Confirm purchase now, pay later. The loans will be available later this year.

Apple Device users will soon be able to take advantage of the “Buy Now, Pay Later” feature using loans from Confirm for purchases, the companies said Tuesday.

Affirm will be available as an option for US Apple Pay users on iPhone and iPad later this year, the San Francisco-based fintech company said in a release. innings. Apple confirmed this news independently update.

“This provides users with additional payment options and offers the simplicity, convenience and security of Apple Pay along with the features users love about Affirm—flexibility, transparency, and no late or hidden fees,” Affirm said in an emailed statement.

The move is a boost for the Affirm sector and the buy now, pay later sector as a whole. When Apple introduced its own BNPL product Investors were concerned last year that the tech giant would squeeze out individual providers like Affirm. But the fact that Apple has decided to also include Affirm products in its ecosystem shows that the fintech company has something unique to offer.

For example, while Apple’s BNPL loan allows users to pay off purchases in four installments over six weeks, Affirm has a number of long-term offers that can be paid off over a year or more. The companies did not provide details about the terms of the new loans.

“The bottom line, in our view, is that Affirm’s strong brand and sophisticated underwriting technology have a moat that Apple likely won’t be able to replicate on its own,” Mizuho Securities analyst Dan Dolev said in a research note.

Apple also announced that credit and debit card installment loans will be available in Apple Pay in the US. Citigroup, Synchronicity And Fiserv– related issuers. Traditional credit card players have begun offer BNPL-style installment loans after their popularity soared during the Covid pandemic

Synchrony said in an email that it plans personalized installment loans with promotions based on transaction size and participating merchants, with the possible use of promotional interest rates and loan length.

“This Apple announcement gives Synchrony the opportunity to scale our flexible payment options and offer our merchants the opportunity to expand their presence in the growing mobile payments ecosystem,” said Mike Bopp, chief growth officer at Synchrony, in an email.

Thanks to the ubiquity of the iPhone, Apple Pay has more 500 million users worldwide and leading market share in the US for its mobile payments and digital wallet platform.

Affirm shares rose 11% on Tuesday, while Apple shares rose 7.3%.

Affirm shares rose even as the company said it would take time for the partnership to significantly grow its revenue.

“Affirm does not expect this partnership to have a material impact on revenue or gross sales in fiscal year 2025,” the company said in a statement.