Apple’s “Pay Later” Feature Will Put People In Even More Debt

( According to Ars Technica, Apple has taken a major step toward extending its financial services by releasing a limited edition of a new service dubbed Apple Pay Later.

Apple Pay Later benefits significantly from the company’s collaborations with MasterCard and Goldman Sachs.

Using “Apple Pay Later,” customers may divide up the cost of their goods into manageable chunks and pay for them over time. With loans ranging from $50 to $1,000, the app tempts consumers to take on more debt.

In June 2022, the service was initially announced during the company’s Global Developers Conference, although its rollout was delayed many times.

Pay Later is a service that lets iPhone and other Wallet app users borrow money without leaving the app. The tech giant has started by “inviting select customers to access a prerelease version of Apple Pay Later,” with a broader deployment expected in the coming months.

Borrowing amounts for service users range from $50 to $1,000. The tech giant does a light credit check to establish qualification for the loan.

The repayment plan is shown on the user’s mobile device, and the Wallet app has a dedicated page where customers can see their loan balance and scheduled repayments in a calendar view.

But you can only use the service at stores that accept Apple Pay, both online and in-store. The money must be paid back within six weeks in four equal installments. Apple requires the usage of debit cards for certain transactions.

Apple Pay Later utilizes a MasterCard payment credential issued by Goldman Sachs, as stated in promotional materials for the service.

As loans were not previously offered with Apple Card or Apple Pay, the company spun off a separate division to handle Apple Pay Later. This subsidiary will begin submitting loan information to American credit bureaus in the autumn.

Apple’s continued expansion and financial success necessitate introducing new services related to streaming media, cloud storage, health and wellness, and personal finance.