Do you hear that? It’s the winds of BNPL change

Yesterday, Apple announced the launch of a brand-new buy now, pay later (BNPL) product called “Apple Pay Later,” which is currently available to randomly-selected users operating on iOS 16.4.

📱👛 How it works: Using a feature within the Apple Wallet, iPhone and iPad users in the US can apply for a loan between $50 and $1,000.

If approved, the user would be able to spend the money at any online retailer that accepts Apple Pay (more than 85% of them do). The loan would have to be paid back in four equal installments over six weeks, with no added interest or fees.

• According to Apple, the initial approval process won’t affect users’ credit scores, but the subsequent loan and payment history “may be reported to credit bureaus and impact their credit.”

📈 Zoom out: From 2019 to 2021, the total value of BNPL loans granted in the US grew by more than 1,000% to reach $24.2 billion, per the latest federal data.

And much like short form dancing or disappearing picture messaging apps, its users tend to skew young. Some 31% of US adults said they used a BNPL service in 2021 – including nearly half of respondents under the age of 35.