Affirm Holdings, Inc‘s AFRM stock lost 17% this week as reports indicated Apple Inc AAPL plans to dump its Apple Pay Later service.
The company is trading lower by over 2% at last check Thursday.
What Happened: Apple’s Pay Later program allows customers to make purchases on an installment plan. The company announced on Monday that it would no longer offer loans for Apple Pay Later, which enabled users to pay off purchases up to $1,000 over four installments. This move comes as Apple integrates third-party services like Affirm and Citigroup Inc C into its upcoming iOS 18 software, Bloomberg reports.
Starting later this year, users worldwide can access installment loans through credit and debit cards and lenders when checking out with Apple Pay.
Also Read: Affirm’s New Deal With Alterra Mountain Company Boosts Travel Spending
Why It Matters: Apple launched its Pay Later program in the U.S. last year using an in-house platform, issuing loans to customers via a new subsidiary. It relied on Goldman Sachs Group Inc GS and MasterCard Inc MA to help handle the process.
Analysts had flagged how Apple’s new “Tap to Cash” and Affirm’s integration with Apple Pay added pressure to PayPal’s Venmo and checkout services.
Affirm stock gained over 85% in the last 12 months. Investors can gain exposure to the stock via Vanguard Small-Cap ETF VB and Vanguard Total Stock Market ETF VTI.
Price Action: AFRM shares were trading lower by 2.42% at $29.80 at the last check Thursday.
Also Read: BNPL Company Affirm Launches New Payment Options To Boost Flexibility
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