Apple's Apple Pay will offer Affirm's "buy now, pay later" service, which caused the latter's stock to rise by 6%

According to the Zhītōng Finance and Economics APP, Apple (AAPL.US) users will soon be able to use Affirm (AFRM.US) to provide "buy now, pay later" loans for purchases, the two companies announced on Tuesday.

The San Francisco-based financial technology company Affirm stated in a document that later this year, Affirm will appear as an option for American Apple Pay users on iPhone and iPad. Apple confirmed this news in its own update.

In an email statement, Affirm said, "This provides users with more payment options and offers the convenience, security, and ease of Apple Pay, while combining the features that users like about Affirm - flexibility, transparency, and no late fees or hidden charges."

This move is a positive development for Affirm and the entire "buy now, pay later" sector. When Apple introduced its own "buy now, pay later" product last year, investors were concerned that the tech giant would squeeze out independent suppliers like Affirm. However, it turns out that Apple has decided to allow Affirm products in its ecosystem, indicating that this financial technology company has its unique advantages.

In early trading on Tuesday, Affirm's stock price rose by 6% at one point, while Apple's stock price rose by about 3%