The ugly economics behind Apple’s new Pay Later system

Illustration by Alex Castro / The Verge

This text was initially printed in June 2022. We’re reviving it as we speak since Apple has lastly gone by means of with its plans to launch the service.

Apple is moving into the “purchase now, pay later” (BNPL) enterprise with its new Pay Later service constructed into Apple Pay and Apple Pockets. Whereas Apple payments the service as “designed with customers’ monetary well being in thoughts,” BNPL is a apply that has come beneath scrutiny by authorities regulators as one thing that might doubtlessly hurt clients.

Apple’s Pay Later service, which has been within the works since at the least final 12 months, lets customers make a purchase order with Apple Pay after which pay it again in 4 equal installments over the course of six weeks. There’s no curiosity on these installments, however it…

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