Apple launches its service "Buy now, pay later": how does it work?

New York () — Apple launched an option in its digital wallet on Tuesday that allows customers to pay for their online purchases in installments, becoming the latest company to embrace the buy-now-pay-later trend.

The new function, called Apple Pay Later, allows customers to divide the payment of their purchases into four installments over six weeks, the first installment having to be paid at the time of purchase. Apple users can also request a loan in the Wallet application, between US$ 50 and 1,000, without interest or commissions, to make purchases online or within the application.

According to a release of the company, the payment option will be available to select users in the United States and is planned to be offered to all eligible customers in the coming months. Manzana announced this feature last year.

Apple’s decision comes at a time when more and more consumers are turning to delayed purchase services to stretch their budgets amid high inflation and general economic uncertainty. Other popular services that offer the same payment option are Affirm, Klarna, and Afterpay.

But some economists and consumer advocates have raised concerns that these services could drive shoppers deeper into debt.

The installment payment process makes it appear as if someone is paying virtually nothing for the good or service they are purchasing, Terri R. Bradford, a payment systems research specialist at the Kansas City Federal Reserve, previously told . “So the possibility is that you could, in your mind, think about everything you’re buying in those four installments and, as a result, put yourself in more debt than you would if you had to pay it off in full each time.”

But Apple says the new feature is “designed with users’ financial health in mind.”

Credit: Apple

“There is no one-size-fits-all approach when it comes to how people manage their finances,” Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, said in Tuesday’s statement. “Many people are looking for flexible payment options, so we’re excited to offer Apple Pay Later to our users.”

Apple users will be able to track and manage upcoming loan payments in the Wallet app. Any loan application can also be made on the app with no credit impact, according to the company.

The Apple Pay Later option is enabled through the Mastercard Installments program.

— ‘s Alicia Wallace contributed to this report.