Apple is launching a new split payment service that will be available first in the United States when the iOS 16 operating system is released. It will allow you to pay in four instalments, free of charge and without interest, thanks to Apple Pay.
During its WWDC 2022 conference, Apple presented a new service dubbed Apple Pay Later. This uses the proven infrastructure of Apple Pay and will be available with iOS 16, in the United States initially. The objective is to compete with applications such as PayPal, Affirm, Klarna or Afterpay by offering a payment system in installments, in the short term and above all without interest. Apple specifies that this offer will be valid on online sales sites and on applications that accept Apple Pay. However, the manufacturer has not specified whether it will be available in all physical stores that use its payment system.
The summary of WWDC 2022 in video
Thus, when making a purchase with Apple Pay, you will have the choice between paying immediately or distributing the amount between four repayments, over a period of six weeks. The first debit takes place at the time of purchase, then the next three take place with an interval of two weeks.
The payment calendar is accessible in the Cards application (Wallet in English), with the possibility of paying in advance.
According to Apple, millions of merchants will even offer in-app delivery tracking, complete with purchase, address and estimated arrival information.
To provide this type of service “Buy now, pay later” or BNPL (buy now, pay later), Apple has partnered with the credit card publisher Mastercard and uses its BNPL Installments program with sellers. The manufacturer also involves the bank Goldman Sachs for the technical part of the loans. In addition, the bank acts as an intermediary with Apple to receive and assign credit card numbers, using a bank identification number (BIN). Remember that Apple is not a legally bank and therefore needs a “BIN Sponsor”, for example to offer its Apple Card credit card.
However, the Pay Later service will be fully managed by the manufacturer’s Apple Financing subsidiary. Apple didn’t say if a minimum purchase amount will be required for the service, but said loans would be limited to $1,000. And you’ll have to play the game, because Apple won’t extend your credit if you’ve missed a payment. Also, the builder hasn’t mentioned whether it will charge a fee for delays. Bank or no bank, you will have to pay on time!
Source :
CNBC