There are a few things that you should know about the Buy Now, Pay Later feature from Apple. The plan is pretty simple where your total purchase price is divided into four equal payments and there is no interest or fees on the price. However, one of the issues with this is that many people forget about the payments and then will fall behind and have to pay it all back at once. There is also some concern around the lack of regulation around these plans too.
- The feature splits payments for purchases into four installments over a six week period.
- Apple Pay Later has no fees or interest, but does have to be applied for before use.
- Experts warn that it could cause people to overspend or lose track of payments.
“Though there have been rumors of a cooling-off period for the explosive buy now, pay later industry, Apple’s entry into the market suggests this type of short-term installment loan is here to stay. And with millions of people already using Apple Pay, more borrowers will have access to a buy now, pay later plan as the cost of goods rises and household budgets tighten.”