Users of the Apple Pay Later service will be able to spread out purchases over a six-week period in four equal installments with no interest or fees.
Apple Pay Later, a service that lets customers pay for items over time, was launched by iPhone manufacturer Apple Inc. in the US.
Users of the service will be able to spread out purchases over a six-week period in four equal installments with no interest or fees. Customers can apply for loans between $50 and $1,000, which they can use for iPhone and iPad online and in-app purchases at shops that support the service.
According to the firm, the paying service is accepted at more than 85% of U.S. retailers. “Apple Pay Later will handily defeat some of the competition. Due to their popularity, other businesses would have looked at what Apple announced today. This will reduce the other firms’ market share, according to Danni Hewson, AJ Bell’s head of financial analysis. Affirm, a BNPL company, saw a more than 7% share price decline, while PayPal closed down approximately 1%.
As Apple Pay Later is in direct competition with well-known buy-now, pay-later businesses like Affirm and Klarna, which have seen a rise in customer acclaim in recent years.
Users will be able to manage, track, and repay their loans in their Apple Wallet, according to the iPhone manufacturer. People can apply for $50 to $1,000 Pay Later loans, which they can use for in-app and online purchases from businesses that use its Payment service.
Furthermore, users’ credit scores are unaffected while applying for the company’s Pay Later loans using their Wallet. Once customers select the amount they wish to borrow, a light credit check will be performed to make sure they are financially stable.
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