Buying an item now and paying for it later has only gotten more popular lately. This week, Apple announced plans to get in the game, going even deeper into the finance sector. Consumers who use Apple Pay will soon have the option to split payments on purchases and pay them off over time, similar to other ‘pay later’ companies like Affirm, Klarna, and AfterPay, to name a few.
CivicScience data has shown that adoption of these services has grown over the pandemic, as more people were able to stash cash.
How do consumers feel about Apple’s announcement?
Around a quarter of U.S. adult survey respondents (n=3,062) report they’re at least somewhat likely to try Apple’s version.
Self-reported Apply Pay users in the CivicScience database are the most likely to be interested in this offering, however there is strong likelihood among Google Pay and Venmo users as well.
The strongest indicator for trying Apple’s offering is having used any BNPL service already. At least three-quarters of those who have used such a service are at least somewhat likely to try Apple’s version. The strongest likelihood is seen among those who didn’t have a good experience with the service they’ve already used.
Roughly a third of likely Apple “pay later” users aren’t comfortable with the amount of debt they already have today.
Interestingly, those who are likely to try Apple’s new offering, as well as those “not at all likely” to try it, are nearly just as likely to currently hold any amount of credit card debt.
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