Affirm's Strategic Expansion into In-Store Apple Pay Payments in the U.S. and Its Impact on BNPL Market Dominance

Affirm Holdings, Inc. has emerged as a pivotal player in the buy now, pay later (BNPL) sector, leveraging strategic partnerships and technological innovation to solidify its market position. As of Q3 2025, the company reports 23 million users and processes $37 billion in annual payments, operating across a network of 377,000 merchantsAffirm Holdings, Inc. - Wikipedia [https://en.wikipedia.org/wiki/Affirm_Holdings,_Inc.]^[3]. A critical component of this growth is its integration with Apple Pay, which has expanded Affirm's reach into in-store transactions and reinforced its dominance in the BNPL landscape.

Strategic Integration with Apple Pay: A Catalyst for Growth

Affirm's collaboration with Apple Pay enables users to access its BNPL services through the Affirm Card, a Visa® debit card loadable onto Apple Pay for both in-person and online purchasesEverything You Need to Know About Affirm - U.S. News [https://money.usnews.com/loans/personal-loans/articles/everything-you-need-to-know-about-affirm]^[2]. This integration eliminates friction in the checkout process, aligning with consumer preferences for seamless digital experiences. By embedding its payment options into Apple's ecosystem, Affirm taps into the 1.2 billion Apple devices globally, creating a vast user base for its interest-free installment plansEverything You Need to Know About Affirm - U.S. News [https://money.usnews.com/loans/personal-loans/articles/everything-you-need-to-know-about-affirm]^[2].

The Affirm Card, issued by Evolve Bank & Trust, further enhances flexibility by allowing users to choose between paying in full or splitting costs into manageable installments via the Affirm appEverything You Need to Know About Affirm - U.S. News [https://money.usnews.com/loans/personal-loans/articles/everything-you-need-to-know-about-affirm]^[2]. This feature, combined with Apple Pay's widespread acceptance at Visa-enabled terminals, positions Affirm as a bridge between traditional credit systems and modern, user-centric finance solutions.

Merchant Adoption and Market Share Expansion

Affirm's partnerships with major retailers like Amazon, Walmart, and Target underscore its ability to scale BNPL adoption across diverse sectorsAffirm Holdings, Inc. - Wikipedia [https://en.wikipedia.org/wiki/Affirm_Holdings,_Inc.]^[3]. These collaborations are amplified by Apple Pay integration, which simplifies merchant onboarding and reduces the technical barriers to adopting BNPL services. For instance, retailers leveraging Apple Pay's infrastructure can seamlessly incorporate Affirm's financing options without overhauling existing payment systems.

As of 2025, Affirm's market share in the U.S. BNPL sector remains robust, driven by its “Pay in 4” offering—interest-free installments split into four paymentsEverything You Need to Know About Affirm - U.S. News [https://money.usnews.com/loans/personal-loans/articles/everything-you-need-to-know-about-affirm]^[2]. This product has attracted price-sensitive consumers while mitigating risks for merchants through Affirm's machine-learning-driven underwriting system, which optimizes approval rates while ensuring repayment reliabilityAffirm Holdings, Inc. - Wikipedia [https://en.wikipedia.org/wiki/Affirm_Holdings,_Inc.]^[3].

Challenges and Competitive Dynamics

Despite its growth, Affirm faces competition from rivals like Klarna and Afterpay, as well as regulatory scrutiny over BNPL's long-term financial implications. However, its exclusive partnership with Amazon (until January 2023) and ongoing collaborations with Stripe and WalmartAffirm Holdings, Inc. - Wikipedia [https://en.wikipedia.org/wiki/Affirm_Holdings,_Inc.]^[3] demonstrate a proactive approach to differentiation. The Apple Pay integration further insulates Affirm from competitors by leveraging Apple's brand trust and ecosystem loyalty.

Conclusion: A Path to Sustained Dominance

Affirm's strategic alignment with Apple Pay and major retailers has not only accelerated merchant adoption but also redefined consumer expectations for flexible payment solutions. While Q3 2025 data on Apple Pay-specific market share remains unavailableEverything You Need to Know About Affirm - U.S. News [https://money.usnews.com/loans/personal-loans/articles/everything-you-need-to-know-about-affirm]^[2], the company's broader metrics—23 million users and $37 billion in annual payments—signal a trajectory of sustained growth. For investors, Affirm's ability to innovate within the BNPL sector while navigating regulatory and competitive pressures positions it as a compelling long-term opportunity.