Imagine! Apple has announced the launch of a new iPhone and users are thinking, I wish I could buy this, I wish there was some sort of policy for apple that users can buy the phone now and pay later in a few payments. So, the wait is over. YES! YES! YES! Apple has entered into Buy now, Pay later universe. It will allow users to buy their favourite iPhone now and pay later in four payments over six weeks with no interest or fee.
This amazing move by apple can be very alarming for the best companies like Affirm holdings, and Swedish payments company Klarna. To compete for the more than $100 billion in transactions Americans make using this payment method, Apple introduced its "buy now, pay later" (BNPL) service in the US.
Customers can make purchases using BNPL services without entering their credit card information or setting up an account with the shop thanks to their quick and simple checkout process.
A user starts the procedure by submitting a loan application through the iPhone's Wallet app. After a purchase, loan and payment history "may be reported to credit bureaus and affect their credit," according to Apple, although this will "have no impact to their credit." You are eligible to apply for loans between $50 and $1,000.
85% of the dealers in the market are accepting apple pay.
Apple highlights that businesses can deploy Apple Pay Later for their consumers with no additional work on their part. "When a business accepts Apple Pay, Apple Pay Later will be an option for their customers during checkout online and in apps for iPhone and iPad," Apple explains. Using the Mastercard Installments program, Apple Pay Later is possible.
Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet quoted the following:
Apple Pay Later is designed to give users “flexible payment options.”
When it comes to how people manage their finances, there is not any specific strategy that fits all. Apple offers its users to buy now and pay later because most people are looking for flexible payment solutions. Since it does not charge fees or interest and can be used and controlled within Wallet, Apple Pay Later was created with the core objective of users' financial well-being in mind. As a result, it makes it easy for customers to make wise and responsible borrowing decisions.
Apple Pay Later is the newest strategy by the tech giant. What are your thoughts on this? Feel free to share your feedback in the comments section below and keep visiting us for fresh updates.