‘Buy now, pay later’ firms were already in trouble. Apple just gave them one more thing to worry about

Apple's move into the "buy now, pay later" space has raised the stakes for the companies that pioneered the trend.

The company plans to launch its own "pay later" loans on Monday, expanding its financial services products which already include mobile payments and credit cards. Users will be able to pay for things over four equal installments with no interest.

PayPal, Affirm and Klarna are in an awkward position. The fear is that Apple could draw clients away from such services. Affirm's shares have plummeted this week.

There were signs of trouble in the market. Klarna laid off 10% of its global workforce last month because of the war in Ukraine and the fear of a recession.

Inflation, interest rates and economic growth have put the industry in doubt. Borrowing costs have become more expensive for some firms.

Credit always has to be paid back and that will end up in trouble, according to the CEO of ClearBank.

All the chickens will come home to roost as interest rates rise.

The sector is pushing people into debt because they can't afford it. The U.K. is trying to push through regulation while the U.S. is looking into the sector.

I don't know if I should pay my gas bill or pay off the armchair I bought three years ago. He warned thatexcesses always come back.

Apple said it will handle lending and credit checks for Apple Pay Later through an internal subsidiary that will take Goldman Sachs out of the equation. It is a significant step that will give Apple a bigger role in financial services.

The launch of Apple Pay Later was a great win for consumers around the world.

He said that plagiarism is the highest form of flattery.

Ken Serdons is the chief commercial officer of Dutch payments start-up Mollie. In3 and Mollie offer installments loans.

There are a lot of new players in the market.

It will be difficult for players to compete against the best players.

According to James Allum, senior vice president of Europe at Payoneer, there is enough room in the market for different companies to compete.

He said that businesses should look at opportunities for collaboration instead of threats.