The popularity of Buy Now Pay Later (BNPL) or "Buy by Instalment" service is increasing significantly, representing a convenient solution for consumers who need to buy products but do not want to pay the full amount right now.
This service serves as a type of short-term finance, allowing consumers to obtain the products they need by paying for them in instalments at a later date.
This service helps balance the consumer's need for products with its ability to pay for them, while allowing traders to increase sales and expand the customer base. In general, this service is an interesting option for consumers looking for flexible payment solutions.
Several companies providing "buy now pay later" service have emerged in the last decade and have been successful thanks to the widening user base and changing people's financial and purchasing culture.
There are several "buy now pay later" providers, such as Klarna and Afterpay, along with PayPal via PayPal Credit.
The popularity of this type of service has increased in recent years, and according to data released, the size of the instalment purchasing market was about $120 billion in 2021.
While companies operating in this area are trying to expand their services in different markets around the world, there are a number of technology companies trying to enter and expand their services within this market, including Apple.
Apple and Premium Advantage
Apple entered this area for the first time in 2020 with the launch of Apple Card Monthly Installments on Apple Card.
The "Apple Card Monthly Installments" feature allowed users to buy the company's products such as iPhone, iPad and Mac in monthly instalments, through which Apple aims to improve the user experience and increase sales, as the service allows them a smooth and convenient shopping experience, making the purchase process easier and more attractive to users.
However, this service appears to have been inadequate for the company, expanding its presence further through Apple Pay Later, making it the latest company to adopt the "Buy Now Pay Later" installment service.
According to the company, the beta version of the service has become available to specific users, with promises to be made available to all eligible users in the coming months.
The company was supposed to launch its instalment purchase service at the end of 2022, after being announced last year at the World Developers' Conference (WWDC). However, its launch was postponed due to significant technical and engineering challenges, according to Bloomberg.
The service comes at a time of high inflation and economic uncertainty, but this is accompanied by increased acceptance by retailers of payments from instalment procurement applications.
What is Apple Pay Later?
Apple Pay is part of Apple Pay and allows you to buy products and pay for them over 6 weeks by 4 equal payments without any interest or fees, so that the down payment is due when you make the purchase, while the remaining payments are due every two weeks thereafter.
The new feature of Apple Wallet is available via iPhone and iPad for online and in-app purchases and is currently available within the United States.
For example, if you want to buy a shoe from Amazon at $455 and don't want to pay the full amount at once, you can use the service to order the shoe and pay for it in 4 instalments, or $113.75 every two weeks, paying $455 without any fees or interest. However, you need to pay the first instalment on the same day you buy the shoes.
How can I use Apple Pay Latter?
After downloading Apple PayLatter via your phone, you have two options when you complete your purchase: either pay in full or pay later, and selecting the payment option later displays a payment schedule showing the amount of each of the four payments and when they become due.
You can apply for a loan within the Apple Wallet without any impact on the balance, and you are then asked to enter the amount you wish to borrow and agree to the terms of the Apple Pay Latter, and you must be in a good financial position before taking the loan.
After you have been approved, you see the option to pay later when you choose Apple Pay when you pay online and in apps via iPhone and iPad, and you can use Apple Pay Latter to make the purchase.
The service works with all shops and merchants who accept Apple Bay, and stores or merchants do not need to make any changes to accept payments through Apple Pay Latter, and the only difference lies in how the remaining payments are made.
Apple has established its financial subsidiary Apple Finance, whose mission is to deal with loan approvals and credit checks, while its banking partner Goldman Sachs is the official source of the loan.
When you buy a product through Apple Pay Latter, the dealer receives a 16-digit card number generated by Goldman Sachs, which shows that the purchase was made via Apple's new financial advantage.
Apple PayLatter payments are supposed to be made by debit card, as you cannot use the credit card.
You can set up automatic payments or make additional payments at any time, and every Apple PayLetter purchase is reviewed and approved or rejected using a flexible credit check.
The minimum purchase via Apple Pay Latter is $ 50, while the maximum is $1,000.
Apple Pay Latter launch date?
If you are one of the designated users to receive an invitation from Apple, you can start using Apple Pay Latter now.
For the rest of the iPhone users, the service is likely to be made available to all Apple Wallet users in a future iOS update, as formulated in the company's press release.
Based on the bi-monthly release schedule of iOS updates (iOS), all Apple Wallet users are likely to access Apple PayLatter sometime in May 2023.
Ease of Use
In order to facilitate the use of Apple Pay Latter, the company has integrated the service with the Apple wallet, so that you can view, track and manage all loans smoothly in one place.
Through Apple PayLatter, you can see the total amount owed to all existing loans, in addition to the total amount due in the next 30 days.
You can also choose to view all upcoming payments via the calendar feature in the Apple wallet to help track and plan payments.
Before payment is due, you receive notifications via Apple wallet and email so you can plan accordingly.
You are asked to link the debit card from the Apple wallet as a way to repay the loan. In order to help prevent you from taking on more debt to repay loans, credit cards will not be accepted
The new service takes into account privacy and security, as the authentication of purchases takes place using "face ID", "touch ID" or passcode, and the transaction loans and loans are not shared or sold to third parties for marketing or advertising.
Every time you make a purchase, the service uses a device number and a unique transaction code. Thanks to this method, Apple does not share your identity or credit card numbers with merchants and does not store them within your device or its servers.
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