Apple Pay Later doesn't worry us, says Affirm CEO

Despite the threat that Apple may pose, the cofounder of "buy now, pay later" unicorn Affirm said he is "genuinely excited" about the company's decision to enter the same market. On Monday, Tim Cook announced Apple Pay Later at the company's developer conference. Users can split any purchase into four interest-free payments spread out over six weeks using Apple Wallet.

Max Levchin, who is also Affirm's CEO, told Bloomberg TV on Tuesday: "They're focusing on a six-week product, which I think is great. There's plenty of competitors and they should be worried – I think this spells a certain level of concern for folks that are really specialized in this really short-term product."

Affirm, on the other hand, offers payment plans of up to 60 months, he claims. In an article for The Conversation, Rajat Roy, an associate professor at Bond University, wrote that Apple was "trying to consolidate its foothold in the world of consumer finance, and increase its profitability." He added: "As Apple's customers increasingly start to use the Pay Later service, it will gain from merchant fees."

Affirm stock fell 6% on Monday following Apple's announcement, and it has lost nearly three-quarters of its value this year following a turbulent period for buy now, pay later companies, but it is still worth about $7 billion.