This is how Apple Pay Later will work

Apple Pay Later introduction

In the last WWDC one of the news that was announced was the emergence of Apple Pay Later. It is a new financing method offered by Apple, but despite its announcement, it is not very well known how it will work. In this post we tell you some of the features already confirmed by the Cupertino company.

With the announcement of the launch of this financing method, the curiosity of many users was aroused about how this financing method would work. Apple Pay Later is a new system so that users can buy a product or service and have the opportunity to finance it in 6 weekly payments without this generating interest.

One of the advantages of Apple Pay Later is that it is designed to work with the Wallet app, allowing users to view and manage their payments and purchases available in all establishments that allow the use of Apple Pay. However, there are some questions about how it can work and whether it will be profitable for Apple.

These will be its main characteristics

The first question is how exactly it works. You have to know that Apple advances the money and has MasterCard as a partner. In that sense, Apple Pay Later allows you to split any purchase into four installments, without interest. If it was already necessary to understand what Apple was going to do to advance the money for that payment, it was even less clear to know what happened in the event that a user in a hurry needed to extend the return period. Normally, at that point is when the usual services begin to charge interest, and that’s where their business model lies: they don’t earn anything with customers who pay on time, and monetize those who require extra terms.

According to various media, it is rumored that Apple may limit credits to $1,000, that it is a fairly common limit for immediate credits of this type, which do not have any type of requirement to request it, not like in the loans that are usually requested in banks. Therefore, you will not be able to use Apple Pay Later to be able to split any amount, and if at any time you cannot return the credit, you will lose access to this option.

Apple Pay Later app

The final result for the client can be summed up in that you will have four terms in which you can divide the purchases. These four installments are divided into a first installment paid at the time of purchase, a second installment two weeks later, a third installment two weeks later, and a final installment paid after another two weeks. In total, as we have mentioned before, they are four installments spread over six weeks.

It is possible that these advances could be the prelude for Apple to become a banking entity in the future, but only the passage of time will tell. However, it must be borne in mind that there is an abysmal difference between a bank and granting microcredits, but if someone can link it, it is undoubtedly the Cupertino company.