Apple's move comes as a growing number of consumers have turned to buy now, pay later services to stretch their budgets at a time of high inflation and broader economic uncertainty. Other popular services that offer the same payment option include Affirm, Klarna and Afterpay.
But some economists and consumer advocates have raised concerns that these services could cause shoppers to take on more debt. The installment process makes it seem like someone is paying practically nothing for the goods or service they're acquiring, Terri R. Bradford, a research specialist in payment systems for the Kansas City Federal Reserve, previously told CNN."So the possibility is that you could, in your mind, think of everything that you're buying in those four installments and, as a result, take on more debt than you would if you had to pay for them in full each and every time.
Apple users will be able to track and manage upcoming loan payments in the Wallet app. Any loan application can also be done in the app with no impact on credit, according to the company.First published on March 28, 2023 / 11:47 AM © 2023 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. CNN contributed to this report.Please enter email address to continue