![]() In other words, they may continually spend more money on purchases than they can actually afford. Shutterstockįrom a consumer psychology perspective, these services encourages immediate gratification and put younger people on the consumption treadmill. They can condition consumers to make purchases without feeling the pain of parting with cold, hard cash.īuy now, pay later schemes can give consumers the satisfaction of buying expensive products – without feeling like they’re splitting from cold, hard cash. Purchases through buy now, pay later schemes may also be driven by a desire to own the latest gadgets and luxury goods – a message pushed onto consumers through slick marketing. Younger demographics (such as Gen Z and Millenials) and low-income households can be more vulnerable to the risks associated with using these services – and can rack up debt as a result. ![]() The reality is that the world of unregulated finance, which includes buy now, pay later, does not bode well for all customers. This strategic partnership has helped Apple gain strong footing in the world of consumer finance. This relationship has been in place since 2019, with Goldman Sachs also acting as a partner for the Apple credit card (although Pay Later is not tied to the Apple credit card). To deliver the buy now, pay later service, Apple has joined forces with Goldman Sachs, who will finance the loans. In addition, Apple will also gain valuable insight into consumers’ purchase behaviours, which will allow the company to predict future consumption and spending behaviour. These are fees which retailers pay Apple in exchange for being able to offer customers Apple Pay. One 2021 survey found that about 26% of regular online shoppers in Australia used buy now, pay later services.Īs Apple’s customers increasingly start to use the Pay Later service, it will gain from merchant fees. Currently its reach in the retail world is evident, with iPhone-based payment services accepted by 85% of US retailers. Latest updates: Apple is trying to reclaim its major innovator status (by making you wash your hands)Īpple stands to make financial gains through Pay Later, thereby adding to its bottom line. It’s one more way users can integrate the tools they need within a single ecosystem. Pay Later enhances this customer-centric experience further. Bloomberg reports that a longer-term Apple Pay Monthly plan is in the works as well.The tech giant provides ways to integrate once-separate computing capabilities into a phone or wristwatch – while keeping the consumer’s experience in focus. It’s a simply structured loan service that splits the cost of purchases into four equal payments: the first must be paid immediately, and the remaining three at two-week intervals. Apple only says it “plans to offer it to all eligible users in the coming months.”īeyond these trivial details, however, there’s much about the service to intrigue. territories are all currently excluded.) We don’t know when the service will spread to the remaining states or to other countries, if at all, nor indeed when it will graduate from “pre-release” to full release. (Though not in all 50 states: Hawaii, Nevada, New Mexico, North Carolina, Wisconsin, and the U.S. citizen or resident since Apple is launching the service in its home territory only at first. One of the qualifying criteria, at any rate, is that you must be 18 or older to use it (19 in Alabama).
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