If you often or occasionally use “buy now, pay later” services to buy goods, and if you have an iPhone or an Apple device, you might be excited to know that Apple Pay has arrived later (sort of). Apple just started rolling out its new installment payment plan program this week to random users invited by email, but in the coming months — no actual date set — Apple Pay will subsequently be available to all consumers who use Apple Wallet.
You may not be able to use Apple Pay later, but even when you can use it, there is a question: “Should you use Apple Pay later? Or which service is Buy Now, Pay Later?” You have questions and we have some answers.
What is Apple Pay Later?
In short, Apple Pay Later is part of the world of Buy Now, Pay Later, also known as BNPL. As is standard with Other BNPL programs out there, Apple Pay Later allows you to split payments for a purchase into four equal installments. If you decide to choose Apple Pay Later to pay for your goods, and assuming Apple decides you’re a good credit risk, you’ll make your first payment the moment you make a purchase, and then every two weeks for the next six weeks, you can make up the remaining payments. In other words, you make the down payment, and you are given a loan for the rest.
In case you’re curious, some of the other BNPL programs out there (many of which have names that sound like a cult, or perhaps a garage band) include:
Does Apple Pay Later charge interest?
Not charging interest is the whole point and appeal of the buy now pay later program, so in general, they don’t charge interest. Occasionally, you might find some things sticking out, like a BNPL plan that runs longer than the standard six weeks and charges interest. Sometimes they’ll end up charging you, for example, if you don’t end up making a payment or rescheduling a payment, which you might kind of see as a form of interest.
Some credit cards offer “buy now” and “pay later” features, by the way, and those cards usually have a monthly fee, which you might also see as a form of interest. However, the appeal of the Buy Now, Pay Later program is that you can usually ski in six weeks without paying any interest or fees.
How is Apple Pay Later different than any other “buy now, pay later” program?
Mostly, the big difference is that Apple Pay Later will eventually come with everyone’s Apple Wallet.
Some Apple lexicon can get confusing, but Apple Pay is Apple’s mobile payment service that allows you to make payments through your phone. Apple Wallet, meanwhile, is the app who comes with Your iPhone It is a digital wallet that contains the credit or debit cards that you use with Apple Pay. In Apple Wallet, you can also put digital rewards cards and concert tickets, just as if you were in a traditional non-digital wallet.
You can use Apple Pay later if you shop online or make an in-app purchase on your iPhone or iPad with merchants that accept Apple Pay.
So if you use Apple Wallet to pay for a lot of purchases and want to use a Buy Now, Pay Later plan, Apple Pay Later may simply be more convenient than a different BNPL service.
And of course, if you’re an Apple fanatic and really love Apple Wallet, you’ll likely enjoy the gee-whiz factor that comes with Apple Pay later on. For example, it has a calendar that shows you when a BNPL payment or payments are due, how much is due, and how much is left to pay on your purchase.
You know, it’s Apple. So the interface looks great. It almost makes you forget that you put yourself in debt.
Yes, about that. How will I pay Apple? with my debit card? Or my credit card?
Unlike many of its BNPL competitors, Apple does not allow consumers to make Apple Pay Later payments with a credit card. The company clearly sees this as a form of paying off debt by getting into more debt, which is never a great idea.
Of course, there is probably a way to get around things with BNPL programs in general so that you simply extend the loan interest-free over more if you made your payments with a credit card. You get a BNPL loan, then two weeks later, you pay it off with a credit card, and within the month, in theory, you make the BNPL payment on your credit card and avoid the interest.
But since things often don’t work out that way, Apple could probably be doing you a huge favor by not letting you pay your APL purchases with a credit card.
What happens if I miss a payment with Apple Pay later?
Well, you have linked Apple Wallet to your debit card. You are on Going to make a payment. If you don’t have the money in your checking account you may go overdraft and the bank charges a fee, you can try to take that with the cashiers or the manager. If you take things to an extreme and buy something with Apple Pay Later and then close your bank and skip town, Apple probably has some good lawyers.
Can using Apple Pay Later negatively affect my balance?
He shouldn’t, and he can help her – down the road. Apple Pay Later plans to eventually report consumer payments to credit bureaus. When you apply for an Apple Pay Later loan, there will be a poor credit draw (Apple will look at your credit history) to make sure you’re credit-worthy, but this won’t affect your credit score.
So, I’m thinking of buying a car with Apple Pay later. Four payments over six weeks would be prohibitive, but, well, no use…
Not so fast. Apple Pay Later offers its loans in the range from $50 to $1,000. But if you can actually buy a car online for $1,000, more power to you. And unless inflation gets out of control, you won’t be able to buy something small like A pair of tube socks and thread along the payments for six weeks.
So, is Apple Pay Later part of Apple’s bid for world domination?
said John Talbot, director Retail Education and Research Center at Indiana University’s Kelley School of Business. It is also very popular with young adults, who have adopted it faster than other age groups. Considering this and the confidence people have in the process, I think a multiple payment option would be well accepted. I’m sure other multi-pay platforms have concerns about the entry of this dominant player into the pay space.”
Kimberly Josephson, Associate Professor of Business Administration Lebanon Valley College In Annville, Pennsylvania, she believes that “Apple Pay Later is not competing with the big players in the BNPL, but rather with the banking sector.”
But she believes Apple Pay Later in general could be a net positive for the consumer, especially freelancers and small business owners.
“The biggest beneficiaries of this service are likely to be small business owners and those participating in the gig economy,” Josephson says. Essentially, Apple’s Pay Later option serves better those who usually receive their payment for what they give, well, later.. As the saying goes – making money takes money.”
In general, does it make sense to use BNPL programs?
For a small business owner or solo entrepreneur who knows full well they have money coming in and just wants to float some payments for six weeks without paying interest, this is a sure “probably” thing. For the rest of us, those of us who want to buy something we want but maybe don’t need, we’ll choose a weaker “maybe.”
“It can be a cheaper alternative to using a high-interest credit card,” he says. Kshama Harbunkerwho also teaches at Lebanon Valley College and is also Associate Professor of Economics and Director of Undergraduate Programs in Business, Accounting, and Economics. But does it really make sense to use BNPL?
“In theory, yes, but in practice using it responsibly is very difficult,” says Harbanker.