Skip to main content

Apple Now Rolling Out Its Buy Now, Pay Later Offering (BNPL)

03/29/2023 CUToday

CUPERTINO, Calif.–Apple is finally launching Apple Pay Later, its version of the buy now, pay later (BNPL) offerings that have taken hold over the past several years and eroded credit card volume in the process.

thumbnail_Apple BNPL

In announcing the offering, Apple said users can use the service to apply for Pay Later loans of $50 to $1,000 and then repay those loans through four payments over the course of six weeks with no interest or fees.

Apple Pay Later exists within the Apple Wallet and is designed to allow borrowers to avoid paying the full price for a product right away. Apple announced the service in 2022, but its launch was delayed due to what were called “technical and engineering issues.”

‘No Impact on Credit,’ But…

According to Apple, users can apply for a loan within the Apple Wallet “with no impact to their credit,” but the company notes in the fine print that the Pay Later loan and payment history “may be reported to credit bureaus and impact their credit,” the Verge reported.

Once approved for a loan, users will start seeing the Pay Later option at checkout in apps and online on the iPhone and iPad. Apple further said in a statement that users will be able to view and manage their loans within the Wallet app and that they’ll receive notifications when payment is due.

The service is not yet available to everyone. According to Apple, “randomly selected” users will receive invites to obtain early access to Apple Pay Later. The service is only available in the U.S. and for online and in-app purchases on iOS 16.4 and iPadOS 16.4.

Apple Handling Financial Side, Too

Unlike its earlier partnership with Goldman Sachs when it launched its credit card, with the BNPL offering the company will be handling the financial side, as well, through a new subsidiary, Apple Financing LLC, which the company says “is responsible for credit assessment and lending.”

The company did, however, partner with the BNPL program Mastercard Installments to enable Apple Pay Later, while “Goldman Sachs is the issuer of the Mastercard payment credentials,” according to the Verge.com analysis.

Apple Financing LLC will begin reporting Pay Later loans to credit bureaus starting in the fall, the company said.
Concern by Credit Unions

BNPL solutions such as that from Apple have raised strong concerns within credit unions for numerous reasons, including the loss of credit card transactions/loans by members, and the fact members can get into financial trouble due to too many BNPL purchases without that debt appearing on credit reports.

Numerous efforts have been announced or are underway within CUs to respond with BNPL financing solutions of their own.

Comments

Post a Comment

Please no profanity or political comments.

Popular posts from this blog

TruStage To Launch TSDA, Bringing Stablecoin Infrastructure To Community FIs

MADISON, Wis.— TruStage Tuesday today announced the planned launch of TruStage Stablecoin (TSDA), a fully reserved U.S. dollar stablecoin. At its core, TSDA is designed to broaden access to digital payment infrastructure for community-based financial institutions, TruStage explained. “A trusted partner of credit unions for more than 90 years, TruStage currently works with more than 93% of 4,300+ credit unions nationwide, which collectively hold more than $2 trillion in assets. TruStage Stablecoin will be among the very first stablecoins specific to community based financial institutions and is supported by decades of industry relationships, financial strength, and operational excellence,” TruStage said. “In my career working with credit unions, I’ve never witnessed the level of engagement surrounding any technology advancement similar to what I’m seeing with stablecoin solutions right now,” said Brian Kaas, president and managing director of TruStage Ventures, the venture capital arm o...
Post a Comment
Read Complete Article HERE>»

Sunday Reading - Where Beatniks Come From

  Where Beatniks Come From       An introduction to the Beat Generation The Beat Generation   was an American literary movement that rose to prominence in the 1950s. A loosely affiliated collection of poets, novelists, playwrights, publishers, and other artists reacted to what they considered an anti-intellectual and homogeneous social order following World War II.   The writing of the Beat Generation used experimental forms, surreal imagery, and vernacular language, and emphasized the importance of " spontaneous prose " to mimic the improvisation of jazz. Although the Beats praised canonical poets like William Blake, Arthur Rimbaud, and Walt Whitman, much of their work sought to rebel against literary tradition.   The Beats' radical politics and nonconformity influenced several subsequent countercultural ...
Post a Comment
Read Complete Article HERE>»

As Mortgage Rates Continue to Rise, Refinancings Plunge

10/02/2022 10:40 am CUToday WASHINGTON–With mortgage rates hitting highs not seen in more than a decade, refinancings continue to plunge and volume is considerably below where it was one year ago. Mortgage application volume declined 3.7% last week compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index, after what some analysts called a “strange rebound” the week before. Applications to refinance a home loan declined 11% for the week and were 84% lower than the same week one year ago. They are now at a 22-year low, the MBA data show. Meanwhile, the average contract interest rate for 30-year fixed-rate mortgages wi...
Post a Comment
Read Complete Article HERE>»

Why First Responder Credit Unions Are Built to Adopt Blockchain Faster

  For years, blockchain in financial services lived mostly in the world of experimentation—proofs of concept, pilot programs, and innovation labs that rarely touched day-to-day operations. That era is ending. Today, blockchain adoption is moving from experimentation to scale. Across payments, capital markets, and banking infrastructure, financial institutions are beginning to operate on new rails—powered by tokenized money, programmable assets, and always-on settlement models. For credit unions serving first responders, this shift presents not just a technology opportunity, but a strategic one. Blockchain Is Becoming Core Infrastructure The most important change isn’t the technology itself—it’s how it’s being used. Blockchain is no longer about testing what might work. It’s increasingly being deployed as infrastructure to solve long-standing problems in financial services, including slow settlement, trapped liquidity, manual reconciliation, and limited operating hours. Cr...
Post a Comment
Read Complete Article HERE>»

As Expected, Fed Opts Not to Raise Rates--But Says It May in Future

WASHINGTON–As expected, the Federal Reserve has adjourned its meeting here without raising rates, but it also indicated it could again do so in the future. The decision means rates remain at a two-decade high. The adjournment without action marks the second consecutive meetings at which the Fed has not raised rates, it the longest period without an increase since it began to lift rates from near 0% in March 2022. In announcing it would maintain the Fed Funds rate at a range of 5.25% to 5.50%, the Fed said in a statement that recent indicators suggest economic activity expanded at a strong pace in the third quarter, job gains have moderated since earlier in the year but remain strong, and the unemployment rate has remained low. Inflation remains elevated. ...
Post a Comment
Read Complete Article HERE>»

Mastering Mortgages - A little History for the Day

  Mastering Mortgages     Background Mortgages  are a type of property loan that financial institutions, such as banks and credit unions, can offer when a prospective buyer decides against paying a property’s full cost in cash.  The lender provides funds to the borrower to purchase the property, and the borrower pays them back over a fixed time period, typically between 10 and 30 years. On top of paying back the base cost of the property, also called the “principal,” the borrower pays monthly interest to the lender.  Most buyers also pay a down payme...
Post a Comment
Read Complete Article HERE>»

Sunday Reading - Year of the Fire Horse

        Year of the Fire Horse   Lunar New Year celebrations kick off  tomorrow, ushering in the Year of the Fire Horse in the Chinese zodiac. The 15-day festivities, observed by billions worldwide, start with the new moon and end with the Lantern Festival. China anticipates a record 9.5 billion trips during the 40-day travel rush around the holiday, the world’s largest annual human migration. The horse is the seventh animal in the 12-year zodiac cycle and symbolizes energy, independence, and ambition. Those born in horse years are seen as dynamic, courageous, and charismatic. Many see the Year of the Fire Horse as a time to tak...
Post a Comment
Read Complete Article HERE>»

NCOFCU - "Video Mini's" The Federal Reserve

The Federal Reserve, often referred to as the Fed, is the central banking system of the United States. Established in 1913 by the Federal Reserve Act, the Federal Reserve serves several crucial functions in the U.S. economy. Here are the main aspects of the Federal Reserve:  Visit NCOFCU's YouTube channel for more. "Video Mini's" The NCOFCU "Video Minis" are a series of concise 2-3 minute video presentations designed to deliver valuable insights and knowledge on key topics relevant to credit unions. Each video focuses on a specific subject, providing viewers with essential information in a brief and engaging format. These mini-presentations cover a range of subjects. Perfect for busy professionals seeking quick yet impactful content, the Video Minis make it easy to stay informed and enhance your credit union's operations and member services. Join us in exploring these informative and dynamic learning opportunities!
Post a Comment
Read Complete Article HERE>»

Economic and Industry Issues

Weekly News Summary -  July 30, 2020 Press Release For Immediate Release Weekly News Summary Hello NCOFCU Members, Here are some things that were in the news last week. Please share these articles with your Supervisory Committee and Board of Directors. If you missed previous editions of the weekly news, summaries of those can be viewed at our  archive .  Have a great week! Mike Richards, CPA         The Callahan Credit Union A...
Post a Comment
Read Complete Article HERE>»

Sunday Reading - Budweiser 101

Draft Horses   Budweiser 101 Perhaps best known for its Super Bowl Clydesdale ads, Budweiser   is among the world’s most popular beer brands. It was among the first beers to achieve national distribution in the late 19th century, thanks to its revolutionary refrigeration and pasteurization techniques, setting the stage for the modern US beer industry.   Founded in the 1850s as the “Bavarian Brewery,” the company was acquired in 1860 by Eberhard Anheuser. He sold half of it to his son-in-law,  Adolphus Busch ,   in 1869, forming the partnership that would become Anheuser-Busch in St. Louis, Missouri.   In the 1870s, Carl Conrad , a St. Louis distributor, traveled through a Bohemian town called “Budweis” in German and drank a pale lager. Upon returning home, he worked with Anheuser-Busch to brew its own light lager, marketing it under the ...
Post a Comment
Read Complete Article HERE>»