With their new “pay later” services, Apple users will be able to divide purchases into four portions using the new Apple Pay Later system. Customers can use the feature to split orders between $50 and $1,000 into four payments over the period of six weeks with no fees or interest, according to Apple’s Newsroom.
“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. It’s remarkable that Apple has waited this long to launch this strategy since businesses like Klarna, ShopPay, and Afterpay have had great success giving customers the option to get what they want right away while extending the time they have to pay for it.
Financial experts have differing opinions about the renamed “layaway” method because late payments are still reported to collection agencies and could harm users’ credit in the future.- Steve Sijenyi