What’d I miss? News and Insights that got noticed - Week 25

Key themes this week (June 14 - 20)

• Apple Pay Later Is Shutting Down, Report Says
• With Literally No Words, Tim Cook's Response to Elon Musk's Angry Tweets Is a Masterclass in How to Handle Your Critics
• BNPL firm Laybuy enters receivership
• Affirm CFO doesn’t expect profits from its Apple tie soon

Apple Pay Later Is Shutting Down, Report Says

"...The service, offered in cooperation with Mastercard and Goldman Sachs, would be replaced by a built-in feature in the upcoming iOS 18 that allows for third-party buy now, pay later loan companies such as Affirm to do the same, the report said. ? ? [...] Apple said in its WWDC announcements that in the US, Citigroup, Synchrony Financial and Apple Pay issuers using the software Finserv would be able to issue buy now, pay later loans through Apple Pay..."

Key takeaways:

• Apple's Pay Later feature, launched less than a year ago, is being shut down.
• It will be replaced by a feature in iOS 18 that enables third-party buy now, pay later loan companies like Affirm to offer similar services.
• Apple emphasizes its focus on providing easy, secure, and private payment options through collaborations with banks and lenders.

LinkedIn Post

With Literally No Words, Tim Cook's Response to Elon Musk's Angry Tweets Is a Masterclass in How to Handle Your Critics

“…Musk seems to misunderstand Apple Intelligence. The smart move is to just ignore the noise…”

Key takeaways:

• Elon Musk threatened to ban Apple devices from his companies due to Apple's partnership with OpenAI, citing security concerns.
• Musk's understanding of the partnership seems to be incorrect, as Apple clarified that ChatGPT would be an additional experience, not integrated at the OS level.
• Cook has opted not to engage publicly, demonstrating a strategic approach to handling criticism.
• Cook's non-response is a masterclass in dealing with trolls and avoiding unnecessary online battles.

LinkedIn Post

BNPL firm Laybuy enters receivership

"...Laybuy listed on the Australian stock exchange in 2020 and shares traded as high as A$2.30. It delisted last year after the share price had plumetted to A0.6 cents. The firm was forced to cut its headcount by a third in July 2022 after failing to raise fresh capital and ditching plans to hive off its UK arm..."

Key takeaways:

• New Zealand-based buy now, pay later (BNPL) lender Laybuy has entered receivership after failing to find a buyer.
• The company, which listed on the Australian stock exchange in 2020 and delisted last year, faced challenges including reduced consumer spending, higher credit losses, and increased fraudulent activity.
• Economic downturn and increased financing costs further contributed to the firm's difficulties.
• The UK-based entities of Laybuy continue to trade and have not been placed in receivership.

LinkedIn Post

Affirm CFO doesn’t expect profits from its Apple tie soon

"...There is a tension between offering Affirm financing at online checkout through Affirm’s own card and through a digital wallet like Apple’s, Linford admitted. Consumers could potentially choose the digital wallet over the Affirm card, a risk Linford called “cannibalization.” Still, he said there was little risk of the digital wallet partnerships displacing the Affirm card, given how much opportunity he saw for the company to get into consumer payments..."

Key takeaways:

• Affirm's CFO, Michael Linford, explained that the company's partnership with Apple is not expected to have a significant impact on its profit and loss statement for the upcoming fiscal year.
• Linford emphasized a "controlled and thoughtful" rollout of the integration with Apple Pay, prioritizing risk management over rapid expansion.
• He compared the approach to the launch of Affirm's own debit card, which gradually increased in materiality to the business.
• Linford acknowledged the potential for "cannibalization" between offering Affirm financing through its card and digital wallets but believes the growth opportunity outweighs this risk in the near term.

?LinkedIn Post

[POLL] Which one of the features announced by Apple do you think will be most impactful?

Now that we have had the chance to take in all the announcements from Apple about what is coming next it raises the question I wanted to use for this week's poll: Which one of the announced features will be most impactful?

Key takeaways:

• 8% of respondents selected messages app will support RCS
• 50% of respondents selected Apple Intelligence
• 8% of respondents voted for messages via Satellite
• 33% of respondents selected Tap to Cash

Results are as of the publication of this newsletter for final results click the link below:

LinkedIn Post

Mercado Libre's fintech arm sees credit-card reader boom in Mexico

"...Latin American e-commerce giant MercadoLibre's fintech arm, Mercado Pago, has seen adoption of its slim mobile credit-card readers more than double in the past year, gaining on competing options from banks and Clip, an executive said. In Mexico, cash is still king - and as Latin America's No. 2 economy, it still lags far behind Brazil in terms of digitalization, Brigitte Brousset, Mercado Pago's head of financing for merchants in Mexico, told Reuters..."

Key takeaways:

• MercadoLibre's fintech arm, Mercado Pago, has seen a significant increase in the adoption of its mobile credit-card readers in Mexico.
• Despite cash being the dominant payment method in Mexico, Mercado Pago has experienced rapid growth in market penetration, with triple-digit percentage growth in the past year.
• The company attributes this growth to the ease of obtaining its readers compared to the lengthy process involved in getting one from a traditional bank.

LinkedIn Post

Lending Platform Momnt Promotes Chris Bracken to CEO

"...Chris’s deep understanding of the consumer lending landscape and proven track record in driving growth make him an invaluable partner,” said Lena McDearmid, Momnt’s chief operating officer, who co-founded the company with Brian Lanehart and Barclay Keith. “Together with Brian Lanehart and our talented team, I am confident that we will continue to set new standards in the embedded lending space and deliver exceptional value to our customers and partners,” she added..."

Key takeaways:

• Embedded lending platform Momnt has promoted Chris Bracken, its revenue lead since 2020, to CEO.
• Bracken's promotion comes as embedded lending is gaining traction with consumers, with 5 in 6 lenders now offering such products.
• However, research shows significant room for growth in the embedded lending space, particularly among small and medium-sized businesses (SMBs).
• While 80% of lenders offer embedded lending products to consumers, there's a gap in providing these services to SMBs.
• This gap represents a significant opportunity for lenders to meet a critical market need and capture the potential of the SMB market.

LinkedIn Post

Check this out:

If you just want to listen to the What’d I miss Top 3 from last week you can watch this video…?

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