Apple Pay Partners With Citi Flex Pay For Flexible Payment Options
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Apple Pay started working with Citi Flex Pay, letting Citi credit card users in the United States pay over time for their Apple Pay buys. The company stated that customers could now buy something costing more than $75 and choose to pay later using Citi Flex Pay.
It explained that the usual time to pay back was three months, but users could pick a longer time if they paid a small fee each month. It noted that Citi Flex Pay worked for online and in-app buys.
Apple Expands Payment Options With Citi Flex Pay Integration
Apple explained that people needed to add an eligible Citi credit card to Apple Pay to use this feature. It added that when users bought something, they could pick the Citi credit card and then choose the option to pay later.
Apple pointed out that it had once given its own buy now, pay later (BNPL) service named Apple Pay Later. However, it had stopped that service in 2024, less than a year after starting it.
The company stated that this change happened because it had introduced new loan features. It added that this new plan would let Apple Pay users borrow and pay over time using Affirm. It also mentioned that other US partners,a such as Klarna and Synchrony, offered similar payment plans.
A LendingTree survey found that more than 40% of Americans had used BNPL services. The report stated that these loans helped people borrow money so they could buy more. However, it also warned that users could face extra fees if they did not pay on time.
BNPL Services See Rapid Growth As CFPB Implements New Consumer Protections
The Consumer Financial Protection Bureau (CFPB) reported that BNPL loans in 2021 had reached $24 billion, a sharp rise from $2 billion in 2019. It explained that BNPL services had become popular worldwide, both in stores and on the internet.
Financial regulators had also put rules in place to protect customers. The CFPB stated that in May, it had set rules making BNPL companies follow the same protections as regular credit cards. They explained that customers now had the right to challenge wrong charges and receive refunds from lenders after returning bought items.
Apple Pay is a payment service from Apple that lets people pay in stores, in iOS apps, and online. It works on devices like iPhone, Apple Watch, iPad, Mac, and Vision Pro. Apple Pay replaces the need for a credit or debit card chip and PIN when paying at a contactless terminal.
It doesn’t require special terminals for Apple Pay; it can be used with any merchant that accepts contactless payments. For extra security, Apple Pay uses two-factor authentication through Touch ID, Face ID, Optic ID, PIN, or passcode.
Devices connect wirelessly to point-of-sale systems using near field communication (NFC), with a secure element (eSE) to safely store payment information and perform encryption. Biometric authentication is handled by Apple’s Touch ID and Face ID.
