Apple launches BNPL service in the US

Apple Inc. On Tuesday introduced a buy now, pay later (BNPL) option in its digital wallet. The feature, which is called Apple Pay Later, will allow users to pay for online purchases in instalments.

Apple launches BNPL product

Apple first teased its BNPL product in 2022 and will first be accessible to its customers in the US. In the next couple of months, the firm plans to make it available to all the eligible customers in different parts of the world.

Customers will be able to make a purchase and split the payments into four instalments. The first instalment is to be made at the time of purchase. Subsequently, payments should be completed in six weeks. Besides, users can apply for a loan of between $50 and $1,000 within the Apple digital wallet without attracting any fees or interest. The amount can be used to make both in-app or online purchases.

In a statement, Apple’s vice president of Apple Pay and Apple Wallet, Jennifer Bailey noted, “Many people are looking for flexible payment options, which is why we’re excited to provide our users with Apple Pay Later. 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”.

Apple joins the likes of Afterpay and Klarna in offering BNPL products. As inflation remains stubbornly high, BNPL products allow customers to stretch their funds. Granted, the popularity of this sector has raised concerns over users falling into more debt. As such, there have persistent calls to regulate the industry.