Apple Introduces “Pay Later” Feature for Flexible Payments

Apple Introduces “Pay Later” Feature for Flexible Payments

Table of Content

In this article, we’ll explore the innovative approach that Apple is taking to accommodate customer needs by introducing a new payment option, as well as the possible implications for the buy now, pay later trend.

Key Takeaways:

  • Apple introduces ‘Apple Pay Later’ service

  • Offers flexible payment options for users

  • Designed with users’ financial health in mind

  • Enabled through the Mastercard Installments program

Introducing Apple Pay Later: Innovative Payment Flexibility

Apple unveiled an innovative payment option called Apple Pay Later, allowing users to spread payments for online purchases over time.

This addition to their digital wallet empowers customers to split payments into four installments across six weeks, with the first installment due upon purchase.

Users can also apply for loans between $50 and $1000 within the Wallet app, without interest or fees, for online or in-app purchases.

Expanding Availability: Rolling Out Apple Pay Later

Initially available for select users in the United States, the payment feature will be accessible to all eligible customers over the coming months, according to an Apple press release.

Apple Pay Later aims to cater to a growing consumer base that seeks the convenience of buy now, pay later (BNPL) services amid economic uncertainty and high inflation.

Addressing Debt Concerns: A Mindful Approach to Consumer Financing

While BNPL services like Affirm, Klarna, and Afterpay have gained popularity, some economists and consumer advocates have raised concerns about the potential for increased debt.

Apple, however, asserts that the new feature has been created with users’ financial well-being in mind. Apple’s Vice President in charge of Apple Pay and Apple Wallet, Jennifer Bailey, said that lots of individuals want payment choices that fit their needs.

That’s why Apple Pay Later was created.

Tracking and Managing Loan Payments: User-friendly Wallet App

Apple Pay Later enables users to track and manage their upcoming loan payments through the Wallet app, with loan applications having no impact on their credit.

The payment option is powered by the Mastercard Installments program.

Apple Pay Later: A Game Changer in the Buy Now, Pay Later Industry

Offering an innovative way for customers to split payments, Apple Pay Later addresses the growing demand for BNPL services.

At the moment, only a small group of people can access this feature. However, it will become available to a wider audience in the upcoming months.

The Rise of BNPL Services: A Growing Trend in Consumer Finance

With over 40% of Americans having used BNPL services, according to a Lending Tree survey, it’s clear that these options are becoming increasingly popular.

However, research has shown that many Americans struggle with these types of loans, especially as inflation continues to surge.

Preventing Additional Debt: Linking Debit Cards for Repayment

To help limit the potential for increased debt, Apple Pay Later requires users to link a debit card from their digital wallet for loan repayment purposes.

This unique feature helps prevent borrowers from paying off one form of debt with another, though it doesn’t fully address broader concerns about the BNPL business model.

The Impact of Buy Now, Pay Later: Increased Borrowing and Rising Debt

In 2021, BNPL loans amounted to $24 billion, up from $2 billion in 2019.

As these payment options become increasingly prevalent in stores and online, regulators are faced with the challenge of keeping up with this fast-growing industry.

Simultaneously, the number of people unable to keep up with their payments is increasing.

In Conclusion: Apple Pay Later’s Potential to Revolutionize BNPL Services

Apple Pay Later presents a promising alternative for consumers seeking flexible payment options. By offering an interest-free and fee-free option for users to split payments, Apple is addressing the growing demand for BNPL services.

However, it remains crucial for both consumers and regulators to keep a close eye on the potential risks associated with increased borrowing and debt.


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Judith Harvey is a seasoned finance editor with over two decades of experience in the financial journalism industry. Her analytical skills and keen insight into market trends quickly made her a sought-after expert in financial reporting.