Apple is late to the buy-now-pay-later party. When boss Tim Cook unveiled plans last June to offer American shoppers a version of the popular four-payment system for buying merchandise, the market was in a somewhat healthier state. If anyone can help validate the product, it’s Apple, but times are considerably tougher.
, which bought industry pioneer AfterPay for $29 billion in February 2022, have slumped, too. Customers flocked to the small and short-term loans through the pandemic, attracted by interest-free debt and promises that their borrowing wouldn’t be reported to credit agencies unless they miss payments or fail to pay the money back.reported findings
earlier this month that pay-later consumers, on average, are more likely to be highly indebted and default than the typical credit card user. Apple will be well-versed in these risks, but a bigger crackdown is probably coming. What’s more, shifting consumer sentiment and a cooling economy could hurt demand and increase the risk of bad loans. The $2.5 trillion iPhone maker wouldn’t be the first corporate titan to answer the siren call of financing.
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