Apple announced Monday during its WWDC 2022 conference that iOS 16 will have a Buy Now, Pay Later (BNPL) feature called Apple Pay Later. Users can access the feature in the Apple Wallet app and can apply for the BNPL plan whenever they use Apple Pay for a transaction.
Apple Pay Later allows users to split up a transaction into four equal payments, and then they pay it down over six weeks with no interest. Users will make the first payment upfront, with the remaining payments occurring every two weeks.
Users can pay in advance and monitor upcoming payments directly in the Apple Wallet app. Apple Pay Later also won't incur any additional fees, according to the company's press release.
"Apple Pay Later makes it easy to view, track, and repay Apple Pay Later payments within Wallet. Users can apply for Apple Pay Later when they are checking out with Apple Pay, or in Wallet," the company said in its release.
To qualify for a BNPL plan, the lender -- in this case, Apple -- will likely do a soft credit check, which means your credit scores will not be impacted. However, missing payments on BNPL plans could negatively impact your credit, so be sure you're paying it off on time.
Buy Now, Pay Later plans have been growing in popularity, with many companies like PayPal, Block, Klarna, and Mastercard offering BNPL plans of their own. With inflation and the cost of goods steadily rising, BNPL plans offer an easier way for consumers to make necessary purchases.
However, some worry that it could lead to a further debt-spiral, with consumers relying unnecessarily on another loan. As with all financial products, it's important to utilize the tools responsibly. Make your payments on time and try not to spend money you don't have in order to avoid any potential financial consequences.
Additional features being added to Apple Wallet for its iOS 16 rollout include order tracking, which gives users the ability to receive detailed receipts and track shipping information. Virtual keys and ID features are getting expanded support as well.