Apple to Launch 'Buy Now, Pay Later' Program in Canada Through PayBright Partnership
Apple is teaming up with Canadian payment services company PayBright to launch a buy now, pay later program for Apple products in Canada, reports Bloomberg. Apple and PayBright will debut the payment program online and in retail stores in Canada starting on August 11. Retail employees have already been informed about the initiative, according to a note sent to staff that was seen by Bloomberg. "Some customers visiting Apple want to buy now and pay later. Now, they have a new option that lets them pay over time for their favorite Apple products," reads the letter.
Program Details and Eligibility
Canadian customers will be able to purchase iPhones, Macs, and iPads, and pay for purchases over the course of 12 to 24 months instead of paying up front. The program will work with device trade-ins that can serve as a down payment, and AppleCare can be included in the installment plan. As a launch bonus, the new installment option will be offered interest-free for a limited time. Apple already offers installment payment plans for device purchases made with the Apple Card in the United States, but a similar program has not been available in Canada.
The Role of PayBright
PayBright, which is owned by Affirm, offers payment plans that are designed to break the cost of a purchase down into biweekly or monthly installments. PayBright already works with a number of companies in Canada including WayFair, Sephora, Samsung, eBay, Dyson, and more. "Shop now, and pay over time at your favorite stores," reads the company's website.
Understanding Payment Flexibility
When shopping online or in stores, you have various payment options: cash, debit, and credit. In addition, a new option recently popped up at some registers and shopping carts: "buy now, pay later.” Buy now, pay later providers or BNPL service providers, partner with online shopping and brick-and-mortar retailers to offer customers a way to pay for their purchases in installments.
Below is a breakdown of the differences between traditional installments and the BNPL structure:
| Feature | Installments | Buy Now, Pay Later (BNPL) |
|---|---|---|
| Structure | Divides the total purchase into equal, fixed payments, usually monthly, over a set period ranging from 3 to 48 months. | Allows customers to make a purchase immediately but delay payment, usually for a few weeks or up to 12 months. |
| Requirements | Typically requires a credit card and works best when integrated with the best payment system. | Often doesn’t require a credit card and approval is fast, making it popular with younger shoppers. |
| Mechanics | The funds are blocked from further spend from the customer credit card and the customer has to repay the amount every month. | Funds are not on hold on the customer card, providing financial flexibility without getting money blocked. |
Future Expansion: Apple Pay Later
Bloomberg reported that Apple is working on an "Apple Pay Later" feature that will allow customers to make Apple Pay purchases with monthly installments, a program that will be separate from the new buy now, pay later initiative launching in Canada. Apple will partner with Goldman Sachs for the Apple Pay Later feature, and installment payment options will be available for all Apple Pay purchases and will not be limited to Apple products.
