in the US Synchrony Installments. This marks a strategic shift in Apple's BNPL approach and provides US consumers with a fresh payment option

Apple and Synchrony Partner to Launch New Apple Pay Installments Service in the US

Following the discontinuation of its own buy-now-pay-later (BNPL) service, Apple Pay Later, Apple recently announced a partnership with Synchrony Financial to introduce a new BNPL offering in the US Synchrony Installments. This marks a strategic shift in Apple's BNPL approach and provides US consumers with a fresh payment option. The launch, initially leaked through a premature update to Apple's support documents, has now officially arrived.

This collaboration integrates Synchrony Installments into the Apple Pay ecosystem, allowing users to conveniently access the service directly within Apple's website and app. This means users can enjoy the convenience of installments without switching to other platforms, providing a seamless payment experience that enhances user efficiency and satisfaction.

To use Synchrony Installments, users must meet certain prerequisites. Firstly, they need a Synchrony-issued Mastercard, including the Synchrony Preferred Mastercard, Synchrony Plus World Mastercard, and Synchrony Premier World Mastercard. All three cards support this BNPL functionality, offering users multiple choices. Secondly, their device must be running iOS/iPadOS 18 or later, ensuring system compatibility and service stability.

The process is straightforward. When checking out with Apple Pay, selecting the "Pay Later" option reveals Synchrony's fixed monthly payment plan. The system automatically calculates the monthly payment based on the purchase amount and displays the repayment schedule. This transparent repayment method facilitates better personal financial management and prevents unexpected overspending. The fixed monthly payment plan also provides a stable repayment experience, eliminating concerns about fluctuating monthly amounts.

It's important to note that Synchrony Installments is not an Apple-operated BNPL service. Synchrony Financial provides and manages it; Apple simply integrates it into the Apple Pay system, offering users a more comprehensive payment selection. This partnership effectively combines Apple's payment ecosystem strengths with Synchrony's BNPL expertise, leveraging each company's advantages.

Beyond convenient installment payments, Synchrony plans to introduce additional benefits later this year. Users will be able to view and redeem eligible Synchrony-issued card rewards when paying with Apple Pay. This enhances the service's appeal and encourages greater user engagement. The reward system solidifies Synchrony's competitive position in the BNPL market while attracting more users for Apple.

Apple's choice to partner with Synchrony for its new BNPL service demonstrates its commitment to continuous innovation in the payments space. Having discontinued Apple Pay Later, Apple swiftly secured a new partner and launched a replacement service, showcasing agility and efficiency in adapting to market changes and meeting user demands.

Selecting Synchrony as a partner was a strategic decision. As a prominent financial services company, Synchrony possesses extensive BNPL experience and robust technical capabilities, ensuring reliable service for Apple. Conversely, Apple's vast user base and brand influence provide Synchrony with significant market reach and growth opportunities. This mutually beneficial partnership will unlock greater growth potential for both companies.

In conclusion, the new Apple Pay installments service, powered by Synchrony, offers US consumers a convenient, secure, and reliable BNPL payment method. This launch enriches Apple Pay's functionality and boosts its competitiveness in the payment market. Its user-friendly interface, transparent repayment process, and forthcoming reward program will attract more users, driving BNPL market growth. The Apple-Synchrony collaboration sets a precedent for cross-industry partnerships between technology companies and financial institutions, signifying future innovation and transformation in the payments landscape. It underscores Apple's dedication to exploring and innovating in payments and fulfilling diverse user payment needs. This will further solidify Apple's leadership in technology and finance and provide users with more convenient and intelligent payment experiences. This collaboration successfully complements the strengths of both Apple and Synchrony, creating a new and more attractive payment solution that offers greater value to users. This service is poised to become an integral part of the Apple Pay ecosystem and significantly impact the BNPL market.