Apple's New 'Buy Now, Pay Later' Service

Apple's New 'Buy Now, Pay Later' Service - A Game Changer for Consumers and Merchants Alike!

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Apple enters the $100B BNPL market in the US with the launch of Apple Pay Later, offering interest-free, four-payment instalment options to users.

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The service will allow users to split purchases into four payments spread over six weeks, with no interest or fees.

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Apple Pay Later will be enabled through the Mastercard Installments program, with Goldman Sachs as the issuer of the payment credential.

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Apple has about 50 million Apple Pay users and 6.5 million Apple Card holders, driving potential new business for Apple Card.

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BNPL has been around longer than some realize and is changing the customer experience by influencing product choices earlier in the journey.

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Apple Pay Later is vital to Apple's hardware sales strategy and market position by providing new payment options to consumers and merchants.

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Apple has some payment adoption and utilization issues, which it hopes to address with Apple Pay Later and other initiatives.

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Apple Pay usage lags compared to PayPal and CashApp, with just 26% of consumers using it, as per Q1 2022 study.

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Growth of Apple Card users slowed in 2021, underscoring the necessity for Apple to offer new payment services such as Apple Pay Later.

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With Apple Pay Later, consumers and merchants gain access to new payment options while Apple tackles adoption and utilization issues in the payments space.

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