{"id":48202,"date":"2022-06-13T04:28:29","date_gmt":"2022-06-13T04:28:29","guid":{"rendered":"https:\/\/harchi90.com\/new-apple-pay-later-feature-could-destroy-your-credit-rating-finance-experts-urgent-warning-after-iphone-announcement\/"},"modified":"2022-06-13T04:28:29","modified_gmt":"2022-06-13T04:28:29","slug":"new-apple-pay-later-feature-could-destroy-your-credit-rating-finance-experts-urgent-warning-after-iphone-announcement","status":"publish","type":"post","link":"https:\/\/harchi90.com\/new-apple-pay-later-feature-could-destroy-your-credit-rating-finance-experts-urgent-warning-after-iphone-announcement\/","title":{"rendered":"New Apple Pay Later feature could destroy your credit rating – finance expert’s urgent warning after iPhone announcement"},"content":{"rendered":"
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A NEW Apple Pay Later feature could destroy your credit rating, a finance expert has urgently warned after an iPhone announcement.<\/p>\n

Rajat Roy, a professor at Bond University, has warned that iPhone and iPad owners that the new pay feature has potentially serious financial consequences.<\/p>\n

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A finance expert has issued a stark warning about Apple’s Pay Later feature<\/span>Credit: Getty<\/span><\/figcaption><\/figure>\n

According to Apple, its Pay Later feature provides users in the US with a “seamless and secure” way to split the cost an Apple Pay purchase into four equal payments spread over six weeks, with zero interest of feeds.<\/p>\n

Apple Pay Later is available everywhere Apple Pay is accepted online or in-app.<\/p>\n

Roy said though it sounds convenient, Apple stands to make massive profits off the “zero interest” service and will be able to learn a lot of users’ spending patterns.<\/p>\n

“As Apple’s customers increasingly start to use the Pay Later service, it will gain from merchant fees,” he explained.<\/p>\n

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“These are fees which retailers pay Apple in exchange for being able to offer customers Apple Pay. <\/p>\n

“In addition, Apple will also gain valuable insight into consumers’ purchase behaviors, which will allow the company to predict future consumption and spending behavior.”<\/p>\n

But it also exposes everyday users into the murky world of unregulated finance, Roy argues.<\/p>\n

“Younger demographics (such as Gen Z and Millennials) and low-income households can be more vulnerable to the risks associated with using these services – and can rack up debt as a result,” he explained.<\/p>\n

“From a consumer psychology perspective, these services encourage immediate gratification and put younger people on the consumption treadmill.<\/p>\n

“In other words, they may continually spend more money on purchases than they can actually afford.”<\/p>\n

Roy points to evidence he calls compelling: a 2021 survey that found approximately 26 percent of regular online shoppers in Australia used buy now, pay later services.<\/p>\n

This can be a slippery slope, Roy says. Missing payments on Pay Later schemes will negatively impact an individual’s credit rating “which can then have adverse outcomes such as not qualifying for traditional loans or credit cards”.<\/p>\n<\/div>\n