Apple introduces buy now, pay later service with no fees or interest on purchases up to $1,000
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- Apple launched its own buy now, pay later service this week.
- The company charges no fees or interest, according to Apple.
- Users can take out loans up to $1,000, paid for in four increments over six weeks.
Apple just launched its own buy now, pay later service.
The tech giant debuted Apple Pay Later earlier this week, allowing users to split purchases ranging from $50 to $1,000 into a series of smaller payments, following the lead of popular financial services such as Affirm and Klarna.
The system is integrated into the company's existing Apple Pay setup, meaning merchants won't have to opt-in to provide Apple Pay Later to customers, according to the company. It is also incorporated into Apple Wallet, allowing users allowing users to track, manage, and apply for loans from their phones.
Loans through the service are paid off through four payments over six weeks, and the company charges no interest and no fees for the loans, Apple said in a press release.
"There's no one-size-fits-all approach when it comes to how people manage their finances," Jennifer Bailey, Apple's vice president of Apple Pay and Apple Wallet, said in a press release. "Many people are looking for flexible payment options, which is why we're excited to provide our users with Apple Pay Later."
According to Apple, the service aims to provide a new payment option while keeping the financial safety of its users in mind.
"Apple Pay Later was designed with our users' financial health in mind, so it has no fees and no interest, and can be used and managed within Wallet, making it easier for consumers to make informed and responsible borrowing decisions," Bailey said in the press release.
While buy now, pay later has swelled into a multibillion dollar market, amassing more and more users each year, critics have accused the services of being predatory to borrowers.
Recent findings from the Consumer Financial Protection Bureau show that users of buy now, pay later services are more likely to have significant debt elsewhere — such as in student or personal loans, or in credit card debt. The study also found that those who are younger and with lower income are more likely to use buy now pay later services.
"A common misconception of Buy Now, Pay Later borrowers is that they lack access to other forms of credit. Our analysis shows that these borrowers are more likely to use other credit products," CFPB Director Rohit Chopra said in a press release earlier this month.