Buy now, pay later (BNPL) or ‘buy in installments’ is growing in popularity, as it is a convenient solution for consumers who need to purchase products but do not want to pay the full amount at this time.
This service is a type of short-term financing, as it allows consumers to obtain the products they need by paying for them in installments at a later time.
This service helps to achieve a balance between the consumer’s need for products and his ability to pay for them, while allowing merchants to increase sales and expand the customer base. All in all, this service is an interesting option for consumers looking for flexible payment solutions.
In the last decade, many companies have appeared that offer the “Buy now and pay later” service, and these companies were able to succeed thanks to the expansion of the user base and the change in the financial and purchasing culture of people.
There are many “buy now and pay later” service providers, such as “Klarna” and “Afterpay”, in addition to “PayPal” through the “PayPal Credit” service.
In recent years, the popularity of this type of service has increased, and according to the released data, the size of the installment purchase market will reach about $120 billion in 2021.
While companies operating in this field are trying to expand their services in different markets around the world, there are a number of technology companies that are trying to enter this market and expand their services within it, including Apple.
Apple TV and the installments feature.
Apple entered this field for the first time in 2020 by launching the Apple Card Monthly Installments feature based on the Apple Card.
The “Apple Card monthly installments” feature allowed users to purchase the company’s products such as iPhone, iPad and Mac in monthly installments, and Apple aimed through it to improve the user experience and increase sales, as the service provides them with a smooth and convenient shopping experience, which makes the purchase process easier and more attractive to users.
However, it seems that this service was not enough for the company, as it expanded its presence further through the “Apple Pay Later” service, making it the latest company to adopt the “Buy Now and Pay Later” installment service.
According to the company, the trial version of the service has become available to select users, with promises to provide it to all qualified users in the coming months.
The company was supposed to launch the installment purchase service at the end of 2022, after it was announced last year at the World Developers Conference (WWDC). However, its launch was delayed due to significant technical and engineering challenges, according to Bloomberg.
The service comes at a time of high inflation and economic uncertainty, but with retailers increasingly accepting payments from installment purchase apps.
What is Apple Pay Later?
Apple Pay Letter is part of the Apple Pay service, and allows you to buy and pay for products over a period of 6 weeks in 4 equal payments without any interest or fees, so that the first payment is due when you make the purchase, while the The remaining payments are due every two weeks thereafter.
The new feature is available in the Apple Wallet app on iPhone and iPad for online and in-app purchases, and is currently only available in the United States.
For example, if you want to buy shoes from Amazon at a price of $455 and you do not want to pay the full amount at once, you can use the service to order the shoes and pay for them in 4 installments, i.e. $113.75 every two weeks, so that you pay $455 without any fees or interest. . However, you need to pay the first installment the same day you buy the shoes.
How can I use Apple Pay Letter?
After downloading “Apple Pay Later” on your phone, you have two options when completing the purchase: either pay in full or pay later, and selecting the option to pay later displays a payment table that displays the amount of each of the four payments and when they become due.
And you can apply for a loan inside the “Apple Wallet” without any effect on the balance, and then you are asked to enter the amount you wish to borrow and agree to the terms of “Apple Pay Later”, and you must be in a good financial position before taking the loan.
After you are approved, you will see the option to pay later when you choose Apple Pay when paying online and in apps on iPhone and iPad, and you can use Apple Pay Letter to make the purchase.
The service works with all stores and merchants that accept Apple Pay. Stores or merchants do not need to make any changes to accept payments through Apple Pay Letter. The only difference is how they pay the remaining payments.
Apple created its own financial subsidiary, Apple Financing, to handle loan approvals and credit checks, while banking partner Goldman Sachs is the official source of the loan.
When you buy a product through Apple Pay Letter, the merchant receives a 16-digit card number generated by Goldman Sachs, which indicates that the purchase was made via Apple’s new financial feature.
Apple Pay Letter payments are supposed to be made with a debit card, as you cannot use a credit card.
You can set up automatic payments or make additional payments at any time, and every Apple Pay Letter purchase is reviewed and approved or declined using a flexible credit check.
The minimum purchase through Apple Pay Letter is $50, while the maximum is $1,000.
When is the release of “Apple Pay Letter”?
If you are one of the users selected to receive an invitation from Apple, you can start using the Apple Pay Letter service now.
As for the rest of the iPhone users, it is possible that the service will be available to all users of the “Apple Wallet” application in a future update of the “iOS” system (iOS), according to the wording in the company’s press release.
Based on the bi-monthly release schedule for iOS updates, it is likely that all Apple Wallet users will access Apple Pay Letter sometime in May 2023.
Ease of use
In order to make it easier to use Apple Pay Letter, the company has integrated the service with Apple Wallet, so you can view, track and manage all your loans seamlessly in one place.
With the Apple Pay Letter service available within Apple Wallet, you can see the total amount due for all current loans, as well as the total amount due in the next 30 days.
You can also choose to see all upcoming payments via the Calendar feature in Apple Wallet to help track and plan payments.
And before payment is due, you receive notifications via Apple Wallet and email so you can plan accordingly.
You are required to link your Apple Wallet debit card as a way to pay off the loan. In order to help prevent you from taking on more debt to pay off loans, credit cards will not be accepted.
The new service takes into account privacy and security, as purchases are authenticated using Face ID, Touch ID or a passcode, and transaction history and loans are not shared or sold to third parties for marketing or advertising.
Each time you make a purchase, the service uses a unique device number and transaction code. Thanks to this method, Apple does not share your identity or credit card numbers with merchants and does not store them on your device or on its servers.
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