Apple Pay Later, a buy-now, pay-later service that enables consumers to divide purchases into four instalments over the course of six weeks, was released on Tuesday.
For the time being, only a small group of randomly chosen users will have access to a beta version of Apple Pay Later. All qualified customers will be able to access the function “in the coming months,” according to Apple.
According to Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, “Apple Pay Later was designed with our users’ financial health in mind, so it has no fees and no interest, and it can be used and managed within Wallet, making it easier for consumers to make informed and responsible borrowing decisions.”
With the new buy now, pay later plan, Apple customers can make purchases on their Apple devices, including iPhone, iPad, and MacBook, and pay for them over time. The plan offers users the option of paying in installments, with no interest charged. This means that customers can spread the cost of their purchases over several months, making it more affordable for them.
How do I use Apple Pay Later?
Users of Apple Pay will be able to apply for $50 to $1,000 loans through Apple Pay Later, which they may use for iPhone and iPad online and in-app purchases.
Users can start by submitting a loan application within the iOS Wallet app. The borrower will next be invited to input the desired loan amount and confirm their acceptance of the Apple Pay Later terms.
By choosing Apple Pay at checkout, the customer will see the Pay Later option after passing a “soft” credit check as part of the application process, according to Apple. Apple Pay Later loans can be tracked and managed by users in Wallet, and they will be notified through email and the app when payments are due.
According to the tech giant, payments made using Apple Pay Later are free of interest and fees thanks to the MasterCard Installments program.
Apple Takes on Klarna, Afterpay, and Affirm with Its New Payment Plan
The new plan is a significant move by Apple, as it positions the company as a direct competitor to other buy now, pay later providers, such as Klarna, Afterpay, and Affirm. This is a market that is rapidly growing, with more and more consumers turning to buy now, pay later options for their purchases. Apple’s entry into this space will undoubtedly shake up the market and provide consumers with even more options.
Benefits and Risks of Apple’s Flexible Payment Plan for Customers
The buy now, pay later plan is part of Apple’s broader strategy to make its products more accessible to a broader range of consumers. By offering a flexible payment plan, Apple is removing a significant barrier to entry for many consumers who may not have the funds available to make a large purchase upfront. This move also provides Apple with an opportunity to increase its customer base and grow its revenue streams.
There are also potential benefits for Apple customers who use the new plan. By making regular payments on their purchases, they will have the opportunity to build their credit score. This, in turn, could make it easier for them to access other financial products, such as loans or credit cards, in the future.
However, it is important to note that there are potential risks associated with buy now, pay later plans. Consumers who take out loans to make purchases must ensure that they can afford to make the repayments. Failure to do so could result in late payment fees or damage to their credit score.
Overall, Apple’s buy now, pay later plan is an exciting development in the world of tech and finance. It provides consumers with more options and makes Apple products more accessible to a broader range of people. However, as with any financial product, consumers must use the plan responsibly and ensure that they can afford to make the repayments.