Apple Introduces Apple Pay Later to Allow Consumers to Pay For Purchases Over Time
%20(1).png "Apple Pay Later: Apple Launches Buy Now, Pay Later Service")
Apple has launched a new feature called Apple Pay Later, allowing customers to split payments for purchases into four installments over six weeks, with the first installment due at the time of purchase. This feature is rolling out to select users in the United States now, with plans to offer it to all eligible customers over the next several months. Apple users can also apply for a loan ranging from $50 to $1000 with no interest or fees, to make online or in-app purchases.
The buy now, pay later trend has become increasingly popular among consumers looking to stretch their budgets amid high inflation and economic uncertainty. However, some economists and consumer advocates have raised concerns that these services could cause shoppers to take on more debt. The installment process can make it seem like someone is paying practically nothing for the goods or service they’re acquiring, which could lead them to take on more debt than they would if they had to pay for them in full each time.
But Apple says the new feature is designed with users’ financial health in mind. Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, said, “There’s no one-size-fits-all approach when it comes to how people manage their finances. Many people are looking for flexible payment options, which is why we’re excited to provide our users with Apple Pay Later.”
Apple users will be able to track and manage upcoming loan payments in the Wallet app. The loan application can also be done in the app with no impact on credit, according to the company. The Pay Later option is enabled through the Mastercard Installments program.
Overall, the launch of Apple Pay Later is a clear indication that the buy now, pay later trend is not going anywhere. As long as consumers are looking for flexible payment options, companies will continue to offer these services. However, it is crucial for consumers to use these options responsibly and avoid taking on more debt than they can handle.