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Apple Inc (Nasdaq: AAPLAccording to Bloomberg News), we plan to launch a service that allows users to repay their Apple Pay purchases in several installments.
The service, which is still under development, is available on Apple devices via the wallet app and can be used in stores and online shopping.
Users have the option of full or installment payments. The cost of an item may be split into four interest-free payments every two weeks or every few months. According to the report, customers must apply for approval before making a purchase.
Apple Pay Later will showcase Apple’s latest foray into financial products. Apple debuted in 2019 Apple card, A credit card supported by Goldman Sachs and accessible from your iPhone.
Bloomberg does not say when the Apple Pay Later will be released. Neither Apple nor Goldman Sachs commented on the report.
Apple’s latest service is comparable to Affirm Holdings, PayPal Holdings, and Klarna Bank’s existing “Buy Now, Pay Later” (BNPL) service.
Over the past year, the BNPL industry has been booming due to the surge in pandemic-related e-commerce and is expected to continue to grow.
Payments made through the BNPL option are projected to grow from an estimated $ 226 billion in 2021 to $ 99.5 billion by 2026. Juniper research..
C + R Research More than 60% of US consumers say they have used BNPL loans for online purchases in the last 12 months. According to a survey, two in three online shoppers consider BNPL options to be “economically risky,” and 59% buy “unnecessary” items that cannot be purchased otherwise. It states that it became.
Still, 56% say they prefer credit cards because they are easy to pay, flexible, have an easy approval process, and have low interest rates.
However, the industry may face regulatory hurdles in the future. Concerns raised About consumer overspending and lack of transparency regarding accurate lending terms.
It’s still unclear how BNPL will comply with regulations, as the platforms that provide services do not have a banking charter and laws vary from state to state, but some financial experts expect the industry to come down. doing More scrutiny During the Biden administration.
Source: Equity news