Among the new features to be added to Apple Wallet in the new iOS update, buy now, later (BNPL) has stirred quite a storm. According to reports, Apple is going to handle this new service all by itself and does not plan to shift the responsibility to a financial company. Thus, they have created a subsidiary, Apple Financing LLC, which will be responsible for lending, and is licensed to do so.
This service was announced at Apple’s WWDC, where it was explained that the users will be able to make a purchase using Apple Pay and then pay it back within six weeks in four equal installments. Furthermore, there will be no interest in these installments.
Although this BNPL scheme seems harmless and a useful option for those who cannot afford to pay for big purchases upfront or pay for healthcare all at once, this service can easily be abused to purchase nonessential items. Furthermore, there is no information on the repercussions of late fees. Apple has not detailed whether or not there will be late fee charges, and if there are, how much will they cost.
CNBC reposts that Apple will be running soft credit checks when a person applied for the Pay Later service to ensure that they will be able to pay back the loan. Additionally, Apple will not be extending additional credit to those who muss payments, and will not be reporting them to credit bureaus. Therefore, it will not count against a user’s credit score.
BNPL is a calculated move by Apple to push into the world of finance and try to consolidate finances under its ecosystem. With an Apple card and a Pay Later service, Apple is essentially trying to make your phone the most important device, which can do most tasks for you. These new Apple Wallet features are set to launch in the US before it expands to other regions.
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Bethany Wilson 
