Apple announced that customers will be able to “pay a little something on it” with their new “pay later” services.
The new Apple Pay Later model will allow users to split payments into four installments. The feature, according to Apple’s Newsroom, lets customers break up purchases that total $50 to $1,000 into four payments over the course of six weeks, with no fees and zero interest. “Users can easily track, manage, and repay their Apple Pay Later loans in one convenient location in Apple Wallet. Users can apply for Apple Pay Later loans of $50 to $1,000, which can be used for online and in-app purchases made on iPhone and iPad with merchants that accept Apple Pay,” Apple said in the press release.
Credit cards will not
be accepted for users opting into the Pay Later service and payments will be taken automatically from a debit card for the three installments. “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,” said Apple’s vice president of Apple Pay and Apple Wallet, Jennifer Bailey. “Apple Pay Later was designed with our users’ financial health in mind, so it has no fees and no interest, and can be used and managed within Wallet, making it easier for consumers to make informed and responsible borrowing decisions.”It’s surprising that Apple has taken this long to introduce this model, as companies like Klarna, ShopPay and Afterpay
have found lots of success offering people an option to get what they want at the moment while giving them more time to pay off their purchases. Financial experts are split on the “layaway” system that has been rebranded in recent years, as missed payments still end up reported to collection companies and could create credit problems for users down the line.