At its Worldwide Developers Conference (WWDC) 2022 earlier this week, Apple unveiled a brand-new service dubbed Buy Now Pay Later or Apple Pay Later. The service enables Apple Pay users to divide the amount of an Apple Pay transaction into four equal instalments that are spaced out over a period of six weeks, according to the company’s explanation.
The fact that this business enables split payments with no interest and no fees of any type makes it more practical for consumers. Viewing, tracking, and reimbursing Apple Pay Later payments within Wallet is simple using Apple Pay Later.
What is the operation of Apple’s Pay Later service?
Although the service appears straightforward to use at first glance, Apple has a well-thought-out strategy behind it. CNBC claims that in order to finance its Apple Pay Later service, Apple has established a distinct entity called Apple Financing LLC. This new firm is independent of Apple’s core operations and has received the required approvals from the US Treasury department to provide such a service.
In order to determine a customer’s creditworthiness, Apple Financing LLC will, according to the report, perform a soft check credit check on them. This will entail pulling their credit information as well as additional data, such as their purchase and payment history with Apple in both its stores and online services. This data will be used by the Apple subsidiary to offer short-term loans to Apple Pay Later users.
How much credit can I get?
According to CNBC, the credit limit for Apple’s Pay Later service is anticipated to be $1,000 or 77,775.
Why Purchase a Mobile on EMI?
Buying a phone on an EMI without a credit card has several benefits.
Easy on the wallet: Paying for a phone in full at once can throw your monthly budget off course and leave you with less money for emergencies. However, purchasing a phone with an EMI from a credit card or debit card helps you make sure you always have adequate cash on hand. You may easily make your purchase, whether you’re looking for high-end mobiles or the greatest mobile around Rs. 10,000!
Premium phones become more affordable: The price of a smartphone increases with the quality of its specifications. You do not have to pay the whole price when you purchase a phone on an EMI plan. As a result, you can purchase your preferred high-end phone without having to pay the full price up front.
Free EMI mobiles can help you save more: With the option of free EMI, paying for a mobile phone in instalments becomes considerably more alluring. You incur no further costs in this approach (0% interest).
EMI Cards for credit card-free cellular phone purchases
Needing an EMI card, you can buy a smartphone on EMI without using a credit card. Typically, this kind of product is a pre-approved loan that allows you to make purchases and turn them into simple EMIs. The majority of reputable banks that offer consumer durable loans also offer EMI card options. EMI cards offer no-cost EMIs, which means they don’t impose an interest fee. Just the price of the item you buy must be paid in instalments. Anyone between the ages of 21 and 60 who has a steady source of income is eligible to apply for an EMI card.