Rivals to Apple’s yet-to-be-announced pay-later credit addition to Apple Pay have seen their stock prices plummet.
Apple is said to be working on an instalment plan system named “Apple Pay Later” with its Apple Card partner Goldman Sachs. Apple’s entry into the Buy Now Pay Later (BNPL) industry is so strong that even rumors of it have caused rivals’ stock prices to plummet throughout the world.
According to Reuters, Afterpay’s stock has dropped 10% in value as a result of the revelation. Although Afterpay is located in Australia, a large amount of its income is said to come from the United States, where Apple is expected to launch any new service first.
Affirm Holdings, according to Reuters, initially fell by almost 14 percent. It ended the day 10.5 percent lower than it started.
According to the Sydney Morning Herald, Zip Co fell 11.4 percent and Sezzle finished 10.3 percent lower than the previous day on the BNPL market.
Apple’s rumored entry into the BNPL sector isn’t the only thing that may have influenced its rivals’ stock prices. On July 14, PayPal made its debut in Australia, stating that it would no longer charge late fees.
According to reports, Afterpay made $52 million in income from late fees in fiscal year 2020.