After its Monday evening keynote, Apple announced the launch of its new “buy now – pay later” service. In the United States, starting this fall, approved users using Apple Pay will be able to choose to pay for a purchase in four installments over six weeks, “without interest or fees of any kind.”
“Apple Pay Later” will also make it possible to “view, track and reimburse easily”, according to the press release from the Californian group.
This service will depend on the Mastercard network, but Apple did not specify which bank would be responsible for the credits. The Bloomberg agency mentioned Goldman Sachs last year.
The apple brand has greatly diversified its services and sources of income in recent years, to encourage users of its devices to stay in its ecosystem, from communication to entertainment, including work and online shopping.
Concern over potential debt accumulation
This service is engulfed this time in a breach already well exploited by other companies such as Affirm (partner of Amazon and Stripe, in particular), Afterpay, Klarna or PayPal.
For its promoters, this method of financing is a less risky alternative to credit cards, which charge interest that is often complicated to understand and can quickly accumulate.
Their use has exploded during the pandemic and partnerships with merchants have multiplied, the latter being willing to pay a percentage of the transaction for purchases that consumers would not necessarily have been able to pay for in one go.
However, in December, an American agency opened an investigation into the risks and benefits of these payment solutions. The Consumer Financial Protection Bureau (CFPB) said it was “concerned” about the potential accumulation of debt, compliance with consumer protection laws and the use of data collected by companies offering these products. Grand View Research estimates the global buy-now-pay-later market at $5 billion in 2021 and could reach $40 billion by 2030.