$Square, INC.(SQ.US)$ announced a big push into the buy now, pay later payment option for consumers with its acquisition of AfterPay. The move was seen as one to keep up with rivals, but $Apple Inc(AAPL.US)$ wasted no time in taking some of Square's thunder away with an announcement.
What Happened
A new buy now, pay later program is launching in Canada for Apple devices through a partnership with $Affirm Holdings(AFRM.US)$.
The new initiative is expected to launch in Canada later this month, according to a Bloomberg report.
Apple customers in retail stores and online will receive the option to split their purchase over 12 or 24 months instead of paying in full at the time of the purchase.
The program will be offered with no interest for a limited time after the launch.
Why It's Important
Apple products that may have been too expensive for some customers will now become an item that can be bought and added to the list of monthly bills. This could potentially open a whole new market of customers for Apple in Canada for items like the iPhone, iPad and Mac computers.
The partnership will utilize PayBright, a Canadian buy now, pay later unit acquired by Affirm last year for $260 million.
Apple previously offered a buy now, pay later program with its Apple Card credit card through a partnership with $Goldman Sachs Group(GS.US)$ in the United States.
The Apple Card buy now, pay later program is unavailable to international customers.
AFRM Price Action: Affirm shares traded down on the Square acquisition until the Apple partnership was announced. Affirm shares ended the day up 3% and were gaining another 2.29% in the after-hours session to $68.20.