Apple will now let consumers use its mobile payment service, Apply Pay, to make purchases immediately and pay for them in installments over time.
The loans are designed to encourage consumers to spend and borrow more, and users are subject to fees if they miss payments, which can lead to their accumulating more debt.
Apple's pay later system requires users to link a debit card, rather than a credit card, from their digital wallets as their loan repayment method. That's to help prevent users from taking on more debt to repay the loans. "Apple not allowing customers to link to a credit card is a unique feature in its BNPL product that should limit the ability of borrowers to pay off one form of debt with another form of debt, though it does not fully address our broader concerns over the structural and cyclical challenges the buy-now-pay-later business model continues to face," Michael Taiano, senior director, Fitch Ratings said in a statement to CBS MoneyWatch.
In 2021, buy now, pay later loans totaled $24 billion, up from $2 billion in 2019, according to a CFPB . The payment option has become ubiquitous in stores and online, forcing regulators to play catch up. At the same time, the agency has seen a steady rise in the percentage of borrowers who fall behind.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Apple staff concerned about high-tech headset, report claims | Digital TrendsAs Apple prepares to unveil its all-new mixed-reality headset, enthusiasm for the project among some staff has given way to skepticism, a new report claims.
Read more »
Tech giant closes 2 SF offices, lays off workersThe tech giant will pay nearly $100 million to consolidate its office space in a newly announced restructuring effort.
Read more »
Apple launches its Pay Later serviceApple on Tuesday introduced Apple Pay Later, which will allow users to split their purchases into four payments spread over six weeks.
Read more »
Apple Pay Later gets limited iPhone launch, here’s what you need to knowAfter months of waiting, Apple has finally announced the availability of Apple Pay Later with a soft launch. Here's what you need to know.
Read more »
Apple Pay Later is finally launchingThe service was announced back in June 2022 but was held back by delays.
Read more »
Apple Pay Later is finally available in the US, but only with an invite | EngadgetApple Pay Later has arrived in the US for some users, letting you split purchases into multiple payments..
Read more »