Apple recently detailed plans for the iOS 16 and unveiled several new features that will come with the new operating system. One of them is the “buy now pay later” option that will be available for all Apple Pay purchases.
Called Apple Pay Later, the service will be built into Apple Wallet. According to the company, the users will be able to split one payment for a product into four equal portions that will be deducted over a period of six weeks. The first portion of the payment will be deducted from their account after the initial purchase, with the remaining portions being charged every two weeks. There will be no interest or fees.
Apple Pay Later is expected to roll out later in 2022 and will be first made available to customers in the United States. It is expected that the user will have to undergo a “soft credit check” and be approved before taking advantage of the option.
In its official statement, Apple claims that this service is “designed with users’ financial health in mind.” However, many experts doubt that the company has the best interest of its customers in mind. There are concerns that Apple Pay Later, like all other “buy now pay later” services, might cause more harm than good due to its potential for abuse. This includes encouraging non-essential purchases and drawing users into a vicious cycle of loans.