Apple Pay Later: A Sober Look at the New Feature

In March 2023, Apple unveiled its latest update, introducing Apple Pay Later. This feature allows users to split purchases into multiple payments. Now that the initial wave of enthusiasm has subsided, it's time to take a closer look at this new offering and evaluate whether Apple's marketing claims align with the actual financial behavior of customers when using the service.

Let's see the key points??:

• Apple Pay Later will initially be available in the U.S., with potential expansion to Europe and China.??
• Users can spend between $50 and $1,000?, repaying in 4 installments over 6 weeks with no added penalties or interest.
• The feature will be fully available in Fall 2023 for iPhone (iOS 16.4) and iPad (iPadOS 16.4) devices in the Apple Wallet app.???
• Apple will be checking if you're eligible for the service with their personal Apple Financing LLC company.
• The service will work in all stores where Apple Pay works. So you don't need to look for an "installment" sticker and your bank. Logically, if you get this permission in the U.S., you will be able to use the service outside the country.??

Now, briefly about the things to consider:

• A key aspect you need to know about Apple Pay Later is the potential impact on your credit score. If you choose to use this service, you're essentially obtaining a loan. This loan, like others, reports your payment history to the credit bureaus. Consequently, any late payments can negatively affect your credit score, as payment history plays an important role in determining your credit score.

Remember, late payments can be on your credit report for several years potentially lowering your credit score.

• Separately, it's worth noting that Apple Pay Later is offered in partnership with Goldman Sachs, the issuer of MasterCard installment payments. This partnership combines Apple's technology and Goldman Sachs' financial expertise to provide a seamless payment option for every customer.

While Apple Pay Later offers a convenient payment option for consumers, businesses must be aware of the potential benefits that can't be missed.??

You might miss out on a significant portion of the market by not integrating Apple Pay into your payment options. As a business owner, weighing the pros and cons of offering this service to your customers is crucial. Carefully evaluate the impact on your revenue, customer experience and overall brand image before making a decision. Stay ahead of the curve and make informed decisions to ensure your business thrives!