Apple to Launch Buy Now Pay Later Feature

  • Payments
  • 07.06.2022 11:01 am

Apple to Launch Buy Now Pay Later Feature

Apple revealed a "buy now, pay later" service for iPhones at  Worldwide Developer Conference. 

Apple's BNPL service will compete with Klarna, ClearPay, and Affirm by offering a four-month interest-free loan on Apple Pay payments. It's also partnering with Shopify to help users track their orders in Apple Wallet. 

When iOS 16 hits in the fall, BNPL will be for the US market only. Apple also unveiled a revised MacBook Air with a new MagSafe charging port and a design similar to the MacBook Pro, ending the line's distinctive tapered shape. 

iPhone and Mac users in the US can pay for products in four installments over six weeks without interest or fees. Using Mastercard's network, the solution will function online and in stores that accept Apple Pay. 

Apple entered the industry after acquiring Credit Kudos earlier this year. It also comes when the coronavirus pandemic's e-commerce boom wanes. 

Regulators in Europe and the US are keeping a careful eye on "buy now pay later" enterprises to ensure responsible short-term financing in a time of rising inflation. Consumers' debt comprehension is another worry. 

Analysts believe increased defaults and decreasing non-discretionary spending would affect fintech profit margins, while rising interest rates will push up operational expenses for some businesses. 

Apple's BNPL system was "built with users' financial wellness in mind," featuring a Wallet app dashboard to monitor payments. It said a customer's card-issuing bank "may assess a fee" for inadequate debit card funds.

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