Global technology giant Apple revealed plans to introduce a buy now, pay later service (BNPL) as part of the launch of its new operating system- iOS 16.
In a move sure to shake up the global eCommerce kaleidoscope, the California-based company announced Apple Pay Later will serve as a ‘seamless and secure way to split the cost of an Apple Pay purchase… with zero interest and no fees of any kind’.
Despite the company’s assertion that the service has been ‘designed with users financial health in mind’ it seems certain to attract controversy with consumers and industry experts alike becoming increasingly concerned by the trend towards BNPL shopping.
These concerns are fuelled by a combination of the lack of regulation in the industry and worrying recent research from the UK that 1 in 12 are using BNPL services to buy essential products.
However, these fears look set to be shelved as Apple’s entry into the market will only accelerate the growth of an industry that’s already estimated to be worth over $1.5 trillion in the US by 2028, despite the recent economic downturn.
The rapid trajectory of this growth means eCommerce businesses will adapt accordingly or risk being left behind, with Apple’s innovation providing an even deeper level of integration between user and BNPL eCommerce solutions.
Although initially being introduced in the US exclusively in September of this year, it is impossible to imagine a successful American rollout of the technology wouldn’t result in a transatlantic trip soon after.
Consequently, with Apple commanding such a large market share in the UK and Europe many eCommerce specialists on this side of the pond will no doubt be watching with great interest.
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