Buy now, pay later (BNPL) — a popular payment method of most businesses – covers the customer’s purchase of a product or service and pays through the installment process over time.
According to Statista, BNPL is the most popular payment method and is a rapidly growing payment method in India and the UK. Correspondingly, half of the customers in the US availed of a BNPL service.
Recently, Apple Inc. released its Buy Now, Pay Later Service in the U.S., which allows Apple users to apply for loans between $50 to $1000 and can be used for online and in-app purchases made on Apple products that have an Apple Pay feature.
This Apple Pay Later has a four-payment process over six weeks with no interest or fees. Approved users will have a Pay Later option which means they can apply for a loan within their Apple Wallet app and pick the amount that they want to withdraw. The process will be verified using Face ID, Touch ID, or a passcode.
Apple Inc. will be having a pre-selected list of users to get access to their prerelease version of Apple Pay Later and later on they will develop the feature for all eligible users.
This BNPL method is used by various businesses because it provides convenience to the customers, attracts customers, and holds up Customer Lifetime Value that could result in higher revenue.