too easy to buy things you can’t afford

Apple comes with the option to spread costs. Buy now and pay later, but without interest. That sounds nice, but it is also dangerous.

Apple Pay Later: buy what you can’t afford

One notable announcement at WWDC was Apple Pay Later for iOS 16. Anywhere you can pay with Apple Pay, you’ll soon be able to turn on Apple Pay Later. This means that you do not have to pay the full purchase amount immediately, but you will do so in four installments over the next six weeks. You start with the first part and then pay another part every two weeks.

Payment in installments is not new. Certainly not in the United States, where there are dozens of apps with this feature. It is also possible in the Netherlands via credit cards or credit, but then you usually have to pay interest. This means that you will ultimately pay more than paying the amount in one go. You know: ‘Watch out! Borrowing money, costs money’.

Apple doesn’t. If you buy something via Apple Pay Later, there will be no interest or other extra costs and you will end up just as expensive. That makes Apple Pay Later very interesting.

No more waiting

If you need to buy something and you don’t have the money right away, you don’t have to wait any longer with Apple Pay Later. Ideal if you know how much money is coming in when and what you can spend in the coming period.

However, not everyone is so organized. It is in fact much more attractive to buy something expensive if you only have to pay a quarter of the amount at that time. That new MacBook Air is for sale from 1519 euros, but with Apple Pay Later you only have to pay 380 euros to get the laptop at home. Products seem cheaper and therefore you are more likely to buy something that you can’t actually afford.

You see it as a problem for yourself in the future, but you don’t know what will happen in that future. What unforeseen costs you have in the coming weeks and whether your money is coming in on time. Suddenly you are left with a loan and no money.

In the weeks after a purchase, it also seems like you have more money in your account than you can actually spend, because you still have to pay that Apple Pay Later loan. This makes you more likely to spend more. Maybe with Apple Pay Later again, so that the loans pile up.

Better than the competition

Is it bad that Apple offers this option? In any case, it is a better option than a shady party that also charges a lot of interest. Apple Pay is also a secure payment service, where you know that your data remains private. Unlike those other services. In that sense, I’m glad Apple is coming up with this for disciplined consumers.

But because Apple Pay is so simple, it makes it very easy to get yourself into debt. Especially if you are a bit younger, you are not always able to properly estimate financial matters.

As soon as the option is made available, it is therefore smart to keep in mind that it is better not to pay something in instalments if you cannot pay it in full at that time. But the best advice remains: save first and then buy.

More about Apple Pay

You can use Apple Pay on your iPhone, Apple Watch or Mac and if you are affiliated with the right bank. We explain how setting up Apple Pay works. We also tell you how safe Apple Pay actually is.