Apple is joining the buy now, pay later wave by testing its own payment plan system.
On Tuesday, the tech giant announced the launch of Apple Pay Later. Customers will now be able to pay for goods in four installments. All four payments will be spread out over six weeks and will not collect interest or other fees. For convenience purposes, iPhone users will be able to keep up with their balances using Apple Wallet.
Apple Pay Later will allow its shoppers to finance up to $1,000 purchases directly from their iPhone, iPad, or Macbook. This latest innovation will go up against buy now, pay later rivals such as Affirm, AfterPay, Klarna, and Zip. As more and more retailers turn to these plans, customers are shopping more than ever. The number of people who use these types of services in the U.S. is expected to reach over 88 million by the end of 2023.
Apple Pay Later differs from its competitors because shoppers no longer have to download an external app to take out low-risk loans. Apple’s rendition offers a more in-house experience. Like its opponents, a soft credit check may be conducted to ensure the requestor can afford the charges.
While Apple is eager to get the system to all its users, the rollout will take several months. Apple’s new payment plan system is refreshing but not a complete surprise. The writings have been on the wall since at least 2019, when it launched a credit card with Goldman Sachs.
For now, only select users will get a preview of the buy now, pay later program.