Despite Apple's decision to phase out its buy now, pay later service introduced last year, the tech giant is set to introduce a new version of the product through partnerships with third-party providers such as Affirm later this year. The buy now, pay later (BNPL) concept surged in demand during the COVID-19 pandemic, driving $75 billion in online transactions in 2023, a 14.3% increase from 2022, as per Adobe Analytics. Apple announced that its upcoming solution will expand flexible payment options globally in conjunction with Apple Pay-supported banks and lenders, without elaborating on the reasons for discontinuing its standalone BNPL service. Current users of Apple Pay Later can continue managing and settling their loans through the Wallet app. Apple recently revealed that Apple Pay users will have access to new installment plans starting this fall, including the option to apply for BNPL loans directly through Affirm at checkout. Additionally, customers will be able to use installments from credit and debit cards. Analysts initially saw Apple's BNPL offering as a rival to services like Affirm, which allows customers to pay in two or four installments or monthly for more expensive items. Sean Gelles from J.D. Power noted the similarity to debit card usage, emphasizing that Apple maintains the user experience through Apple Pay. Gelles also pointed out the low risk for Apple in delivering BNPL products via Apple Pay, as it keeps the customer relationship intact. Although Apple might collaborate with other BNPL providers like Klarna in the future, a source highlighted Affirm's technology and underwriting expertise, along with its policy of not charging late fees. Klarna did not provide comments. Affirm's shares slightly dropped by 0.7% on the day, attributed by an analyst to May's weaker-than-expected retail sales data.