Is Apple Pay Later Worth the Hype? Find Out Now
Apple Pay Later is the latest payment feature from Apple, allowing users to split purchases into multiple payments It provides a convenient and flexible way to manage expenses, making it a great option for those who want to make purchases without worrying about upfront costs
Apple Pay has been a popular payment method for several years, providing a convenient way to make purchases on Apple devices, whether through apps, websites, or physical stores. Now, Apple has introduced a new feature called Apple Pay Later that allows users to split any purchase made through Apple Pay, regardless of the seller, into four payments over a period of six weeks. To gain access to this feature, users must apply (which involves a "soft pull" on their credit score) and can receive loans ranging from $50 to $1,000, which can be used to make purchases that support Apple Pay. The feature is available on iPhones running iOS 16.4 and iPads running iPadOS 16.4, both of which were launched recently.
When it comes to using services like Apple Pay Later and Zip payments in Microsoft Edge, caution is key. Although these "buy now, pay later" options may seem tempting, they are ultimately designed to encourage you to make purchases that may be beyond your means. Furthermore, managing multiple payment schedules on top of your regular bills can be challenging. In fact, a 2022 survey by DebtHammer found that 22% of people who used BNPL services later regretted their decision, and 30% reported having to skip other bills in order to make payments. Similarly, a 2021 survey by CreditKarma showed that 34% of respondents fell behind on at least one payment, with 72% of that group believing that it had a negative impact on their credit score. It's worth noting that Apple Financing, a subsidiary of Apple, is responsible for running the service, while the actual purchases are processed through the Mastercard Installments program operated by Goldman Sachs. While Apple assures users that their transaction and loan history will not be shared or sold to third parties for marketing or advertising purposes, loans will be reported to U.S. credit bureaus starting in the fall, which could potentially put users at risk in the event of a data breach. Apple has yet to provide information on how late fees will be handled.
Even though they may seem useful, and a little bit tempting, it’s usually best to avoid services like Apple Pay Later entirely. It’s hard enough to stay on top of finances, and adding more debt only makes it harder.
Source: Apple
