Long awaited arrival of Apple Pay Later is finally here, the company’s version of the buy now, pay later (BNPL) business. Users will be able to apply for Pay Later loans between $50 and $1,000 via the program, and they will be able to return those loans in four equal payments over the period of six weeks with no interest or fees.
You can avoid immediately paying the full price for a product by using Apple Pay Later, which is a feature of the Apple Wallet. The service has been in development for a time; Apple initially revealed it at WWDC last year. Although it was intended to debut with iOS 16, Bloomberg’s Mark Gurman claimed in September that the release had been delayed due to technical and engineering concerns.
Apple claims that users can apply for loans through the Apple Wallet without it having any effect on their credit, but the company also warns in the fine print that the Pay Later loan and payment history may be reported to credit bureaus and damage their credit. Users will begin to see the Pay Later option at checkout in applications and online on the iPhone and iPad once their loan has been approved. According to Apple, users will be able to view and manage their loans within the Wallet app and will be notified when payments are due.
Long awaited arrival of Apple Pay Later finally here, but not everyone can use the service right now. Apple claims that invitations for early access to Apple Pay Later will be sent to randomly selected individuals. For online and in-app purchases on iOS 16.4 and iPadOS 16.4, the service is only accessible in the United States.
In 2019, Apple and Goldman Sachs collaborated to produce a credit card, but this BNPL was the first time Apple had taken all responsibility for the financial aspects of the project. The Pay Later service is run by Apple’s newest subsidiary, Apple Finance LLC, which the corporation claims are in charge of credit evaluation and lending. To allow Apple Pay Later, the firm partnered with the BNPL program Mastercard Installments, even though Goldman Sachs is the company that issues the Mastercard payment credentials. According to the corporation, Apple Financing LLC will start informing US credit bureaus about Pay Later loans in the next fall.
BNPL systems, like as Klarna, Afterpay, and Affirm, have come under fire in the past for possibly endangering users, despite Apple’s emphasis on financial health. As BNPL is engineered to encourage consumers to purchase more and borrow more, the Consumer Financial Protection Bureau (CFPB) identified several areas of risk of consumer harm last year, including inconsistent consumer protections, a high prevalence of data harvesting, and a risk of debut accumulation. In 2021, the CFPB launched an investigation against a number of BNPL firms, and it is still determining how they may affect consumers.
You may read Apple’s support document that explains how to sign up for and use Apple Pay Later, but you won’t be able to use it until later this year unless Tim Cook hands you a golden ticket.
Source: Apple Newsroom